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Without THE NERVOUS SYTEM, the human body would become an inert mass, and every organ would

rapidly decay.

An industrial concern also has its reflex actions, which are effected without the direct intervention of the higher authority.

Which calls for the application of wide knowledge and many personal qualities, is above all the art of handling men, and in this art, as in many others, it is practice that makes perfect.

 It has to foresee and make preparations to meet the financial, commercial, and technical conditions under which the concern must be started and run.  It deals with the organization, selection, and management of the staff. It is the means by which the various parts of the undertaking communicate with the outside world.

 a French industrialist the father of the administrative management theory

 Born in ISTANBUL , Turkey in


July 29, 1841 Died in Paris November 19,1925 Saint-tienne

 Studied in mining school in

 In 1916 he published the book


Administration Industrielle et Gnrale

 Started as an engineer at a

mining company at the age of 19

 Joined Comambault (a mining company)

and became

the top executive officer in 1888.

 Comambault had been restored to financial solvency after facing bankruptcy when ayol took over.  In 1900, reveals that it was not his engineering skills, but rather other skills that he had used in managing the firm during that time.

 His emphasis on the difference between technical and administrative skills became the foundation of AIG, that doing work and managing others at work requires a re-tooling of a persons abilities.

 Administrative Management Theory  Principles of Management  Viewed management as profession that can be trained
and developed  Emphasized the broad policy aspects of top level managers ( top down approach)  Offered universal managerial positions

basically focuses on how a business should be organized and the practices an effective manager should follow.

Defining goals, establishing strategy, and developing plans to coordinate activities

Determining what needs to be done, how it will be done, and who is to do it

Motivating, leading, and any other actions involved in dealing people.

Monitoring Activities to EnsureAchieving the that they Are accomplished organizations stated As planned purpose

FUNCTIONS Skill
Acquiring Power Active listening Budgeting Choosing an effective leading style Coaching Creating effective teams Delegating (empowerment) Designing motivating jobs Developing trust Disciplining Interviewing Managing conflict Managing resistance to change Mentoring Negotiating Providing Feedback Reading an organizations culture Running productive meetings Scanning the environment Setting goals Solving problems creatively Valuing diversity Planning Organizing Leading Controlling

Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task.
This is because a division of work leads to specialization, and specialisation increases efficiency, and efficiency improves the productivity and profitability of the organization.

AUTHORITY is the power derived from the rights that come with a position and represents the legitimate exercise of power.
Lines of authority link the various organizational components. Unclear lines of authority can create major confusion and conflict within an organization.

RESPONSIBILITY is accountability for attainment of objectives, the use of resources, and the adherence to the organization policy.

Once responsibility is accepted, performing assigned work becomes an obligation.

A group of unspoken rules or of written rules intended to ensure good order and regularity in a company or an assembly.

It also means a respect for the rules and regulation of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However, if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No organization can survive without discipline.

This states that an employee should have one, and only one, immediate manager. The problem arises when 2 managers tell the same employee to do different job at the same time.

All activities which have the same objective must be directed by one manager, and he must use one plan.
, all marketing activities such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must use only one plan for all the marketing activities.

In an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization.
The individual interest should be given less importance, while the general interest should be given most importance. If not, the organization will collapse.

Remuneration is the price for services received. If an organization wants efficient employees and best performance, then it should have a good remuneration policy. This policy should give maximum satisfaction to both employer and employees. It should include both financial and non-financial incentives. Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay.

CENTRALIZATION define as lowering the importance of the subordinate role.

DECENTRALIZATION is increasing the importance.

Board of Directors President Vice President General Manager Superintendent Employee

States that authority in the organization flows through the chain of managers one link at a time, ranging from highest to lowest. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

Suppose Jerry goes directly above his immediate boss, Ellen, to Charlie for permission to take his lunch break 30 minutes earlier. Charlie, believing the request is reasonable, approves it, only to find out that the other two people in Jerrys department had also rescheduled their lunch breaks. Thus, the department would be vacant from 12 to 1 oclock. Ellen, the bypassed manager, would have known about the other rescheduled lunch breaks.

``a place for everything and everything in its place.

It is order in deeds and with things: it is the means of avoiding waste of material and time and for avoiding conflicts. Facilities must be tidy, materials orderly stored and staff selected according to strict procedures and clear job descriptions.
Fayol advocated the creation of detailed organizational charts to support this Principle.

The managers should use the equity while dealing with the employees. Equity is a combination of kindness and justice. Equity creates loyalty and devotion in the employees.

Limited turnover of personnel. Lifetime employment for good workers. An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security.

Thinking out a plan and do what it takes to make it happen.

Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans. This is because an initiative gives satisfaction to the employees and brings success to the organization.

Esprit de Corps means "Team Spirit". Therefore, the management should create unity, co-operation and team-spirit among the employees. They should avoid the divide and rule policy.

 Stressed a one best way way of organizing


and managing

 theory based on intuition and observation rather than


empirical/experimental investigation
Gulick and Urwick continued Fayol's work by providing empirical evidence. Gulick showed that a maximum span of control of seven employees per manager in US schools was most effective.

 todays environment are more turbulent


and unpredictable

 too general for todays highly complex organization.

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