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MANAGEMENT
ADMINISTRATIVE MANAGEMENT
THEORY
• Attempts to find a rational way to design an organization as a whole.
• The theory generally calls for a formalized administrative structure. A clear
division of labor and delegation of power and authority to administrators
relevant to their areas of responsibilities
HENRI FAYOL (1841-1925)
• Fayol laid the first foundations for modern scientific management.
His principles of management and research were published in the
book General & Industrial Management (1916)
Discipline
• One man and one superior.
• It is often a part of the core values of a mission • It means that an individual employee
and vision in the form of good conduct and should receive orders from one
respectful interactions. manager and that the employee is
answerable to that manager.
• This management principle is essential and is
seen as the oil to make the engine of an • If tasks and related responsibilities
organization run smoothly. are given to the employee by more
than one manager, this may lead to
confusion which may lead to possible
conflicts for employees.
• By using this principle, the
responsibility for mistakes can be
established more easily.
Unity of Direction Subordination of Individual Interest
• One head and one plan for a group • There are always all kinds of interests in
of activities with the same an organization. In order to have an
objective. organization function well, Henri Fayol
indicated that personal interests are
• All activities must be carried out by
subordinate to the interests of the
one group that forms a team. These
organization (ethics).
activities must be described in a
plan of action. • The interests of one individual or one
group should not prevail over the general
• The manager is ultimately
interest.
responsible for this plan and he
monitors the progress of the
defined and planned activities.
Focus areas are the efforts made by
the employees and coordination.
Renumeration The Degree of Centralization
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MAX WEBER (1864 – 1920)
AND BUREAUCRACY
• German sociologist who influenced classical organization theory.
• Weber developed a model for a rational and efficient large
organization which he termed a bureaucracy.
• Weber described the following as characteristics of legal
authority with a bureaucratic administrative staff
Office (or position) is the basic organizational unit
designated a specific set of functions with clearly
defined authority and responsibility.
Members of the organization owe loyalty to the office,
not (as with traditional/charismatic authority) to the
individual
Candidates for offices are selected and appointed (not
elected) based on their technical capability.
Officers are organized in a clearly defined hierarchy:
each lower office is under the control and supervision of
a higher office.
Officials are subject to strict and systematic discipline
and control in the conduct of the office, and
subordinates have a right of appeal.
continuation…
Administrative acts, decisions, and rules must be reduced to writing
The office is the primary occupation of the incumbent, who is reimbursed by a fixed salary.
Promotion is based on the judgement of superiors.
Officials are not the owners of the organization.
BUREAUCRACY
• This term need not to imply an organization that is mixed in red tape, delay, and inefficiency,
with no concern for the human dimension. Most of Weber’s elements are necessary in any
large organization to assure consistent and reasonably efficient operation. The U.S. Postal
Service or Internal Revenue Service must have the same rules of operation at every local
office, an army must have common procedures so that replacement officers and men can
function quickly on assuming new positions; General Motors, or a large university or hospital, or
the Boy Scouts of America must have fairly uniform structures and rules among their divisions to
function smoothly. The challenge of a large organization is to incorporate into this necessary
structure some flexibility to handle exceptions and an ability to recognize and reward
individual contributions.
RUSSELL ROBB (1864 -1927)
• Rob was an American electrical engineer and manager whose original contributions on
organization theory have not received the attention they deserve.
• After graduating from MIT, Robb spent most of his career as an executive in the Stone and
Webster Engineering Corporation.
• He expressed his views on organization in three lectures presented to the Harvard
University Graduate School of Business Administration in 1909 and later published.
• Young summarized their import: These three lectures… contain more practical
observations on organizations and concepts of organization theory than Weber. He was a
practicing engineer manager, whereas Weber was a sociologist. His penetrating
observation of organizations as “only means to ends --- it provides a method” and analysis
of principles and concepts make him more a “pioneer of organization theory” than
Weber.
LYNDALL URWICK
• An Englishman who majored in history at Oxford.
• His contribution lay not in creating concepts of management
functions but in being the first to try to develop a unified body of
knowledge.
• Using Fayol’s management functions as a framework, he analyzed
the wr