2. Introduction
While people gave
Taylor more attention in
UK and USA , Fayol’s
distinguished book ”
General and Industrial
Management” was
translated from French
to English only after 13
years.
Administrative
management theory
attempts to find a
rational way to design an
organization as a whole.
3. 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 and administrative
management theory important because its
Promote decisions based on data .
Administrative management helps you work
on your processes and results to improve
your overall results and ensuring that
businesses run smoothly.
4. The Three Contributions
Mainly, Fayol offered three contributions:
1. management activities.
2. management functions
3. the fourteen management principles.
5. Management Activities
As for management activities, Fayol
classifies industrial and commercial
organizations into six basic activities:
1. Technical.
2. Financial.
3. security.
4. commercial.
5. Accounting.
6. management activities.
6. Management Functions
As for functions of management stated seven
management functions abbreviated in the word
POSDCORB which includes:
1. Planning.
2. Organizing.
3. staffing and supervising.
4. directing.
5. controlling.
6. Reporting and.
7. Budgeting.
7. The 14 Management Principles
The third and most critical, contribution
offered by Fayol is the 14management
principles. Fayol emphasized two facts
here:
first these principles should be
recognized as an aggregated managerial
tool which means that they work together
as a combination or sum total.
Secondly, these principles should be
applied with flexibility that even new
managers could learn how to manage.
8. 1- Division of work
To ensure work being
easy to perform by
individuals and
groups.
To achieve
specialization and
integration.
9. 2- Authority & Responsibility
means “power” the
right to give order and
expect obedience
10. 3- Discipline
employees should
adhere to rules and
regulations * and
marks of respect to
the organization
system
11. 4- Unity of command
Every employee
should receive orders
from only one
Supervisor or behalf
of the superior.
12. 5- Unity of direction
Each group of
organizational activities
that have the same
objective should be
directed by one
manager using one
plan for achievement of
one common goal.
13. 6- Subordination of the
individual
the goals and
interests of the
organization are
more important
than the goals of
the individuals and
group and,
consequently, they
should supersede
over them.
14. 7- Remuneration
each employee
should receive fair
compensation that
match his
contributions to the
organization.
15. 8- Centralization & Decentralization
managers are
responsible for decision-
making and are
accountable for these
decisions.
In smaller firms ,
centralization is
observed
In larger firms , a series
of intermediaries are
required.
According to fayol
company must not be
completely centralization
or decentralization .
16. 9- Scalar chain
There should be a scalar
chain of authority and of
communication ranging
from the highest to the
Lowest Level .
Communications should
follow this chain.
However if someone
needs to communicate
some other person in
emergency he/she might
use "Gang Plank".
17. 10- Order
To arrange both
human and physical
resources in the right
place at the right time
to ensure maximum
efficiency.
18. 11- Equity
Equity means to be
kind , fair and just
treatment to
employees.
It brings Loyalty to
the Organization .
rules are reasonable
and consistently
applied on all
workers ensuring
equal (although not
necessarily identical)
treatment.
19. 12- Stability of personnel
human resources are
invaluable assets that
should be retained to
ensure long-run
commitment to the
organization.
20. 13- Initiative
its is the ability,
opportunity, and
power to act before
others.
it is the ability to
design an instant
plan and ensuring
its success
21. 14- Esprit de corps
Every employee in
the organization must
consider him as a
part of a team and try
to achieve the team
goal because team
contribution is always
better than individual
contribution.
22. Henri fayol developed the 14 principles of
management According to its specialization
promotes efficiency of the workforce and
increases productivity, This is why Fayol is
counted as "the father of modern management