1. Administrative Science
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915)
Luther Halsey Gulick (1892–1993)
Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925)
Manuela Hortolomei

2. Frederick Winslow Taylor
One of the earliest of these theorists was Frederick Winslow Taylor. He started the Scientific
Management movement, and he and his associates were the first people to study the work
process scientifically. They studied how work was performed, and they looked at how this
affected worker productivity. Taylor's philosophy focused on the belief that making people
work as hard as they could was not as efficient as optimizing the way the work was done.In
1909, Taylor published "The Principles of Scientific Management." In this, he proposed that
by optimizing and simplifying jobs, productivity would increase. He also advanced the idea
that workers and managers needed to cooperate with one another. This was very different
from the way work was typically done in businesses beforehand. A factory manager at that
time had very little contact with the workers, and he left them on their own to produce the
necessary product. There was no standardization, and a worker's main motivation was often
continued employment, so there was no incentive to work as quickly or as efficiently as
possible.
Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair
day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he
didn't deserve to be paid as much as another worker who was highly productive.
With a background in mechanical engineering, Taylor was very interested in efficiency.
While advancing his career at a U.S. steel manufacturer, he designed workplace experiments
to determine optimal performance levels. In one, he experimented with shovel design until he
had a design that would allow workers to shovel for several hours straight. With bricklayers,
he experimented with the various motions required and developed an efficient way to lay
bricks. And he applied the scientific method to study the optimal way to do any type of
workplace task. As such, he found that by calculating the time needed for the various
elements of a task, he could develop the "best" way to complete that task.
These "time and motion" studies also led Taylor to conclude that certain people could work
more efficiently than others. These were the people whom managers should seek to hire
where possible. Therefore, selecting the right people for the job was another important part of
workplace efficiency. Taking what he learned from these workplace experiments, Taylor
developed four principles of scienTaylor's four principles are as follows:
Replace working by "rule of thumb," or simple habit and common sense, and instead use the
scientific method to study work and determine the most efficient way to perform specific
tasks.
Rather than simply assign workers to just any job, match workers to their jobs based on
capability and motivation, and train them to work at maximum efficiency.
Monitor worker performance, and provide instructions and supervision to ensure that they're
using the most efficient ways of working.

3. Allocate the work between managers and workers so that the managers spend their time
planning and training, allowing the workers to perform their tasks efficiently.tific
management. These principles are also known simply as "Taylorism".
Taylor's principles became widely practiced, and the resulting cooperation between workers
and managers eventually developed into the teamwork we enjoy today. While Taylorism in a
pure sense isn't practiced much today, scientific management did provide many significant
contributions to the advancement of management practice. It introduced systematic selection
and training procedures, it provided a way to study workplace efficiency, and it encouraged
the idea of systematic organizational design.
An analysis of the research reveals that, despite negative commentary and development of
new management concepts, Taylor’s principles, themselves, were probably not the focus of
criticisms of scientific management that resulted in new management approaches. The
research shows that modern industrial engineering, reengineering projects, quality circles, and
total quality management initiatives rely on workflow studies and other techniques that reflect
Taylor’s first principle, the scientific study of elements of a job. Current human resource
recruitment and selection approaches mirror Taylor’s second principle, and training and
development as expressed in his third principle are certainly major functions of most
organisations. Finally, many of today’s organisations expect cooperation between managers
and workers through various forms of employee involvement, reflecting Taylor’s fourth
principle. Instead, the criticism of scientific management seems to be directed at Taylor’s
specific methods for complying with the principles, and not at the principles themselves. This
may explain the esteem with which Taylor is still held today by management experts.
The conclusion is that Frederick Taylor’s principles for scientific management are still
appropriate for managing modern organisations.
Henri Fayol's Principles of Management
Today's managers have access to an amazing array of resources which they can use to
improve their skills. But what about those managers who were leading the way forward 100
years ago?
Managers in the early 1900s had very few external resources to draw upon to guide and
develop their management practice. But thanks to early theorists like Henri Fayol (1841-
1925), managers began to get the tools they needed to lead and manage more effectively.
Fayol, and others like him, are responsible for building the foundations of modern
management theory.
Fayol's "14 Principles" was one of the earliest theories of management to be created, and
remains one of the most comprehensive. He's considered to be among the most influential
contributors to the modern concept of management, even though people don't refer to "The 14
Principles" often today.
The theory falls under the Administrative Management school of thought (as opposed to the
Scientific Management school, led by Fredrick Taylor).

4. Fayol’s 14 principles derive from the circumstance that Fayol felt that management was not
well defined. In his striving to change this circumstance he suggested “some generalized
teaching of management” to be a main part of every curriculum at places of higher education
and even beginning in “primary schools” .
1. Division of Work – When employees are specialized, output can increase because they
become increasingly skilled and efficient. This very objective has not been altered in
today’s labor. In a sense this principle is the fundamental feature of modern economy,
allowing for the largest increases of productivity.
In the early industrialization, the Ford motor company , where Taylor’s system of a
scientific approach was applied: Taylor was interested in skill development by means
of standardization and functional specialization . One worker would assemble the
dashboard, another would assemble the wheels, and yet another would paint the
exterior. The effects of this are well known and lead to Ford becoming not just the
predominant car maker but also the inventor of the conveyer-belt production system-
revolutionizing many industries. However, one could argue that extremes of division
of work could lead to undesired effects. Division of labor can ultimately reduce
productivity and increase costs to produce units. Several reasons as causes for
reduction in productivity can be thought of. For example, productivity can suffer when
workers become bored with the constant repetition of a task. Additionally,
productivity can be affected when workers lose pride in their work because they are
not producing an entire product they can identify as their own work.
2. Authority – Managers must have the authority to give orders, but they must also keep
in mind that with authority comes responsibility.
Apparently, Fayol’s “authority and responsibility”-appeal is being disregarded by
some; nevertheless, this example provides evidence for the validity of his observation
that with great power great responsibility should arise.
3. Discipline – Discipline must be upheld in organizations, but methods for doing so can
vary.
Fayol recognizes the complexity of human interaction as an important topic to be
addressed. Expanding on this idea Elton Mayo provides evidence for us that Fayol was
onto the right idea, at least a functioning idea, for that matter.
Mayo’s behavioral approach has shown that workers under experimental observation
performed better than unobserved. It has frequently been argued, that there is evidence
in this that discipline and the correlating performance can maybe best be achieved by a
treatment emphasizing fairness, participation, a caring attitude, and respect.
4. Unity of Command – Employees should have only one direct supervisor.
Dual command must not necessarily derive from an intentional organizational design,
but can occur coincidently, for instance if departments are not clearly demarcated,
responsibilities and authorities are not clearly defined, or relationship dynamics (e.g.

5. amongst friends, family etc) lead to someone assuming authority that was not
originally associated with this individual.
5. Unity of Direction – Teams with the same objective should be working under the
direction of one manager, using one plan. This will ensure that action is properly
coordinated.
That means first one( CEO for example) must know where to take the company and
subsequently constantly assure that the plan is still on track.
6. Subordination of Individual Interests to the General Interest – The interests of one
employee should not be allowed to become more important than those of the group.
This includes managers.
Generally speaking however, the companies’ interests must be put ahead of personal
interests . The struggle of interest can be exemplified by the worker rights movements
and unions. Fayol was not at all opposed to such organizations as unions. In fact, he
believed in granting benefits to workers . Interestingly, Fayol suggests “constant
supervision” as one measure to restrict unwanted egoistic effects, like selfishness,
laziness and others, which cloud the vision for the company’s interests .
7. Remuneration – Employee satisfaction depends on fair remuneration for everyone.
This includes financial and non-financial compensation.
In discussing how to apply fair modes of payment, Fayol mentions several still used
strategies, e.g. time rates, job rates, and piece rates . Most interestingly he also
mentions the aforementioned bonuses and profit sharing. As Fayol explains himself, in
his time bonuses and profit-sharing were still rather new concepts. And he wonders
what would happen with bonuses in lean times, pointing out, that a salary entirely
depending on profit-sharing would lead to a loss of salary under certain circumstances.
This attitude echoes like a warning for today’s management leaders, whose
remuneration practice is perceived as socially unsustainable and hence immoral, and
Fayol’s suggestion is thereby proven to be a relevant principle also today.
8. Centralization – This principle refers to how close employees are to the decision-
making process. It is important to aim for an appropriate balance.
In today’s corporate world IT has contributed to an easier approach to centralization.
At the same time has the fact that large corporations act globally led to adjustments
that can best be performed locally. In other words, a company must be able to do both.
For different business aspects, different solutions must be found.
9. Scalar Chain – Employees should be aware of where they stand in the organization's
hierarchy, or chain of command.
In many organizations, the scalar chain principle is still very much alive. However,
some have argued that modern management demands new approaches. It has been
argued that with ever increasing size of globally acting companies the scalar chain is
increasing in length, thus increasing the cost of coordination .
A problem associated with the scalar chain, as Fayol observes it, occurs when a
subordinate bypasses a manager in either the communication of information or the
making of a decision. This would undermine the authority and position of the manager
who is bypassed. If this would be allowed, morale of the managers would decline.

6. hile he sees this bypassing of parts of the scalar chain as negative, he emphasizes that
it can be justified in some instances. He states that it can be acceptable to short-cut the
scalar chain, so long as this action has been approved by the immediate superiors . In
my mind the argument that modern companies disregard Fayol’s principle is therefore
not valid.
10. Order – The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.
In discussing, what he calls material order, Fayol points to lost time and an increase of
mistakes as a main disadvantage of disorder .
Ultimately, material order is a question of “quality management”. The international
organization for standardization (ISO) is one modern example of how today’s
management attempts to achieve order. The ISO has developed guidelines that intent
to help management to achieve order and the correlated high level of quality of
leadership, production and documentation . The ISO certifications, which are designed
to test a companies’ compliance with the ISO principles, are a fixed part of literally
every business undertaking there is.
The principle of order that Fayol mentioned is thereby taken very seriously in today’s
business world.
11. Equity – Managers should be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate.
One indication for this claim is to be found in the fact that most companies have
appointed officials who deal with complaints of employees against the management,
for instance the so-called ombudsman . However, this system is naturally not fool
proof and private organizations attempt to draw attention to the victims of
mistreatment. ( As a response, many nations have created several laws that intend to
establish a juridical basis for people who fell victim of inequality.)
12. Stability of Tenure of Personnel – Managers should strive to minimize employee
turnover. Personnel planning should be a priority.
While from an employee perspective the protection laws make sense, employers may
occasionally view this issue differently. In fact, it is easy to find web-blogs with
advice how to fire workers without ensuing lawsuit and some influential individuals.
While stability is important for the employee it is just as important for the employer.
One would think that this leads to both parties pulling in the same direction. But as we
can see, it requires a change of mind in some instances to establish an environment of
trust and mutual care.
13. Initiative – Employees should be given the necessary level of freedom to create and
carry out plans.
Some modernly run companies have come to find their special ways in order to ensure
employee satisfaction, and, concomitantly their initiative. Letting go of employees
through independent projects can mean getting more from them. It’s a way to get
people to go beyond what’s expected of them. Apparently, with the right strategies a
company can increase employee participation and initiative by given the “inspiration”
Fayol requested from the management.
14. Esprit de Corps – Organizations should strive to promote team spirit and unity.

7. Fayol emphasizes the importance of meetings and personal communication over
written communications. The importance of teamwork is mentioned, and Fayol warns
managers against believing they could achieve their goals by the strategy “divide an
rule”.
Companies who strive to become successful must strengthen team spirit.
Fayol's six primary functions of management, which go hand in hand with the Principles, are
as follows:
1. Forecasting.
2. Planning.
3. Organizing.
4. Commanding.
5. Coordinating.
6. Controlling.
Henri Fayol's "14 Principles of Management" have been a significant influence on modern
management theory. His practical list of principles helped early 20th century managers learn
how to organize and interact with their employees in a productive way.
Although the 14 Principles aren't widely used today, they can still offer guidance for today's
managers. Many of the principles are now considered to be common sense, but at the time
they were revolutionary concepts for organizational management.
Luther Gulick
Luther Gulick was among those who expanded on the works of Henri Fayol to build a
foundation for management theory. He viewed management functions as universal. His seven-
activities acronym, POSDCORB, is a familiar word throughout management practice.
POSDCORB stands for planning, organizing, staffing, directing, co-ordinating, reporting and
budgeting. He wanted to revise administrative practices by the establishment of general rules.
He agreed with Frederick Taylor in that he believed that certain characteristics of
organizations provided administrators with the means to manage effectively. He was in accord
with Max Weber in that organizations were hierarchical. Gulick added the concept of span of
control, which addressed the factors limiting the number of people a manager could supervise.
He also recommended unity of command because he felt that people should know to whom
they were responsible. His homogeneity of work centred on the fact that an organization
should not combine dissimilar activities in single agencies. This was the basis of Gulick’s
major contribution in the area of departmentalization.
Planning Function of Management
Planning is the function that establishes in advance what should be done. It is looking in
advance and getting ready for the future. It is a technique of deciding the business objectives
and charting out the methods of achieving those objectives. In other words, it is the
determination of what is to be done, how and where it is to be done, who is to do it and how

8. consequences are to be assessed. This is done not only for the organization as a whole but for
every division, subdivision or sub-section of the organization. Thus planning is a function
which is carried out by managers at all levels in an organization - top, middle and supervisory.
Plans made by top management for the organization as a whole may cover time as long as five
or ten years. Plans carried out by middle or first line managers, cover much shorter periods.
Such plans may be for the next day's work, for example, or for a two-hour gathering to take
place in a week.
Organizing Function
To organize a business is to make available it with everything useful to its functioning, say
personnel, raw materials, tools and capital. All this may be separated into two main segments,
the human organization and the material organization. Once managers have established
objectives and developed plans to accomplish them, they must design and develop a human
organization that will be capable to perform those plans effectively.
Staffing may also be considered as one of the significant Functions of Management involved
in constructing the human organization. In staffing, the manager challenges to find the right
person for each job. Staffing fixes a manager's responsibility to recruit and to make sure that
there is adequate manpower available to fill a variety of positions needed in the organization.
Staffing involves the selection and training of future managers and an appropriate system of
reward. Staffing apparently cannot be done once and for all, since people are frequently
leaving, getting fired, retiring. Often too, the transformations in the organization generate new
positions, and these must be filled.
Directing Functions of Management
After plans have been ready and the organization has been established and staffed, the next
step is to progress towards its distinct objectives. This role of manager can be called by
various names like "actuating", "leading", "directing", "motivating" and so on. But
whatsoever the name used to recognize it, in carrying out this function the manager clarify to
his people what they have to do and facilitate them do it to do the best of their capability.
Directing thus engages three sub-functions; they are communication, leadership and
motivation. Communication is the process of passing information and understanding from one
person to another person. Leadership is the process in which a manager guides and influences
the effort of his subordinates. Motivation means arousing desire or wish in the minds of
workers to give their greatest to the enterprise. It is the act of inspiring or rousing workers. If
the workers of an organization are appropriately motivated they will pull their weight
efficiently, give their loyalty to the enterprise, and perform their duty effectively. Motivation
is classified under two broad categories; financial and non-financial. Financial motivation
takes the form of bonus, profit-sharing, distribution of company share etc. whereas non-
financial motivation takes the form of opportunity of advancement, job security, recognition,
praise.
Controlling Function of Management

9. The manager must make certain that the whole thing occurs in compliance with the plans
adopted, the directions issued and the principles established. This is the controlling function
of management, and involves three essentials.
1. Establishing performance standards
2. Evaluating current performance and comparing it against the established performance
standards.
3. Taking corrective action to any performance that doesn’t meet established standards.
Innovation function
Nowadays, it is not essential for an organization to grow bigger. But it is essential that it
continuously grows better. This creates innovation important functions of management.
Innovation refers to generating new ideas which may either result in the development of new
products or finding new customers for the old products. One may, though, consider
innovation not a separate management functions but only a part of planning.
Representation function
A manager is also required these days to spend a part of his time in representing his
organization in front of various outside groups which have some stake in the organization.
These stake-holders can be government officials, financial institutions, labor unions, vendors,
customers, etc. They exert influence over the organization. A manager must win their support
by efficiently managing the social impact of his organization.
It should be implicit that every function has two dimensions: substantive and
procedural. Substantive dimension is what is being done and procedural dimension is how it is
done. The above description and Functions of Management not only help us to recognize a
manager but they tell us about how he manages. A highly useful way to know this is to think
of management as an operational procedure and its function as sub-processes in a circular
continues movement.
Luther Gulick was the person who developed the classic theories on span of control to another
level, but his belief was still that a manager should not have more than three to seven
subordinates. In an organisation with a number of different functions, it is vital to reduce the
span of control since the managers with responsibility for personnel integrate with many
different types of individuals. If, on the other hand, all the subordinates carry out the same
monotonous tasks then it is possible for a manager to lead and co-ordinate a larger group of
people. When it comes to time and stability Luther Gulick focused mainly on stability. In a
stable organisation, with low staff turnover, the managers with responsibility for personnel do
not need to train and supervise new employees.

10. Bibliography:
Principles of Scientific Management, Frederick Winslow Taylor (1911)
http://www.marxists.org/reference/subject/economics/taylor/principles/ch02.htm
Management theoretician Henri Fayol’s 14 principles
http://davidkramer.wordpress.com/
Time to Revive Luther Gulick
- On Span of Control and Organisation Quality
© Lena Andersson-Felé 2006