A presentation on Administrative Management Theory including principles, contribution and Limitations. By: Mandeep Neupane

1. By:-
Mandeep Neupane

2. Introduction 1
Principles 2
 Business Activities 3
 Principles of Management 4,5
 Management Functions 6
 Managerial Skills 7
Contributions 8
Limitations 9
References 10

3.  Administrative management theory is concerned with management
principles and functions for the overall management of the organization.
 Administrative management theory focuses on the functions, principls and
skills for the efficient and effectiveness of the organization.
Administrative
Management
Business
Activities
Management
skills
Management
Principles
Management
Functions
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4. The four main principles on the basis of which Administrative
management theory helps to make the organization more effective
and efficient can be listed as:
1. Business Activities
2. Principles of management
3. Management Functions
4. Managerial Skills
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5. The theory of business activities classifies all business activities into
six catagories.
i. Technical : Manufacturing Products
ii. Commercial : Marketing Products (Buying, Selling,
Exchange)
iii. Financial : Acquiring and controlling capital
iv. Security : Protecting property and people
v. Accounting : Recording Financial transaction
vi. Managerial : Planning, Organizing, Commanding,
Coordinating and Controlling function
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6. This theory consists of 14 principles of Management and can
be listed as:
1. Division of Work : Specialization of work results in efficiency.
2. Authority and Responsibility : Authority flows from
responsibility.
3. Descipline : Obedience and respect for rules.
4. Unity of Command : One employee one boss.
5. Unity of Direction : One plan and one head for a group.
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7. 6. Subordination of Individual Interest : Interest of organization
should be above the interest of individual.
7. Remuneration : Fair and equitable wages to employees.
8. Centralization : Centralized power structure.
9. Scalar Chain : Chain of authority from top to bottom.
10. Order : A place for everything and everything in a place.
11. Equity : Sense of kindness and justice to all levels while dealing.
12. Stability of Tenure : Job security to avoid employee turnover.
13. Initiative : Give employee freedom to take initiative.
14. Espirit de Corps : Union Is strength.
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8. This Theory states that management should perform the
following functions.
 Forecast and plan : Setting goals and actions to achieve.
Organize : Grouping of activities and resources.
Command : Providing leadership.
Coordinate : Achieving harmony of effort.
Control : Monitoring and correcting performance.
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9. This theory states that management is a skill that can be
learned. Hence, managers are made not born.
A good manager should have following skills:
 Physical skill
 Mental skill
 Moral skill
 Educational skill
 Technical skill and
Experience.
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10. Contribution of the Administrative Management Theory can be
listed as :
 It identified management functions for the first time.
 Universal Principles of Management laid out by this theory
serve as guide for management behavior.
 It identified skills needed fro management.
 It introduced management as a profession.
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11.  It ignores the importance of behavior in organization
 It is mechanistic in nature and is not applicable n all
situations.
It has limited application in complex and dynamic
environment.
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12. Following materials were the sources for the presentation.
Principles of Management in Nepal – Dr. Govind Ram
Agrawal.
https://study.com
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13. Thank You !!!