Friday, January 20, 2012

Administrative Management Principles

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The focus of the Administrative Management Principles is on the organization as a whole, but emphasis roles of senior managers and view that management could be taught. It highlights the belief that there is one best way to administer or deliver management. The functional view of the manager's job owes its origins to Henri Fayol, a classical theorist who developed the 14 principles of management, which serves as a frame of reference from which many current management theories and concepts evolved, even though the contingency perspective of a manager's job proposed that universalistic management principles for all types of organizations is not feasible. Fayol identified 5 functions of management principles as planning, organizing, controlling, commanding, and coordinating. Fayol's 14 principles of management include

1. Division of work- Specialization increases output by making employees more efficient.

2. Authority- Managers must be able to give orders. Authority gives them this right, but whenever authority is exercised, responsibility arises.

3. Discipline- Employees must obey and respect the rules that govern the organization. Good discipline is a sign of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the fair use of penalties for infractions of the rules.

4. Unity of command- every employee should only receive orders from only one superior.

5. Unity of direction- each group of organizational activities that have the same objectives should be directed by one manager using one plan.

6. Subordination of individual interests to the general interest- the interests of one or a group of employees should not take precedence of the interests of the organization as a whole.

7. Remuneration- workers should be paid a fair wage for their services.

8. Centralization- refers to the degree to which subordinates are involved indecision making. The task is to find an optimum degree of centralization for each situation.

9. Scalar chain- Communications should follow the line of authority from top management to the lowest ranks of the organization.

10. Order- People and material should be at the right place at the right time.

11. Equity- Managers should be fair and kind to their subordinates.

12. Stability of tenure of personnel- High employee turnover is inefficient. Management should provide orderly personnel training and ensure that replacements are available to fill vacancies.

13. Initiative- Employees who are able to originate and carry out plans will exert high levels of effort.

14. Esprit de corps- Promoting team spirit will build harmony and unity within the organization.

Henri Fayol identified issues related to management, including social responsibility, philosophy of management and organizational principles. He also focused on teaching managers that how workers were treated affected their efficiency. Incentives were given to workers if they could perform well, and this increased their efficiency. He proposed clearly defined authority structures based on unity of command, small spans of control, which shows that smaller spans of control like supervising groups instead of individual employees saved costs, efforts, and efficient supervision, and a chain of commands. Fayol's theories led to Koontz's and Davis's theory that management should have a 'process' approach based on POLC (Planning, Organizing, Leading, and Controlling). The problem with general administrative theorists is that they did not view employees as people, but as machines, and the managers were the engineers. They ensured that inputs were available and that the machine was properly maintained. Any failure by the employee to generate the desire output was viewed as an engineering problem.

The main disadvantage that Administrative management had was that, as there is no one best way to suit all organizations, Administrative management could not be universally accepted to all organizations in all circumstances. The main reason for this is that organizations, like every individual person, are different in many ways. Different organizations, like people, have different backgrounds, preferences and aims. One way may work for one organization, but may not work for another. Also, different things motivate different people.

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