What is the Administrative Theory of Management?

Henri Fayol (1841–1925), via his work and writings, such as Fayol’s 14 Principles of Management (1888) and Administration Industrielle et Generale, was the first to generalize the Administrative Theory of Management (1916).

French mining engineer Fayol documented his business practices. In the end, he developed into a management theorist, maybe having the largest impact of all previous management theorists.

Administrative management theory, often known as process theory or structural theory, is credited to Fayol as its originator.

In contrast to Taylor, who concentrated on worker efficiency, Fayol’s work was distinct because it was a part of the classical theory movement.

Fayol put more of an emphasis on the structure and organization of job duties. He focused on how management and employees are set up within a company to enable job accomplishment.

He suggested setting up functional departments and work groups where various tasks are carried out. These activities assist in completing larger tasks that advance business goals.

Fayol’s strategy for maximizing organizational effectiveness was top-down. He thought that the efficiency of management would eventually affect the output of workers at the operational level.

The scientific management theory, which proposed that worker efficiency would increase managerial efficiency, contrasts with the administrative management theory.

Fayol’s 14 Principles of Management: The Administrative Management Approach is shown by Fayol’s 14 management principles, which provide detailed guidance on the necessary organizational components. The following succinct statement sums up these ideas:

Division of Labor: Specialization is made possible by the division of labor within an organization. Individuals can improve their output by becoming more adept at performing a small number of tasks.
Authority: Managers must have the power to give orders, but that power also carries the burden of making sure that the work is completed.
Discipline: There must be a distinct chain of command. Instructions from superiors must be heeded in full by subordinates. Managers need to be able to punish employees to enforce discipline.
Unity of Command: Should a worker only hear orders from one employer at a time?
Unity of Direction: Each department or workgroup is operating under a single plan that unifies efforts. One supervisor should direct all work efforts.
Subordination of Individual Interest: The general interests of the group, department, or business take precedence above the interests of the individual.
Remuneration: Compensation is used to reward good work by employees. Financial and non-financial kinds of compensation can also be seen as remuneration.
Centralization: Depending on the organizational characteristics and employee competency, decision-making should be either centralized (all choices are made by management) or decentralized (decisions are also made by employees).
Line of Authority (Scalar Chain): In the reporting structure, there must be a hierarchy of authority that places employees below supervisors. At each level of the organizational hierarchy, the level of authority increases. It is important to comprehend the organizational hierarchy from beginning to end.
Order: The working environment and job duties must be subject to clear norms and expectations. Greater coordination results from a secure and organized environment.
Equity: Fairness must be a guiding principle in how the business is run. Kindness and justice should be combined when handling employees.
Stability of Tenure: Organizations need stable tenure and low turnover. This gives workers time to become accustomed to their employment, hone their abilities, and create loyalty.
Initiative: Managers must encourage initiative by letting staff members make and carry out plans.
Esprit de Corps: Fostering a sense of community within an organization fosters morale and a sense of oneness.