ADMINISTRATIVE
MANAGEMENT
Henry
fayol , a French industrialist looked at the problem of managing an
organization from the top management point of view. He has used the term
administration instead of management, emphasizing that there is a unity of
science of administration.
He
has divided the approach of studying management into three groups-
1.Managerial Qualities:
·
Physical
·
Mental
·
Moral
·
Educational
·
Technical
·
Experience
2.Elements Of Management:
·
Planning
·
Organizing
·
Commanding
·
Coordinating
·
Controlling
3.General Management Principles:
1) Division
of workers
2) Authority
and responsibility
3) Discipline
4) Unity
of command
5) Unity
of direction
6) Subordination
of individual interest towards general interest
7) Remuneration
of employees
8) centralization
and Decentralization
9) Scalar
chain
10) Order
11) Equity
12) Stability
of personnel
13) Initiative
14) Espirit
de corps
Henry fayol has classified business
operation into 6 major activities:-
Technical - production
Production - buying
and selling
Financial - Use
of funds
Security - protection
of Resources
Accounting - track
of financial records
Managerial - planning
and organizing business
14
RINCIPLES
OF ADMINUSTRATION MANAGEMENT
1.
Division
of Labour or work-
·
Division of work
involves dividing whole work into relevant number of tasks, duties or units.
Instead of assigning the whole work to a person, only a task or unit of work is
assigned to him based on his skills and competencies.
·
He has stressed on the
specialization of job.
·
Subdivision of work
makes it simpler and results in efficiency.
·
It also helps in
acquiring speed , accuracy in performance.
2.
Authority
and responsibility-
·
authority is the right
to make decisions and get them implemented by the subordinates.
·
Responsibility is the
duty of a person to complete an assigned work
·
If authority is given
to a person, he should also be made responsible. In the same way if anyone is, made
responsible for any job , he should be given concerned authority .
·
There should be balance
between the two i.e., they should go hand in hand.
·
Authority without
responsibility leads to irresponsible behavior whereas responsible without
authority makes the person ineffective.
3. Discipline –
·
Discipline means
engaging in desirable behavior prescribed by an organization.
·
There are two types of
discipline-
ü COMMAND DISCIPLINE-
It is a desirable behavior prescribed by
an organization through rules and regulations.
ü SELF DISCIPLINE-
It comes through practice like
commitment to organization or which springs within an individual and is in
the nature of spontaneous response.
·
In an organization,
both type of discipline are required for smooth working of an organization.
·
Adoption of this
principle, results in systematic working in the organization and mutual trust
among people.
4. Unity of command-
·
an employee should get
orders and instructions from only one superior or boss at a time.
·
adoption of this
principle leads to clarity about what a subordinate has to do and fast
communication of work performance.
·
Violation of this
principle results in confusion about what to do and what not to do, It weakens
discipline, divides loyalty and overlapping of efforts.
·
it provides a discipline , stable , and
orderly organization.
5. Unity of direction-
·
it means , “one plan,
one boss”.
·
each group of
activities having the same objectives must have one plan or one head.
·
efforts of all the
members of the organization should be directed towards common goal.
·
Without unity of
direction , unity of action cannot be achieved.
·
Unity of command is not
possible without unity of direction.
·
Violation of this principle, results in
unnecessary duplication of activities and lack of coordination in performing
activities.
6. 
Subordination of
individual interest towards general interest-
·
Individual interest
must be subordinated to general interest if there is any conflict between the
two.
·
The general interest is
the common purpose of the next higher entity/organization.
·
Adoption of this principle
results in achieving goal of an organization and coordination among goals at
all the levels.
·
Violation of this
principle may result in frequent interest conflicts and emergence of
organization politics leading to self- serving behavior.
7.
Remuneration
of employees or personnel-
·
Remuneration of
employees should be fair and provide maximum possible satisfaction to employees
and employers.
·
It also includes non –
financial incentives.
·
Wages should be
determined on the basis of cost of living, work assigned, financial position of
business etc.
·
Adoption of this
principle, may result in satisfaction of employees and their commitment to work
performance.
·
Violation of this
principle may result in conflict between owner and employees and high rate of
turnover.
8.
Scalar
chain-
·
It is a chain of
superiors ranging from top level of authority to the lowest level in the
organization .
·
In this the
communication, passes through the number of superior-subordinate relationship
or from top to bottom level and vice versa.
·
This system results in
undue delay in communication and for the sake of convenience and urgency Fayol
has suggested gang plank, which is the system of direct communication between
two employees not in the same chain for timely horizontal communication flow in
special circumstances.
·
The gang plank is a
temporary arrangement between two different points to facilitate quick and easy
communication.
9.
Centralization
and decentralization-
·
Centralization means
concentration of authority at the top level / upward.
·
Decentralization means
widespread distribution of authority. sharing authority downwards or decision
making authority to all the levels of the organization.
·
Anything which increases
the role of subordinates is decentralization whereas anything which decrease
the role of subordinates is centralization.
·
Degree of
centralization and decentralization depends on the number of factors like the
size of the business, experience of supervisor, dependability and ability of
the subordinates.
·
Adoption of this law
leads to determination of appropriate level of centralization and
decentralization and appropriate use of authority.
·
Violation of this law
results in either higher centralization causing undue delay in decision making
or high decentralization leading to coordination and control problem
10.
Order
–
·
Order is concerned with
proper and systematic arrangements of things and people.
·
Arrangement of things
is called material order i.e, there should be safe, appropriate and specific
place for every article and every place to effectively used for specific
activity and commodity.
·
Arrangement of people
is known as social order i.e, selection and appointment of most suitable person
on the most suitable job. There should be specific place for everyone and
everyone should to be in their specific place at the time of contact and if not
then their subordinate must have the information about that person.
·
Adoption of this law
results in procurement of resources at the right time and optimum utilization
of resources.
·
Violation of this
principle results in non – availability of the resources at the required time
and ineffective utilization of resources.
11.
Equity
–
·
The combination of
fairness, kindness, and justice.
·
The employee should be
treated with kindness and equity, if devotion is expected of them.
·
There should not be any
discrimination on account of caste , creed, color, sex, religion, etc.
·
All organizational rule
should be followed by everyone irrespective of position people hold.
·
Adoption of this
principle results in uniformity in behavioral pattern of people which result in
high morale of employees.
·
Violation of this
principle , results in class conflict and feeling of harassment.
12.
Stability
of personnel/ procurement
–
·
It means reasonable
security of job.
·
Employees should be
kept at their position at least for a
minimum fixed period and no employees should be removed within a short period
of time.
·
Unnecessary turnover is
both the cause and effect of bad management.
·
Stability of job
creates team spirit and a sense of belongingness among workers which ultimately
increase the quality as well as quantity of the workers.
·
Adoption of this law
results in procurement of resources at the right time and optimum utilization
of the resources.
·
Violation of this
principle results in non-availability of resources at the required time and
ineffective utilization of resources.
13.
Initiative
–
·
It is taking step ahead
of other in doing a work or introducing a new method of doing the work in a
better way.
·
Within the limitation
of authority and discipline managers should encourage the employees for taking
initiative.
·
It is concerned with
thinking out and executing the plan.
·
It increases zeal and
energy on the part of human beings.
·
Adoption of this
principle results in encouragement for creativity in an organization which
helps in finding out new ways of doing better workand high satisfaction to
employees.
·
Violation result in old
ways of working which might be obsoletes and demotivation for the employees.
14.
Espirit
de corps-
·
It is a French word
which means “union in strength”.
·
This principle states
that management should promote team spirit among the employees.
·
The word ‘I’ should be
replaced by the word ‘we’.
·
It can be achieved through
unity of command.
·
Adoption of this
principle results in development of team spirit, belongingness and focus on
group working.
·
Violation results in
lack of group harmony and focus on individual goals or individualism.
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