Administrative Management Perspective
Q1: What are the limitations of Administrative Management perspective? The classical theory marks the beginning of modern management analysis. It is based on the belief that people are rational economic creature. They want economic growth. It comprises of three theories of management. Administrative management is one of them.
Administrative Management Theory was developed by French industrialist and mining engineer by profession, Henry Fayol. He is known as the father of management or the founder of the classical management. It is not because he was first to investigate managerial behaviour, but because he was the first to systematize it. He was contemporary to Taylor. Taylor was basically concerned with organizational fucntions, whereas Fayol was interested in the total organization. It may be noted that Taylor is known as the father of scientific management, i.e. supervisory or lower management, while Fayol is recognized as the father of management, i.e. the higher management or the general management.
Initially, he made the divisions of business activities. According to Fayol, business activities in any organization consist of six interdependent operations: Technical- activities concerning production, commercial- activities buying, selling and exchange, financial- activities concerning optimum use of capital, security- activities concerning protection of property, accounting- activities concerning final accounts, costs and statistics and managerial- activities concerning planning, organizing, commanding, coordinating and controlling. Thus, according to Administrative Management Theory, management means to forecast and plan, to organize, to command, to co-ordinate and to control. The management was defined as the process of performing these functions. Thus, Fayol formulated a set of fourteen principles as guidelines for implementing the process of management. They were: divison of work, authority and responsibility, discipline, unity of command, unity of
Administrative Management Theory was developed by French industrialist and mining engineer by profession, Henry Fayol. He is known as the father of management or the founder of the classical management. It is not because he was first to investigate managerial behaviour, but because he was the first to systematize it. He was contemporary to Taylor. Taylor was basically concerned with organizational fucntions, whereas Fayol was interested in the total organization. It may be noted that Taylor is known as the father of scientific management, i.e. supervisory or lower management, while Fayol is recognized as the father of management, i.e. the higher management or the general management.
Initially, he made the divisions of business activities. According to Fayol, business activities in any organization consist of six interdependent operations: Technical- activities concerning production, commercial- activities buying, selling and exchange, financial- activities concerning optimum use of capital, security- activities concerning protection of property, accounting- activities concerning final accounts, costs and statistics and managerial- activities concerning planning, organizing, commanding, coordinating and controlling. Thus, according to Administrative Management Theory, management means to forecast and plan, to organize, to command, to co-ordinate and to control. The management was defined as the process of performing these functions. Thus, Fayol formulated a set of fourteen principles as guidelines for implementing the process of management. They were: divison of work, authority and responsibility, discipline, unity of command, unity of