Principles of Management Learning Session # 8 Dr. A. Rashid Kausar

Classical Scientific Management Bureaucratic Management Administrative Management

Classical Theorist Administrative Management Henri Fayol (1841-1925) Mining Eng. and then became MD in 1888. A French Industrialist His Mining & Metallurgical Co. still survives today in central France

Administrative Management Being a top manager, Fayol developed his management theory so to be taught to individuals who had administrative responsibilities. Fayol isolated the main activity types in industry or business!

Within “Managerial Activities”, Fayol identified five followings: Planning Organizing Commanding Co-ordinating Controlling

Administrative management Organising Planning Commanding Henri Fayol Co-ordinating Controlling

Administrative Management An approach focusing on principles used by managers to co-ordinate the internal activities of the organization. Fayol published his 14 principles of Management in 1949.

FAYOL’S 14 PRINCIPLES OF MANAGEMENT

14 Principles of Management 1. Division of Work: Work specialization can result in efficiencies and is applicable to both managerial and technical functions. There may be some limitations how much you can divide the work.

14 Principles of Management 2. Authority: Authority is the right to give orders and the power to exact the obedience. It is derived from the formal auhority of the office and from personal factors like intelligence and experience. With Authority comes Responsibility.

14 Principles of Management 3. Discipline: Discipline is absolutely necessary for the smooth running of an organization, BUT state of discipline shall depend essentially on its leader’s worthiness.

14 Principles of Management 4. Unity of Command: An employee should receive orders from one superior only.

14 Principles of Management 5. Unity of Direction: Activities aimed at the same objective should be organized so there is one plan and one person in-charge.

14 Principles of Management 6. Subordination of individual interest to general interest: The interests of one employee or group of employees should not prevail over the organization’s interests and goals.

14 Principles of Management 7. Remuneration: Compensation should be fair to both employee and employer.

14 Principles of Management 8. Centralization: The proper amount of centralization or de-centralization depends on the situation. The objective is optimum use of personnel capibilities.

14 Principles of Management 9. Scalar Chain: A scalar (hierarchical) chain of authority extends from top to bottom of an organization and defines the communication path. However, horizontal communication is also encouraged as long as managers in the chain are kept informed.

14 Principles of Management 10. Order: Materials should be kept in well-chosen places to facilitate activities. Similarly, due to good organization and selection, the right person should be in the right place.

11. Equity: Employees should be treated with kindness and justice. 14 Principles of Management 11. Equity: Employees should be treated with kindness and justice.

14 Principles of Management 12. Stability of Personnel Tenure: Because time is required to become effective in new jobs, high turnover should be prevented.

14 Principles of Management 13. Initiative: Managers should encourage and develop subordinate’s initiative to the fullest.

14 Principles of Management 14. Esprit de Corps: Since union is strength, promoting team spirit will build harmony and unity within the organization.

Which Theory is That ? How am I managing lectures of your sessions? What is your role in the class room? What is my theory of Learning i.e. How people learn? Reflect yourself first , then discuss with your peer!

Behavioral Hawthorne Experiments Human Relation Views Behavioral Science

Behavioral Viewpoint This viewpoint emphasizes the importance of attempting to understand various factors affecting human behavior in organizations.