The administrative principle/theory was also regarded as classical organization theory. The two major purposes of the administrative principle are;
- To develop basic principles that could guide the design creation, and maintenance of large organizations;
- To identify the basic functions of managing organizations.
Henri Fayol 1841-1925
He was a French industrialist and had extensive business experience. He founded the classical approach. He started work as a mining engineer at the age of 19. He spent his entire working life with the same company and rose to become the managing director at the age of 47 and retired at the age of 77. He published his lifetime working experience in his book “Administration Industrielle et generate in 1916”. The book was later translated by Storrs [1949] into English to read General and Industrial Management.
Fayol’s concern was on the totality of an organization. To him, management was the most neglected aspect of business operation. Before Fayol, the general believe was that managers are born and not made. That is to say, no one could become a manager through formal training.
However, Fayol was of the view that management was a skill like any other, and that, it could be taught once its underlying principles were understood. He was then given the following accolades:
- Father of classical approach.
- Practical man of Management.
- Father of modern management theory.
Key areas of Contribution.
Fayol contributed to modern management theory through the development of his 14 Principles of management.
1. Division of work
Fayol’s objective here was to maximize both the amount and quality of production for a given degree of effort, hence he argued for the advantages of specialization. An interesting idea he raises particularly in relation to Taylor ’s ideas is that there are limits to the division of labour, which experience teaches us should not be exceeded.
2. Authority and responsibility
Fayol suggests that management has the right to give orders and to expect obedience. Managers derive authority either from their official position or personal qualities. “Wherever authority is exercised, responsibility arises.” Fayol (1949).
3. Discipline
Fayol argued that discipline marks a mutual respect between the organization and its employees. He embodies the principle that a manager can take sanctions in the case of a breakdown of discipline.
4. Unity of command
“For any action whatsoever, an employee should receive orders from one superior only.” Fayol (1949).Thus he argues that authority should be clearly allocated and suggests that if command is divided or unclear it is a continual source of conflict.
5. Unity of direction
He argues that for any group of activities with the same objective, there should be one clear leader and one clear plan so as to provide for unity of action.
6. Subordination of individual interest to general interest
In any organization there will at least be times when individual interests differ from the interests of the organization. Fayol argues, “The interests of one employee or group of employees should not prevail over the interests of the concern.”
7. Remuneration of personnel
The degree of centralization, Fayol argues, is a question of proportion and will vary according to different cases. It will depend, he argues on the character of the manager, the condition of the business and the reliability of the subordinates to whom the manager can delegate.
8. Centralization
The degree of centralization, Fayol argues, is a question of proportion and will vary according to different cases. It will depend, he argues on the character of the manager, the condition of the business and the reliability of the subordinates to whom the manager can delegate.
9. Scalar chain
Fayol argues for a clear chain of authority through which communication should flow. He did however appreciate that some activities require speedy action and recognizes that it was appropriate for people at the same level of the organisation to communicate directly. Notably he required superiors to approve any such communication. He also expected “some measure of initiative at all levels of authority.” Fayol (1949)
10. Order
Fayol approved of both social and physical order. This could be summarized as – the right thing in the right place at the right time. Appropriate selection should ensure competent people are in place, their tasks, responsibilities and places of work should be clear. Echoes of this approach are clearly apparent in what are seen as relatively new practices such as Just in Time.
11. Equity
Managers are encouraged to be both fair and friendly to employees. Fayol argues, “Equity requires much good sense, experience and good nature.” Fayol (1949)
12. Stability of tenure of personnel
Fayol felt that high employee turnover was inefficacy and that managers in particular, if they were to develop themselves fully, required as much security as was possible. He noted however that the stability it was possible to generate in any industry depended on the commercial environment in which the organization was operating.
13. Initiative
Fayol argues that initiative is a source of strength for an organization, particularly in times of difficulty. Initiative he felt should be encouraged at all levels and “The manager must be able to sacrifice some personal vanity to grant this satisfaction to subordinates.” Fayol (1949) In a sentiment as appropriate today as it was at the turn of the century he states “A manger able to do so is infinitely superior to one who cannot.
14. Esprit de corps
In a sentiment possibly borrowed from the military, Fayol outlines the importance of harmony within, and commitment to the organization. He describes in particular two methods to help build such a spirit, the use of verbal rather than written communication wherever possible and secondly the avoidance of encouraging dissension among subordinates.
While Fayol’s principles are widely quoted, he did not intend them to be set in stone but rather as guidance for management action, which must always take into consideration the prevailing circumstances.
FUNCTIONS/PROCESS OF MANAGEMENT
Planing: Selecting the activities and methods for achieving them, either for the organisation as a whole of for a part of it.
Organizing: Establishing the structure of the tasks to be performed to achieve the goals of the organisation; grouping these tasks into jobs for an individual; creating groups of jobs within departments, delegating authority to carry out these jobs, providing systems of information and communication and co-ordinating activities within the organisation.
Commanding: Giving instructions to subordinates to carry out tasks over which the manager has authority for decision and responsibility for performance.
Co-ordinating: Harmonizing the activities of individuals and groups within the organisation. Management must reconcile differences in approach, effort, interest and timing.
Controlling: Measuring and correcting activities to ensure that performance is in accordance with plans. Plans will not be achieved unless activities are monitored; and deviations identified and corrected as soon as they become apparent.
These functions have been re-organized into planning, organizing, directing/leading and controlling.
Lyndall F. Urwick
He was a prolific writer on administration and management. He had rich working experience in industry business consultancy and the armed forces. He was strongly influenced by the ideas of Henri Fayol in particular. He advocated the use of principles as the only way social organization could be controlled .He translated this into his best known-book “The Elements of Administration” published in 1947.
His principles of management represented a code of good practice which he claimed if strictly adhered to should lead to success in administration or management. His work resulted in the development of the following ten (10) principles:
1. Objective
2. Specialization
3. Co-ordination
4. Authority
5. Responsibility
6. Definition [job]
7. Correspondence (authority and responsibility)
8. Span of control
9. Balance (of all depths)
10. Continuity (going concern)
Urwick principles concentrated more on getting the organizational mechanisms right rather than focusing on issues such as remuneration and morale.
A major weakness of Urwick principles is its concentration on the internal environment to the detriment of the external environment. No organization can succeed without the external environment. This is because; organizations are open-systems not self-contained. They have to respond to pressures from the external environment-social, economic, cultural, political, to mention a few.
Urwick also identified the key functions/process of management to be planning, organizing and controlling. He expanded the controlling function to include staffing, selecting and placing. His controlling function served as the foundation or the forerunner to personnel/human resources management and the human relations approach to management.
E. F. L. Brech
Even though Brech shared the opinion of using principles, he was concerned with the development of people in organizations. He was less advocate of the use of principles. Instead, he emphasized the use of flexibility according to a particular situation. He also emphasized the need for written definitions of responsibilities and the value of job descriptions as an aid to effective organization and delegation.
Breech sees management as a social process, for planning and regulating the operations of an enterprise towards an agreed objective. To him, the process is carried out within a framework known as organizational structure.
He argued that the key elements in developing an organizational structure are:
- Defining the responsibilities of management, supervisors and specialist personnel.
- Determining how the responsibilities should be shared.
- Co-ordinating the execution of the responsibilities
- Maintaining a high level of morale among personnel.
Brech’s principles of management overlap those of Fayol and Urwick. However, they are less dogmatic than the others. Some of his principles are division of responsibilities, clear lines of communication, unity of command, and allocation of authority. His principles are contained in his book The Principles and Practice of Management [1975].
Brech regrets that there are no generally accepted principles of management since each writer has formulated his own principles. In the absent of general agreement on the fundamental body of principles, Brech finds it difficult to regard management as a science or a profession
Contributions/benefits from the administrative theory.
- The numerous principles that have evolved have provided blue- prints in management.
- The works of Fayol, Follett and others have set the foundations for present emphasis on the key components of the function/process of management-planning, organizing, directing/leading and controlling.
- Follette’s principle of making every worker part owner in a business is still valid today as we often hear of workers in troubled unionised organizations agitating to take up ownership and management by using their end-of-service benefits to buy shares.
- It has enhanced and promoted the skills of managers.
- The use of principles makes room for little deviations since the principles provide blue-print and direction. In this way, trial and error are minimized.
Criticisms /Drawbacks to the Administrative Principles.
- Dogmatic adherence to principles stifles initiative and discretionary use of authority
- Principles are not applicable in all situations since we are in a dynamic environment. They cannot be used as rule-of-thumb
- Since organizations cannot function without people, the disregard for human factors that will apply the principles is a serious drawback to the Administrative Principle.