Theories on Management

Fayol’s administrative management theory
Henry Fayol was born in 1841 as French. He is the industrialist who developed the administrative theory. He is also known as father of general management. He got his engineering degree and joined a French company as a junior executive in 1860 and senior executive in  1888. He published his classic book on general and industrial administration in 1928, which explained the first complete theory of management. He emphasized on 14 principles of general management and attempted to provide guidance and direction to other management.

Fayol’s management principles

  1. Division of work: This principle implies on dividing the total task into compact jobs and thus allocating them to different individuals which promotes specialization and efficiency in both technical and managerial level. It helps to acquire speed and accuracy in performance.
  2. Authority and responsibility: Authority means to give order and power to exert obedience whereas responsibility means obligations to perform work in the manner directed and desired. Authority and responsibility are co existed and leads to responsive behavior and efficiency.
  3. Discipline: Discipline implies obedience, respect and establishment and regulations which are essential for smooth running of all organizations for good supervision and built in system of reward a punishment.
  4. Unity of command: Subordinates should receive orders from single superior at a time and all subordinates should be accountable to that superior. More superior leads to confusion, delay and so on.
  5. Unity of direction: One plan must be formulated for a group of activity and all the related activities should be put under one group show that efforts of managers of a single group can be directed towards achievement of common goal.
  6. eSpirit de corps : This term comprises two principles namely union is strength and team spirit is most essential. There should be cooperation and team work among members of the organization. The managers should always make effort to ensure harmony among the subordinates.
  7. Equity: Subordinates should be treated with justice, equity and kindness so that there can not be nepotism and favoritism while selection of workers, treating the workers which helps to promote friendly environment between superior and subordinates.
  8. Centralization: It implies concentration of authority at the top-level. No hard fast rules can be laid down regarding the extension of authority to be retained at the top-level. Centralization and decentralization should be proportionately decided.
  9. Scalar chain: It refers to chain of superior ranging from top to low ranks in a management. It determines the clear line of authority from top to bottom linking managers at all levels. All communication should flow the established chain of command.
  10. Order: It refers to arrangement of resources in the organization. It implies right place for everything. It stresses upon proper utilization of physical, natural, capital and organizational resources.
  11. Stability of tenure: It takes time to learn and get a job therefore a reasonable time should be provided to all employees for securing better results and guarantee of service. Stability of employees promotes team work, loyalty to the organization.
  12. Initiative: It means eagerness to initiate action in work related matters without being asked to do so. It is a powerful motivator of human behavior and is a source of strength for the organization.
  13. Remuneration of personnel: The remuneration payable to employees should be fair and reasonable .management must ensure a fair reward for the work and decide the equitable method of calculating wages.
  14. Superiority of organizational interest: Personal interest must be discarded and general interest must be maintained. Organization is bigger than an individual. Therefore, the interest of the organization must prevail upon the interest of an individual.

Max Weber principle of bureaucratic theory
Max Weber a German sociologist propounded the theory called principle of bureaucracy – a theory related to authority structure and relations in the 19th century. According to him, bureaucracy is the formal system of organization and administration designed to ensure efficiency and effectiveness. He suggested an ideal model for management as bureaucratic approach. He, in the book the theory of social and economic organizations, explained the basic principles of bureaucracy. He gave emphasis on division of labor, hierarchy, detailed rules and impersonal relations.

Principles of  bureaucratic theory

  1. Job specialization: Jobs are divided into simple, routine and fixed category based on competence and functional specialization.
  2. Authority hierarchy: Officers are organized in a n hierarchy in which higher officer controls lower position holders i.e. superior controls subordinates and their performance of subordinates and lower staff could be controlled.
  3. Formal selection: All organizational members are to be selected on the basis of technical qualifications and competence demonstrated by training, education or formal examination.
  4. Formal rules and regulations: To ensure uniformity and to regulate actions of employees, managers must depend heavily upon formal organizational rules and regulations. Thus, rules of law lead to impersonality in interpersonal relations.
  5. Impersonality: Rules and controls are applied uniformly, avoiding involvement with personalities and preferences of employees. Nepotism and favoritism are not preferred.
  6. Career orientation: Career building opportunity is offered highly. Life long employment and adequate protection of individuals against arbitrary dismissal is guaranteed. Here managers are professional officials rather than owners units they manage. They work for a fixed salaries and pursue their career within the organization.

Limitations of bureaucratic theory

  1. Informal relationship is not considered: It does not consider the informal relationships between individuals working in the organizations.
  2. Outdated system: Its system of control and authority are outdated which can’t work in such a changed environment.
  3. Inadequate means: Bureaucratic theory does not posses adequate means resolving differences and conflicts arising between functional groups.

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