Administrative Theory (14 Principles) of Henry Fayol
The administrative theory is the important one of administrative theories that created by Henry Fayol. It is also known as 14 principles or fourteen principles of management.
Henry Fayol was born in 1841 of a French family. He was a prolific writer on technical and scientific matters as well as management. His most outstanding writing was ‘Industrial and General Management’. He was appointed as an engineer in a Mining company. By 1888, he had risen to the Managing Director position of the company. He retired from the position of Managing Director in 1918. Though he remained the company’s Director until his death (December 1925), at the age of 84 (Eighty-four). Henry Fayol was a management practitioner with experience.
Administrative Theory (14 Principles):
Henry Fayol created fourteen principles on the management. His administrative theory or 14 principles of management following are:
Division of work:
This principle same as Adam Smith’s ‘Division of labor’.
Manager must be able to give an order. Authority gives this right.
Employees must obey and respect the rules and regulations which are governed the organization.
Unity of command:
Every employee should receive order or direction from only one upward or superior.
Unity of direction:
Each group of the organization should be direction by one manager using one plan.
Subordination of individual interests to the general interest:
The management must be seen that the aims of the businesses are always supreme.
The labors must be paid a reasonable salary for their work.
The process of transforming assigning decision-making authority to the higher level of an organizational hierarchy, it is centralization that should follow this.
The line of authority from top management to the lower ranks represents the hierarchy or scalar chain. This chain should be followed.
people and materials should be in the right place at the right time.
In running a business, a combination of kindness and justice is needed.
Stability of tenure of personnel:
Employees work is better if job security and career progress are assured to a team.
Allowing all personnel to show their initiative in some way is a source of stretch for the organization.
Esprit de corps:
Promoting team spirit will build unity and harmony within the organization.
He also classified the business activities:
- Management activities
5 Functions of Management:
According to Henry Fayol, there are the five functions of management:
Manager’s Qualities & Skills
According to Henry Fayol, a manager requires the following qualities and skills:
- Physical requires
- Mental requires
- Moral requires
- General education
- Special knowledge
- Work experience
Criticisms of Administrative Theory:
- The administrative theory is management oriented. It is not suited for others worker.
- The administrative theory gives important only to the formal organization structure, not for informal organization structure.
- Henry Fayol some concepts borrowed from Military Science. Such as commanding.
- The administrative theory has a mechanical approach. It does not an ideal with some of the important aspects of management. Such as motivation, communication and leading.
Administrative management is focused on the management process and the principles of management.