Administrative theory & 14 Principles of Management

Administrative theory is a theory of management that investigated and synthesized the role of management in organizations. Administrative theory was developed by the French management theorist and philosopher of administration Henri Fayol (1841–1925). Hence, Administrative theory is also known as Fayolism.

Administrative theory is based on the assumption that the management could minimize misunderstandings and increase efficiency in organizations by concentrating on managerial practices. In his book General and Industrial Management (published in 1916) Fayol explained the theory of general management and enlightened the 14 principles for managers to accomplish their managerial duties 

Henri Fayol

The 14 general principles of management:

1. Division of work: division of the work is dividing the work in small and manageable components which results in the specialization.
2. Authority and responsibility: authority and responsibility should be given to those who are assigned the job. Authority is the right to give orders and responsibility is the obligation to finish the tasks which are assigned.
3. Discipline: Discipline is the procedure of training people to obey rules or a code of behavior, using punishment to correct disobedience.
4. Unity of command: Each employee should be accountable to one supervisor
5. Unity of direction: every unit of the organization should be aligned towards the same objective
6. Subordination of individual interest to general interest: Individuals should try to give priority for the actualization of common objectives than individual objectives.
7. Remuneration: Fair and equitable wage for work should be given to employees.
8. The Degree of Centralization: Management and authority for decision-making process must be appropriately balanced in an organization. Centralization is the concentration of decision-making authority at the top management and decentralization is the sharing of authorities for the decision-making process with lower levels.
9. Scalar chain: Every organization runs on Hierarchy. It is the formal line of authority which moves from highest to lowest rank in a straight line
10. Order: Order is the function of placing the right person and the right thing at the right place. Employees must have the right resources to use so that they can function properly in an organization.
11. Equity: employees must be treated generously and equally.
12. Stability of tenure: employees should be assured of job security
13. Initiative: innovation and initiation must be encouraged in the organization
14. Esprit de Corps:  Feeling of harmony, unity and mutual loyalty shared by the members of a group at the workplace.

Criticism against Administrative Management Theory:

1. Management Oriented Theory: Administrative theory neglects the problems of the employees and gives all focus on management. 

2. The administrative management theory neglects the importance of the informal organization.

3. Concepts such as command, order, and direct are borrowed from Military Science

4. Mechanical Approach: The administrative management theory adopts mechanical approach and neglects the important dimensions of management such as communication, leading and motivation.

Similarities and dissimilarities between scientific management and administrative management:

Similarities:

Both have tried to solve managerial challenges in a systematic method.

Both have highlighted that management functions can be more efficient and productivity can be increased if management is based on sound principles.

Both of them have highlighted that managerial skills can be developed through training.

Dissimilarities

Scientific management’s orientation is on shop floor level and work simplification & standardization while administrative management’s orientation is on higher management level and effectiveness through some general management principles

Scientific management’s focus is on production, engineering while Administrative management’s was managerial functions.