INTRODUCTION

Administrative Management Theory, also known as Classical Administration Theory, is a

prominent classical management theory that focuses on the organization and structure of work
tasks within a business (Gordon, 2023). This theory was first generalized by Henri Fayol, a
French mining engineer, who published "Fayol's 14 Principles of Management" in 1888 and
"Administration Industrielle et Generale" in 1916 (Gordon, 2023). Fayol is considered the father
of Administrative Management Theory and his work was unique from that of other classical
theorists, such as Taylor, who focused on worker efficiency (Gordon, 2023). Instead, Fayol
focused on the organization and structure of work tasks and proposed the creation of work
groups and functional departments where distinct activities are performed (Gordon, 2023).
Fayol's Principles of Management
During the early 20th century, Fayol developed 14 principles of management to help managers
manage their affairs more effectively. Organizations in technologically advanced countries
interpret these principles quite differently from the way they were interpreted during Fayol's
time as well. These differences in interpretation are in part a result of the cultural challenges
managers face when implementing this framework. The fourteen principles are:

1. Division of work: Breaking down work into smaller, specialized tasks to increase
efficiency and productivity.
2. Delegation of authority and responsibilities: Clearly defining the authority and
responsibilities of each position within the organization to ensure accountability
and efficient decision-making.
3. Discipline: Encouraging employees to follow rules and procedures to maintain
order and productivity.
4. Unity of commands: Ensuring that each employee reports to only one
supervisor to avoid confusion and conflicts.
5. Unity of direction: Aligning all activities towards a common goal to ensure focus
and consistency.
6. Subordination of Individual interests to General interests: Prioritizing the needs
of the organization over the needs of individual employees.
7. Compensation package: Fairly compensating employees for their work to
motivate them and retain talent.
8. Centralization: Concentrating decision-making authority at the top levels of the
organization to ensure consistency and control.
9. Scalar chains: Establishing a clear chain of command to ensure efficient
communication and decision-making.
10. Order: Organizing resources, including materials, equipment, and personnel, in a
logical and efficient manner.
11. Equity: Treating all employees fairly and impartially to build trust and morale.
 12. Job guarantee: Providing job security and stability to retain talented employees
and reduce turnover.
13. Initiatives: Encouraging employees to take ownership of their work and propose
new ideas to improve efficiency and productivity.
14. Team-Spirit: Building a sense of community and teamwork among employees to
foster collaboration and morale.

This theory categorizes the functions of a manager into planning, organizing, commanding,
coordinating, and controlling (Lloyd & Aho, n.d.). These functions take place at all levels of an
organization and are applicable to all industries (Lloyd & Aho, n.d.). Fayol's work, along with
other classical management theorists, has significantly contributed to the development of
modern management theory and practice.

Fayol's Elements (or functions) of Management

Within his theory, Fayol outlined five elements of management that depict the kinds of behaviors
managers should engage in so that the goals and objectives of an organization are effectively met.[5] The
five elements of management are:

1. Planning: creating a plan of action for the future, determining the stages of the plan and
the technology necessary to implement it. Deciding in advance what to do, how to do it,
when to do it, and who should do it. It maps the path from where the organization is to
where it wants to be. The planning function involves establishing goals and arranging
them in a logical order. Administrators engage in both short-range and long-range
planning.
2. Organizing: Once a plan of action is designed, managers need to provide everything
necessary to carry it out; including raw materials, tools, capital and human resources.
Identifying responsibilities, grouping them into departments or divisions, and specifying
organizational relationships.
3. Commanding: Managers need to implement the plan. They must have an
understanding of the strengths and weaknesses of their personnel. Leading people in a
manner that achieves the goals of the organization requires proper allocation of
resources and an effective support system. Directing requires exceptional interpersonal
skills and the ability to motivate people. One of the crucial issues in directing is the
correct balance between staff needs and production.
4. Coordinating: High-level managers must work to "harmonize" all the activities to
facilitate organizational success. Communication is the prime coordinating mechanism.
Synchronizes the elements of the organization and must take into account delegation of
authority and responsibility and span of control within units.
 5. Controlling: The final element of management involves the comparison of the activities
of the personnel to the plan of action, it is the evaluation component of management.
Monitoring function that evaluates quality in all areas and detects potential or actual
deviations from the organization's plan, ensuring high-quality performance and
satisfactory results while maintaining an orderly and problem-free environment.
Controlling includes information management, measurement of performance, and
institution of corrective actions.

Contributions of administrative management theory to modern management in the 21st

century

Administrative Management Theory, as proposed by Henri Fayol, has made significant

contributions to modern management in the 21st century. Fayol's theory, also known as
Fayolism, consists of 14 principles of management that provide guidance for managers in their
roles (Gordon, 2023). These principles have been widely adopted and integrated into modern
management practices (Lloyd & Aho, n.d.).

The concept of unity of command, which emphasizes the importance of clear and consistent
communication from management (Gordon, 2023). This principle is still relevant in modern
management, as it helps to avoid confusion and conflict among employees by ensuring that
they receive clear instructions from a single source of authority (Gordon, 2023)

The recognition of the social aspects of work and the importance of building a strong sense of
esprit de corps among employees (Gordon, 2023). This principle highlights the importance of
creating a positive work environment and fostering a sense of community and belonging among
employees (Gordon, 2023).

Concept of justice within an organization has also been incorporated into modern management
practices (Gordon, 2023). By making decisions fairly and equitably, managers can build trust
and credibility with their employees and foster a positive organizational culture (Gordon, 2023).

Principles of Management: One of the fundamental contributions of administrative

management theory is the identification of key principles of management. Fayol outlined
fourteen principles of management, including division of work, authority, discipline, unity of
command, unity of direction, subordination of individual interests to the general interest,
remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel,
initiative, and esprit de corps. These principles continue to form the foundation of modern
management practices in organizations worldwide.

Organizational Structure: Administrative management theory emphasizes the importance of

organizational structure in achieving efficiency and effectiveness within an organization. Fayol
proposed a hierarchical structure with clear lines of authority and communication. This concept
has been integrated into modern organizational design practices, influencing how companies
organize their departments, teams, and reporting relationships.

Decision-Making Process: Another significant contribution of administrative management

theory is its focus on the decision-making process within organizations. Fayol highlighted the
importance of rational decision-making based on analysis and evaluation. This emphasis on
systematic decision-making processes has influenced modern management practices by
promoting data-driven decision-making and strategic planning.

Managerial Functions: Administrative management theory identifies five key managerial

functions: planning, organizing, commanding, coordinating, and controlling. These functions
provide a framework for managers to effectively oversee their teams and achieve
organizational goals. In the 21st century, these functions remain essential components of
managerial roles and responsibilities.

Application in Contemporary Organizations: The principles and concepts introduced by

administrative management theory continue to be relevant in contemporary organizations.
Companies across various industries have adopted elements of this theory to improve their
managerial practices and enhance organizational performance. By integrating aspects of
administrative management theory into their operations, businesses can streamline processes,
optimize resource allocation, and foster a culture of efficiency and effectiveness.

In conclusion, administrative management theory has made enduring contributions to modern

management practices in the 21st century. The principles, organizational structures, decision-
making processes, managerial functions, and applications outlined by this theory have shaped
how organizations are managed and operated today.
Proponents as well as limitations and criticism of administrative management theory to
modern management in the 21st century

Proponents of Administrative Management Theory:

Proponents of the theory include Henri Fayol, Max Weber, and Frederick Taylor, each of whom
focused on different aspects of management (Lloyd & Aho, n.d.). Fayol focused on overall
management of the corporation and social interactions, while Taylor focused on individual tasks
and monetary compensation (Gordon, 2023). Weber, on the other hand, focused on middle
managers and the implementation of strategy (Gordon, 2023).

Fayol's theory consists of 14 principles of management, which provide guidance for managers in
their roles (Gordon, 2023). These principles, such as unity of command and esprit de corps,
have been widely adopted and integrated into modern management practices (Gordon, 2023).
Fayol's theory has also contributed to the development of the five functions of management:
planning, organizing, commanding, coordinating, and controlling (Lloyd & Aho, n.d.).

Henri Fayol: Fayol’s principles of management, including unity of command and scalar chain,
are still relevant in modern organizations as they provide a framework for organizational
structure and hierarchy.

Frederick Taylor: Taylor’s scientific management principles, such as time studies and division of
labor, have contributed to the development of modern production processes and quality
control methods.

Mary Parker Follett: Follett’s ideas on conflict resolution and participative decision-making have
influenced modern approaches to leadership and organizational behavior.

Elton Mayo: Mayo’s Hawthorne studies highlighted the significance of human factors in
productivity and paved the way for human relations approaches in modern management.
Limitations and Criticisms:

However, the Administrative Management Theory has faced criticism and limitations. For
example, the theory has been criticized for its top-down approach, which does not take into
account the input and ideas of frontline workers (Gordon, 2023).

The theory has also been criticized for its lack of attention to innovation and adaptability in a
rapidly changing business environment (Gordon, 2023).

Another limitation of the Administrative Management Theory is its focus on formal structures
and systems, which may not always align with the informal networks and relationships that
exist within organizations (Gordon, 2023).

Furthermore, the theory has been criticized for its lack of attention to the cultural and social
contexts in which organizations operate (Gordon, 2023).

Rigidity: Administrative management theory is criticized for its rigid hierarchical structures and
standardized processes, which may not be suitable for dynamic and innovative organizations in
the 21st century.

Focus on Efficiency: Critics argue that administrative management theory prioritizes efficiency
over employee well-being and creativity, leading to potential issues with employee engagement
and motivation.

Lack of Flexibility: The bureaucratic nature of administrative management theory may hinder
adaptability to rapidly changing business environments and emerging technologies.

Outdated Principles : critics argue that the principles of administrative management theory
developed in the early 20th century may no longer be relevant or effective in today’s first -paced
and complex business environment

Over emphasis on Control: Some critics suggest that administrative management theory places
excessive emphasis on control mechanisms, which can stifle innovation and autonomy within
organizations.
Neglect of Informal Networks: The focus on formal structures in administrative management
theory overlooks the importance of informal networks and relationships that play a significant
role in modern organizations’ functioning.

In conclusion, while administrative management theory has provided valuable insights into
organizational efficiency and structure, its application to modern management in the 21st
century is not without challenges. Organizations need to balance traditional principles with
contemporary approaches to address the complexities of today’s business landscape
effectively.

Administrative Management Theory, as proposed by Henri Fayol, has made significant

contributions to modern management in the 21st century. However, it also has its limitations
and has faced criticism.

Despite these limitations and criticisms, the Administrative Management Theory has had a
significant impact on modern management in the 21st century. Fayol's 14 principles of
management and the five functions of management continue to be widely used and have
influenced the development of modern management practices (Lloyd & Aho, n.d.).
References:

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principles-quiz.html

Lloyd, R., & Aho, W. (n.d.). The Four Functions of Management. In The History of Management.
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Mintzberg,H.(1979). The structuring of organisations: A synthesis of the

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