Administrative Management

Question 1

Henry Fayol

Answer 1

• National school of mines
• Worked in coal company
• Lectured other managers
• Established center of administrative studies

Contribution to Management

• University of management -> some management skills are needed in all sectors
• Management is a field in and of itself -> establishment of schools for management

Question 2

Administrative Principles of Fayol

Answer 2

• Foresight: complete plan of action for the future
• Organization: provide and organize resources to implement plan
• Command: lead, select, evaluate workers to get the best results
• Coordination: fit diverse efforts together
• Control: make sure things happen according to plan

Question 3

Principles of Management

Answer 3

1. Division of work - specialization leads to more experience and skill improvement
2. Authority - right to issue commands (-> must be balanced with some responsibility)
3. Discipline - two-sided obedience
4. Unity of command -> each worker should have only one boss
5. Unity of direction – people engaged in some activity -> must have some objectives, ensure unity and coordination, necessary for the existence of unity of command
6. Subordination of individual interest – goals of enterprise are always paramount
7. Remuneration – payment as important motivator -> no such thing as perfect system
8. (De) Centralization – depends of the condition of the business and the quality of its personnel \
9. Scalar chain line of authority
   - Hierarchy necessary for unity of direction
   - Lateral communication also fundamental
   - Scalar chain: numbers of levels in hierarchy -> there shouldn’t be too many levels
10. Order
    - Material -> minimize the loss and useless material – handling
    - Social -> achieved through organization and selection
11. Equality
    - Combination of kindness and justice
    - Treat employees well to achieve equality
12. Stability of tenure of personnel
    - Better work if job security and carrier progress is assured -> insecure tenure and high employee turnover will affect the organization negatively
13. Initiative – allowing the personnel to show initiative is a source strength for the organization
14. Esprit de corps – management must foster the morale of their employees

Question 4

Application of Fayol’s principles

Answer 4

Application of Fayol’s principles

• Change and organization
• Decision making
• Skills -> improve basic effectiveness of a manager
• Understand that management can be seen as a variety of activities

Question 5

Bureaucratic organization *weber

Answer 5

ideal, intentionally rational and effective form of organization, based on principles of logic, order and legitimate authority

• Clear division of labor, well defined jobs + skilled workers
• Clear hierarchy of authority
• Formal rules and procedures
• Impersonality no preferential treatment: uniform application of rules
• Career based on merit

Today: term often has negative connotation

• Excessive paper work
• Slow in handling problems
• Rigid, resistant to change
• Employee apathy

Question 6

Theory X

Answer 6

I. Management has greatest organizational responsibility
II. Management must control and motivate employees by modifying employee behavior
III. Employees are passive entities that must be controlled

Managers believe that workers

• Dislike work
• Lack ambition
• Are irresponsible
• Are resistant to change
• Prefer to be led
• Are motivated by fear and money

Assumptions

• Average human being has inherent dislike of work and will avoid it
• Most people must be controlled directed and threatened with punishment
• Average human being prefers to be directed, wants to avoid responsibilities, has little ambition, wants security

*Doesn’t explain/describe human nature

Question 7

Theory Y

Answer 7

Managers believe that workers

• are willing to work
• are capable of self-control
• accept responsibilities
• are imaginative and creative
• self-directed
• like work
• naturally work towards goals
• seek responsibility
• are motivated by empowerment

Assumption

1. physical and mental effect in work similar to play/rest
2. external control and threat of punishment not only way
3. commitment to objectives in a function of the rewards associated with their achievements
4. average human learns under proper condition not only to accepts but to seek responsibility
5. capacity to exercise a high degree of imagination, ingenuity and creativity in the solute of problems is wanted
6. intellectual potentialities of the average human are being underutilized