administrative management theory -...
TRANSCRIPT
Running head: ADMINISTRATIVE MANAGEMENT 1
Administrative Management Theory
Michelle N. Thomas
Ball State University
ADMINISTRATIVE MANAGEMENT 2
Abstract
This paper will examine the literature representing the administrative management theory, which
emphasizes the historical era of the 1910s to 1930s. An introduction regarding the background
and main points of the theory will be analyzed. It will discuss both the practical application of
the theory and general theoretical ideas present in the literature. Commonalities between the
literature will be identified. The implications of this theory will be addressed. The administrative
management theory’s direct application to the practice of adult and community education
programs will be analyzed. The primary scholars of this theory, Henri Fayol, James D. Mooney,
Alan C. Reiley, and Luther Gulick, will be discussed according to their primary theoretical
contributions.
ADMINISTRATIVE MANAGEMENT 3
Administrative Management Theory
Introduction
When analyzing the organization and management of adult/community education
programs, it is essential to understand the theoretical background upon which these programs are
developed. According to Tompkins (2005), having an understanding of theoretical perspectives
can assist individuals in determining the factors that influence organizational performance, find
out how these factors are interrelated, and determine how to effectively overcome problems,
while achieving organizational goals. Understanding organizational theories can help one find
new approaches for looking at organizational challenges and determining effective methods for
pursuing change within an organization (Tompkins, 2005). The purpose of this paper is to
explore the administrative management theory in relation to the primary points of the theory, the
historical background of the theory’s development, the general themes identified in literature,
and the practical implications of how this theory can be applied to adult and community
education programs.
Administrative Management Theory’s Primary Purpose
The primary purpose of the administrative management theory is to find a good balance
between the structure of the administration and the mission of the organization. It emphasizes the
importance of organizational effectiveness. According to this theory, administrative efficiency is
improved when defined lines of authority are present and those at the top of administration have
the most responsibility for the organization. Administrative efficiency is correlated with
departments being divided by a clear separation of labor and administrators with the most
responsibilities serving as organizational authority figures (Tompkins, 2005).
ADMINISTRATIVE MANAGEMENT 4
The four primary scholars associated with the administrative management theory include
Henri Fayol, James D. Mooney, Alan C. Reiley and Luther Gulick. Each of these important
individuals have had a strong influence on the development of this theory. Rather than focusing
on the “human factor,” these theorists emphasized structural variables. They thought that in order
to obtain individual and organizational objectives, a well-developed administrative structure
must be present (Tompkins, 2005).
Historical Background
It is important to examine the background of the administrative management theory to
gain a historical perspective on how it has developed over time. According to Pindur and Rogers
(1995), the oldest and most widely accepted school of thought in the field of management is
called the “classical management movement.” Between 1885 and 1940, this movement evolved
in order to provide a scientific and rational foundation for managing organizations. It originated
when the Industrial Revolution caused individuals to come from working in small shops or
homes to factories. Industrialization led to the need for efficiency in planning, organizing, and
controlling/impacting work tasks (Pindur & Rogers, 1995).
The classical management movement incorporated scientific management and general
administrative management. While scientific management focused on employees as individuals
and their specific work assignments, general administrative management emphasized total
management organization. General administrative management is “considered the forerunner of
modern organization theory” (p. 62). The general administrative management theory was
created to develop a broader theory associated with administrative management functions
(Pindur & Rogers, 1995).
ADMINISTRATIVE MANAGEMENT 5
Administrative Management Theorists
Henri Fayol’s Theory of General Management
Fayol’s idea of establishing the first general theory of management was developed as a
result of his belief that it was essential for managers to have a set of principles to guide their
management. He developed his ideas when public and private institutions were growing, which
led to a need for management positions. Research-based knowledge was needed to help the field
of management develop. His primary piece of literature entitled, General and Industrial
Management, was published in French in 1916 and in English in 1949. His theory incorporates
four components which include organizational activities, management functions, administrative
principles, and methods for putting principles into operation (Tompkins, 2005).
Fayol distinguished a difference between “governing” and “managing” an organization.
He established six types of activities within governing an organization. Managerial activities
incorporate only one of these six aspects. Five other activities relate to industrial concerns.
Technical activities involve the production of goods and services, while the commercial
activities pertain to buying and selling. Financial activities are associated with raising and
expending capital, while the security activities relate to the protection of property and
individuals. Accounting activities concern the tracking of profit and losses. These activities may
vary in how they are addressed according to the specific type of organization. Fayol believed that
although all of these activities are essential, management serves as the foundation open which all
of the other activities are implemented to achieve organizational objectives (Tompkins, 2005).
According to Fayol, five functions are incorporated into management. The first is
“planning,” which is predicting future events/trends that could influence the organization and
utilizing this information to impact the organization’s action plan. It involves effectively using
ADMINISTRATIVE MANAGEMENT 6
resources to meet the organizational objectives. The next function, “organizing,” incorporates
both material and human structural components. It involves aspects such as establishing a
hierarchy or authority and dividing tasks among workers. “Commanding” is another component
that involves providing direction to the organization to emphasize organizational objectives. It
includes components such as communicating goals and discharging workers who are
incompetent. “Coordinating,” another function, involves “unifying and harmonizing all activity
and effort” (p.99). This means that every worker is assigned a task, every area has a specific
function, and the contributions of each individual and unit work together to meet the objectives
of the organization. “Controlling” involves ensuring that conformity is present in relation to
established plans, rules, schedules, and directives. According to Fayol, any supervisor, no matter
what their level, should strive to encourage these functional responsibilities in order to achieve
organizational success (Tompkins, 2005).
Fayol developed 14 administrative principles to provide a form of guidance for managers
in any type of organization. The purpose was not to provide universal solutions to managerial
issues. He emphasized flexibility and adaptation in relation to each of these principles based on
the specific situation. According to Sheldrake (1996), the principles are as follows:
i. Division of work-“to produce more and better work with the same effort” (p.48)
ii. Authority-“the right to give orders and the power to exact obedience” (p.49)
iii. Discipline-“in essence, obedience, application, energy, behavior and outward marks of
respect observed in accordance with standing agreements between the firm and its
employers” (p.49)
iv. Unity of command-“an employee should receive orders from one superior only” (p.49)
ADMINISTRATIVE MANAGEMENT 7
v. Unity of direction-“one head and one plan for a group of activities having the same
objective” (p.50)
vi. Subordination of individual interest to general interest-“calls to mind the fact that in a
business, the interest of one employee or group of employees should not prevail over that
of the concern” (p.50)
vii. Remuneration of Personnel-“the price of services rendered” (p.50)
viii. Centralization-“like division of work…belongs to the natural order” (p.51)
ix. Scalar chain-“the chain of superiors ranging from the ultimate authority to the lowest
ranks” (p.51)
x. Order-“a place for everything and everything in its place” (p.51)
xi. Equity-“the combination of justice and kindliness” (p.52)
xii. Stability of tenure of personnel-“personnel planning, management development, and
labour turnover” (p.52)
xiii. Initiative-“power to conceive a plan and ensure its success” (p.52)
xiv. Esprit de corps-“building and maintain of harmony among the workforce” (p.52)
Fayol’s administrative methods emphasize managers creating an administrative apparatus
to develop administrative principles. The purpose is to keep the organization focused on its
mission and continuous improvements. He valued a survey to determine the organization’s
history, resources/needs, and political/economic/cultural circumstances that could influence the
future of the organization. Surveys also predict future events that could influence the various
areas of the organization. The action plan is developed to direct the organization and its
objectives, including how these objectives plan to be met. According to Fayol, statistical reports,
minutes, and the organization chart are all beneficial. Statistical reports allow managers to decide
ADMINISTRATIVE MANAGEMENT 8
whether the plan is being successfully implemented and its defined objectives met. Minutes serve
as the record keeping system of meetings in order to establish coordination. The organization
chart develops a hierarchy of units, defining the functions responsible for each unit, and
specifying who reports to whom (Tompkins, 2005).
James D. Mooney and Alan C. Reiley’s Theory of Organization
James D. Mooney and Alan C. Reiley are also contributors to the administrative
management theory. Although Fayol’s 14 principles dealt with psychological, behavioral, and
structural issues, the primary focus in the U.S. needed to focused more specifically on
organizational structure. Their primary piece of literature is entitled Onward Industry! The
Principles of Organization and Their Significance to Modern Industry, which was published in
1931. They emphasized the importance of organizational structure being governed by universal
principles. According to Mooney and Reiley, orderly correlation of these principles would lead
to more efficient applicability to all areas of collective human effort. They created three
universal principles: coordinative, scalar, and functional (Tompkins, 2005).
The coordinative principle, known as the master principle, involves an organization
coordinating the tasks of multiple workers in order to accomplish their organizational objectives.
According to Mooney and Reiley, authority figures should be responsible for coordinating
power. This is done by managing formal authority up and down the chain of command
(Tompkins, 2005).
The scalar principle refers to the principle of hierarchy, which was a term first utilized by
Fayol. Tasks are assigned based on levels of authority arranged vertically in the organization. It
is created by delegating, which entails authority from a higher official to a lower official.
ADMINISTRATIVE MANAGEMENT 9
According to these two theorists, a true leader should be distinguished based on their method of
delegation.
According to Mooney and Reiley, “The subordinate is always responsible to his
immediate supervisor for doing the job, the superior remains responsible for getting it done, and
this same relationship, based on coordinated responsibility, is repeated up to the top leader,
whose authority makes him responsible for the whole” (p. 104). These theorists emphasized a
principle governing the superior-subordinate relationship identified as the “exception principle.”
It states, “Subordinates should refer only the few unusual and difficult problems to their
superiors while handling all easy and routine problems themselves” (p. 105). Frederick Taylor,
another theorist, is associated with favoring this exception principle (Tompkins, 2005).
According to Mooney and Reiley, the functional principle focuses on horizontal
differences based on types of tasks. It identifies the method of each individual’s work duties and
how they contribute to the organization’s goals. One area of functional differentiation is the line
and staff principle, which “refers to the creation of staff units to advise or support line authorities
in the performance of their duties” (p.105). They emphasized that staff units should not be
delegated to command authority over the line units. Although they were not familiar with
Fayol’s work, they developed some similar ideas. They both believed that “coordination,
hierarchy, and functional differentiation may be universal principles but their application is not”
(p.106). These theorists emphasized how principles should never be responsible for solving all of
the issues present in an organization (Tompkins, 2005).
Luther Gulick’s Administrative Management Theory
Luther Gulick is known for applying administrative principles to government. In the early
1900s, the movement to reform the government structure and utilize business methods in public
ADMINISTRATIVE MANAGEMENT 10
administration was initiated, which had a great influence on Gulick’s role. Although Fayol,
Mooney, and Reiley had some great theoretical contributions, Gulick expand upon their basic
theoretical framework and added his own conceptual distinctions. One example is his idea that
government agencies can be departmentalized based on the process, individuals, place, or
purpose. He emphasized the importance of chief executives implementing closer supervision
over administrative departments than the heads of holding companies. He also saw a larger need
for coordinating due to a greater level of interaction between government departments than
between corporate divisions. According to Gulick, all organizations should divide labor no
matter what their size or level of complexity. He analyzed how coordination can be
accomplished through applying the functional and scalar principle. He emphasized
departmentalization, which describes the scalar principle. It is presented by an organization chart
demonstrating the level of control each manager has and describes reporting within the
organizational hierarchy (Tompkins, 2005).
Gulick thought that an organization’s design should be developed by various principles.
The span of control principle states, “The number of individuals reporting to a superior should be
limited to the number he or she can supervise effectively, given limited time and energy” (p.
110). He pointed out that there is not one correct span of control for all superior-subordinate
relationships. Gulick also valued the unity of command principle, which is when each worker
takes orders from one superior. He emphasized the homogeneity principle which states, “Work
should be divided so that the work of a single organizational unit is as homogeneous in character
as possible” (p.110). He valued he line-staff principle; however, he disagreed with the traditional
definition that staff agencies are made to guide line agencies and are never allowed to give
commands (Tompkins, 2005).
ADMINISTRATIVE MANAGEMENT 11
Administrative Management Principles: Practical Application in Literature
“Forum: New Perspectives in Public Administration”
Two practical applications of the administrative management theory will be presented,
which will analyze how theory can be applied to practice. General theoretical ideas from
literature will also be discussed. It will follow with some general themes present in the literature
both in relation to practical application and theoretical components.
In this first article related to a practical application of the administrative management
theory, Pablo Freire’s ideas of education were applied to public administration leadership. They
emphasized deliberation, dialogue, and humanization through conflict. Community mediation
was a topic of focus. One of Freire’s main points emphasized in this article is equity, which
aligns with Fayol’s principle of equity (Salm & Ordway, 2010).
The authors discussed how Freire emphasized the importance of leaders in the public
sector facilitating a community of peace, democracy, and true equity (Salm & Ordway, 2010).
Equity refers to the influence of being treated kind and fair, leading to the retention of dedicated
and honest employees (Tompkins, 2005). Freire valued collaboration between individuals to
overcome workplace conflicts (Salm & Ordway, 2010). The administrative management theory
emphasizes a scalar chain where communication takes place from the highest to lowest levels of
authority. Therefore, superiors in an organization are going to be primary decision makers,
according to the administrative management theory (Tompkins, 2005). However, according to
Freire, collaboration should take place between all individuals in an organization (Salm &
Ordway, 2010).
ADMINISTRATIVE MANAGEMENT 12
“The Changing Attitude of The National Coal Board to Line and Staff”
According to Tompkins (2005), Mooney and Reiley’s line and staff principle refers to
“the creation of staff units to advise or support line authorities in the performance of their duties”
(p. 105). The National Coal Board utilized the line and staff principle and took the initiative to
analyze how it was being implemented in practice (Nelson, 1966). The author emphasized the
importance of implementing something as it was designed to be implemented. Although they
were facing some issues regarding this principle in practice when this article was published; the
author concluded two areas of focus upon which to move forward in the future. The first was
both line and staff officials must occupy the key posts. Second, the character of the line and staff
principle must be clearly understood (Nelson, 1966).
The author analyzed how this principle in practice is more difficult and problem-raising
than one would think. He attributed this to human deficiencies rather than the principle itself. He
emphasized the importance of utilizing command authority, which is another primary component
of the administrative management theory. A few additional issues addressed include issues in an
organization related to a mutual lack of understanding, not enough real cooperation, and
preoccupation with status.
There was an emphasis on how too many individuals are focused on their own specialties
and not the business as a whole (Nelson, 1966). This has a direct relationship with Fayol’s
principle of subornation of individual interest to general interest. He believed that the interests of
individuals in the organization cannot prevail over the interests of the organization as a whole.
When addressing the line and staff principle, the unity of command is important to
address (Tompkins, 2005). According to Nelson (1966), it is easy to violate the unity of
ADMINISTRATIVE MANAGEMENT 13
command principle. It is difficult for an individual to have only one boss while also initiating the
line and staff principle (Nelson, 1966).
Administrative Management Principles: Theoretical Ideas in Literature
Accepted Administrative Principles
According to Simon (1997), there are four general principles that are present in the
literature pertaining to the administrative management theory. They include administrative
efficiency being increased when members of the organization are grouped (based on purpose,
process, clientele, or place), specialize in a task, establish a hierarchy of authority, and create a
limited span of control. The author emphasized how the primary purpose of the administrative
theory is how an organization should be created and operated to work efficiently. There is a
focus on meeting the most administrative objectives while also utilizing the least expenditures.
Due to this, there is an association present in the literature that relates the administrative theory
to the economic theory (Simon, 1997).
Fayol and Administration
Sheldrake (1996) incorporated various theoretical ideas in his work that are associated
with Fayol. An analysis of the six types of activities (technical, commercial, financial, security,
account, and managerial) are discussed that are addressed repeatedly in the literature associated
with Fayol. Sheldrake (1996) gave an in-depth explanation of Fayol’s 14 principles. He included
further details pertaining to each principle in comparison to most of the other literature that gives
a basic description of each principle. Much of his detail is related to the historical perspective on
how the principle was established. For example, when addressing the discipline principle, the
author addressed elements of state intervention as a result of World War 1, which influenced the
background on which this principle was founded. Finally, the elements of management
ADMINISTRATIVE MANAGEMENT 14
(planning, organizing, commanding, coordinating, and controlling) and their descriptions were
addressed, which aligned well with the other literature.
Gulick’s “Notes on the Theory of Organization”
According to Fitch (1996), Gulick is well-known for his essay entitled, “Notes on the
Theory of Organization.” Gulick wrote this briefing paper, and then he and Lyndall Urwick
included this paper in a collection of articles published under that well-known report entitled
Papers on the Science of Administration. This collection included other theorists’ work such as
Henri Fayol and Mary Parker Follett (Tompkins, 2005).
In this essay, Gulick covered many important topics that are prevalent in literature
pertaining to the administrative management theory. One of the primary ideas he incorporated
that is fairly consistent across literature is the idea that specialized efforts need planning and
coordination. Another commonality in the literature he presents is the emphasis on the
importance of proper reporting. The last main consistency was his idea related to aggregating the
work units and how they should be organized effectively so it does not disrupt the principle of
homogeneity.
General Themes from Literature
When incorporating the practical application and the general theoretical ideas present in
the literature, three primary themes can be identified. The first is the importance of the 14
principles established by Fayol and their practical applicability to management settings. The
main point in the literature present with these 14 points is that the organization must be flexible
and adaptable. They must utilize these principles in a way that helps them to best meet their
unique organizational needs and goals. It is essential that mangers know that principles are not
designed to help organizations overcome all of their issues. Their managerial style,
ADMINISTRATIVE MANAGEMENT 15
organizational resources, etc. are all going to make a great impact on how issues will be resolved
effectively and efficiently.
The next primary theme identified in the literature pertaining to administrative
management theory is the importance of a hierarchical authority system in an organization,
which is a component within Fayol’s 14 principles. This theory emphasizes the benefits of
knowing exactly who reports to whom within an organization and having clear defined lines of
authority. In the literature, it is reiterated that authority figures in an organization have great
responsibility over the organization as a whole. They are responsible for taking care of situations
where workers are not completing their assigned duties; therefore, influencing effectiveness and
efficiency.
Finally, Fayols’ management functions (planning, organizing, commanding,
coordinating, and controlling) were present in every piece of literature analyzed pertaining to this
theory. Multiple pieces of literature place high value on these management functions. There was
a consistent emphasis on how these functions can contribute to finding a good fit between
administrative structure and organizational purpose. Although this paper analyzed this theory
from an historical perspective, these functions are still present in organizations today. They serve
as the foundation upon which the organization is structured.
Implications
It is important to incorporate theory into practice. Theories serve as the foundation upon
which individuals generate new knowledge and ways of thinking about the world. The two
articles discussed earlier identified specific practical applications of the administrative
management theory in practice. The following section will analyze how the administrative
ADMINISTRATIVE MANAGEMENT 16
management theory can be applied to the practice of organizing adult and community education
programs.
The administrative management theory has direct practical applicability to adult and
community education programs, whether they are large or small, private or non-profit, simple or
complex, etc. Every type of organization is going to need a governing body of administrators that
coordinate the program. Even if it is a non-profit agency, for example, they typically have a
board of directors that serve as administrators, holding roles such as making decisions pertaining
to the budget. Every adult and community education program values reaching their
organizational goals; therefore, incorporating administrative theoretical components will help
each unique program achieve their purpose.
Every adult and community education program values efficiency and effectiveness;
therefore, representing goals of the administrative management theory. Utilizing this theory can
help each program be effective and efficient, while still seeking to reach their organizational
goals. There are many important decisions that take place in adult and community education
settings; therefore, having a clear defined line of authority figures contributes to decisions being
made efficiently and in an organized manner.
According to Tompkins (2005), this theory helps to generate ideas including “how to
centralize administrative direction and oversight without unduly constraining managerial
discretion, how to delegate authority and responsibility to subordinates without losing control
over their actions, whether reliance on formal authority provides an adequate basis for engaging
and motivating employees, and to what extent managers should insist upon strict adherence to
the formal chain of command” (p.123). This theory helps to promote coordination and control
while also ensuring political accountability, which is a practical concern in present-day society.
ADMINISTRATIVE MANAGEMENT 17
This theory has directly applicability to publish administration which is founded on the basis of
law; therefore, structure is essential in holding those responsible for carrying out the law
accountable for each of their actions (Tompkins, 2005).
Conclusion
This paper has illustrated the great importance of theory and the practical application of
theory in relation to the administrative management theory. Historical events, as well as theorists
in the field, have contributed to the development of this theory over time. Through utilizing
literature to understand the primary points of this theory, its practical application, and how it can
be applied to adult and community education, it is evident that the administrative management
theory has great value in its foundation upon which it was developed. Theories can serve as a
powerful guide to action if effectively utilized by administrators. The administrative
management theory has been effectively utilized by many organizations in order to help structure
the organization for the purpose of obtaining organizational goals.
ADMINISTRATIVE MANAGEMENT 18
References
Fitch, L.C.(1996). Making democracy work: The life and letters of Luther Halsey Gulick, 1892-
1993. Berkeley, CA: Institute of Governmental Studies Press.
Nelson, J.R. (1966). The changing attitude of The National Coal Board to ‘line and staff.’
Journal of Management Studies, 3(1), 49-61. Retrieved from
http://web.ebscohost.com/ehost/detail?vid=6&hid=21&sid=74edc8a7-4df9-4c2f-baf7-
18e62399abb4%40sessionmgr12&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d
%3d#db=buh&AN=600637
Pindur, F., Rogers, S.E., & Kim, P.S. (1995). The history of management: A global
perspective. Journal of Management History, 1(1). 59-77. doi:
http://dx.doi.org/10.1108/13552529510082831
Salm, J., & Ordway, J.L. (2010). Forum: New perspectives in public administration.
Administrative Theory & Praxis (M.E. Sharpe), 32(3), 438-444.
doi: 10.2753/ATP1084-1806320310
Sheldrake, J.(1996). Management theory: From Taylorism to Japanization. Boston, MA:
International Thomson Business Press.
Simon, H.A.(1997). Administrative behavior. New York, NY: The Free Press.
Tompkins, J.R.(2005). Organization theory and public management. Belmont, CA:
Wadsworth, Cengage Learning.