Frank and Lillian Gilbreth

• Therbligs – a
classification
scheme for labeling
basic hand motions.

Copyright © 2016 Pearson Education, Inc. 1a - 1

 General Administrative Theory
• General administrative theory – an approach
to management that focuses on describing
what managers do and what constitutes good
management practice.
• In the last century, organizations already had
to deal with management in practice. In the
early 1900s, large organizations, such as
production factories, had to be managed too.
At the time there were only few (external)
management tools, models and methods
available.
Copyright © 2016 Pearson Education, Inc.
1a - 2
 Henri Fayol (1841-1925)
• Principles of management –
Fundamental rules of
management that could be
applied in all organizational
situations and taught in schools.
• Henri Fayol ‘s principles of
management and research were
published in the book ‘General
and Industrial Management’
(1916).

Copyright © 2016 Pearson Education, Inc. 1a - 3

 Exhibit MH-3
Fayol’s 14 Principles of Management

Copyright © 2016 Pearson Education, Inc. 1a - 4

 Exhibit MH-3
Fayol’s 14 Principles of Management (cont.)

These principles of management serve as a guideline for decision-making and

management actions.

Copyright © 2016 Pearson Education, Inc. 1a - 5

• According to Henri Fayol specialization promotes efficiency of the
workforce and increases productivity. In addition, the
specialization of the workforce increases their accuracy and
speed. This management principle Division of Work is applicable
to both technical and managerial activities. The work in an
organization must be divided among individuals and departments.
Different departments differing jobs
• authority and responsibility go together and they are two sides of
the same coin. There should be a proper balance between
authority and responsibility. Higher up the ladder should have
more responsibility
• Discipline is about obedience. This management principle is
essential and is seen as the oil to make the engine of an
organization run smoothly.

Copyright © 2016 Pearson Education, Inc. 1 6

• ‘Unity of command’ means that an individual employee should
receive orders from one manager and that the employee is
answerable to that manager. If tasks and related responsibilities
are given to the employee by more than one manager, this may
lead to confusion which may lead to possible conflicts for
employees. By using this principle, the responsibility for mistakes
can be established more easily. Exception, matrix organization.
• Unity of Direction is all about focus and unity. All employees
deliver the same activities that can be linked to the same
objectives.
• In order to have an organization function well, Henri Fayol
indicated that personal interests are subordinate to the interests
of the organization (ethics). The primary focus is on the
organizational objectives and not on those of the individual. This
applies to all levels of the entire organization, including the
managers.

Copyright © 2016 Pearson Education, Inc. 1 7

• remuneration should be sufficient to keep employees motivated
and productive. There are two types of remuneration namely
non-monetary (a compliment, more responsibilities, credits) and
monetary (compensation, bonus or other financial
compensation). Ultimately, it is about rewarding the efforts that
have been made. Apart from financial benefits, non-financial
benefits be provided such as good working conditions, canteen
facilities, recreation facilities, etc.
• Certain matters are to be centralized and others to be
decentralized. There is a need to have a proper balance between
centralization and decentralization.
• “hierarchy” (scalar chain) principle refers to the line of command
from top level to the lowest level. Each employee can contact a
manager or a superior in an emergency situation without
challenging the hierarchy. the scalar chain can be short-circuited
or broken if the situation so demands in the interest of the
organization.
1 8
• In addition to social order (responsibility of the managers) the work
environment must be safe, clean and tidy.
• Management strives to minimize employee turnover and to have the
right staff in the right place.
• Managers as well as non-managers need time to learn and understand
their jobs. If they leave or are removed within a short period of time,
the learning time will be wasted.
In other words, employees should not be kept temporary for a long
period of lime. Employees should be made permanent so that they do
not leave the organization. However, incompetent persons need to be
removed or replaced and those who perform well must be rewarded
• Subordinates should be given freedom to come up with suggestions
and ideas. This encourages the employees to be involved and
interested.
• The superior must encourage esprit de corps (team spirit) among his
subordinates. It is the team spirit that results in loyalty, and dedication
and commitment of the employees. Esprit de corps contributes to the
development of the culture and creates an atmosphere of mutual trust
and understanding.
Copyright © 2016 Pearson Education, Inc. 1 9
Criticism of Fayol’s principles
• They were written around an entirely different environment
than we live in today. In today’s world, there is a much
greater reliance on “knowledge workers” and emphasizing
creativity and innovation is very important. To Manage such
workforce, classical principles are not enough.

Creating a “command=and-control” style organization with

well-defined responsibilities and authority, discipline, unity
of command, etc. as Henri Fayol envisioned probably doesn’t
work that well today. Organizations today need to be much
more dynamic and flexible to adapt to a very rapidly-
changing environment.
This doesn’t necessarily completely invalidate Henri Fayol’s
principles - they just have to be applied intelligently in a very
different context; and, in some cases, you probably have to
bend the rules quite a bit from what Henri Fayol envisioned.
Copyright © 2016 Pearson Education, Inc. 1 10
• The greater challenge for Management today is to innovate and
remain effective in the market.
• This aspects of Business are not covered by classic principles. Fayol’s
principles are clueless about Innovation, How to Manage Innovation
and How to sustain Innovative companies in dynamic environment.

Copyright © 2016 Pearson Education, Inc. 1 11

• His principles of management might be somewhat valid today but they are
very crude in today’s environment. For example, in today’s world, there is a
much greater emphasis on “leadership” than on “management” in many
areas. That is also much more consistent with a knowledge-worker
environment.

In Henri Fayol’s day, the major challenge companies faced was trying to
figure out how to efficiently produce light bulbs, automobiles, and other
manufactured products in volume. The management challenges we face
today are typically far beyond that level.
• But the problem with these classic principles is that, they are oriented
inside organization. Organizations are part of larger ecosystem.
Copyright © 2016 Pearson Education, Inc. 1 12
 General Administrative Theory

• Bureaucracy –
a form of organization
characterized by division of
labor, a clearly defined
hierarchy, detailed rules and
regulations, and impersonal
relationships.

1a - 13
Copyright © 2016 Pearson Education, Inc.
 Exhibit MH-4
Characteristics of Weber’s Bureaucracy

Copyright © 2016 Pearson Education, Inc. 1a - 14

 Behavioral Approach
• Organizational behavior (OB) – the study of
the actions of people at work.
• Early OB Advocates
– Robert Owen
– Hugo Munsterberg
– Mary Parker Follett
– Chester Barnard

Copyright © 2016 Pearson Education, Inc. 1a - 15

 Exhibit MH-5
Early OB Advocates

Copyright © 2016 Pearson Education, Inc. 1a - 16