Administrative Management Theory

The business management theory that I know and identify is Administrative Management Theory. The
goal of Administrative Management Theory is to provide a methodical approach to the overall design of
an organization. According to the notion, there should be a structured administrative structure, a
distinct division of labor, and the transfer of authority and power to administrators in accordance with
their respective roles. According to Henri Fayol, there are five functions of management as defined by
him are: Planning, Organizing, Command, Coordination, and Control. These five functions comprise
“management”, one of the six industrial activities described in Henri Fayol management theory. Henri
Fayol is widely regarded as the father of modern management. Based from the principle of
administrative management, assigning team members to tasks in accordance with their talents results in
quicker turnaround times and increased production. Facilitates Achieving Goals: This effective
management style helps the organization achieve its main objectives. For example, consider a large
corporation. At the top is the board of directors who give directions to the CEO, who in turns gives
directions the vice presidents of each corporate division. The vice presidents will the give directions to
their middle managers, who in turn give directions to supervisors down to individual employees. From
the example we can see the teamwork running around the company, from the highest position down to
the lowest position and that’s how Administrative Management Theory works.

Resource: Patrick, W. (2021, August 29). Management Theory of Henri Fayol: Summary, Examples[Blog
Post]. Retrieved from https://nanoglobals.com/glossary/henri-fayol-management-theory/