I.

THEORIES OF ADMINISTRATIVE MANAGEMENT :-

1. Henri Fayol (1841-1925) was a “French Mining Engineer”
2. Working his way up in 1860 he became mining engineer at a French Company
(Compagnie de Commentry-Fourchambault-Decazeville)
3. But soon became “Managing Director” in 1888
4. When company was at the verge of bank corrupt he accepted the challenge and through kich & broad ways
turned the fortune of the company.
5. He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did not rely on my
technical superiority... I relied on my ability as an organizer skill in handling men.”
6. FATHER OF “ADMINISTRATIVE MANAGEMENT.”

What Are Fayol's 14 Principles of Management?

 Division of Work –
o Work is to be divided into smaller task and each is to be continuously done by employee to become
proficient at.
o So, Productivity increases as employees becomes specialist.

 Authority & Responsibility- –

o Authority means power to take decision; Responsibility means obligation to complete task
o Managers must possess the authority to give orders, and recognize that with authority comes
responsibility and both should go altogether.

 Discipline –
o Everyone should follow the rules . To help, you can make agreements between the organization and
employees clear for all to see.

 Unity of Command –
o An employee should receive orders from one supervisor only
o Otherwise, authority, discipline, order, and stability are threatened.

 Unity of Direction –
o Teams having same objective should work under one manager, using one plan ensuring unity of
action and coordination.

 Collective Interest Over Individual Interest –

o Organisational interest should take priority over individual interest.

 Remuneration of Employees–
o Overall financial and non-financial pay should be fair and reward "well-directed effort" boosting the
employees to work more positively than before.
 Centralization and DeCenteralization –
o Centralization is concentration of decision making authority in top level
o DeCentralization is distribution of power at every level of management.
o So, both should be properly balanced as Fayol Said"A place for everyone and everyone in his place."

 Scalar Chain –
o It’s a formal line of authority between superior and subordinate.
o Employees should know where they stand in the organization's hierarchy and who to speak to within a
chain of command.
  Order –
o People and material must be at suitable place at appropriate time for max efficiency.
o Fayol Says, "The right man in the right place" & same to materials: right one, right place.

 Equity –
o Managers must treat all employees fairly, using a "mix of kindness and justice." 
o Only then would the team "do its job with commitment and loyalty."

 Stability of Tenure of Personnel –

o Minimizing of Staff Turnover and role changes to maximize efficiency.
o The more secure and good at their jobs, the more happier and productive they are.

 Initiative –
o It is thinking and execution of plan and taking 1st Step with motivation
o Employees should be encouraged to develop and carry out plans for improvement.
o Fayol Says, "at all levels of the organisational ladder, employees' ardour and energy are boosted by
initiative."

 Esprit de Corps –
o Organizations should strive to promote team work, unity, and harmony.

II. THEORIES OF SCIENTIFIC MANAGEMENT :-

1. Fredrick Winslow Taylor (1856-1915) was an American Mechanical Engineer.

2. From 1878-1884 he rose from an ordinary rank to Chief Engineer, in Midvate Steel Company, U.S.A.
3. On conducting an experiment , draw conclusion that workers were producing much less than targeted.
4. Also, both the parties of workers and managers were hostile towards eachother.
5. To, solve this he gave a lot of theories to solve the problem
6. Scientific management is sometimes even referred to as “Taylorism” in his honor.
7. FATHER OF SCIENTIFIC MANAGEMENT.”

What Are Taylor’s 4 Principles of Management?

ADMINISTRATIVE MANAGEMENT VS SCIENTIFIC MANAGEMENT:-
III. THEORIES OF BUREAUCATIVE MANAGEMENT :-
1. Max Weber (1864-1920), was a German sociologist.
2. The author of The Protestant Ethic and the Spirit of Capitalism (1905)
 3. When Weber visited the United States in 1904, he saw that capitalism was marked by invention and
rivalry.
4. On comparing USA with Germany, he didn't like the concept that in Germany, power was obtained via
social status rather than experience and skill.
5. Furthermore, company resources were exploited to benefit the owners and managers rather than the
organization's growth and development.
6. FATHER OF BUREAUCATIVE MANAGEMENT

What Are Weber 6 Principles of Management?

1. Task Specialization
o All Business Tasks Must Be Divided Among The Employees.
o Competencies and functional specialisations should be used to divide tasks.
o Workers will be well aware of their role and worth in the organisation, as well as what is expected of t
hem.
o The Theory States That Division Of Labor Based On Expertise And Skills Is Immensely Beneficial
For Any Business.
o Ensures that each department has specific tasks and workers to oversee those task
o Tasks are completed quickly and easily in this manner since managers know who is working on what.
o Each task and department's accountability is clear.
o Each Employee Is Clearly Aware Of Their Responsibilities In Max Weber's Bureaucracy.
o Going Beyond Your Specialty Or Helping Your Colleagues Is Not Allowed.

2. Formal Selection
o hired and onboarded only on the basis of their specialties and technical skills.
o Candidates may have acquired these skills through education, training, or experience.
o Workers must be compensated for their services after onboarding, depending on their position in the o
rganisation.
o Their contract must be designed in accordance with the organization's rules and regulations, with no e
mployee possessing any ownership interest in the organisation.

3. Impersonal Relationships
o Relationships Among Employees And Between Managers And Employees Must Be Impersonal.
o They should only be professional and thus distant.
o Weber's believed it would eliminate nepotism, politics, and outsider involvement.
o Prominent Feature Of Max Weber’s Bureaucracy.
Employees are not permitted to meddle in the affairs of their coworkers, managers, or the organisation
.
o Employees' communication should not include emotions, personal sharing, or feelings.
o Emotions must be avoided in the decision-making process.

4. Hierarchical Layers Of Authority

o Creating Hierarchical Layers in Managerial Structure
o Each Layer Has A Team of employees
o Managers Responsible For The team’s Performance
o Positions Are Ranked In Order Of Precedence
o The Highest Position In The Ladder Has The Highest Authority.
o Higher Layers Generally Supervise the Positions of the Bottom Layers.
o Reflects The Degree Of Delegation
o Gives A Clear Picture Of The Division Of Authority And Responsibilities. 
 5. Rules And Regulations-
o ‘Rational Organization’ Must Have A Set Of Rules And Regulations
o Must adhere without any fault
o Allow Better Coordination Of Employee Performance And Efforts.
o Clear defining In The Official Rule Book
o Implementing new rules, senior management must be informed to
forward the information to the appropriate departments.

6. Career Orientation-
o Selection of employees On The Basis Of Technical Skills.
o Helps in Optimizing Human Capital.
o Weber says and follows, “The Right People In The Right Jobs.”

IV. THEORIES OF HUMAN RELATION MANAGEMENT :-

1. Elton Mayo, an Australian psychologist from Harvard University, developed the Human Relations Theory
in 1933.
2. Conducted a series of experiments, known as Hawthorne Studies or Hawthorne Experiments.
3. Concluded that people have unique preferences and can’t be treated as machines.
4.
V. THEORIES OF SYSTEM MANAGEMENT :-
1. The systems theory is a contemporary concept of management that has received widespread acceptance.
Developed by Ludwig von Bertalanffy, the systems theory is based on the view of an organization as a
system.
2. A system consists of distinct parts that interrelate to form a multifaceted whole.
3. The concept can be depicted from the notion of the universe as constituting small parts such as the
subatomic particles and other large components such as the galactic clusters.
4. Each component is dissimilar but works together with others to form the universe.

VI. THEORIES OF CONTINGENCY MANAGEMENT :-

o Fiedler’s Contingency Model or Fiedler’s Theory of Leadership, says there is not one best style of
leadership.
o The most effective leadership style for any given situation is one that aligns with the situation at hand.
o Developed in the 1960s by Austrian psychologist, Professor Fred Fiedler.
o He studied leaders’ personalities and characteristics and came to the conclusion that leadership style,
is formed through one’s life experiences, is incredibly difficult, if not impossible, to change.
o He believed the right leader must be chosen for each job based on their skill set and the requirements
of the situation.
o In order to best match leaders with situations, each leader must first understand their natural
leadership style.
o Then, they need to evaluate whether their leadership style is right for the situation. To put it simply,
Fiedler determined that a leaders’ ability to succeed rests on two factors:
Natural leadership style Situational favorableness

VII. THEORIES OF X AND Y MANAGEMENT :-

1. Douglas McGregor, a management professor at the Massachusetts Institute of Technology in the

1950s and 1960s.
2. The first to claim that a manager's attitude influences staff motivation.
3. He suggested two hypotheses for manager in his book The Human Side of Enterprise, 1960
 4. Referred to these opposing motivational methods as Theory X and Theory Y management.
5. Each assuming manager’s role to organize resources, including people, to best benefit the company.

What Are McGregor 6 Principles of Management?

1. Theory X

According to McGregor, Theory X management assumes the following:

o Most individuals dislike work and will try to avoid it at all costs.
o Most people are not ambitious, have little desire for responsibility, and prefer to be directed.
o Most people lack the ability to solve organisational difficulties creatively.
o Motivation happens exclusively at Maslow's hierarchy of needs' physiological and security levels.
o Most people are self-centered. 
o As a result, they must be continuously monitored and frequently compelled to fulfil company goals.
o Most people dislike change.
The majority of people are dupes and idiots.

Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second.
Under it one can take a hard or soft approach to getting results.

2. Theory Y

In strong contrast to Theory X, Theory Y management makes the following assumptions:

o If the conditions are favourable, work can be as natural as play.

o If people are devoted to their job and organisational goals, they will be self-directed and creative in
meeting them.
o People will be more dedicated to their quality and productivity goals if they are rewarded for higher
needs such as self-fulfillment.
o Creativity pervades organisations.
o Because creativity and inventiveness are prevalent in the public, most people can bear responsibility.
o People will seek blame in these circumstances.

If Theory Y holds true, an organization can apply the following principles of scientific management to improve
employee motivation