MODERN/ADMINISTRATIVE THEORY OF MANAGEMENT.

It was formulated by H. Fayol, who said that managers who follow general principles of management and good management practices achieve the highest productivity.

Principles of Management
1. Principle of division of labour
According to it, when division of labor is allowed, it leads to specialization of workers which further leads to increased productivity and job satisfaction.

2. The principle of authority and responsibility
It states that for a manager to get work done in his/her development, she/he must adequately be authorized to be able to control the activities of the development. The manager is equally held responsible and answerable to the proper use of the authority.

3. The principle of discipline
It states that discipline is at the very core of administration and that managers should be disciplined first before they can think of disciplining the subordinate.

4. The principle of unity of command
It states that commands should be well planned and thought out. Subordinate should not take instructions from more than one because they will be confused and frustrated.

5. The principle of unity of management
It states that tasks that are similar should be placed under one manager for easy control.

6. The principle of suitable and adequate payment of personnel
It states that workers should be paid a better salary at the market rate so as to perpetuate their race. This boosts their morale and efficiency.

7. The principle of centralization
It states that power and authority should be put in the hands of few so that the image and culture of the company can be maintained and also control the type of decisions to be taken.

8. The principle of subordination of individual interests
It states that workers of an organization should be able to sacrifice their interests and goals for the sake of organizational goals and objectives.

9. The principle of chain of communication.
It states that an organization should have open channels of communication for free flow of information vertically and horizontally between the workers and workers, workers and managers, managers and managers.

10. The principle of execution of orders.
It states that orders and instructions should always come from the right places, departments and persons.

11. The principle of equal treatment.
It states that managers should treat everyone equally, to avoid conflicts and resistance.

12. The principle of stability of personnel.
It states that workers should be assured of their job security by formulating policies that govern dismissals.

13. The principle of initiative
Initiative is the freedom to think, plan and to execute. Therefore, managers should allow their subordinates limited autonomy to be creative but under their watchful eye, for that helps to build their confidence.

14. The principle of Espirit de corpse (teamwork).
According to this principle, unity is strength, and therefore managers should do away with divide and rule policy. Fayor came up with qualities that a manager should have to be able to practice the principles outlined e.g.

1.Physical Qualities

  • Should have good physique
  • Should be of good health
  • Should be smart – dressing not offensive.

2.Mental Qualities

  • Should be intelligent and wise – desist from making emotional decisions.
  • Should be quick to act
  • Should be able to extract the hurting feelings of the group.

3.Moral Qualities

  • Should be respectful
  • Should be honest
  • Should have self determination and communication ability

General knowledge and experience
Should be well educated and experienced – should be able to understand what’s going on and what people are talking about.

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