Administrative Theory

Administrative Theory: Administrative theory is in other words a structural theory or a process theory by which a clear division of labor and delegation of authority and power are assigned to managers for their specific areas of responsibilities. In the early 1900s several individuals like Max Weber sought ways to design and structure the best formal practice to manage firms, businesses, and organizations. Based on Max Weber’s proposition, Henri Fayol proposed 14 general management principles. These principles are functional principle, Scalar principle, division of labor, authority and responsibility, discipline, subordination of individual interest, order, unit of direction, remuneration, centralization, equity, stability, initiative, and esprit de corps (the responsibility to motivate others).

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