Theory of Management

Administrative Management Theory

The scientific management theory states individual works of employees in an organization, whereas administration management theory gives emphasis to all the aspects. The person to contribute to the development of administrative theory are Henry Foyal, Urwick, Max Weber etc. Among them Henry Foyal is supposed as the father of administrative theory of management. This theory gives emphasis to management activities and principles. According to him management can be studied in the process. This included managerial skills, function of management, principle of management and business activities. similarly, according to him physical skill, mental skill, will power skill, education skill, technical skill, experience etc are managerial skills.Such skills cant be found by birth, they can be earned. Division of labour, authority and responsibility, discipline, unity of command, unity of direction, subordination of candidates, interests to organization interest, remuneration of staff, centralization, equity,order,stability of staff etc are the principle of administration management theory. Administration theory focuses on managing the total organization. Henry foyal has divided business activities in six categories, they are as follows.

• Technical activities- the technical activities include the activities relating to the production of goods and services.
• Financial activities- It includes identification of financial resource, collection and their effective use.
• Security activities- It includes the activities relating to the security of assets, goods and employees of business organization.
• Commercial activities- It includes the purchase and sale of raw materials and final goods and services.
• Accounting activities - It includes all the activities relating to financials recording, preparation of journals, balance sheet,income statement etc.
• Management activities - This includes planning, organizing,directing, controlling, staffing and co-ordinating activities.