Administrative Management (Gullick, Urwick and Fayol)

Paper : Perspectives on Public Administration

Lesson : Administrative Management (Gullick, Urwick and Fayol)

Lesson Developer: Dr. Avneet Kaur

College/Department: Indraprastha College for Women, University of Delhi

1 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol)

Table of Contents

1.1 Introduction

1.2 Administrative Management Theorists:

1.2.1 Henry Fayol

1.2.2 Mooney and Reiley

1.2.3 Gulick and Urwick

1.3 General Principle of Administration

1.3.1 Departmentalism

1.3.2 Unity of Directions

1.3.3 Unity of Command

1.3.4 Division of Work

1.3.5 Principle of Staff

1.3.6 Principle of Delegation

1.3.7 Principle of Authority and Responsibility

1.3.8 Principle of Espirit de corps

1.3.9 Principle of Hierarchy

1.3.10 Principle of Span of Control

1.4 Critical dimension of Administrative Management

1.5 Significance of Administrative Management

1.6 Conclusion

1.7 Glossary

1.8 Exercise / Practice

1.10 References/bibliography/ Further Reading

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1.1 Introduction

In public administration “Classical Theory” is the name given by Herbert Simon to the ideas and contributions of early twentieth century administrative practioners and theorist such as Henri Fayol, Luther Gulick, Lyndall, Urwick , J.D Mooney and A.C Reiley. All these writers believed in the existence of certain universal administrative principles the application of which could make organization function more efficiently. The Classical theory is known as the Administrative Management Theory and Formal Organization Theory (S.P Naidu, 1996,p.69). Henry Fayol who as the advocator of the managerial function by advocating the principles of planning, command, coordination to organization. Fayol approaches to management contradict that of Taylor approach of scientific management. Fayol approach was broader and more systematic while classical thinkers like Gulick and Urwick , Mooney and Reiley viewed an organization as a closed system. They elaborated many principles of authority, hierarchy, division of labour to encourage cooperation and coordination in an organization. They wanted to minimize conflict in the working of organization.

Thinker like Taylor focussed his attention on the management by making it work like a shop floor management while Gulick and Urwick work is limited to the study of organisation as a whole. Taylor theory was called “scientific management” that focus his attention on bringing mental revolution through increasing the productivity of the workers. Taylor tried to improve efficiency and working standards and cooperation between managers and workers. The later writers like Gulick and Urwick give important to such principles or they were some rules to help managers manage their organisation in the best possible manner and increase efficiency and economy. Hence Administrative management is the process of managing information through people. This usually involves performing the storage and distribution of information to those within an organisation

Taylor propounded four principles to bring change in the working of organisation: (a) To replace the notion of “ Rule of thumb” Instead use of scientific methods to make Organisation more efficient and functional (b) Jobs should be assigned to the workers on the basis of the capability and skills (c) Performance need to be monitored and supervised. (d) To allocate work between managers and Workers.

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F. Taylor

Scientific Management is a theory of management that work processes in administration. The main objective of this approach is bringing efficiency in work procedure leading to increase in labour productivity. It was one of the method to apply scientific methods to the management procedures.

Source: https://en.wikipedia.org/wiki/Scientific_management, accessed on 23 Dec,2015, 10:30am

Hence, it can be said that administrative management theory is a way to develop an organisation in rational manner. This theory focus upon a structure where the principles of division of work and delegation are adopted and followed. In the next section, we will try to understand the important contributors to the administrative management theory.

1.2 Administrative Management Theorists

Some of the few administrative management theorist who have contributed to the study and field of public administration are Fayol, Urwick and Gulick . These thinkers share some basic similarities with each other. First is that all of them gave importance to the structure of organisation. They believed that it is only through structure functions can be performed. There is a structure in organisation that assigns tasks to its workers and employees. They were of the opinion that organisation will be effective only when there is a well formulated structure. They have elaborated some of the principles of structure and its importance to the working of management processes. Secondly, they believed that these principles has universal claim based on the experiences of industrial organisation. They think that these principles should be applied universally for achieving better efficiency in management processes. Thirdly they believed that their ideas are not based about utopian notion, they are based on practical and real experience of industrial organisation. These ideas are more factual and empirical in nature. ”. They believed that application of these principles are important for any organisation that why they proposed for the idea of science of administration that is based on experience of organisation (Bhattacharya, 1981) .They believed that any kind of conflict hampers the efficiency of

4 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol) the working of organisation and therefore it is important that these conflicts should be minimised. They stressed on different kinds of rules and procedures, hierarchy to be followed so that organization can perform in a better way. This approach believed that for the efficiency of organization it is important that a kind of cooperation and harmony is maintained in the organization so that it leads to better performance and result. This kind of theoretical presumption supports the tradition notion of conflict theory. We will try to understand the important contributors to the Administrative Management approach are:

1.2.1 Henri Fayol 1.2.2 Henri Fayol

Henri Fayol (Istanbul, 29 July 1841 – Paris, 19 November 1925). He was a French mining engineer and has developed theory of business administration. He developed his theory that was very different from scientific management theory.

Source: https://en.wikipedia.org/wiki/Henri_Fayol, assessed on 24.12.15 at 12:30 pm.

Henri Fayol propounded his theory on the basis of his own experience as a French mining engineer. He felt that there are certain important management principles that should be applied to the public organisation. He was a rational person who believed that division of labour can contribute to the efficiency of management. He believed that individuals should be associated with organisation. The function of the management was to plan, organize, command, coordinate and control and, at the same time, it had to be competent enough to elicit ‘loyalty and obedience’ from the workers. His management principles were imbibed from his experience of French army. The need for order, discipline and rationality was emphasized, Fayol spoke of individuals as ‘only a cog in a big machine, He stressed the importance of an organisation chart to clarify the line of authority, communication and to demarcate responsibilities (Organisation: Insights, 1992, p.34). Based on his experience he wrote a book ‘General and Industrial Management’ (1916). His papers on ‘The Theory of Administration in the State’ (1923), is considered as a major contribution to the theory of public administration.

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Although he has listed some of the important principles of management approach, but he has tried to describe the activities that is more of the description of the role played by managers in an organisation. There are fourteen principles that are enlisted by the Fayol based on his own experience as an administrator of public administration. They are (Stewart Clegg and David Dunkerley, 1980, p.99):

1. Division of Work: There is a need to divide work among groups and individual so that task is completed in a prescribed time. He thought that this kind of technique can utilise the skills of individual and best use of human resources is possible.

2. Authority: According to Fayol, authority is interrelated with responsibility. He believed that authority is right to give orders for the proper functioning of organisation. With every authority in organisation employee are responsible towards their organisation.

3. Discipline: Every organisation should ensure that discipline is maintained

4. Unity of Command: It is a norm where there is only one manager from whom workers receive their orders.

5. Unity of Direction: It emphasises on the principle that there should be common goal of organisation.

6. Subordination of Individual Interests to the general interest: In an organisation the interest of organization as a whole is taken care of and individual interest are sacrifice for the interest of organisation.

7. Remuneration: Employees needs to be provided some of the socio economic benefits related to the quality of life so that they are motivated to work and contribute towards organisation.

8. Centralization: According to Fayol centralization leads to lowering of the importance of the subordinate role. Hence he suggested the principle of decentralization that leads to division of work within organisation. 9. Scalar Chain: It is a kind of hierarchy where order flows from highest to the lowest. It is important for the lower rank to provide every information to high rank regarding the organisational work activities. 10. Order: In an organisation, all employees should be treated equally so that it works in an efficient manner. 11. Equity: Equality in terms of all terms and conditions of an organisation.

12. Stability of Tenure of Personnel: It is imperative that employees who are expert and have command over the work processes should be given priority.

13. Initiative: Management should take steps that can ensure worker satisfaction and motivates them to work for the betterment of the organisation.

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14. Espirit De Corps: It is important to maintain cordial relationship between management and the employees of organisation.

He has listed many principles that are relevant for performing managerial activity . They are limited in nature but they provide basis for the development of managerial principles for the other thinkers.

1.2.2 Mooney and Reiley In their book Onward Industry Mooney and Reiley (1931), two managers from General Motors provided a conceptual framework laying down principles of management. Their book is attempted to provide an elaborate account of genesis of management. They refer to as coordinative principles. They showed the importance of leadership in organisation. They also talks about scalar principle that lays stress on hierarchical nature of administration. They have also use the term functional principle that involve the coordination of functions related to setting of goals, purpose to achieve goals and the decision making process. They argued that mangers should perform their function to achieve the goals of management. Taylor have stress on scientifically improving the administration while focus of Mooney and Reiley concentrates upon administration. They have also distinguished between staff and line function in organization. Line organization refers to the functioning of scalar principle while staff are dependent on the line for the command leading to their role as dependent actor (Stewart Clegg and David Dunkerley, p.100). He takes the example of the effort of two men to shift an almiraha and says, ‘here we have coordination, the first principle of organisation’. They argue that management must be aware of these functions to be prepared to discharge them when necessary. Thus, they have contributed to the development of managerial theory of administration. Value Addition- Know More About It In 1939, James Mooney and Alan C. Reiley enlisted some of the principles through which structure of organization are determined. They emphasized on four principles of management i.e. coordination through unity of command, scalar principle, functional principle and relationship between line and staff.

Mooney and Reiley stressed upon some of the basic principle of organisation. According to them there are three basic functions first being the goals need to be set, then there will be a course of action to achieve the goal and finally the decision will be taken for the respective organisation. They argued that it becomes imperative that management must be aware of function and discharge them accordingly. Hence they have played an important role in the development of management theory of administration.

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1.2.3 Gulick and Urwick These two writers contribution to public administration was associated with the bringing together public administration and business administration . Both of these writers were influenced by the ideas propounded by Taylor. The basic objective of their research was to rationalize work process by emphasising on division of labour. They wanted to ensure a kind of system where individual task are divided within the departments. The authority relationship under this system was collection of tasks brought together would be directed unilaterally. There were seen to be four bases for grouping units work together that is the purpose of organisation , the kind of process to be used, material required for fulfilling the tasks and the place where activities can take place (Ibid,p.100.)

Luther Gulick

Luther Gulick was born in Osaka, Japan in the year 1892 and was educated in Columbia University. He worked as administrator of New York City during 1954-56. His important writings are Administrative Reflection from World War-II’, and ‘Papers on the Science of Administration’ (1937), (jointly edited by Urwick) ‘Modern Management for the City of New York.

Source:https://en.wikipedia.org/wiki/Luther_Gulick_(social_scientist), https://en.wikipedia.org/wiki/Lyndall_Urwick , accessed on 2.1.16 at 2:30 pm

Gulick and Urwick was great systematiser of the classical approach to administration. Gulick was a well known American administrative expert. Urwick was a management consultant. Both were involved in the problems of American public administration. They wrote many reports of administrative reform and efficiency. They were influence by Fayol and Taylor. Both Gulick and Urwick devoted their attention to the principles of administration. Division of work, coordination, delegation of authority, authority and responsibility are some of the important principles that are given by them. For Gulick, division of work and coordination is important. He believed that principles of administration is guided by efficiency .He examined the concept of departmentalism ,

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According to him department in an organisation can be organized according to four basic criteria (i) Purpose they need to serve (ii) processes they use (iii) person dealt with and (iv) place where work is performed. Departmentalism is an important feature of the Gulick’s organizational theory (S.P Naidu, 1996,p. 71)

Lyndall Urwick

Lyndall Urwick was born in Briton in 1891. He was educated at Oxford University. Some of his important publications were ‘A Management of Tomorrow’, ‘The Making of Science of Management’, ‘The Elements of Administration’, (1943). He also edited paper along with Luther Gulick ‘Papers on Science of Administration’ (1937).

These two writers had a wide experience in working in industrial organisation. They were associated with the formal organisation and contributed to the development of classical theory that is knows as administrative management theory. They believed that if the experiences of administrators are taken into account then there is a possibility of the development of a science of administration. Hence they argued that there is a need to facilitate the introduction of mass production techniques. They wanted to ensure some level of homogeneity in the work process. It was important to combine skills and production to derive better result and output. Based on this approach and their experience they evolved certain principles of organisation. The principles enunciated by Gulick are called “POSDCORB”(S.P Naidu, 1996,p.71) .

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Source: http://cs.innoshiksha.org/posdcorb/ , assessed on 26.12.2015 at 1:30 pm.

(a)Planning: It is required To fulfil the task of organisation.

(b) Organizing: There is an establishment of formal structure wherein work is divided and coordinated for the desired objective.

(c) Staffing: It is all about training the staff to do the work in a professional manner.

(d) Directing: It means giving directions or order to employee to do their work in a consistent manner.

(e) Co-ordinating: Interrelating of the various kinds of work.

(f) Reporting: Keeping employer updated of the work done by employee in the organisation through regular reports and research.

(g) Budgeting: Maintenance of funds required for planning and coordinating tasks of organisation

According to Gulick the concept of POSDCORB is important for marinating efficiency in organization. While Urwick gave importance to identification of tasks , individual come later. He believed that the scalar principle has to be observed else authority breaks down. Hence he prescribed that scalar chain is a form of authority that runs in an organization. While Urwick identified eight principles of administration. He developed his principles on the interpretation of processes that defines the structure of an organisation. Urwick produced a consolidated list of ten principles as follows (Gerald A. Cole, 2004, pp.22-23):

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1. Principle of the Objective: For any organisation to function there has to be an objective that needs to be fulfilled. 2. The Principle of Specialisation: There is one group that specialises in performance of specific function. 3. The Principle of Coordination: This principle is important for ensuring coordination in organisation. 4. The Principle of Authority: In every organisation, various groups have to follow authority and command of the organisation. 5. The Principle of Responsibility: Since superior claims authority in an organisation therefore he become responsible for acts of his subordinates. 6. The Principle of Definition: In an organisation, it is imperative that the nature of jobs and duties attach to that specific job needs to be specified or defined. 7. The Principle of Correspondence: The principle of authority is associated with the principle of responsibility. 8. The Span of Control: Manger should be responsible for only few subordinates working in an organisation. 9. The Principle of Balance: Balance is an important principle to ensure equality in the work processes. 10. The Principle of Continuity: Within the structure of organisation, continuation of activities is imperative condition.

Hence, it can be said that Urwick ideas has become popular in adopting the management techniques of the institution. He emphasised on the purpose and structure of organisation. If we compare Urwick list with that of Fayol principles of management. Urwick has paid less attention to the issues such as basic pay and morale. Its emphasis has been more towards the mechanism of an organisation. In the next section, we need to understand the general principles of organisation.

1.3 General Principles of Administration

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Source: https://vijaysabarish.wordpress.com/2014/06/, assessed on 29.1.2015 at 3:40pm

Management principles are important for an organization. These are some guidelines that help the administrators to follow and work according to the norms and regulation of an organization. Based on the theoretical framework of some of the scholars, the general principles of administration are:

1.3.1 Departmentalism

Source: http://catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch07_s01, assessed on 1.1.16 at 2:30pm.

This concept is an important part of administrative management theory. It means involvement of groups to operate task of organisation and for the fulfilment of task, groups are divided into different divisions that are called departments. The whole concept of departmentalism depends on factors such as size, objectives and strategies of an organisation. The theory of departmentalisation addresses the problem of bases on which work may be divided and departments are created. Gulick considered division of work as the basis of organisation. He identified four bass viz, purpose (function), process, person and place. Which are popularly known as the ‘4 Ps’ of Gulick (Vikram Singh, 2012, p.240). This theory has been criticised on the basis of the assumption that sometimes some department may not be compatible with the other departments. There is a fear of overlapping with each other. They are very vague; there is also overlap between them.

1.3.2 Unity of Directions:

This principle is based on the belief that one director or executive should head organisations. Urwick warned against the use of committees for purposes of administration. He thought, ‘boards and commissions are turned out to be failures. They are inevitably slow, cumbersome wasteful and ineffective.

Value Addition- Know more about it Management principlesl are based on the conception of the participation of all employees that have basic objective to be achieved. All employee plan to meet a common goal of

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They do not cooperate with other agencies. Well-managed administrative unit in the government are always headed by single administrator (.Bertram Gross, 1964,p.145).

Source: http://008abhishekghorpadeim20nitiepomcourse.blogspot.in/2013/07/fayols- 14-principles-of-management.html, assessed on 2.1.16 at 4:30pm.

For example, suppose there is an automobile company that is manufacturing scooters and cars , hence they have two divisions. As each product has its own market and problems therefore each division have their own set of targets to achieve best results. Hence it can be said that there should be one plan of action for a group of activities having the same objective and there should be one manager to control them. This is an exercise that prevents overlapping in various activities.

1.3.3 Unity of Command

Source:http://s656.photobucket.com/user/PublicPics21/media/christian-unity- cartoon2.jpg.html, assessed on 1.1.2016 at 3:20 pm.

The principle of ‘unity of command’ suggests that for the effective functioning of organisations the subordinates in the organisation should receive command from one

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superior only. Gulick agrees with Fayol who said, “a man cannot serve two masters”. Although rigid adherence to this principle may have its absurdities, these are unimportant in comparison with the certainty of confusion, inefficiency and irresponsibility, which arise from the violation of the principle. However, he has provided certain exceptions to this principle in the case of field office specialist. For example it may be inevitable for an engineer in a field office working under administrative supervision of the field office manager and under technical supervision of the chief engineer in the central office. In such situation the Gulick suggest the system of ‘integrated dual supervision.(Betram Gross, 1964,p.145).If there are many superiors giving order to the same employee , he will not be able to decide as to which order is to be given priority, He thus finds himself in confused state of mind. This kind of situation affects the efficiency of subordinates. For example if there are three subordinates that have only one manager and they all followed the orders and instruction of only one manager . Hence in this case principle of the unity of command is followed and hence fore it is the right approach.

1.3.4 Division of work

Value Addition- Know More about it

This kind of work is assigned to group of workers so that efficiency can be maintained in the institution. It is a medium through which burden on one labour can be minimised leading to the equal division of work so that different tasks can be performed by organisation.

Source: http://study.com/academy/lesson/division-of-work-in-management-definition- lesson-quiz.html, assessed on 1.1.16 at 9:30 pm.

This principle is based on the notion that to bring efficiency in organisation it is important to divide the work and to assign work to the people who are specialised in it. According to Gulick division of work is important principle for organisation. In the large

14 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol) organisation, results are obtained when the work is divided. He was of the opinion that every individual differ in their skills and efficiency as a result need arises to divide the tasks between individuals. Gulick believes that there are many limitations to the division of work such as technology or physical limitation. The work can’t be divided if it is too less. Work can be divided only when there are people available with skills to perform it.

1.3.5 The Principle of Staff

Source: http://mbafinance.svtuition.org/2009/06/14-principles-of-management.html, assessed on 2.1.16 at 4:30 pm.

The principle of staff emphasises that in the performance of organisational activities the executive needs the help of large number of officials. This staff assistance to the executive deserves special attention. The staff is of two categories, (1) special staff and (2) general staff. The chief executive requires the help of the specialist as well as general staff. While general staff assist the chief executive in knowing, thinking and planning functions. The special staffs help the executive in carrying out the basic operations of the organisation. Drawing upon the military experience with line and staff arrangements, Gulick dealt with the problems regarding relation between general and special staff. As in military organisation, general staff may assist their supervisors in their central task of command, control and coordination. They should help to coordinate the work of specialist without themselves taking any specialised functions n doing so they act not on their own but as representative of their superior and within the confines of decision made by him. Thereby they relieve the top executive from the burden of day- to-day administration. They free him to concentrate upon the most important matters Urwick also recognized that in a civilized life, assistant who act on behalf of top executive will often be regarded as “encroaching” upon the authority of senior official. To overcome this problem Gulick suggest that the assistant to be men with a “passion for anonymity (Betram Gross, 1964, p. 147).

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1.3.6 Principle of Delegation

Delegation is an art of higher order and a universally accepted principle. It relives the manager from the heavy load of work. The principle of delegation emphasizes on the need for administrators to keep the requisite authority with them to act and delegate the rest of it to their subordinates. In the absence of such delegation the subordinates cannot discharge their responsibility. Urwick maintains that “lack of courage to delegate Properly and knowledge of how to do it is one of the most general causes of failure in organisation. (Betram Gross, 1964, p.147) Value Addition - Know More about it Delegation does not always work the same way as the manager may expect. To make delegation effective , it should be based on rules and regulation of an organisation

There are many benefits of the delegation in the working of organisation. It leads to the reduction in workload, better decisions, speedy form of decision making, it will train subordinates leading to a healthy relationship that leads to the acceptance of responsibility by the subordinates and lastly it results in the formation of a formal structure of an organisation.

1.3.7 Principle of Equity of Authority and responsibility

Source: http://mbafinance.svtuition.org/2009/06/14-principles-of-management.html, assessed on 1.1.16 at 3:30pm.

This principle is important for the working of organisation. This principle stands on the notion that authority and responsibility are two sides of one coin. If higher authorities assigns some tasks to the subordinate then they are also responsible to the delegates the responsibility for doing work on that status .This will make working environment more responsible and accountable in the process of management.

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1.3.8 Principle of Espirit De Corps

Source: http://mbafinance.svtuition.org/2009/06/14-principles-of-management.html, assessed on 2.1.16 at 3:40pm

This principle means strength in unity. Henri Fayol was the supporter of unity because he knew its importance and value. All employees should understand and create unity among them by minimising conflict in an organisation.

1.3.9 Principle of Hierarchy

Source: http://www.azquotes.com/quote/1222114, assessed on 2.1.16 at 3:30pm.

Hierarchy indicates the control of the higher over the lower. In the administrative structure, hierarchy means a graded organisation of several successive levels or steps. Hierarchy is also known as scalar principle. Hierarchy places individual in organisation in an order. Hierarchy facilitates the allocation of responsibilities to the different levels of organisation. It also facilitates easy flow of work in the organisation and also easy coordination and control. It fixes responsibilities of individuals and makes it clear who is accountable to whom (Bhattacharya, 1981). Hence Hierarchy consist in the universal application of the superior-subordinate relationship through a number of levels of responsibility reaching from top to the bottom of the structure. Fayol held the view that an employee should not approach directly his superior’s superior. Mooney and Reiley

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calls it the “scalar process”. These principles have come into lot of criticism. It has been blamed for creating superior-subordinate relationship in the hierarchy. Procedure through proper channel, red tapism and delay in disposal of cases are other criticism levelled against it. However, hierarchy plays a useful role in an organisation (Rumki Basu, 1994,p 185).

1.3.10 The principle of span of Control

Span of Control is number of subordinates or the units of work that an administrator can personally direct. In the words of Dimock, “The span of control is the number and range of direct, habitual communities contacts between the chief executive of an enterprise and his principal fellow-officers. The exact length of span will depend on many variable factors like the personality of the supervisor, the diversification of the functions of the organisation, the age of organisation and environments of the organisation (Raj Kumar Pruthi,2005, pp.33-43). In other words an officer can directly supervise a limited number of person so that flexibility is ensured in an organisation.

Source: http://www.slideshare.net/amirunkhan7/chap-4-mgt-162, assessed on 2.1.16 at 3:40pm.

This principle emphasises that a supervisor cannot control more than a certain number of subordinates. In this regard Urwick felt that “no supervisor can supervise directly the work of more than five, or at the most six subordinates whose work interlocks.(Betram Gross, 1964,p.148). This kind of idea has been important in the recent years. With the emergence of information technology , there are some noticed changes in the working of public administration. This principle have been under revision since the emergence of specialist. For example in a research organisation there are many specialist who are recognised authorities. In such organisation there is less of commanding but more of discussion and consultation.

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1.4 Critical Dimension of Administrative Management

Many scholars and academician have criticized the administrative management approach. Many thinkers have raised questions on the principles that are enumerated by this approach. These approaches had been appeared to be the experienced of the organisation. The term ‘principle’ is used in different ways by different authors. Sometimes it is more of descriptive connotation. some of the writers have questioned the scientific validity of the principles. Normally a principle is subject to verification. But such universality is absent in these principles. The major attack on principles came from Herbert Simon. Herbert Simon who commented on the fact that the principles are ‘little more than ambiguous and mutually contradictory proverbs’(Clegg, Steward & David Dunkerley, 1980,p.102) .

Critics said that Gulick and Urwick were unable to propound the scientific method while elaborating their principles of administration. All these principles were based upon their personal experiences and were not scientifically proven facts. For Gulick, organizational efficiency was important while Waldo negates this concept and says that its administration is not about efficiency or inefficiency. It is not necessary that efficiency of one purpose leads to inefficiency of other purpose. Despite these limitation Gulick initiated new ideas of managers and said that administration can be distinguish from the management.

This approach gives importance to formal structure and negates the concept of human needs in an organization. It did not give attention to the human behaviour. This theory is more like a closed system that is not externally impacted by any human interactions. Herbert Simon believed that it is a narrow approach that lacks any kind of human element in organization. Some of the principles such as unity of command, hierarchy, and specialization are not based on any scientific validation. There is always a contradictory principle in relation to its basic principles of efficiency and specialization. Even in performing the staff function there is contradiction between generalist and technocrats. Simon felt that these principles describe administrative situation. He believed that these principles cannot be applied universally. This theory is pro management and gives more importance to efficiency and productivity of organization without considering the human psychological and mental needs. According to Prof Waldo this approach lacks any kind of scientific facts and validation. According to V.Subramanyam these are only general proposition that are not associated with any kind of theoretical understanding of subject and it is biased towards management approach that only deals with the problems faced by management in organisation.

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1.5 Significance of Administrative Management Approach

Despite the above mentioned criticism, this approach has been important for the practice of public administration in U.S.A. Under the influence of this approach there were many reformation in the administrative system of U.S.A. Although this theory has great value in day to day activities of life. The principles advocated by Gullick and Urwick often provides an impetus to the role and functions of managers. Even in present times, the principles like division of work and coordination still exists in an organisation. There is a need for organisation to function according to the rules and norms. All these principles have led to the development of the later theories of public administration. There is a need to bring reformation in these principles to make them relevant in present times.

1.6 Conclusion

Administrative management Theory focuses on bringing efficiency in organizations. The important contributors of this approach are Henri Fayol, Henry Dennision, Luther Gulick and Lyndall Urwick, J Mooney and A C Reiley, and Oliver Sheldon. The most notable contributor, however, was Henri Fayol (1841-1925) that guided many of the modern managers. Some of the important principles outlined by them are division of work, authority, discipline, unity of command ,unity of direction, subordination of individual interest to general interests, , scalar chain, order, equity etc.. This theory emerged historically at a point of time when the organisations were becoming complex and faced with problem of inefficiency and low production. This theory has enabled the large-scale organisations to operate effectively. It is also relevant to understand the administrative processes of the contemporary organisations. In spite of their limitations the principles continue to be practiced in the organisations. They facilitate the smooth functioning of administration. To get benefited from the principles one has to understand this theory in a proper perspective and apply it to the contemporary situation with required modification.

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1.7 Glossary

Administration: The work of planning and policy making.

Authority: The right to issue orders and to enforce obedience.

Chain of Command: The chain of superior and subordinates in an organisation also known as scalar chain.

Coordination: Orderly arrangement of group effort to provide unity of action in pursuit of a common purpose

Division of work: Assignment of different parts of work to different individuals.

Decision making: The process of choosing the best course of action from among the alternative course of action.

Delegation: Sharing of authority by a superior with his subordinates.

Departmentalism: Grouping of activities into departments.

Equity: A principle given by Henri Fayol ,Treating all employee with justice without bias.

Hierarchy: It is a method of arranging individuals in the organization in a graded manner for receiving orders and reporting back about execution of orders

Initiative: Ability to think and execute ideas. Principle given by Henri Fayol.

Span of Control: It is a principle which emphasis that a superior cannot control more thana certain number of subordinates.

1.8 Exercise /Practice

1. What is administrative management theory? Elaborate some of the views of the contributors of the approach?

2. Elaborate the views of Urwick and Gulick on the principles of management.

3. Evaluate some of the critical insights of the management theory.

21 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol)

4. Discuss some of the general principles of administration

5. Do you think that the principles of organisations are still relevant in the context of modern day organisations? Discus

Practice

1.Match the Following:

A B

I. Henry Fayol i POSDCORB II. Federick Taylor ii. Bureaucratic Theory III. Urwick and Gulick iii Division of Labour IV. Weber iv. Scientific Management Theory

2. What is the full form of POSDCORB? (A) Planning, Organizing, Staffing, Directing, Coordination, Reporting, Budgeting (B) Planning, Organization, Sales, Directing, Cooperation, Reporting, Budgeting (C) Planning, Organizing, Staffing, Directing, Compromise, Reporting , Budgeting (D) Planning, Organizing, Staffing, Division, Coordination, Reporting , Budgeting

3. The book written by of Henry Fayol is:

(A) The Elements of Administration (B) Onward Industry (C), General and Industrial Management (D) Administrative Reflection from World War-II

4. Which among them is not the principle of organization propounded by Henri Fayol?

(A) Division of work (B) Authority (C) Discipline (D) Decentralization

5. Which among the following is not the principle of Urwick?

(A) Principle of the Objective (B) Principle of Hierarchy

22 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol)

(C) Principle of Definition (D) Principle of Responsibility

6. What are the benefits of the principle of delegation in an organisation?

(a) It leads to reduction in workload (b) Better decision making (c) Healthy relationship between subordinates and managers. (d) All the above

7. Which among the following is not a principle propounded by Frederick Taylor?

(a) Maintenance of discipline in organisation (b) To replace the notion of rule of thumb with the application of scientific methods (c) Work allocation between managers and workers (d) Performance monitoring and supervision

8. What are the basic criterion through which department can be organized?

(A) Purpose they need to serve (B) Processes they use (C) Person dealt with (D) All the above

9. What are the 4 PS identified by Luther Gulick

(a) Purpose, process, person and place (b) Purpose, process, planning, and place (c) Purpose, position, planning and place (d) Purpose, process, person and plan

10. According to Mooney and Reiley , the principle of hierarchy is called:

(A) Scalar process (B) Superior-Subordinate relationship (C) Graded organisation (D) Span of Control

23 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol)

Answers

1. III.1, IV.2, I.3, II.4,

2. A

3. C

4. D

5. B

6. D

7. A

8. D

9. A

10. A

1.9 References and further readings

Ali, Shun Sun Nisa (1977) Eminent Administrative Thinkers, Associated Publishing House, New Delhi.

Basu, Rumki (1994) Public Administration: Concept and Theories, Sterling Publisher, New Delhi.

Bhattacharya, Mohit (1981) Public Administration : Structure, Process and Behaviour , The World Press Pvt. Ltd., Kolkata.

Clegg Stewart and David Dunkerley (1980) Emergence of Organizational Theory, Routledge: New York.

Cole, Gerald A (2004) Management Theory and Practice, South-Western Cengage learning: London.

24 University of Delhi , University of Delhi Administrative Management (Gullick, Urwick and Fayol)

Gross, Bertram M (1964) The Managing of Organisations, The Administrative Struggle, The Free Press of Glencoe, Collier-Macmillan., London.

Naidu, S.P (1996) Public Administration: Concepts and Theories, New Age publisher: New Delhi.

Prasad, D. Ravindra, V.S. Prasad and P. Satyanarayan (2004) Administrative Thinkers(Ed), Sterling Publishers, New Delhi.

Pugh, D.S (1985) Organisation Theory: Selected Readings (Ed), Penguin Books, Middlesex, England.

Purthi, Raj Kumar (2005) Paradigms of Public Administration and Civil services, Discovery publishing: New Delhi.

Singh, Vikram (2012) Public Administration Dictionary, Tata McGraw Hill, New Delhi.

Organisation and Organising: Insights from Theories, Ref: http://shodhganga.inflibnet.ac.in/bitstream/10603/2722/11/11_chapter%202.pdf, assessed on 3.1.16 at 12:30 pm.

25 University of Delhi , University of Delhi