Administrative Management Theory Definition

Administrative Management is a term that refers to the process of designing and managing an organization's entire structure. It entails monitoring an institution's day-to-day operations to ensure consistency in today's fast-paced surroundings. Administrative management is an organizational theory that focuses on developing an effective hierarchy of authority, determining their vital powers and roles, and determining the proper division of labour within the organisation.

It is a critical function for any organisation that allows the management of information through people. Administrative managers monitor information flow within the organisation to ensure that all resources are used efficiently for higher efficiency...

Administrative Management TheoristsHenri Fayol (1841-1925): Fayol was born in Paris and started working for a mining operations company. He devised 14 administrative principles for the framework and management of the organization.James D. Mooney (1884-1957): Mooney researched mechanical engineering and rose through the ranks of General Motors to become a key member of the company's top management team. In 1931, he published Onward Industry! Many academics regard the book as a major contribution to administrative management theory.Luther H. Gulick (1892-1993): Gulick is widely regarded as the "Dean of Public Administration." He applied principles of administrative management theory to government..Importance of Administrative Management Theory

Healthy Financial Situation: Administrative management plays an important role in the financial management of a business organisation. It is a management discipline that relies on keeping all expenses within the budget that has been established. It oversees the company's finances and ensures that no money is wasted, assisting in the maintenance of a healthy financial position.

Higher Productivity: It seeks to improve the coordination of all resources to maximise output. Administrative management theory assigns tasks to team members based on their abilities, resulting in faster outcomes and enhanced productivity.

Facilitates in Acquiring Goals: This effective management strategy aids in the achievement of the company's primary goals. Every policy is developed as a result of a critical analysis of business projects, which results in better actions and the easy attainment of desired goals.

Data-based Decisions: Administrative management theory forbids the use of any assertion or desire in the organization's decision-making method. All decisions are made based on data collected about the organization's new and old activities, as well as its prospects.

Improve Employees and Customer Satisfaction: It contributes to increased employee satisfaction by adequately assigning tasks based on their skills. Employees are motivated in their positions, which improves their satisfaction and better quality, resulting in increased client 

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