Administrative Management Theory

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Administrative

Management Theory
A deep dive into the insights of the administrative management theory
by
Shashwata Jannatul Islam
Id: 23408020
What is Administrative Management theory?
• Administrative management theory attempts to find a rational way to design an
organization as a whole. This theory focuses on the organization as a whole and aims
to identify the most efficient and effective ways to organize and manage activities
within an organization. The theory generally calls for a formalized administrative
structure, a clear division of labor, and delegation of power and authority to
administrators relevant to their areas of responsibilities.
Origin and History

• Henri Fayol, a French mining engineer and management theorist,


published his influential work "Administration Industrielle et Générale"
("General and Industrial Management") in 1916. Fayol outlined 14
principles of management, emphasizing concepts like unity of command,
scalar chain, division of labor, and centralization. These principles formed
the basis of Administrative Management Theory.
Principles of Administrative management theory

Division of Unity of
Centralization Scalar chain
labor Command

Remuneration Planning Organizing Coordinating


Contemporary Relevance in todays dynamics

• All the companies worth billions in revenue in modern day follow the
management theory by maintaining the organizational structures and all the
elements of the administrative management principles.
• Big companies such as Bashundhara Group, Summit Group, RFL, Pran etc follow
a rigid managerial structure.

To have a better understanding of how the big companies run using the administrative
management theory, let’s have a look at Bashundhara Group
• This Bangladeshi conglomerate is one of the largest companies in Bangladesh. Founded by Ahmed Akbar Sobhan in
1987 Bashundhara group was first incorporated as a real estate company and went on to grow as one of the largest and
most successful companies in the country due to it’s administrative and managerial initiatives.

Vice Chairman
Sadat Sobhan Sanvir
Chairman
Deputy Managing Director
Ahmed Akbar Sobhan AKM Mahbublul Jaman

Managing
Director Director
Sayem Sobhan Anvir Yeasha Sobhan

Senior Deputy Managing Director


Belayet Hossain
Assistant Managing
Director General Manager
Safwan Sobhan Md. Tahmid Hossain
Conclusion
• In the face of technological advancements, globalization, and shifts in organizational structures,
Administrative Management Theory offers valuable insights into the importance of clear communication,
strategic decision-making, and the cultivation of a positive workplace culture. The emphasis on employee
initiative, team spirit, and fairness align with modern perspectives on employee engagement and
satisfaction.
• While recognizing that no single theory can comprehensively address all aspects of modern management,
Administrative Management Theory provides a solid starting point. As organizations grapple with the
challenges of the 21st century, they can draw upon the enduring principles of administrative management to
guide their efforts in achieving operational excellence, adaptability, and sustainable success.
• In essence, Administrative Management Theory is not a relic of the past but a foundational guide that
continues to shape contemporary management practices. Its principles, rooted in the realities of the
industrial era, have proven adaptable and resilient, making them an invaluable resource for current and
future generations of managers seeking to navigate the complexities of organizational management.
THANK YOU

Any
Questions?

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