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Administrative Management Theory
Administrative Management Theory
Scalar chain- According to this theory, you should design an organization with
clear lines of authority from the top down. This is a hierarchical structure.
For example, consider a large corporation. At the top is the board of directors who give
directions to the CEO, who in turn gives directions the vice presidents of each corporate
division. The vice presidents will then give directions to their middle managers, who in
turn give directions to supervisors down to individual employees.
Unity of command provides that there should be only one manager at a time to
give orders to an employee.
For example, imagine you are the CEO of a technology firm in Silicon Valley. While the
board of directors of your company governs the policy making and strategic planning,
under the concept of unity of command, you do not answer to all members of the board,
but only the chairman of the board.
The division of work: managerial work and technical work are responsible to
specialization to produce more and better work with the same amount of effort.
Example: If we consider the work of building a bridge, we can divide the work into
different tasks (such as designing the bridge, arranging money for building it, procuring
raw materials etc.) with deadlines to finish each task so that tasks can proceed to meet
the overall deadline for the project.
The principle of unity of direction means that there should be one plan of
action for a group of activities having the same objectives and there should be
one manager to control them.