Administrative management is one of the areas of modern management, which is engaged in the study of administrative and administrative forms of management. At the same time, administration itself is the organization of personnel’s actions, which is based on formalization, strict incentives and strict regulation.
The essence of the concept
To date, it is customary to distinguish these 2 areas of administrative management:
- creating a rational system with which you can manage the organization.
Among the distinguishing features should be noted such:
- frequent use of linear-functional and linear control structure,
- the most accurate delineation of authority in each position,
- the use of formalized methods for making managerial decisions.
The administrative type of management is actively used in government. In this context, it would be logical to note the concept of state administrative administration, which is a special type of state activity aimed at managing state affairs. Within its framework, the executive branch receives almost complete realization. Among the distinguishing features of this type of management it is worth highlighting:
- operational and continuous nature of activity,
- performance of special functions that require a certain uniform technology,
- the introduction of functional and legal regimes,
- the use of measures related to administrative responsibility,
- the functioning of the control apparatus, which is built in a hierarchical order.
In corporate governance, the value of the type of management presented is also undeniable. The reason for this lies in the fact that with its help an administrative resource is used, which provides the opportunity to achieve various goals by one or another official thanks to the officially granted powers to him.
Today, the training of specialists in the program called "Master of Business Administration" has become extremely widespread. Such specialists are really in demand as top managers in many companies.
The concept of administrative type of management in the classical theory of organization and management
Three main areas of the classical direction of management:
- Scientific Management. It focuses on the scientific rationale for the organization of production. For the most part, industrial management is presented. In this area, rationality is very valuable. Founded by F.W. Taylor, F. Gilbert and G. Gant.
- Classical administrative management. Priority was given to the organization as a full-fledged organism. Key features include organization, planning, control, coordination, and the team chain. A. Fayol and MP P. Fiolet became the founders of this area.
- The concept of bureaucratic organizations. Its founder was M. Weber. Based on an accurate definition of job responsibilities, as well as areas of responsibility of employees. There is a clear distinction between management and property. Management is built solely on an impersonal basis, which is headed by rationality. It assumes formal reporting.
Years of research have led to the realization that the normal operation of the company is impossible without effective management. This is what became the main prerequisite for the formation of the first ideas about the concept of management.
Stages of Formation of Management Schools
The first school of classical management is considered scientific, the founder of which was Frederick Taylor. His main idea is that management turn into a kind of system based on scientific principles. Moreover, it must be carried out using measures and methods specially developed for this. The essence of the theory lies in the fact that not only the production technique, but also labor needs constant standardization and design. It is the organization and management of work that should be given a large amount of time. At the same time, it is imperative to improve the wage system. It is noteworthy that when applying Taylor's ideas in practice, they managed to prove their importance, because labor productivity showed a significant increase.
The subsequent evolution of the views of scientists was determined by the active development of industry. Henri Fayolem, an outstanding French engineer, continued to popularize Taylor's ideas. It was he who proposed to formalize the description of the work of management in enterprises, highlighting their characteristic functions and activities. It is here that the classical administrative school of management originates. Fayol first formulated the basic principles of management. They should be guided by top managers in solving managerial problems, as well as performing managerial functions.
The great contribution of the administrative school of management is that management is considered as a universal process, which consists of a whole list of functions that are interconnected. It was in it that the theory of enterprise management was formulated.
Key management principles
The principles formulated by Fayole to build the structure of the organization, as well as production management, are relevant today. Because of this, the school of administrative management is often called classical.
The main essence of management principles according to the administrative school of management:
- Division of labor. Thanks to the implementation of this principle, it is possible to reduce the number of objects on which each participant in the management process focuses his attention.
- Responsibility and authority. It should be understood that these concepts are interconnected. Power requires the right to give orders, as well as power that requires obedience. They divide the official (sometimes called official) and personal (the one based on personal qualities) power. The connection of concepts is due to the fact that without responsibility there is no power.
- Discipline. This principle assumes obedience.
- Unity of disposition. It is assumed that, regardless of the type of activity, an employee can receive orders solely from one official.
- Personal interests should be subordinated to the general. The interests of a group of employees or one person cannot be higher than the interests of the entire organization.
- The unity of management. One chapter and a single work plan according to this principle should be in one organization.
- Centralization. For the success of the organization, it is important that it has a management center (brain).
- Remuneration of employees. This concept refers to the cost of services that are provided. This price must be fair, while arranging both the employee and the employer.
- Order. Each company must take care of the workplace for each employee.
- Justice. The peculiarities of administrative management are that the leader of any company should try to instill a spirit of justice, which unites all levels of the scalar chain. Only thanks to this, you can be sure that the staff will work with maximum efficiency and devotion to the organization.
- Initiative. Here we understand the possibility of developing a plan, as well as guaranteeing its successful implementation. In case of a positive result, the initiative must be rewarded.
- Corporate spirit. The strength of the organization lies in the harmony between all members of the staff.
Management oversight
The principles of administrative management call control one of the most important management functions. Experts argue that without it it is impossible to implement any management functions within the organization.
Specialists unanimously agree that the main content of management control is as follows:
- Conducting the collection and processing, as well as analysis of the results that were obtained as a result of the activities of all company departments. After that, it is imperative to compare these data with the planned indicators, as a result of which deviations will be identified and it will be possible to determine their causes. It is thanks to management control that it is possible to ensure that all deviations are recorded. This is important for making urgent decisions that relate to company revenue generation.
- Analysis of the reasons why the current activity deviates from the planned behavior. At this stage, it is possible to identify the likely development trends of the company.
- Development of activities that are necessary in order to achieve the intended goals. It is here that specific management decisions must be made.
- Creating a reporting system in the company, which will be used both in its branches and in subsidiaries. Mandatory reporting on the results of the work of the whole company, as well as each of its individual divisions.
State Administration
In accordance with the socio-administrative management, the following division of employees is accepted:
- Government service. This group traditionally includes senior officials who took office thanks to many years of merit. The term of office is directly related to the time spent at the helm of the political leader to whom they support.
- Public service. This includes professional employees holding their posts on an ongoing basis. A change in state leadership cannot be the reason for the removal of such employees from work.
Such a separation in the system of administrative and state administration was proposed by Anglo-American scientists.
The organization of administrative management at the state level suggests that the sphere of influence of managers include state organizations and bodies, state property. And they can also influence public property, which concerns spiritual, cultural and socio-economic development, as well as ensuring freedom of citizens, etc.
Many scientific works consider public administration in a rather broad sense, where it covers 3 branches of government:
- executive
- judicial,
- legislative.
In a narrow sense, it applies only to the executive branch.
But it is important to note that without the management process, none of the above branches of government can function. So, in lawmaking, the essence of the concept of management is the ability to provide targeted and consistent lawmaking.
Technical conditions for the administrative management system
The administrative school of management assumes that before introducing administrative control, it is imperative to solve basic issues with business. This means that the types of services or products that it can offer the consumer and which are in demand should be known.
Organization of administrative management is not possible if the products are unprofitable. At a minimum, this condition should be observed theoretically. The cost of production and the level of wages do not matter.
A prerequisite for administrative management of personnel is that wages should be paid regularly. A theoretical possibility of payment must exist even with actual delays.
Management should take as its basis an ideology according to which the economic effect can be obtained not at the expense of saving on salary payments to employees. You can increase it in other ways. For example, due to the elimination of unproductive time, as well as due to an increase in the productivity of the use of working areas and equipment, a decrease in the number of defects, etc.
The company must have working capital, as well as the possibility of timely replenishment. The administrative school of management in management notes that it is impossible to achieve a good result if there are only debts.
Choosing the optimal company management structure
The organizational management structure is an integral combination of the subject and the control object, which are interconnected by strong information links. It is in it that a reflection of the scheme of the organization’s existing management system is possible.
Types of organizational structures can be divided into the following main groups:
- organic (also called adaptive),
- bureaucratic (they are traditional).
The normative model of a bureaucracy of a rational type has the following conceptual provisions:
- Hierarchy in management. It implies that subordinate subordinate levels.
- The exact division of labor. It is anticipated that qualified professionals should be employed at each position. Administrative management is very important this point, which is considered fundamental to the success of any organization.
- The presence of formal norms and rules that are necessarily followed. It is guaranteed that the tasks and responsibilities of managers will be uniform.
Management Methods
An important place in the management system is given to administrative management methods. They are designed to:
- control the implementation of work with personnel, as well as the implementation of decisions that have been made;
- ensure the efficiency and organizational clarity of the management apparatus;
- to guarantee the maintenance of the work schedule necessary for the enterprise, as well as the enforcement of decisions, orders and decisions of the management.
Administrative management methods are prescriptive in nature, due to which it is possible to obtain an unambiguous solution to the problem and guarantee a direct impact on the behavior of the administrative object.
These methods are collected in a system of techniques and methods by which it is possible to provide purposeful, coordinated, efficient and systematic work of both managed and managing systems. The development of administrative management is impossible without the application of these methods.
Management Performance Assessment
Mandatory is to measure the effectiveness of administration. The administrative school of management suggests that it is necessary to correlate the result of management activities with the cost of resources that were spent on its achievement. A lot of factors that are organized in two main groups affect the effectiveness of managers.
The first group, according to administrative theories of management, includes such factors:
- Management capabilities of the company (all resources that are at the disposal of the organization are taken into account here).
- The costs of the operation and maintenance of management systems.
- The combination of various types of benefits (social, economic and others) received by the organization in the conduct of management activities.
Administrative management includes in the second group a whole list of secondary factors, among which:
- The skill level of performers and workers.
- The degree to which managers are provided with the necessary aids.
The final results of the organization’s work are directly dependent on general indicators. And the second group of factors characterizes the efficiency with which certain types of resources are used. When evaluating the effectiveness of administration, profitability and profit indicators are necessarily used.