Administrative management of Fayol
The development of an organization theory is the administrative management came from Fayol, who argued that all industrial undertakings can be classified into six groups: technical, commercial, financial, security, accounting and management. (Mike Jackson, 2000: 23-24) The management was regard as function which has a difference in character of the others. Actually these six groups are common activities in business administration, official institute and even the family which all involve the management of human being. Fayol also identified as the five functions of administrative management: planning, organization, command, co-ordination and control. He considers these five processes as the universal function in management, which led him to be called a 'Universalist'. Beside the five processes of the management, Fayol also give a presentation of fourteen principles of organization, which he called them principles of management: division of work; authority and responsibility; discipline; unity of command; unity of direction; subordination of individual interest to the general interest; remuneration; centralization or decentralization; span of control; order; equity; stability of tenure of personnel; initiative; and encourage a team spirit.
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