Administrative Theory of Management

There was a general tendency by english speaking countries to draw a distinction between Management. It is an activity related to conducting industrial and commercial activities and Public Administration. It is an art of conducting governmental activities. Henri Fayol propounded that such a distinction between Management and Administration is false and misleading. In an attempt to subdivide the study of Management and Administration. Fayol categorized business operations into six activities, all of which were closely dependent on one another.

1. Technical Activities: Producing & manufacturing products.

2. Commercial Activities: Buying raw materials and selling products.

3. Financial Activities: Search for and optimum use of capital.

4. Security Activities: Protection of property and persons.

5. Accounting Activities: Recording and stock taking, preparing cost sheets & balance sheets and statistics.

6. Managerial Activities: Planning, organizing, commanding, controlling and co-coordinating.