Administrative Management: Complete Understanding and Strategy

Managing a business or organization is a challenging and complex job. For company administration to be successful, they need to have a strategy specific to the company and their workplace. If you are looking for a strategy that can help improve administrative management, we can help.

In this article, we examine various theories of administrative management, the skills required for effective management and the benefits that effective administrative management can have.

Table Of Contents

1 What is Administrative Management?
2 Administrative Management According to Experts
2.1 Fayol. Administrative Management Principles
2.2 James D. Mooney Moon’s Theory of Administrative Management
2.3 Luther Gulick and the Theory of POSDCORB
3 Important Skills in Administrative Management
3.1 Technical skills
3.2 Human skills
3.3 Conceptual skills
4 Strategies for Effective Administrative Management
4.1 Budget control and cost management
4.2 Change control and management
4.3 Delegation
4.4 Goal setting
4.5 Leadership development
4.6 Performance management
4.7 Problem management
4.8 Setting standards
4.9 Team building
4.10 Transparency
5 Benefits of Implementing a Good Administration Management Strategy
6 Healthy financial situation
6.1 Maximum productivity
6.2 Facilitating the achievement of goals
6.3 Improved employee and customer satisfaction
6.4 Data-driven decisions
7 More Tips for Building Effective Administrative Management
7.1 Plan strategically
7.2 Focus on all processes
7.3 Evaluating company performance
7.4 Prioritize communication

What is Administrative Management?

The term “administrative management” refers to the act of running and maintaining a business or organization. The core purpose of administrative management is to create a formal structure that facilitates success for a particular business or organization.

Administrative management employees create a hierarchy of authority, decide on their main functions, assign different areas of responsibility and divide the workforce across company departments. According To EasyMBA Administrative Management – Henri Fayol’s Approach

Administrative Management According to Experts

The concept of what effective administrative management looks like has evolved over time as different theories are created and applied. Here are some of the most well-known theories of effective administrative management:

Fayol. Administrative Management Principles

Henri Fayol is a theorist who introduced 14 principles of administrative management based on his experiences as an engineer and director of a mining company in the 1800s. Fayol’s 14 principles are considered to be one of the earliest administrative management theories.

These principles include:

  • Division of Work: Dividing tasks evenly among employees
  • Authority: Deciding how the chain of command functions in the organization
  • Discipline: Establishing policies on how standards of behavior are enforced
  • Unity of Command: Choose one individual or team to be the executive branch
  • Unity of Direction: Maintaining the unity of purpose and vision
  • Subordination of Individual Interests: Sacrificing personal needs for the good of the organization
  • Message: Communicating expectations and instructions
  • Equity: Prioritizing fair and equitable treatment and transactions
  • Personnel Stability: Maintaining the long-term relationship between employee and employer
  • Initiative: Take advantage of every opportunity and act with a sense of urgency

James D. Mooney Moon’s Theory of Administrative Management

James D. Mooney is an engineer and company executive. You may know him as one of the early leaders in managerial theory. He identified three main principles that make organizations a distinct social entity. This includes:

  • Coordination
  • Hierarchy
  • Functional differentiation

Based on this foundation, Mooney, together with Alan Reiley, developed a theory of organizational systems that establishes the processes and effects of each principle. His work is considered critical in the development of administrative management theory.

Luther Gulick and the POSDCORB Teori Theory

Luther Gulick, an American political scientist, was an expert in public administration. He coined the acronym “POSDCORB” which means:

  • Planning (Planning)
  • Organizing _
  • Staffing _
  • Directing _
  • Coordinating _
  • Reporting _
  • Budgeting _

He believes that organizations can be more successful in managing projects if they approach them using these eight elements. Gulick’s theory was inspired by Fayol’s 14 principles.

control sub-strategies will also include implementing cost improvement strategies such as automation, waste elimination, and productivity monitoring.

Change control and management

It is always a challenge to manage change, not only at the team level but also at the functional level. There needs to be an administrative strategy to manage the change process, to evaluate those changes, budget for them, implement them, and ensure they are accepted across the different departments of the organization.


It is a basic requirement for the administrative side of any business operation. If you want your business to run smoothly, assign responsibilities to the team. You should also determine the level of authority so that tasks are completed on time by those who are best qualified to do so.

Goal setting

This strategy must be used company-wide but requires input from the entire administration. There should be a strategy that outlines a clear plan of action for employees and states specific targets.

Most organizations follow the SMART methodology for setting goals: specific, measurable, achievable, relevant and time-bound.

Leadership development

Effective administrative management includes strategies for promoting leaders from within, and this will require developing the capabilities of existing team members and honing their skills.

Leadership development is closely related to succession planning, and both are very important for any organization.

Work management

Performance review plays an important role in any organization. A good administrative management strategy will require measures that provide feedback and direction to team members so that everyone knows their values ​​and is aligned to achieve the same goals.

Problem management

Every business, big or small, faces challenges and setbacks. Administrative management often takes on the responsibility of identifying the problem, investigating the cause of the problem and proposing solutions to fix not only the problem itself, but also the consequences it causes.

Setting the standard

An organization usually functions on the principle of providing value to its stakeholders.

To do so, there must be a set of standards to ensure that the organization’s products and/or services meet standards and meet acceptable standards. Enforcing these standards should be one of the company’s highest priorities.

Team building

If you want to be successful, you will do it by using your people. To do that, implement a team-building strategy to keep your team motivated.

Team building activities are also important for developing team relationships and company loyalty.


One of the roles of administrative management is to provide accurate information to employees and the public. All reports must be truthful, and there must be no practice that requires hiding anything from your core team members or clients.

Benefits of Implementing a Good Administration Management Strategy

Organizations today understand the critical role that effective administrative management can play in the success of business operations.

Some of the key benefits of implementing a strong administrative management strategy include:

Healthy financial situation

An effective administrative management strategy to ensure the company’s finances are managed efficiently so that expenses are kept under control and within budget.

There is no unnecessary wastage of money or resources, and the company’s financial documents are perfectly organized. If this area is managed properly, the company’s cash flow remains stable.

Maximum productivity

Good administrative management always uses the power of the team. This includes identifying which team members will be more successful at performing a particular task.

By harnessing the strengths of each team member, there are fewer mistakes in time management, greater productivity, faster results and higher levels of motivation within the team.

Facilitate goal achievement

A good strategy always supports the main goals of an organization. Administrative management is very important in creating efficient processes and their implementation.

The goals of each project, policy, and action within the company must achieve the goals that have been set.

Increased employee and customer satisfaction

Efficient management will lead to proper distribution of work and increased motivation among employees.

When employees are motivated, their performance will be better, which will lead to client satisfaction and increased customer satisfaction.

Data-driven decisions

An effective administrative management strategy will never be based on wishes or assumptions. it will be designed based on the data related to the business process.

Any decisions made should be based on past and current information and future goals.

More Tips for Building Effective Administrative Management

Here are some final tips for effective strategic management:

Plan strategically

For effective administrative management, it is very important that the administrative management team is aware of the strategic objectives of the organization.

When this happens, the processes and functions implemented in the organization will directly affect the achievement of these goals.

Focus on all processes

A good administrative management strategy will ensure that every process is designed for maximum results.

Issues and problems related to business processes must be identified early and dealt with quickly to avoid losses or delays.

Evaluating company performance

The administration is a daily function. Effective administrative management will require periodic evaluation of the organization’s performance.

This can be done through bi-weekly, weekly, monthly or quarterly meetings, depending on the type of industry you work in and the competition. Monitoring the performance of the company, its progress and its main functions is very important for the success of administrative management and the organization itself.

Prioritize communication

Many companies fail because of ineffective communication because it has the potential to destroy the function of the business, the level of motivation of its employees, and the level of customer satisfaction.

Lack of communication can also lead to wrong and uninformed decisions that can often be disastrous for businesses. If you want to be successful in administrative management, you need to communicate well with your employees, supervisors and customers.

People also asked FAQ’s Questions:

People also ask FAQ’s Questions:

1. What are the main functions of administrative management?
2. What are the key concepts of administrative management?
3. What is the central focus of the administrative management?
4. What is Administrative management theory
5. What is administrative management functions

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