Administrative Theory of Management

This is an approach, given by Henry Fayol, focuses on principles that can be used by managers to coordinate the internal activities of organization. According to this theory, business operations are classified into six major activities:-

1. Technical (production);
2. Commercial (buying and selling);
3. Financial (use of capital);
4. Security (protection of property);
5. Accounting (keeping financial record);
6. Managerial.