​Henri Fayol’s -Theory of General Management

Fayol’s idea of establishing the first general theory of management was developed as a result of his belief that it was essential for managers to have a set of principles to guide their management. He developed his ideas when public and private institutions were growing, which led to a need for management positions. Research-based knowledge was needed to help the field of management develop. His theory incorporates four components which include organizational activities, management functions, administrative principles, and methods for putting principles into operation.
    
James D. Mooney and Alan C. Reiley’s Theory of Organization​


Although Fayol’s theory dealt with psychological, behavioral, and structural issues, the primary focus in the U.S. needed to focused more specifically on organizational structure.  Mooney & Reiley emphasized the importance of organizational structure being governed by universal principles. According to Mooney and Reiley, orderly correlation of these principles would lead to more efficient applicability to all areas of collective human effort. They created three universal principles: coordinative, scalar, and functional.
          
Luther Gulick’s Administrative Management Theory


Luther Gulick is known for applying administrative principles to government. In the early 1900s, the movement to reform the government structure and utilize business methods in public administration was initiated, which had a great influence on Gulick’s role. Although Fayol, Mooney, and Reiley had some great theoretical contributions, Gulick expanded upon their basic theoretical framework and added his own conceptual distinctions. He emphasized the importance of chief executives implementing closer supervision over administrative departments than the heads of holding companies. He also saw a larger need for coordinating due to a greater level of interaction between government departments than between corporate divisions. According to Gulick, all organizations should divide labor no matter what their size or level of complexity. He analyzed how coordination can be accomplished through applying the functional and scalar principle. He emphasized departmentalization, which describes the scalar principle. It is presented by an organization chart demonstrating the level of control each manager has and describes reporting within the organizational hierarchy.