What is the primary purpose of administrative theory in an organization?

The primary purpose of administrative theory in an organization is to provide a framework for organizing and managing resources effectively. This includes establishing structured processes, communication channels, and authority relationships that are crucial for the efficient operation of any organization. By applying administrative theory, organizations can enhance coordination, streamline decision-making, and improve overall productivity.

Administrative theory emphasizes the importance of systematic approaches to organization—such as standardization of processes, division of labor, and hierarchical structures—which facilitate better resource allocation and management. This foundation allows organizations to achieve their objectives more efficiently, leveraging both human and material resources in a cohesive manner.

Other options, while relevant to various aspects of business operations, do not encapsulate the core focus of administrative theory. Maximizing profits for shareholders is often driven by various business strategies rather than the organizational framework itself. Establishing company culture and values is significant but relates more to organizational behavior and human resource management than to the structural aspects of administration. Similarly, developing marketing strategies pertains to specific functions within an organization rather than the overarching administrative structure that supports all operations. Thus, option B accurately captures the essence of administrative theory's role in organizational effectiveness.