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Classical Management Theory

Classical
Management
Theory
A theory that focused on finding the one
best way to perform and manage tasks
and included

Classical Scientific management
Classical Administrative Management
Classical Bureaucratic management
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Classical Management Theory

Classical
Scientific
School

Focused on the manufacturing
environment and individuals work
productivity and efficiency

Classical
Administrative
School

Emphasized the flow of information
and how organizations should
operate

Classical
Bureaucratic
School

Emphasized the flow of information
and how organizations should
operate/functions of management
Identified Organization as a system
and management as a study of this
system
Relationship Between Three Classical Theories Of Management
Focuses on the
individual workers
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
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Lessons from Classical Scientific Thinkers
Analyze everything
Teach effective methods to others
Plan responsibly
Constantly monitor workers
Control the work and the workers
Thoughts and Profile of Henri Fayol
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Henri Fayol was born in 1841 at Istanbul Turkey.
He was a French management theorist.
Fayol was one of the most influential contributors
to modern concepts of management.
Fayol has been described as the father of modern
operational management theory
The nineteen-year old engineer started at the mining
company ultimately acting as its managing director
Based largely on his own management experience,
Fayol developed his concept of administration.




DIFFERENCE BETWEEN VIEWS OF TAYLOR AND
FAYOL
Although his ideas have become a universal part of the
modern management concepts, some writers continue to
associate him with Taylor!!

A primary difference between Fayol and Taylor was that Taylor
viewed management processes from the bottom up, while
Fayol viewed it from the top down.
In the classic General and Industrial Management Fayol wrote
that "Taylor's approach differs from the one we have outlined in
that he examines the firm from the "bottom up

Fayol suggested that it is important to have unity of command :
a concept that suggests there should be only one supervisor
for each person in an organization.. Fayol criticized Taylors
functional management in this way.



The most marked outward characteristics of
functional management lies in the fact that each
workman, instead of coming in direct contact with the
management at one point only, receives his daily
orders and help from eight different bosses.
Fayol said, those eight, were (1) route clerks, (2)
instruction card men, (3) cost and time clerks, (4)
gang bosses, (5) speed bosses, (6) inspectors, (7)
repair bosses, and the (8) shop disciplinarian . This
was an unworkable situation, and that Taylor must
have somehow reconciled

Major Contributions of Henri Fayol
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First recognized that successful managers had to understand
the basic managerial functions and believed specific
management skills could be learned and taught
He mentioned Six activities of an enterprise:
1. Technical (production, manufacture, adaptation)
2. Commercial (buying, selling, exchange)
3. Financial (search for an optimum use of capital)
4. Security (protection of property and persons)
5. Accounting (Stock taking, balance sheets, cost statistics)
6. Managerial: Fayols universal management functions:
1.Planning 2.Organizing 3.Commanding 4.Coordinating
5.Controlling
Developed a set of 14 general principles of management.
Provided 16 managerial duties that a manager has to
perform



.
Fayols General Principles of
Management
1. Division of work
2. Authority and
responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual
interest to the common
good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
Source: Based on Henri Fayol, General and Industrial Management, trans. Constana Storrs (London: Pittman & Sons, 1949).
Division of work: Specializing encourages continuous
improvement in skills and the development of
improvements in methods.
Authority : The right to give orders and the power to
exact obedience.
Discipline : No slacking, bending of rules. The workers
should be obedient and respectful of the organization.
Unity of command : Each employee has one and only one
boss.
Unity of direction : A single mind generates a single plan
and all play their part in that plan.
Subordination of Individual Interests : When at work, only
work things should be pursued or thought about.

Remuneration : Employees receive fair payment for
services, not what the company can get away with.
Centralization : Consolidation of management functions.
Decisions are made from the top.
Scaler Chain (line of authority) : Formal chain of
command running from top to bottom of the
organization, like military



A
B1
C1
D1
B2
C2
D2
E1
E2

Order : All materials and personnel have a prescribed
place, and they must remain there.
Equity : Equality of treatment (but not necessarily
identical treatment)
Personnel Tenure : Limited turnover of personnel.
Lifetime employment for good workers.
Initiative : Thinking out a plan and do what it takes to
make it happen.
Esprit de corps : Harmony, cohesion among personnel. It's
a great source of strength in the organization. Fayol
stated that for promoting esprit de corps, the principle of
unity of command should be observed and the dangers of
divide and rule and the abuse of written communication
should be avoided.
Bureaucratic Management
Focuses on the overall organizational system.
Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
Bureaucratic Management: Weber
Max Weber (18641920)
A German sociologist and historian who envisioned a
system of management that would be based upon
impersonal and rational behaviorthe approach to
management now referred to as bureaucracy.
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Employee selection and promotion
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Webers Forms of Authority
Traditional authority
Subordinate obedience based upon custom or
tradition (e.g., kings, queens, chiefs).
Charismatic authority
Subordinates voluntarily comply with a leader
because of his or her special personal qualities or
abilities (e.g., Martin Luther King, Gandhi).
Rational-legal authority
Subordinate obedience based upon the position held
by superiors within the organization (e.g., police
officers, executives, supervisors).
Table 2.2 Webers Three Types of Authority
Type Description
Traditional Subordinate obedience based upon
custom or tradition
Charismatic Subordinate obedience based upon
special personal qualities associated
with certain social reformers, political
leaders, religious leaders, or
organizational leaders
Rationallegal Subordinate obedience based upon
the position held by superiors
within the organization
.
Bureaucratic Hierarchical Power Structure