Classical Theory of

Management
Dr. Ajay Gupta
ajayg@tapmi.edu.in

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Organization Theories
Classical Theory
Scientific Management approach
Weber'sBureaucratic approach
Administrative theory
Neo-Classical Theory (Modern organization theory)
Systems approach
Socio-technical approach
Contingency or Situational approach
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Main idea
of Classical Organizational Theory

There is one best way to perform a task

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Two Perspectives of Classical

Theory of Management
Scientific management focusing on the
management of work and workers
Administrative management - addressing issues
concerning how overall organization should be
structured

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Major Contributors to the Classical Organizational Theory

Scientific Management:

Frederick Taylor
Administrative Management:

Henri Fayol
Max Weber

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Frederick Taylor
Taylor was born in Pennsylvania on March 20, 1856
After studying in Europe, he went to Harvard, but did not
pass the entrance exams
Instead Taylor worked as a pattern maker at a pump
manufacturing company in Philadelphia
Later, he studied mechanical engineering at Stevens,
finishing in just three years.
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Taylors Theory of Scientific Management

Frederick Winslow Taylor was first person who gave Scientific
Management in 1911. He also called the father of scientific
management. Scientific Management was concerned to improving the
operational efficiency at the shop-floor level.

According to Taylor, scientific management means knowing exactly

what you want men to do and seeing that they do it in the best and
cheapest way.

Taylor called it as Mental Revolution, because it creates the mutual

understanding, trust and confidence between the management and
workers for achieving goal (higher production).
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Taylor Principles of Scientific

Management
Science, not rule-of-thumb
Scientific selection of the worker
Management and labour cooperation rather than
conflict
Scientific training of workers

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Key Points of Scientific Management

1. Scientific Job Analysis observation, data gathering, and

careful measurement determine the one best way to perform

each job
2. Selection of Personnel scientifically select and then train,
teach, and develop workers
3. Management Cooperation managers should cooperate with
workers to ensure that all work is done in accordance with the
principles of the science that developed the plan
4. Functional Supervising managers assume planning,
organizing, and decision-making activities, and workers
perform jobs
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Henri Fayol
Engineer and French industrialist
In France works as a managing director in coal-mining
organization
Recognizes to the management principles rather than
personal traits
While others shared this belief, Fayol was the first to
identify management as a continuous process of
evaluation.
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Henry Fayols Principles of Management

Division of work (specialization)

Equity

Authority and responsibility

Stability of tenure of personnel

Discipline

Initiative

Unity of command

Esprit de corps

Unity of direction

The concept of line and staff

Subordination of individual interest

Committees

Remuneration of personnel

Functions of management

centralization

-Planning, organizing, training

Scalar chain

-Commanding

order

-Coordinating

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Fayols 5 Management Functions

Fundamental roles performed by all managers:
Planning
Organizing
Commanding
Coordinating
Controlling
Additionally Fayol recognizes fourteen principles that should
guide the management of organizations.
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1. Planning - developing an outline of the things that must be

accomplished and the methods for accomplishing them
2. Organizing - establishes the formal structure of authority
through which work subdivisions are arranged, defined,
and coordinated to implement the plan
3. Staffing - selecting, training, and developing the staff and
maintaining favorable working conditions
4. Directing - the continuous task of making decisions,
communicating and implementing decisions, and
evaluating subordinates properly
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5. Coordinating - all activities and efforts needed to

bind together the organization in order to achieve a

common goal
6. Reporting - verifies progress through records,
research, and inspection; ensures that things
happen according to plan; takes any corrective
action when necessary; and keeps those to whom
the chief executive is responsible informed
7. Budgeting - all activities that accompany budgeting,
including fiscal planning, accounting, and control
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Fayols 14 Principles
1. Division of Work improves efficiency through a
reduction of waste, increased output, and
simplification of job training
2. Authority and Responsibilityauthority: the right to
give orders and the power to extract obedience
responsibility: the obligation to carry out assigned
duties
3. Disciplinerespect for the rules that govern the
organization

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4. Unity of Commandan employee should receive orders from one

superior only
5. Unity of Directiongrouping of similar activities that are directed to a
single goal under one manager
6. Subordination of Individual Interests to the General Interest
interests of individuals and groups should not take precedence over the
interests of the organization as a whole.
7. Remuneration of Personnelpayment should be fair and satisfactory
for employees and the organization
8. Centralizationmanagers retain final responsibility subordinates
maintain enough responsibility to accomplish their tasks
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9. Scalar Chain (Line of Authority)the chain of command from

the ultimate authority to the lowest
10. Orderpeople and supplies should be in the right place at
the right time
11. Equitymanagers should treat employees fairly and equally
12. Stability of Tenure of Personnelmanagerial practices that
encourage long-term commitment from employees create a
stable workforce and therefore a successful organization
13. Initiativeemployees should be encouraged to develop and
carry out improvement plans
14. Esprit de Corpsmanagers should foster and maintain
teamwork, team spirit, and a sense of unity among employees
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Max Weber (1864-1920)

German sociologist
Weber first describes the concept of bureaucracy
an ideal form of organizational structure
He defines bureaucratic administration as the exercise of
control on the basis of knowledge
Weber states, Power is principally exemplified within
organizations by the process of control
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Max Weber (1864-1920)

Karl Emil Maximilian "Max" Weber (German: [maks
veb]; 21 April 1864 14 June 1920) was a German
sociologist, philosopher, and political economist whose
ideas influenced social theory, social research, and the
entire discipline of sociology.
Weber is often cited, with mile Durkheim and Karl Marx,
as among the three founding creators of sociology

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Max Webers Bureaucratic

Approach
Structure
Specialization
Predictability and stability
Rationality
Democracy

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Max Webers Bureaucratic

Approach
1. A formal hierarchical structure
Each level controls the level below and is controlled by
the level above. A formal hierarchy is the basis of central
planning and centralized decision making
2. Management by rules
Controlling by rules allows decisions made at high levels
to be executed consistently by all lower levels.
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Max Webers Bureaucratic

Approach
3. Organization by functional specialty
Work is to be done by specialists, and people are organized into units
based on the type of work they do or skills they have
4. An "up-focused" or "in-focused" mission
If the mission is described as "up-focused," then the organization's
purpose is to serve the stockholders, the board, or whatever agency
empowered it. If the mission is to serve the organization itself, and
those within it, e.g., to produce high profits, to gain market share, or to
produce a cash stream, then the mission is described as "in-focused."
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Max Webers Bureaucratic

Approach
5. Purposely impersonal
The idea is to treat all employees equally and customers
equally, and not be influenced by individual differences
6. Employment based on technical qualifications
There may also be protection from arbitrary dismissal
The bureaucratic form, according to Parkinson, has
another attribute.
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Common Criticisms of Classical

Organizational Theory
Classical principles of formal organization may lead to a work
environment in which:

Employees have minimal power over their jobs and working conditions
Subordination, passivity and dependence are expected
work to a short term perspective
Employees are lead to mediocrity
Working conditions produce to psychological failure as a result of the
belief that they are lower class employees performing menial tasks

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Classical Theory of Management

Criteria

Scientific

One way top down

Communication
Missing
Career path
For work
Cooperation
Missing
Commitment
Present top down
Command
Manager worker Missing
relation
Command& control
Approach
Interaction
Human treatment
Loyalty
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Team work

Missing
Suppression
Missing
Missing

Administrative

One way
Missing
For work
Present
Present top down
Better
than
scientific
Command,
opportunity, retain
Better
Better
Better
Present

Bureaucratic

One way
Present
Present
Present
Present top down
Better
than
administrative
Opportunity, retain,
command
Better
Better
Better
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Better

Thank you!
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