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Classical Management Theory

ClassicalManagement

Theory

A theory that focused on finding the onebest way to perform and manage tasksand included

Classical Scientific managementClassical Administrative ManagementClassical Bureaucratic management


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Classical Management Theory

ClassicalScientific

School

Focused on the manufacturingenvironment and individuals workproductivity and efficiency

ClassicalAdministrative

School

Emphasized the flow of informationand how organizations shouldoperate

ClassicalBureaucratic

School

Emphasized the flow of informationand how organizations shouldoperate/functions of management

Identified Organization as a systemand management as a study of thissystem


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Relationship Between Three Classical Theories Of Management

Focuses on the

individual workersproductivity

Focuses on the

functions ofmanagement

Focuses on theoverall

organizationalsystem


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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


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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 modernoperational management theory

The nineteen-year old engineer started at the miningcompany ultimately acting as its managing director

Based largely on his own management experience,Fayol developed his concept of administration.
http://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/France


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DIFFERENCE BETWEEN VIEWS OF TAYLOR AND

FAYOL

Although his ideas have become a universal part of themodern management concepts, some writers continue toassociate him with Taylor!!

A primary difference between Fayol and Taylor was that Taylorviewed management processes from the bottom up, whileFayol viewed it from the top down.In the classic General and Industrial Management Fayol wrotethat "Taylor's approach differs from the one we have outlined inthat 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 supervisorfor each person in an organization.. Fayol criticized Taylorsfunctional management in this way.


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The most marked outward characteristics offunctional management lies in the fact that eachworkman, instead of coming in direct contact with themanagement at one point only, receives his dailyorders 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 . Thiswas an unworkable situation, and that Taylor musthave somehow reconciled


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Major Contributions of Henri Fayol

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First recognized that successful managers had to understand

the basic managerial functions and believed specificmanagement 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.Coordinating5.ControllingDeveloped a set of 14 general principles of management.Provided 16 managerial duties that a manager has toperform


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Fayols General Principles ofManagement

1. Division of work

2. Authority andresponsibility

3. Discipline4. Unity of command

5. Unity of direction

6. Subordination of individual

interest to the commongood

7. Remuneration of personnel

8. Centralization

9. Scalar chain

10. Order

11. Equity12. Stability

13. Initiative

14. Esprit de corps

Source: Based on Henri Fayol, General and Industrial Management , trans. Constana Storrs (London: Pittman & Sons, 1949).


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Division of work: Specializing encourages continuousimprovement in skills and the development ofimprovements in methods.

Authority : The right to give orders and the power toexact obedience.Discipline : No slacking, bending of rules. The workersshould be obedient and respectful of the organization.Unity of command : Each employee has one and only oneboss.Unity of direction : A single mind generates a single planand all play their part in that plan.Subordination of Individual Interests : When at work, onlywork things should be pursued or thought about.


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Remuneration : Employees receive fair payment forservices, 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 ofcommand running from top to bottom of theorganization, like military

A

B1

C1

D1

B2

C2

D2

E1 E2


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Order : All materials and personnel have a prescribedplace, and they must remain there.

Equity : Equality of treatment (but not necessarilyidentical treatment)Personnel Tenure : Limited turnover of personnel.Lifetime employment for good workers.

Initiative : Thinking out a plan and do what it takes tomake it happen.Esprit de corps : Harmony, cohesion among personnel. It'sa great source of strength in the organization. Fayolstated that for promoting esprit de corps , the principle ofunity of command should be observed and the dangers ofdivide and rule and the abuse of written communicationshould be avoided.


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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


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Bureaucratic Management: Weber

Max Weber (1864 1920) A German sociologist and historian who envisioned a

system of management that would be based upon

impersonal and rational behavior the approach tomanagement 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 leaderbecause of his or her special personal qualities orabilities (e.g., Martin Luther King, Gandhi).

Rational-legal authority Subordinate obedience based upon the position held

by superiors within the organization (e.g., policeofficers, executives, supervisors).


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Table 2.2 Webers Three Types of Authority

Type Description

Traditional Subordinate obedience based uponcustom or tradition

Charismatic Subordinate obedience based uponspecial personal qualities associated

with certain social reformers, politicalleaders, religious leaders, ororganizational leaders

Rational legal Subordinate obedience based uponthe position held by superiorswithin the organization


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Bureaucratic Hierarchical Power Structure

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