CLASSICAL MANAGEMENT
SCIENTIFIC APPROACHES
 http://www.youtube.com/watch?v=vsSjsnny8JQ
Requirements for a “Profession”
 Formal education requirement for entry
 System of accreditation or licensing
 Clearly defined clients
 Profession-wide code of ethics
“Classical Approach” - Frederick
Taylor
Four Guiding Principles:
 Proper working implements, conditions & rules of
motion: develop a science for every job
 Select right worker with right abilities
 Train worker & give incentive to co-operate: piece-rate
pay
 Give necessary support (E.G., REST PERIODS).
Francis & Lillian Gilbreith
 Time & Motion Studies: reduce a job to its physical
motions i.e. bricklayers
 Soldiering: working below capability
 “Cheaper by the Dozen”
 Concept still being used today
 The Original “Efficiency Experts”
Conclusions of Scientific
Approach
 A use results-based compensation
 B design jobs to maximize a person’s performance
potential
 C carefully select people
 D train people to perform to the best of their abilities
 E provide workers with supervisory support
HENRY GANTT
 Believed in offering bonuses for work performance
 Introduced the GANTT chart
 The GANTT chart is a planning, monitoring, and control
mechanism which is quite simple in concept but a
powerful tool
 Basically more complex projects are systematically
broken down and plotted across time
ADMINISTRATIVE
“Make every employee an Owner”
 Henry Fayol - Rules & Duties Of Mgmt.
 foresight: complete a plan
 organization: provide resources needed to implement
plan
 command: get the best out of people
 coordination: ensure subunits fit together
 control: verify progress, take action
Henry Fayol - continued
 Fayol’s Mgmt. Principles:
 Scalar chain: clear chain of
command
 Unity of command: receive
directions from one person
 Unity of direction: one person in
charge of all related activities
Mary Parker Follett
 Concerned with administration
 Proposed:
 1) Employee-ownership
 2) Proposed a systems theory
point of view
 3) Believed in corporate social
responsibility
 Profit Sharing
 Gain Sharing
 Bring in improvements
 Greed/Ethics
 Unions
CLASSICAL APPROACH;
BUREAUCRATIC ORGANIZATION
Max Weber
Weber’s View of Bureaucracy:

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clear division of labour
Lots of rules – Military based
Jobs filled with experts
Hierarchy of authority
careers based on merit
WEBERS IDEAL BUREAUCRACY
 Advantages
 Efficient
 Fair
 Consistent
 Predictable
 Rational
WEBERS IDEAL BUREAUCRACY
 Disadvantages
 Too much Red Tape
 slow to react to change
 Rigid in shifting customer
needs & wants
 Not spontaneous
BEHAVIOURAL MANAGEMENT
APPROACH
Theory: Hawthorne
 Turning point in Management studies focusing on social
& human concerns vs technical
 Started Human Relations movement where productivity
improved with good people skills
 Evolved into O.B.
Hawthorne Effect
 Lessons from Hawthorne Studies
 A looked at people’s feelings
 B if singled out for special attention people will perform as
expected
 C set stage for study of OB (organizational behaviour: study
of individuals and groups in an organization
ABRAHAM MASLOW HIERARCHY OF
NEEDS:
 Needs
 Five Levels

1) Self-Actualization

2) Esteem
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3) Social
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4) Safety
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5) Physiological
ABRAHAM MASLOW HIERARCHY OF
NEEDS:
Lessons from Maslow
 Managers who satisfy human needs will achieve
productivity
 DEFICIT PRINCIPLE : Satisfied needs are not motivators
 PROGRESSION PRINCIPLE: Higher order needs are
activated only when lower order needs have been
satisfied
McGregor : Theory X & Y
 Theory X: Worker
dislike job, lack
ambition, resist change,
are followers &
irresponsible
 Theory Y: Employee
participation,
involvement,
empowerment, selfmanagement.
McGregor : Theory X & Y
Lessons from Theory X and Theory Y
 A subordinates can act in ways that confirm a manager’s
expectation
 B Theory X Mgrs: overly directive, narrow and controloriented
 C Theory X Mgrs: give subordinates more
participation, freedom and responsibility in their
work
McGregor : Theory X & Y
Lessons from Theory Y assume workers are:
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Willing to work
Willing to accept responsibility
Capable of self-direction
Capable of self inner control
Capable of imagination
QUANTITATIVE MANAGEMENT
 Foundation: Mathematical techniques can be used to
improve managerial decisions
 3 Characteristics:
1) focus on decision making where mgmt must take action
2) economic decision criteria ( costs, revenues, ROI)
3) involve mathematical models that follow sophisticated
rules & formulas ; need computer models to run
USE OF REGRESSION ANALYSIS:
 POSSIBLE FACTORS:
1) SALES EXPERTISE;
2) EXISTING COMPETITION
3) CLIMATE/ENVIRONMENT
4) STORE LOCATION
5) LOCALE (URBAN SUBBURBAN, RURAL)