Presented ByPrakash Kumar
Rishabh Kapoor
DEFINITION OF CLASSICAL APPROACH
“Classical approach of management professes
the body of management thought based on
the belief that employees have only
economical and physical needs and that the
social needs & need for job satisfaction either
does not exist or are unimportant. Accordingly
it advocates high specialization of
labour,centralized decision making & profit
maximization.”
• Classical approach is the oldest formal school of thought
which began around 1900 and continued into the 1920s.
• Its mainly concerned with the increasing the efficiency of
workers and organizations based on management
practices, which were an outcome of careful observation.
• Classical approach mainly looks for the universal
principles of operation in the striving for economic
efficiency.
• Classical approach includes scientific, administrative &
bureaucratic management.
• SCIENTIFIC MANAGEMENT focuses on the
“One Best Way” to do a job.
• ADMINISTRATIVE MANAGEMENT focuses on
the “manager & basic managerial functions”.
• BUREAUCRACTIC MANAGEMENT focuses on
the guidelines for “structuring with
formaliazation of rules,procedures” and a
clear division of labour.
MAJOR CONTRIBUTORS
• FREDERICK WINSLOW
TAYLOR
(1856-1915)
• FRANK GILBERTH (18681924) & LILLIAN
GILBERTH(1878-1972)
• HENRI FAYOL
(1841-1925)
• MAX WEBER
(1864-1920)
CLASSICAL APPROACH
• SCIENTIFIC MANAGEMENT
THEORY
• GENERAL ADMINSTRATIVE
MANAGEMENT THEORY
•
•
FREDERICK W.TAYLOR
(1856-1915)
- FATHER OF SCIENTIFIC
MANAGEMENT
• ANALYSED MANAGEMENT
SCIENTIFICALLY TO FIND OUT THE
MOST EFFICTIVE WAY TO DO A
JOB - “ONE BEST WAY” TO DO
THE JOB.
HENRI FAYOL (1841- 1925)
- FATHER OF MODERN
MANAGEMENT
• ANALYSED MANAGEMENT AS A
UNIVERSAL PROCESS OF
PLANNING,ORGANIZING,
COMMANDING,COORDINATING& CONTROLLING. ALSO
INTRODUCED FOURTEEN
PRINCIPLES OF MANAGEMENT.
THEORIES
• TAYLOR’S THEORY OF SCIENTIFIC
MANAGEMENT
• FAYOL’S ADMINISTRATIVE THEORY
• WEBER’S THEORY OF BUREAUCRACY
SCIENTIFIC MANAGEMENT
FEDRICK WINSLOW TAYLOR(1856-1915)
Father of Scientific Management
“one best way for doing the job”
Definition
Scientific management was a theory of management
that analyzed and workflows, with the objective of
improving labor productivity
management of a business, industry, or economy,
according to principles of efficiency derived from
experiments in methods of work and production,
especially from time-and-motion studies- (mass noun)
In 1898, Taylor joined Bethlehem Steel.
Taylor was a mechanical engineer who sought to
improve industrial efficiency.
Working in the steel industry, Taylor had observed
the phenomenon of workers' purposely operating
well below their capacity, that is, soldiering. He
attributed soldiering to three causes:
The main things Taylor noticed for inefficiency
The lack of
standard tools
or techniques
There is no
match between
skill and job
No motivation
from the
management
Taylor's 4
Principles of
Scientific
Management
Replace rule-of-thumb work methods with methods based on a
scientific study of the tasks.
Scientifically select, train, and develop each worker rather than
passively leaving them to train themselves.
Cooperate with the workers to ensure that the scientifically
developed methods are being followed.
Divide work nearly equally between managers and workers, so
that the managers apply scientific management principles to
planning the work and the workers actually perform the tasks.
Basic idea of
Scientific Management
General approach
Developed standard
method for performing
each job
Selected workers with
appropriate abilities for
each job
Trained workers in
standard method.
Supported workers by
planning their work and
eliminating interruptions.
Provided wage incentives
to workers for increased
output.
FRANK B GILBRETH & LILLIAN M GILBRETH
Followers of Taylor
STRENGTHS OF CLASSICAL APPROACH
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


Hierarchical Structure-One of the advantages of the classical management
structure is a clear organizational hierarchy with three distinct management
levels. Each management group has its own objectives and responsibilities.
Division of Labour-One of the advantages of classical management approach
is the division of labour. Projects are broken down into smaller tasks that are
easy to complete. Employees' responsibilities and expectations are clearly
defined. This approach allows workers to narrow their field of expertise and to
specialize in one area.
Monetary Incentive-According to classical management theory, employees
should be motivated by monetary rewards. In other words, they will work harder
and become more productive if they have an incentive to look forward to. This
gives management easier control over the workforce.
Autocratic Leadership-The autocratic leadership approach is the central part
of classical management theory. It states that an organization should have a
single leader to make decisions, to organize and direct the employees. All
decisions are made at the top level and communicated down.
Ravi Muchhal (R) 2013-15 DBS
General
Management Theory
o Henri Fayol(1841-1925)
Father of
modern operational
management theory
Fayol:
-French mining engineer and a management
theorist.
-Started as an engineer at a mining company and
became Director in 1888.
- Viewed management as a profession that can be
trained and developed.
-First one to analyze the functions of management.
Contd.
-Made three major contributions to the
theory of Management:
(A)A clear distinction b/n technical &
managerial skills.
(B)Identified functions constituting the
management process.
(C)Developed principles of management.
(A)
According to,
-Activities of an industrial
enterprise can be
grouped in to six categories: technical,
commercial, financial, security, accounting &
managerial.
(1)Technical Processing production &
operation
(2)Commercial Buying, selling &
exchange
(3)Financial Optimum use of capital
(4)Security Protection of asset and
resources
(5)Accounting Ascertaining the
financial position
(6)Managerial Optimum use of
resources for optimum result
(B) Fayol described management as a
scientific process built up of five
immutable elements:
Planning, Organizing, Commanding,
Coordinating, Controlling
Functions of Management
1. Planning –process of activities required
to meet a goal.
2. Organizing – making orderly determination &
arrangement of a task.
3. Commanding(Directing) – involves guiding,
supervising, motivating & leading people for
attainment of the time-oriented tasks.
Contd.
4. Coordinating- bringing together the elements
5. Controlling- having control over all of the aspects
that contribute to meeting the goal.
(C)
Fayol’s Principles
• Henri Fayol, developed a set of 14 principles:
1. Division of Labour: allows for job specialization.
• Fayol noted firms can have too much specialization
leading to poor quality and worker involvement.
2.. Authority and Responsibility: Fayol included both
formal and informal authority resulting from special
expertise.
3. Discipline: obedient, applied, respectful employees
needed
4. Line of Authority: a clear chain from top to bottom of
the firm[ ‘Gang Plank’]
5. Centralization: the degree to which authority rests at
the very top.
Fayol’s Principles
6.
Unity of Direction: One plan of action to
guide the organization.
7. Unity of Command: Employees should have
only one boss.
8. Order: Each employee is put where they
have the most value.
9. Initiative: Encourage innovation.
10. Equity: Treat all employees fairly in justice
and respect.
Fayol’s Principles
11. Remuneration of Personnel: The payment
system contributes to success.
12. Stability of Tenure: Long-term employment
is important.
13. General interest over individual interest:
The organization takes precedence over the
individual.
14. Esprit de corps: ‘Union is strength’- refers
to harmony & mutual understanding among
the members of an organization.
MAX WEBER(1864-1920)
Birth of Bureaucracy
• During 1800’s, European Org. were managed on a
personal, family-like basis.
• Employees loyal towards a single individual.
• Resources used to realize individual desires.
• Weber envisioned Org. would be managed on an
impersonal, rational basis. This form of Org. is
known as Bureaucracy.
Hierarchy
Highest Office
High Office
High Office
Low Office
Low Office
Low Office
Lowest Office
Lowest Office
Lowest Office
• Bureaucratic
organisation is
based upon a
well-defined
hierarchy.
• Hierarchy,
based on
authority.
Lowest Office
Division of Labor
• Division of work,
Executive
Policy &
Planning
Operations
Strategic
Planning
Policy
Development
Regional
Management
Special
Projects
Legislative
Relations
Office Staffing
functional
specialisation.
• Every employee
in the
organisation has
a well defined
power &
authority,based
upon employee’s
specialisation &
expertise.
Maintenance
Consistency
Not Special
Not Special
Not Special
Not Special
Not Special
Not Special
Not Special
Not Special
Not Special
• Bureaucratic
organisation
functions
within a
framework of
fixed rules &
regulations.
• Rules regulate
all matters
“abstractly.”
– i.e. no one is
special
Not Special
Qualification•
PhD
Master’s
Master’s
Bachelor’s
Bachelor’s
Bachelor’s
Associate’s
Associate’s
Associate’s
The
Bureaucrats.
should be
properly &
scientifically
selected.
• This enables
efficiency of
Bureaucracy.
Associate’s
Division of
labour
Managers
subject to
rules &
procedures
Management
& ownership
is separate
The Ideal
Bureaucracy
Positions
organised in
hierarchy
Decisions
recorded in
writing
Selection
based on
technical
qualification
• Today, the term Bureaucracy is taken on a negative
meaning.
• Its associated with endless rules and red tapism.
• But still they provide a standard way of dealing with
employees.
• Equal treatment for all employees.
• This foundation enables many Org. to become
extremely efficient.
Ravi Muchhal (R) 2013-15 DBS