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(ii) It viewed organisation as a closed system, i.e., having no interaction with the external environment. Elements of bureaucracy are found almost universally in modern organizations, particularly if they are large and complex. (ii) Administrative (or Process, or Functional) Theory of Management: Henry Fayol is regarded as the pioneer of ‘administrative theory of management’ and father of ‘principles of management’. Administrative approach has identified certain well defined functions of management. If the experiences are studied and certain generalizations are derived therefrom, these will help the practising managers. His practical list of principles helped early 20th century managers learn how to organize and interact with their employees in a productive way. In a functional organisation, work is divided into many small parts and each part is assigned to an expert. On the other hand, the principles laid down by Fayol have turned out to be really relevant to the modem scenario. Management is the most vital thing in any organization. This is generally the case with the government departments or big business organizations. It means that whatever is done under management is done in a similar manner in all the organizations. It provides proper records of actions and decisions for future reference. (iii) The classical theorists emphasised organisation structure for coordination of various activities. Systems theory looks for holistic patterns in scientific and metaphysical contexts, … Scientific task planning implies analysing all the different aspects of the work before actually commencing upon it, such as what is to be done? CLASSICAL MANAGEMENT THEORIES The classical perspective emerged during the nineteenth and twentieth centuries, and emphasized a rational, scientific approach to the study of management.The factory system of the 1800’s faced challenges such as tooling plants, organizing managerial structure, training non-English speaking employees (immigrants), scheduling, and resolving … This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. According to this approach, the basis of promotion should be competence. This level is generally responsible for making the long-term goals of the organization. Moreover, he felt that success in a big organization was possible only with the help of the bureaucratic management. According to the traditional techniques of management, this was usually done by the Foreman, however Taylor has advised the establishment of a Personnel Department for this purpose. There is a fall in the demand for workers and they are in constant fear of losing their jobs. It also believes that the employee is motivated by the economic incentives. CLASSICAL MANAGEMENT THEORIES The classical perspective emerged during the nineteenth and twentieth centuries, and emphasized a rational, scientific approach to the study of management.The factory system of the 1800’s faced challenges such as tooling plants, organizing managerial structure, training non-English speaking employees (immigrants), scheduling, and resolving … Taylor has advised the adoption of differential wage systems in order to motivate the employees. Such a situation will result in an increase in production, and such a high increase in profits will make any talk of division of profits meaningless. The classical management approach in business focuses on worker productivity, increased output and the efficiency of lower-level workers. It is important to study the advantages and disadvantages to evaluate the scientific management approach. (iii) These principles mechanise the organization. They work again with their full capacity. Content Guidelines 2. However the most commonly used theories to manage the work and the functioning by the managers are as follows:This theory emphasizes that the decisions made by the manager are based on the present circumstances rather than following the method one size fits all. Classical management theories were developed to predict and control behavior in organizations. The authority of the superiors and the subordinates should be clearly defined. The six theories of management are classical management, scientific management, bureaucracy, human relations, contingency and system theories. Classical Management Theory, broadly speaking, is based upon Henri Fayol, Frederick Taylor, and Max Weber's overlapping management theories. But in practice, management principles can’t be applied blindly, they may need modifications to suit the situation. Developed by Frederick Taylor, the classical theory of management advocated a scientific study of tasks and the workers responsible for them. The classical writers include Taylor, Fayol, Weber, Gullick, Urwick, Mooney and Reiley and others. 2.1 Classical Management Theories The world of organizations is practical. If such an atmosphere prevails in an organisation, then both the parties would aim for the achievement of the same goal (i.e. (v) The classical approach is based on over-simplified assumptions. It was developed during the industrial revolution when problems related to factory systems began, to recognize the role that management plays in an organization particularly focusing on the efficiency of the work process. Classical management theory was introduced in the late 19th century. They placed emphasis on work planning, the technical requirements, principles of management, formal structure, and the assumption of rational and logical behaviour. The Industrial Revolution was a time where innovation really began to change the way that products were … Such a situation automatically results in establishment of industrial harmony. Classical Theory is a theory shows that workers do not need social and job satisfactions status. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Development of Modern Management Theories. It makes an organization more democratic by reducing patronage and other privileged treatment. Money is considered the main motivator under this theory. Some management experts have opposed the thoughts of Fayol. This theory incorporates three viewpoints – (i) Taylor’s Scientific Management (ii) Fayol Administrative Theory, (iii) Weber’s Bureaucracy. Classical theorists of organization concentrated their attention on the principles of organization and the formal aspects of the organization. Benefits or Importance of Scientific Management: Scientific management is equally important to employers, workers and the society as a whole. That is why they both have laid stress upon the practical aspect of work. The implementation of a scientific management system increases efficiency which is very beneficial for the organisation. Good working conditions, better wages, improvement in standards of living, training, etc. False _____ is sometimes referred to as the Father of Modern Management. They are paid according to time. (ii) It brings regularity in the conduct of the employees. The Classical Management Theory is thought to have originated around the year 1900 and dominated management thinking into the 1920s, focusing on the efficiency of the work process. Comparative Study of the Contribution of Taylor and Fayol: Both Taylor and Fayol have been outstanding management experts. The objective of Taylor’s principles is to increase the work efficiency of the workers. (iv) The span of control for a manager should not exceed six. Classical Management in the Workplace Introduced in the late 19th century, the classical management approach to business addresses many issues in industrial management. The human beings are considered to be relatively homogeneous and unmodifiable. On the contrary, Fayol started his career as a high ranking manager. This approach sees projects that are broken into smaller tasks and are easier to complete. In the same manner, standards may also be set for raw materials, machines and tools, techniques, conditions of work, etc. This form of organization is very popular in government and military organizations. Frenchman Henri Fayol – the Father of Administrative Management was a towards a comprehensive theory of management: „Management plays a very. An appropriate action is taken by the manager depending on th… Administrative theory focused on the total organization It is focused on the administrative aspects of management which directly or indirectly effect productivity of the organisation. What Is the Classical Management Approach. Since there is a provision of giving a good rate of bonus under this plan, it motivates all the workers to do more work. Henry Fayol presented fourteen principles of management as general guides to the management pro­cess, namely – (i) Division of work (ii) Authority and responsibility (iii) Discipline (iv) Unity of command, (v) Unity of direction (vi) Subordination of individual interest to general interest (vii) Fair remuneration to workers (viii) Effective centralization (ix) Scalar chain (x) Order (xi) Equity, (xii) Stability of tenure of workers (xiii) Initiative (xiv) Esprit de corps. It is characterized by division of labour, specialization, rationality, personnel competency, etc. These three classical theories are- Maslow’s hierarchy of needs theory; Herzberg’s Two factor theory; Theory X and Theory Y. Bureaucratic management is a stream of classical theory of management. On this basis the various benefits of scientific management can be grouped under the following three headings: Scientific Management results in the following benefits to employers or owners of the business: The quantity of output is directly related to the efficiency of workers and scientific management concentrates its efforts on increasing the efficiency of workers. Normally, it is seen that a conflict between the managers and the workers results in division of profits, with both the parties demanding a larger share of profits. Hence this results in exploitation of labourers as a major chunk of the higher profits due to the increased efficiency are retained by the owners. Scientific management involves, on the one hand, the provision of proper working conditions and, on the other hand, implementations of differential wage system. It became widespread in the first half of the 20th century, as organizations tried to address issues of industrial management, including specialization, efficiency, higher quality, cost … The Evolution of Classical Management Theory. Out of these 12 principles, five related to the Employer-Employee Relationship while the remaining seven principles related to the System in Management. (iv) The organization is perpetually on the move because attention is paid not to the individual but the offices. Both these factors motivate the workers to work harder and in doing so they earn more wages. During this period, Taylor conducted a number of experiments and came to the conclusion that the amount of work a labourer was doing was far less as compared to what he was supposed to be doing. The supervisors provide training for employees as well as address employee issues that arise. The standard time is determined on the basis of average time taken by the several experiences of the same work. The merits and demerits of this approach are the following: (i) Division of work leads to specialization. Gantt had also observed that those supervisors should also be paid bonus who succeeds in getting work up to the desired level out of their workers. This theory says that workers need only physical and economic status and needs. Functions of Management according to Fayol: Principles of Management according to Fayol: (vi) Priority to general interest over individual interest. They placed emphasis on work planning, the technical requirements, principles of management, formal structure, and the assumption of rational and logical behaviour. This is the main reason why labour unions oppose scientific management. Here, all the organizational activities are performed by rationality and proper discipline. This results in more and better work being accomplished in much lesser time, which is one of the main benefits of specialisation. It refers to the application of scientific methods in decision-making for solving management problems. For these theories, Taylor, Fayol and Weber are famous all over the world. The principles of Scientific Management only bring out the basic philosophy behind the theory. The adoption of a system of scientific management has the following benefits for workers: Scientific management involves the maintenance of proper cleanliness and ventilation at the work place and also making adequate arrangements for the safety of workers. Standard time means the time taken by a worker to complete a work in ordinary circumstances. b) Classical Administrative Theory : Among all well-known contributors, Henry Fayol is called as the most notable contributor to this theory. He was appointed the Chief Executive Officer in 1888 in the same company. (For example- if an individual leaves his office, someone e, to Management – Contributions and Criticisms, (ii) Administrative (or Process, or Functional) Theory of Management, Classical Approach to Management – Contributions and Criticisms. However, expecting workers to work like machines and disregarding job satisfaction of employees are the major flaws of this theory. Under this that manager’s approach it is felt that more stress should be given to production instead of manpower. The rest refreshes the workers. Early management theorists are popularly known as ‘classical school of management thought.’ This approach grew out largely from the managerial experiences of successful managers. A Guide to Classical Management Theory Pages: 6 (1656 words) Scientific Management Pages: 9 (2455 words) Evaluation of Management Thought Pages: 12 (3380 words) Human Resource Management, 12e (Dessler) Chapter 4 Job Analysis Pages: 42 (12502 words) Usefulness of Classical Management Theory in a Modern Organisation Pages: 9 (2471 words) Higher profits will result in higher wages for the workers and thus make them more dedicated towards the organisation. We find the following similarities between Taylor and Fayol in their thoughts: Both the management experts have presented solutions to the managerial problems based on their experience and experiments. That is why he has seen the workers very closely, understood their problems and recognised the level of their efficiency. It may be regarded as a set of scientific techniques that are supposed to increase the efficiency of an enterprise. For example- the amount of work to be done by a worker in a day may be standardised. This conclusion of Fayol brings out two features of management – (i) That management is an activity which is different from other business activities, and (ii) that management has the quality of being universal. These theories are building blocks of the contemporary theories developed later. The focus of Fayol’s principles, however, has been the increase in the administrative efficiency of the managers. It regards management as a universal process regardless of the type of the enterprise. TOS4. His practical list of principles helped early 20th century managers learn how to organize and interact with their employees in a productive way. Thus, it is based on centralisation of authority. F. W. Taylor is the father of scientific management. Classical management theories are discussed in this paper. He acquired the knowledge of management by working as a manager in various companies in France. (5) Principle of Equal Division of Responsibility: According to this principle, the work of the organisation and the related responsibilities should be clearly divided among the two main groups in the organisation (Management and Labour). Administrative Management 3. Emerson recommended the implementation of line and staff organisation in place of Functional Organisation advocated by Taylor. Administrative theory focused on the total organization It is focused on the administrative aspects of management which directly or indirectly effect productivity of the organisation. The classical management theory is not often used in the workplace today. Scientific management involves breaking up the complete work into many small parts, with each part being assigned to a person who is an expert in performing it. On the other hand, bureaucratic management cannot be adopted in a dynamic business organization. Next, through conducting various examinations, capable persons are selected. 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