Management Theories: Classic School Overview

Study Notes

Management has been practiced by early civilizations (Egypt, China, Rome, Greece, Mesopotamia).
The Industrial Revolution introduced complex issues like mass production, training, and big factories, for which no established management science existed.
From the late 1800s, engineers developed methods and theories to improve work processes, boost productivity, and decrease costs.

The formal study of management started in the 20th century, emphasizing rationality and efficiency.
This school, often called the classical approach, focused on making organizations and workers more efficient.
A branch of management theory introduced during the Industrial Revolution, addressing problems from the factory system.
Managers were unsure how to improve factory productivity.
Three subfields within the Classic School: Scientific Management, Bureaucratic Organizations, and Administrative Principles.

Developed by Frederick Taylor, aimed to improve labor efficiency through time and motion studies.
Work broken down into simple movements to determine optimal performance.
Standardizing work sequences and defining 'one best way' to do a job.
Division of labor, where workers specialize in specific tasks to become experts.
Taylor advocated for piece-rate pay systems.
Ford used Taylor's principles, reducing automobile production time.
Benefits included improved resource use and productivity. Limitations included short-term, demotivating effects, and perceived treatment of workers as robots.

Max Weber argued that bureaucracy is the most efficient and rational organizational structure.
Impersonal management and clear rules regulate employee behavior.
Bureaucracy ensures consistent and efficient work execution.
Key features include a clear chain of command, specialization of labor, rules/regulations, and impersonal relationships.
Limitations include slow problem-solving, rigidity, and weak communication due to many hierarchical layers.

Developed 14 principles to guide managers on organizing departments.
Classified organizational activities (technical, commercial, financial, security, accounting, and management).
Defined management functions as planning, organizing, directing, and controlling.
Fayol prioritized organizational coordination and direction.

Developed due to the inadequacy of the classical approach in explaining employee behavior and motivations, notably during the Great Depression.
Focus shifted towards understanding human behavior, motivation, expectations, conflict, and group dynamics.
Importance of employee behavior (psychology) and social factors at work for improving productivity.

Studies aimed to determine the effects of physical working conditions on productivity.
Findings: Workers reacted more to psychological and social factors (e.g., recognition, participation in decision-making) than to physical factors.
Motivated employees perform better

Human behavior is purposeful, motivated by satisfying needs.
Needs arranged in a hierarchy (physiological, safety, belonging, esteem, self-actualization).
Lower-level needs must be met before higher-level needs become motivators.

Systems Theory: Views organizations as interconnected systems with interdependent parts.
Contingency Theory: Management approaches should depend on specific circumstances and situations.
Total Quality Management (TQM): Focuses on continuous improvement in quality and customer satisfaction.

Kaizen ("change for the better"): Continuous improvement
Lean Management: Eliminating waste and improving efficiency
Six Sigma: Statistical approach to minimizing defects and improving process quality.
Organizations often integrate these methodologies to ensure a comprehensive approach to quality and process improvement.