Classical Approach in Management Theory PDF

Management Theory: the classical approach Management Principles and the Business Environment Topic 2: Lecture 2  The Classical Approaches There are 4 main classical theories: 1. Scientific Management (Taylor) 2. Bureaucracy (Weber) 3. Administrativ...

Management Theory: the classical approach Management Principles and the Business Environment Topic 2: Lecture 2  The Classical Approaches There are 4 main classical theories: 1. Scientific Management (Taylor) 2. Bureaucracy (Weber) 3. Administrative Management (Fayol) 4. Human Relations (Mayo) 23/10/2024 Business Management 2  The “father” of scientific management Published Principles of Scientific Management (1911) Fredrick The theory of scientific management Winslow Using scientific methods to define the “one best way” for a job to be Taylor done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker.  Taylor’s 4-Principles Development of a True Science of Work(‘Scientific Management’, the best way) Scientific Selection and development of Workers Bringing Together Science of Work and the Training Man - division of work between workers and managers Co-Operation between Management and Workers Best way, best person, train, and supervision and incentive rate). Japanese: Kaizen: continuous improvement Operational Implications of Taylorism employees should be paid on a piece rate onbasis management should apply the division of labour to the maximum extent. workers should be set high targets working methods should be analysed 'scientifically'. the best person employed. management should plan and control all the worker’s efforts. Criticisms of Taylor Work Is Dehumanised. Boredom And Alienation Increases Social And Psychological Influences On Employee Behaviour Are Ignored. Simplification Of Work Can Result In Craft Skills Being Lost Forever. Certain Jobs Are Extremely Difficult To Measure. Managements May Lose The Commitment Of Their Employees. Max Weber was wrong! Weber on Authority Traditional Authority Charismatic Authority Rational-Legal Authority Developed a theory of authority based on an ideal type of organisation (bureaucracy) Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism Weber’s Six Elements 1. Division of labour – tasks divided and given to specialists 2. Hierarchy – reporting relationships from top to bottom 3. Selection – technical qualification, not favouritism 4. Career orientation – managers as professionals 5. Formalisation – rules and procedures 6. Impersonality – employees treated uniformly Weber on Bureaucracy Work Is Highly Specialised With Each Worker Performing A Set Task Jobs Are Hierarchically Arranged Where One Level Of Jobs Is Subject To Control By The Next Higher Level Each Job Has A Written Job Description Officials Are Appointed To The Office Because Of Their Technical Ability These Officials Are Not The Owners Of The Organisations Official Positions Exist In Their Own Right And The Job Holders Have No Rights To A Particular Position Rules, Decisions And Actions Are Formulated And Recorded In Writing. The Advantages of Bureaucracy staff have security of tenure, a social esteem directly linked to occupational status, a regular salary career development protection from arbitrary dismissal. relationships are predictable and thus create trust among colleagues; an esprit de corps arises. staff identify with the organisation The Public Sector is a good example The Disadvantages of Bureaucracy problems include 'red tape', bureaucracies cannot accommodate change. outdated solutions may be applied to problems without question, the ritualistic work routines can cause the detailed minutiae of work to become an end in themselves. there is much passing the buck and resistance to new ideas. slow decision making junior staff have no means of immediate access to those who take decisions. conformity to the status quo. the public sector is a good example! Weber’s Ideal Type  Henri Fayol Henri Fayol Administrative Management Theory Focuses on managing the total organisation rather than individuals. the activities of the enterprise (what firms do) the elements of management (the job of management in relation to the specific management functions of planning, organizing, leading, and controlling.) the principles of management (guidelines or rules for to be a better manager). Fayol’s Elements Fayol’s -14 Principles Division of Work Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of Individual to the General Interest Remuneration Centralisation Scalar Chain Order Equity Stability of tenure and personnel Initiative Esprit de Corps Administrative management Key contributions Recognised management as a profession, people could be trained and developed Universal principles of management Criticism Universal principles do not take account of variations in the environment, technology or personnel ) 16