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Classical Management Theory contains a group of similar ideas on the management of organizations.

This theory was a result of the industrial revolution caused by the growth of large organizations. It

contains the Scientific Management, Bureaucratic Management, and Administrative Management

theories. The Neo-Classical Management Theory is a group of management ideas that places emphasis

on the social needs, drives, and attitudes of individuals. Contributors of this theory believed effective

management required a more human orientated approach. The evolution of Human Relations

Management theories included the understanding that employees wanted meaningful work, wanted tobe productive, and wanted to contribute to the decision making and leadership functions of the

organizations. The human relations movement began with the Hawthorne Studies.

MANAGEMENT THEORY

The purpose of this paper is to inform you about the Classical Management and Neo-Classical

Management theories. Classical Management Theory included Scientific Management and Frederick W.

Taylor and Frank B. Gilbreth were among its contributors. It included Bureaucratic Management with

Max Weber as its major contributor. This theory also contained Administrative Management and Henri

Fayol, Chester Barnard, and Mary Parker Follett made contributions to it. Neo-Classical Management

focused on the Human Relations Movement and the major contributors to this movement are Elton

Mayo, F.J. Rothlisberger. The paper begins talking about the Classical Management Theory and

discusses scientific, bureaucratic, and administrative management including its contributors. Icontinue the paper discussing the Neo-Classical Management Theory and the Human Relations

Movement with its contributors.

CLASSICAL MANAGEMENT THEORY

Classical (traditional) management theory focused on efficiency and was developed because large

businesses needed professional managers. The classical management theory was built around

scientific management, bureaucratic management, or administration management. Scientific

management focuses on the best way to do a job which involved machine-worker relationships.

Bureaucratic management relies on a set of rules and procedures. Administrative management uses

the flow of information within the organization.

Scientific Management

Scientific management focuses on machine-worker relationships to improve the efficiency of

production, thereby increasing productivity. Frederick W. Taylor, known as the Father of Scientific

Management, published Principles of Scientific Management that proposed methods designed to

increase productivity. He developed a better method for that job and trained the employee. He

proposed four objectives of scientific management that increased productivity:

• the replacement of rule of thumb methods for determining each element of a worker’s job with

accurate scientific determination

• the scientific selection of workers

• cooperation of workers and management• equal division of responsibility between workers and management.

Frank Gilbreth, known as the Father of Time and Motion Studies, studied time and motions of a

particular job along with his wife Lillian Gilbreth. Their investigations allowed managers to break down

a job components and streamline its process to improve efficiency. Gilbreth worked in construction

sites and in bricklaying he noticed that not two bricklayers used exactly the same method or motions.

He first set out to find an improved method and it resulted in raise output in bricks per day. Cheaper

by the Dozen was a story about them and was also made into a Hollywood movie.



Bureaucratic Management

Bureaucratic management relies on a set of rules and procedures. Max Weber, known as the Father of

Modern Society, considered the rules of bureaucracy to be related to large organizations because they

are based on rational authority, positional authority, and charismatic authority. Rational authority

includes the law, procedures, and rules. Positional authority of a superior over a subordinate originatesfrom legal authority. Charismatic authority comes from the personal qualities of an individual.

Efficiency in bureaucracies originates from: clearly defined and specialized functions, use of legal

authority, hierarchical form, written rules and procedures, technically trained bureaucrats, positions

based on technical expertise, promotions based on competence, and clearly defined career paths.

Administrative Management

Administrative management emphasizes the manager and the functions of management. Henry Fayol,

Mary Parker Follett, and Chester Barnard contributed to administrative management. Henry Fayol,

known as the Father of Modern Management, developed a framework for studying management. He

wrote General and Industrial Management. He identified five functions of management: plan,

organize, command, coordinate, and control. Fayol also defined fourteen principles of management:division of work, authority and responsibility, discipline, unity of command, unity of direction,

subordination of individual interests to the common good, remuneration of personnel, centralization,

scaler chain, order, equity, stability of personnel tenure, initiative, and esprit de corps. Mary Parker

Follett’s concept includes the universal goal, the universal principle, and the Law of Situation. The

universal goal of organizations is an integration of individual efforts into a synergistic whole. The

universal principle is a circular response emphasizing such as the concept of two way communication

and feedback. Law of the situation emphasizes that there is no one best way to do anything, but that

it all depends on the situation. Chester Barnard talked about his thoughts on management in his book,

Functions of the Executive. He is best known for his “zone of indifference” that said good leaders

should have a more neutral position on issues. Barnard’s Acceptance Theory of Authority states

managers only have as much authority as employees allow them to have. The acceptance theory

depends on four conditions:• Employees must understand what the manager wants them to do.

• Employees must be able to comply with the directive.

• Employees must think that the directive is in keeping with organizational objectives.

Employees must think the directive is not contrary to their personal goals.

NEO-CLASSICAL MANAGEMENT

Neo-Classical Management is a group of management ideas that focuses on human relations

management and it deals with the social needs, drives, and attitudes of individuals. The human

relations movement began with the Hawthorne Studies that were conducted at the Hawthorne Plant of

the Electric Company.

Human Relations Management

Human relations management focused on the importance of human relations that was left out of the

classical management era. Elton Mayo, known as the Father of the Hawthorne Studies, identified the

Hawthorne Effect. The Hawthorne studies are important because they demonstrated the important

influence of human factors on worker productivity. There were four major phases of the Hawthorne

studies: the illumination experiments relay assembly room study, the interviewing program, and the



bank wiring room study. The illumination studies were aimed at evaluating the effect of lighting

conditions on productivity. Mayo and Fritz Roethlisberger, author of Management of the Worker,

conducted the relay assembly room studies used pay incentives, rest periods, and active job input on

the productivity of five selected woman workers. The interviewing program was an attempt by the

company to categorize concerns, mitigate grievances, and manipulate employee morale, and the bank

wiring room study had fourteen male employees on the regular factory floor were observed. The

Hawthorne Effect was developed from the studies.

SUMMARY

Classical Management Theory and Neo-Classical Management Theory are two major Management

Theories discussed in this paper. It discusses the three major theories of Classical Management and

Human Relations Management in the Neo-Classical Management Theory. It also identifies each

theories contributor and their works.

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