classical approaches to management

ORGANIZATION AND MANAGEMENT

Evolution of Management Theories

CLASSICAL APPROACHES TO MANAGEMENT

Competency Code: ABM_AOM11-Ia-b-2


THE INDUSTRIAL REVOLUTION

It was the rise of the Industrial Revolution and factories were becoming more common. Inside these factories, managers were constantly looking for ways to improve productivity and efficiency.


Greater demand for factories and workers

Low price resulted to greater demand for products

Prices became low for the consumers

Machines were invented improving productivity

AN OVERVIEW TOTHE INDUSTRIAL REVOLUTION


As factories increased in numbers, managers continued to search for ways to;

• Improve productivity• Lower cost• Improve product quality• Increase efficiency


THE CLASSICAL APPROACHES TO 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.



It advocates high specialization of labor, centralized decision making & profit maximization.


THE CLASSICAL APPROACHES TO MANAGEMENT• 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.


THE CLASSICAL APPROACHES TO MANAGEMENT• Classical approach mainly looks for the

universal principles of operation in the striving for economic efficiency.• Classical approach includes scientific,

administrative & bureaucratic management.



Scientific Managemen

t

Bureaucratic

Management

Administrative

Management


Major Contributors to the Classical Management Theories

Frederick W. Taylor(1856-1915)

Franck GilberthLillian Gilberth(1878-1972)

Max Weber(1864-1920)

Henri Fayol(1841-1925)


SCIENTIFIC MANAGEMENT THEORY



• Scientific Managementalso called Taylorism, is a theory of

management that analyzes and synthesizes workflows.

Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management.



• Scientific ManagementFrederick W. Taylor, believed that even the

most basic, mindless tasks could be planned in a way that dramatically would increase productivity.

To scientifically determine the optimal way to perform a job, Taylor performed experiments that he called time studies, (also known as time and motion studies).



• Scientific ManagementThe main causes of inefficiency according to Taylor’s theory;

The lack of standard tools or techniques There is no match between skill and job No motivation from the management



• Scientific ManagementThe four (4) Principles of Scientific Management;

1. Replace rule-of-thumb work methods with methods based on scientific study of the tasks

2. Scientifically select, train, and develop each worker rather than passively leaving them to train themselves



• Scientific ManagementThe four (4) Principles of Scientific Management;

3. Cooperate with the workers to ensure that the scientifically developed methods are being followed

4. 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


BUREAUCRATIC MANAGEMENT THEORY



• Bureaucratic Management Emphasized the necessity of organizations to

operate in rational way instead of following the “arbitrary whims” or irrational motions and intentions of owners and managers.



• Bureaucratic Management Six (6) Principles of Bureaucratic Management Approach

1. Proper Division of LaborDivision of labor specialization should be fixed and there should be a balance between power and responsibilities.

2. Chain of CommandThe chain of command or organizational hierarchy should be constructed in a way that information related to decision and works can flow effectively from top to bottom.




3. Separation of personal and official propertyOwners and organization’s assets are separate and can to be treated as same by the owner or the organization.

4. Application of Consistent and Complete RulesThere should be proper rules and regulations in the organization for running the organization.




5. Selection and Promotion Based on QualificationsThe selection and promotion of workers should be based on equalization’s like; skills, experience, age. It should not be influenced by personal relations and benefits.

6. Training in job requirements and skillsThere is a difference between management and other parts of organization and training and improving skills of management is important.


ADMINISTRATIVE MANAGEMENT THEORY



• Administrative ManagementDeveloped at same time as scientific

management, administrative theory "emphasized management functions and attempted to generate broad administrative principles that would serve as guidelines for the rationalization of organizational activities”.



• Administrative ManagementWhile Taylor reorganized from "bottom up",

administrative theorists looked at productivity improvements from the "top down".

Administrative theorists developed general guidelines of how to formalize organizational structures and relationships. They viewed the job as antecedent to the worker. Primarily these principles were broad guidelines for decision making.



• Administrative Management Henry Fayol’s principles carries the concepts of Administrative Management;

1. Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.

2. Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.

3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary.




4. Unity of Command – Employees should have only one direct supervisor.

5. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.

6. Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers.




7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

8. Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.

9. Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command.




10.Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.

11.Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.

12.Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority.




13.Initiative – Employees should be given the necessary level of freedom to create and carry out plans.

14.Esprit de Corps – Organizations should strive to promote team spirit and unity.



Scientific Managemen

t

Bureaucratic

Management

Administrative

Management

Focuses on the individual worker’s productivity

Focuses on the overall organizational system

Focuses on the functions of management


[ END OF LESSON ]

classical approaches to management

Education