Classical Management Perspective

Taylor’s scientific management

Frederick Winslow Taylor, (Father of Scientific Management)

7 Principles

1. Science, not rule of thumb: Discards traditional approach of trial and error,
hit and miss. Involves observation and analysis of each unit of work.
Determination of standard of work. Work is done in best possible way.
2. Harmony, not discord: there should be unity of action not difference in
approach. Close relationships to attain mutual goals with co-ordination.
3. Cooperation, not individualism: organizational objectives are above personal
objectives. Cooperation among all the members to bring smoothness in
organizational performance.
4. Development of efficiency and prosperity: workers should be selected on
the basis of requirements. Necessary steps to develop working efficiency of
workers should be taken into account. Minimization of waste. Scientific training,
seminar, workshop,
5. Maximum output in place of restricted output: Maximum output on the
basis of capacity. Piece rate system. Earn more by performing more. Maximum
production leads to maximum profit to owners.
6. Equal division of responsibility between management and workers:
Managers involve in executive works like determination of objectives, planning,
policy making. Workers involved in implementing those plans. Both must have
feeling of responsibility to assigned job.
7. Mental revolution of both management and workers: Managers must
maintain cooperative relationships with subordinates whereas subordinates
must follow the instructions of the managers. Mutual support and cooperation.
Development of good working environment.
ADMINISTRATIVE MANAGEMENT THEORY

Administrative management theory, developed by Henri Fayol, which focuses on

the management functions of planning, organizing, commanding, coordinating,
and controlling.

It calls for a defined administrative framework, a clear division of tasks, and

administrators' delegation of power and authority.

PRINCIPLES OF ADMINISTRATIVE MANAGEMENT THEORY (HENRI FAYOL)

*(AUDIO SOURCE)
The principles of administrative management theory, developed by Henri Fayol,
include:

1. Authority and responsibility: Fayol believed that authority and

responsibility should be clearly defined and closely linked.
2. Unity of command: Fayol believed that each individual should receive
orders from only one superior.
3. Division of work: Fayol believed that work should be divided among
individuals and groups to increase efficiency.
4. Initiative: Fayol believed that employees should be encouraged to take
initiative in their work.
5. Order: Fayol believed that there should be a place for everything and
everything should be in its place.
6. Stability of tenure of personnel: Fayol believed that personnel should be
stable to ensure continuity of the organization.
7. Unity of direction: Fayol believed that all activities related to a specific goal
should be directed by one manager.
8. Fair Remuneration: Fayol believed that pay should be fair and motivating.
9. Centralization and Decentralization: Fayol believed that decision-making
should be centralized.
10. Equity: Fayol believed that managers should be fair and treat all
employees equitably.
11. Espirit de corps: Fayol believed that all members of the organization
should work together with a spirit to achieve common goals.
12. Discipline: Fayol believed that discipline, including obedience and
respect for superiors, was necessary for the smooth running of an
organization.
13. Subordination of individual interests to general interest: Fayol
believed that the interests of the organization should take priority over the
interests of individual employees.
14. Scalar chain: Fayol believed that there should be a clear line of authority
running from the highest level of management to the lowest level.
BUROCRATIC THEORY

Bureaucratic management theory, developed by Max Weber, emphasizes the

importance of a hierarchical structure, clear lines of authority, and detailed
rules and regulations in organizations.

The bureaucratic theory of management consists of two important elements:

1. organizing an organization into a hierarchy and

2. having well-defined rules and procedures to operate the business.

CHARACTERISTICS OF BUREAUCRATIC ORGANIZATION

1. Administrative hierarchy
2. Official record
3. Technical competency
4. Fixed remuneration
5. Job security
6. Official rules
7. Division of work
8. Work system

PRINCIPLES OF BUREAUCRATIC THEORY

1. Well defined hierarchy of authority: Weber believed that there should be

a clear chain of command and a clear division of labor in organizations.
2. Formal rules and regulations: Weber believed that organizations should
have a set of written rules and regulations to guide the behavior of
employees.
3. Interpersonal relationship: Weber believed that organizations should be
run in an impersonal manner, without personal biases. Only on the basis of
positions.
4. Technical competence: Weber believed that employees should be selected
and promoted based on their technical qualifications and abilities.
5. Formal, written communication: Weber believed that communication in
organizations should be formal and in writing, to ensure clear understanding
and to create a permanent record.
6. Career orientation: Weber believed that employees should have the
opportunity for advancement based on merit and qualifications.
7. Functional Specialization: Weber believed that employees should be
specialized in their work and that the organization should be divided into
different departments.
8. Objective, rational decision-making: Weber believed that decisions
should be made on the basis of objective criteria and logical reasoning,
rather than personal emotions or prejudices.
ADVANTAGES OF BUREAUCRATIC THEORY

1. Rational decisions
2. Maximum efficiency
3. Specialized services
4. Clear career path
5. Removal of ambiguity (अस्पष्टता)
6. Proper command

LIMITATIONS OF BUREAUCRATIC THEORY

1. Rigidity: The strict adherence to rules and regulations can limit flexibility and
creativity in decision making and problem solving.
2. Lack of motivation: The impersonal nature of bureaucracy can lead to a lack
of motivation among employees, who may not feel invested in the
organization's goals.
3. Limited initiative: The strict hierarchy and chain of command can discourage
employees from taking initiative and being proactive in their work.
4. Resistance to change: Bureaucratic organizations may be resistant to change
as it may require rewriting of rules and regulations, which can be time-
consuming and difficult.
5. Lack of accountability: With a large number of employees and multiple levels
of management, it can be difficult to determine who is responsible for a
specific action or decision.
6. Inefficiency: The bureaucratic structure can lead to inefficiency, where
decisions are made slowly, and employees are not held accountable for their
actions.
7. Costs: Bureaucratic organizations often require a large budget to maintain
the large number of employees, paperwork, and other expenses, which can
be a limitation.
8. Complexity: Bureaucratic organizations can become very complex, making it
difficult for employees to understand their role and responsibilities, and for
managers to make decisions.
HUMAN RELATION THEORY

The human relations approach emphasized the significance of social and

psychological variables for worker productivity and job happiness, rather than only
acceptable physical working conditions.

PHASES OF HUMAN RELATIONS THEORY EXPERIMENTS

1. Illumination experiments
increased attention from supervisors could improve job performance. This
phenomenon is known as the Hawthorne effect.
2. Bank wiring observation room experiment.

3. Relay assembly test room experiment.

BEHAVIORAL SCIENCE THEORIES

The behavioral scientist emphasized the significance of people's behaviors for good
management.

NEEDS HIERARCHY THOERY

Abraham Maslow's "Needs Hierarchy Theory" presents the concept of human

needs arranged in a pyramid with five hierarchical levels. Lower-level needs must
be met before the individual can attend to higher-level needs.

1. Physiological needs: food, water, clothes, shelter

2. Safety needs: economic and physical security to fulfill basic needs
3. Social needs: friendship, love, affection
4. Esteem needs: praise, recognition, power
5. Self-actualization needs: decision making position, challenging work
assignment

Figure: Abraham Maslow's Needs Hierarchy Theory

DOUGLAS MCGREGOR’S THEORY X AND Y

- Douglas McGregor's Theory X and Theory Y are theories of management that

describe two different styles of management.

- Theory X assumes that employees are lazy and need to be coerced,

controlled, and threatened to work towards organizational goals. While Theory
Y assumes that employees are self-motivated, ambitious, and willing to take
responsibility for their work.

- Theory X management is based on traditional, autocratic management

styles and Theory Y is based on a more participative, democratic
management style.

- Theory X managers focus on control and punishment as means of motivating

employees, while Theory Y managers focus on empowering employees and
creating an environment where they can achieve their full potential.

- The idea behind Theory X and Theory Y is that managers can choose different
management styles depending on the situation and the employees they are
dealing with.
FREDRICK HERZBERG’S TWO FACTOR (MOTIVATION/HYGIENE) THEORY

According to Herzberg, there are other job factors that prevent job dissatisfaction.

1. Hygiene factors: MAINTAINANCE FACTORS

2. Motivating factors: MOTIVATION FACTORS
SYSTEM THEORY

According to management system theory, an organization should be considered as

an open system.

Components of System Theory

1. Inputs: HR, financial resources, physical resources, information

2. Processing: transformation, operation, planning, leadership, management
3. Outputs: product, profit or loss, service
4. Environment
5. Feedback
DECISION THEORY

In the decision theory of management, decisions are made by rationally choosing

the best option from a set of alternatives.

MANAGEMENT SCIENCE THEORY

The management science theory emphasizes mathematical, quantitative, and

operational research techniques in decision-making. It uses mathematical models,
statistical analysis, and optimization techniques to improve the efficiency and
effectiveness of organizational processes. It is mainly used to make decisions in
the field of production, logistics, inventory, scheduling, and
transportation. Management science theory provides managers with a set of
tools and techniques that can be used to analyze complex problems and make
better decisions. It also uses computer-aided techniques such as simulation and
optimization to analyze and solve problems. It provides an analytical approach for
decision making, rather than relying on intuition or experience.

CONTINGENCY THEORY

Contingency theory is a management theory that suggests that the best approach
to management and decision-making depends on the specific situation or
context. The theory posits that different situations require different
management styles, strategies, and techniques in order to be successful.
According to this theory, there is no one-size-fits-all approach to
management, and principles should be tailored to the needs of the
situation.
EMERGING MANAGEMENT CONCEPT

The emerging management concept are:

1. Workforce Diversity
2. Outsourcing
3. Knowledge Management
4. Learning Organization

WORKFORCE DIVERSITY

Workforce diversity means having a mix of people in a workplace who have different
backgrounds, characteristics, and experiences like different ages, cultures, abilities,
races, religions, gender, and sexual orientation.

Workforce diversity refers to the variety of differences among people in an

organization, including but not limited to: race, ethnicity, gender, age, national origin,
religion, ability, sexual orientation, and socio-economic status. It also encompasses
diversity in thought, background, education, and life experiences. A diverse workforce
can bring a variety of perspectives, ideas, and experiences to an organization, which
can lead to improved problem-solving, creativity, and decision-making.

The benefits of workforce diversity include:

1. Improved decision-making: A diverse workforce can bring a variety of

perspectives and ideas to the table, leading to better problem-solving and
decision-making.
2. Increased creativity: A diverse workforce can foster an environment where
different perspectives and ideas are encouraged, which can lead to increased
creativity.
3. Better understanding of customers: A diverse workforce can help an
organization better understand and relate to its diverse customer base.
4. Increased productivity: A diverse workforce can increase productivity by
tapping into the unique skills and abilities of all employees.
5. Better financial performance: Studies have shown that companies with
diverse workforces tend to have better financial performance.
6. Enhanced reputation: Organizations with a diverse workforce are
perceived as being more progressive, fair, and open-minded.

However, managing diversity can also be challenging, and organizations may need
to take steps to create an inclusive culture, such as providing diversity training and
creating employee resource groups, to ensure that all employees feel valued and
included.
OUTSOURCING

Outsourcing is the process of hiring an external company or individual to perform a

task or service that would otherwise be done by an employee within the
organization. The task or service is typically one that the organization does not
specialize in or does not have the resources to perform in-house. Outsourcing
allows organizations to focus on their core competencies and expertise, while still
being able to access specialized skills and services that they may not have in-
house.

KNOWLEDGE MANAGEMENT

Knowledge management involves capturing and sharing the knowledge and

expertise of an organization, often by converting implicit knowledge (such as
experience and expertise) into explicit knowledge that can be easily shared and
used by others.

Knowledge management is the process of capturing, distributing, and effectively

using knowledge within an organization. It involves identifying and capturing
important information, making it accessible to those who need it, and encouraging
its use in decision-making and problem-solving. It is a way for organizations to
leverage their collective knowledge and experience to improve performance,
increase innovation, and gain a competitive advantage.

LEARNING ORGANIZATION

A learning organization is an organization that has created a culture and

infrastructure that supports and encourages learning and continuous improvement.
It is characterized by a willingness to learn from experience, a focus on continuous
improvement, and an ability to adapt to change.