Calssical Management Theory Presentation

7/25/2019 Calssical Management Theory Presentation

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MANAGEMENT OF

BUSINESS

Topic : CLASSICALMANAGEMENT THEORY


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DEFINITION OF MANAGEMENT:

Management takes place withina structured organisationalsetting with prescribed roles. Itis directed towards theachievement of aims and

objectives through inuencingthe eorts of others.


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CLASSICAL MANAGEMENT THEORY

Emphasis on structure

Prescriptive about 'what is

good for the rm'

Practical manager (exceptWeber, sociologist)


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HENRI FAYOL

1!1 " 1#$%

&rench engineer who wored onthe mining industr

e proposed that there are ve

primar functions in management *planning, organi+ing, commanding,

coordinating and controlling


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FAYOL PROPOSED 14 PR INCIPLESOF MANAGEMENT

1) Specialization of labour

2) Authorit

!) Di"cipline

#) $nit of co%%an&

') $nit of &irection

() Subor&ination of in&ii&ualintere"t

*) +e%uneration


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) entrali+ation

#) -calar chain

1.) /rder11) E0uinit

1$) Personal tenure

1) 2nitiative

1!) Esprit de corps


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ADVANTAGES&aol was the rst person to actuall give adenition of management which is generallfamiliar toda namel 'forecast and plan, toorganise, to command, to co3ordinate and tocontrol'4

&aol also gave much of the basicterminolog and concepts, which would beelaborated upon b future researchers, suchas division of labour, scalar chain, unit ofcommand and centrali+ation4


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DISADVANTAGES&aol was describing the structure offormal organi+ations4

5bsence of attention to issues such asindividual versus general interest,remuneration and e0uit suggest that&aol saw the emploer as paternalisticand b denition woring in the

emploee's interest4


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&aol does mention the issues relating to thesensitivit of a patients needs, such as initiative and'esprit de corps', he saw them as issues in the contextof rational organisational structure and not in terms

of adapting structures and changing people'sbehaviour to achieve the best t between theorganisation and its customers4

6an of these principles have been absorbed intomodern da organisations, but the were not designedto cope with conditions of rapid change and issues ofemploee participation in the decision maingprocess of organisations, such as are current toda inthe earl $1st centur4


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F+ED+I,- TA./O+

1%731#1%

5merican mechanical engineer

8alor9s scientic managementor 8alorism promoted fourprinciples


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TAYLORS SCIENTIFICMANAGEMENT PRINCIPLES

:el upon wor methods that are based on

scientic evidence

ommit to emploee selection and training

based upon scientic criteria

Provide detailed instruction and supervision

of emploee performance;ivide tass e0uall between management

and emploees


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ADVANTAGESits rational approach to the organisationalwor enables tass and procedures to bemeasured with a considerable degree of

accuracimproving wor methods brought enormousincreases in productivit

it enabled emploees to be paid b results andto tae advantage of incentive paments

it contributed to ma=or improvements inphsical woring conditions for emploees


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DISADVANTAGESit led to increased fragmentation of wor dueto its emphasis on divisional labour

it generated an economicall based approach

to the motivation of emploees b lining pa togeared outputs

it put the planning and control of worplaceactivities exclusivel in the hands of themanagers

it ruled out an realistic bargaining aboutwage rates since ever =ob was measured andrated 'scienticall'


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MAX WEBER

17!31#$.

>erman sociologist and the founder

of modern sociolog

is bureaucratic management theor

followed &redric 8alor9s scienticmanagement concepts


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WEBER PRESENTED THREE TYPESOF LEGITIMATE AUTHOR ITY:

8raditional authorit

harismatic authorit

:ational3legal authorit


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T H E M A I N F E A T U R E S O F B U R E A U C R A C Y A C C O R D I N G T OW E B E R W E R E :a continuous organisation or functions bounded b

rules

5 hierarchal structure of o?ices

appointment to o?ices made on the grounds oftechnical competence onl

the separation of o?icials from the ownership ofthe organisation

the authorit was vested in the o?icial positions

and not in the personalities that held these posts4:ules, decisions and actions were formulated and

recorded in writing4


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ADVANTAGES

5ppointment, promotion and authorit were

dependent on technical competence and

reinforced b written rules and procedures of

promoting those most able to manage rather

than those favoured to manage4 We tae a lot

of this for granted in the @A toda4 5nthing

else is regarded as nepotism and corruption


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8he adoption of bureaucratic tpe ofmanagement sstems alloworganisations to grow into largecomplex organised sstems that are

focused towards formalised explicitgoals4

2t cannot be stated strongl enough

that the Weber theor has the

advantage of being used as a 'gold

standard' on which to compare and

develop other modern theories


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DISADVANTAGES8endenc for organisations tobecome procedure dominated ratherthan goal dominated4

:igid behaviour b senior managerscan lead to standardised services thatdo not meet the needs of the client4

:igid procedures and rules are

demotivating for the subordinatesthat wor in the organi+ations.
http://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5c-management-change/basic-management-models


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CONCLUSION8hese three people all o?eredimportant concepts in

understanding modern managementtheories4 8heir performance drivenapproaches served the needs of theearl ears of the 2ndustrial:evolution4 8he post industrialrevolution era has witnessed thenew criteria of nurture socialfactors that assist in cohesion aswell as tas cohesion


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Calssical Management Theory Presentation

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