classical approaches to management
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Transcript of classical approaches to management
ORGANIZATION AND MANAGEMENT
Evolution of Management Theories
CLASSICAL APPROACHES TO MANAGEMENT
Competency Code: ABM_AOM11-Ia-b-2
ORGANIZATION AND MANAGEMENT
ORGANIZATION AND MANAGEMENT
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.
ORGANIZATION AND MANAGEMENT
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
ORGANIZATION AND MANAGEMENT
As factories increased in numbers, managers continued to search for ways to;
• Improve productivity• Lower cost• Improve product quality• Increase efficiency
ORGANIZATION AND MANAGEMENT
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
It advocates high specialization of labor, centralized decision making & profit maximization.
ORGANIZATION AND MANAGEMENT
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.
ORGANIZATION AND MANAGEMENT
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
Scientific Managemen
t
Bureaucratic
Management
Administrative
Management
ORGANIZATION AND 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)
ORGANIZATION AND MANAGEMENT
SCIENTIFIC MANAGEMENT THEORY
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES 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).
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO 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
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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
ORGANIZATION AND MANAGEMENT
BUREAUCRATIC MANAGEMENT THEORY
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Bureaucratic Management Six (6) Principles of Bureaucratic Management Approach
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Bureaucratic Management Six (6) Principles of Bureaucratic Management Approach
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.
ORGANIZATION AND MANAGEMENT
ADMINISTRATIVE MANAGEMENT THEORY
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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”.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• 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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management Henry Fayol’s principles carries the concepts of Administrative Management;
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management Henry Fayol’s principles carries the concepts of Administrative Management;
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management Henry Fayol’s principles carries the concepts of Administrative Management;
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management Henry Fayol’s principles carries the concepts of Administrative Management;
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.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
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
ORGANIZATION AND MANAGEMENT
[ END OF LESSON ]