FM Mgt Theory and Classical Approach

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Group Members:

Shivangi Shukla

Avani Patel

Maitri Shah

Mital Patel

Mondish Patel

Hardik Shah

SahradayiModi

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          Classical approaches to organizationalClassical approaches to organizationalmanagement and early organizational theoriesmanagement and early organizational theorieswere designed to predict and control behavior were designed to predict and control behavior in organizations.in organizations.

          Classical Approach theory emerged in earlyClassical Approach theory emerged in early part of the twentieth century. Models were part of the twentieth century. Models weremilitary and the Catholic Church.military and the Catholic Church.

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Definition:Definition:

     Body of management thought based on

the belief that employees have

only economical and physical needs, and

that social needs and need for job-satisfaction either don't exist or are

unimportant.Accordingly, this

school advocates high specialization of labor, centralized decision making, and

profit maximization.

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Features:Features:

          Strict CONTROL of workersStrict CONTROL of workers

          Absolute CHAINS of COMMANDAbsolute CHAINS of COMMAND

          PREDICTABILITY of behavior PREDICTABILITY of behavior 

          UNIDIRECTIONAL downward influenceUNIDIRECTIONAL downward influence

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ClassicalTheory of 

Management

Bureaucratic

TheoryAdministrative

Theory

Scientific

Theory

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Bureaucratic Theory of MgtBureaucratic Theory of Mgt

Weber·s Theory of Bureaucracy:Weber·s Theory of Bureaucracy:

     Max Weber(1864-1920)

     German Sociologist

     Theory of Social and Economic Organization (1947)

     PRIMARY FOCUS: Organizational Structure

     Worker should respect the ́ rightµ of managers to

direct activities dictated by organizational rules andprocedures

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What is Bureaucracy?What is Bureaucracy?

     Bureaucracy is an organization with a

legalized formal and hierarchical structure;

also refers to the formal structural

process within an organization.Bureaucracy allows for the optimal form

of authority - ´rational authorityµ

Rational Authority - rational application of rules or laws

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Bureaucratic Theory of MgtBureaucratic Theory of Mgt

y It stressed the need for a strictly defined

hierarchy governed by clearly defined

regulations & lines of authority.

y Weber considered the ideal organization

to be a bureaucracy whose activities &

objectives were rationally thought out &

whose division of labor were explicitlyspelled out.

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Bureaucratic Theory of MgtBureaucratic Theory of Mgt

     Application in the Modern Workplace

Large organizations guided by countlessrules are bureaucracies

Linked with inefficient, slow-movingorganizations

Organizations have several

characteristics of bureaucracies

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Scientific Theory of ManagementScientific Theory of Management

y Scientific theory was arose in part from

the need to increase productivity.

y The only way to expand productivity was

to rise the efficiency of workers.

y Frederick W. Taylor , Henry L. Gantt , and

Frank and Lillian Gilbreth deviced the

body of principles known as scientificmanagenemt theory.

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Frederick W. TaylorFrederick W. Taylor

y Principles

y The development of a true science of 

management

y The scientific selection of workers

y The scientific education and development

of workers

y Intimate, friendly cooperation between

management and labour.

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Taylor·s Theory of ScientificTaylor·s Theory of Scientific

ManagementManagementyy Elements of Scientific ManagementElements of Scientific Management

Scientific design of every aspect of every task x Time and Motion Studies

Careful selection and training of every task 

Proper remuneration for fast and high-quality work x Maximize output - increase pay

Equal division of work and responsibility between worker and manager

yy Underlying ThemesUnderlying Themes

Managers are intelligent; workers are and should be ignorant

Provide opportunities for workers to achieve greater financial rewards

Workers are motivated almost solely by wages Maximum effort = Higher wages

Manager is responsible for planning, training, and evaluating

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Taylor·s Theory of ScientificTaylor·s Theory of Scientific

ManagementManagementyy Application in the Modern WorkplaceApplication in the Modern Workplace

Assembly Line Plants as Prototypical Examples

´Prisoners of Taylorismµ

System of Remuneration (quotas - commission)

Re-Design - Reengineering

Benchmarking

Data are used to refine, improve, change, modify, andeliminate organizational processes

Lean Manufacturing

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Administrative Theory of Mgt.Administrative Theory of Mgt.

Henri Fayol (1841-1925)

Fayol believed that sound management practice falls into

Certain patterns that can be identified.

He was interested in total organization and focused onManagement.

He gave 14 principles of Management, and according to him

Management is like a skill.

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14 principles of Management By14 principles of Management By

HenriHenri FayolFayol«..«..1)

1) Division of Labour 

2) Authority

3) Discipline

4) Unity of Command

5) Unity of Direction

6) Subordination of Interest

7) Remuneration.

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8) Centralization

6) Subordination of Interest

10) Order 

13) Initiative

12) Stability of Staff 

14) Esprit de corps

9) The Hierarchy

11) Equity

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Scientific Mgt. Theory by Frank andScientific Mgt. Theory by Frank and

LillianLillian GilberthGilberthBorn Lillie Evelyn Moller  

May 24, 1878

Oakland, California

Died January 2, 1972 (aged 93)

Phoenix, Arizona

Residence United States

 Nationality American

 Alma mater  University of California

Brown University

Occupation Ergonomics expert

Management consultant

Professor 

Known for Seminal contributions

to human factors

Spouse Frank Bunker Gilbreth,

Sr.

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GilberthsGilberths· Contributions to· Contributions to

Management TheoryManagement Theoryy Drifting process

y Motion study´Analyzing an activity into its smallest possible

elements, and from the results synthesizing a method 

of performing the activity that shall be more efficient.µ 

--Frank Gilberth

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GilberthsGilberths· Study of Motion· Study of Motion

y Doctors

y Disabled persons

y Baseball playersy Golfers

y Brick layers

y Homemakers

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GilberthsGilberths· Main Goals in Working· Main Goals in Working

withC

ompanieswithC

ompaniesy Increase efficiency by removing

unnecessary movements

y Reduce fatigue for employees

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GilberthsGilberths· Contributions to· Contributions to

Management TheoryManagement Theoryy Frank and Lillian integrated science into

management by:

Proper planning Gathering

Arranging

Systematizing information

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Scientific Mgt. Theory by HenryScientific Mgt. Theory by Henry

GanttGantt

Henry Laurence Gantt

Born 1861

Died November 23, 1919

Citizenship United States

Fields Scientific managementKnown for Gantt chart

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Henry Gantt's legacy to management profession is

the following:

The Gantt chart: Accepted as a the most important project managementtool until today. It provides a graphic mechanism of planning, controlling

work and recording the progress of workers toward the task standard.

The Chart also led to its modern variation - PERT (Program Evaluation and

Review Technique).

Industrial Efficiency: Industrial efficiency can Only be produce by theapplication of scientific analysis to every aspect of work. and industrial

management role is to improve the system by eliminating chance andaccidents.

The Task And Bonus System: He linked the a manager bonus to how well

he teaches his employees to perform better.

The social responsibility of business: He believed that the business hadobligations to the welfare of society that it operates in.

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