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CLASSIC SCHOOL OF

MANAGEMENT

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Definition� One of the first schools of management thought, the

classical management theory, developed during the

Industrial Revolution when new problems related to the

factory system began to appear.

� Managers were unsure of how to train employees (many

of them non-English speaking immigrants) or deal with

increased labor dissatisfaction, so they began to testsolutions.

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Definition� As a result, the classical management theory developed

from efforts to find the ³one best way´ to perform and

manage tasks.

� This school of thought is made up of three branches:

 ± Classical Scientific Management.

 ± Classical Administrative Management.

 ± Classical Bureaucratic Management

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Classic al S cientific Manag ement � Scientific management (also called

Taylorism or the Taylor system) is a

theory of management that analyzes and

synthesizes workflows, improving labor  productivity.

� The core ideas of the theory were

developed by Frederick Winslow Taylor.

� Components of Taylorism ± General Approach

 ± Contributions

 ± Elements

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Taylorism ± General Approach� Develop a standard method for performing each job

� Select workers with appropriate abilities for each job

� Train workers in the standard method previously

developed

� Support workers by planning their work and eliminating

interruptions.

� Provide wage incentives to workers for increased output

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Taylorism ± Contributions� Scientific approach to business management and process

improvement

� Importance of compensation for performance

� Began the careful study of tasks and jobs

� Importance of selection criteria

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Taylorism - Elements� Labour is defined and authority/responsibility is

legitimised/official

� Positions placed in hierarchy and under authority of higher 

level

� Selection is based upon technical competence, training or 

experience

� Actions and decisions are recorded to allow continuity and

memory� Management is different from ownership of the organization

� Managers follow rules/procedures to enable

reliable/predictable behaviour 

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Classic al Ad mini str ative Manag ement � An early form of organization theory,

 pioneered mainly by Henri Fayol (1841± 

1925), which was concerned principally with

achieving the µmost rational¶ organization for coordinating the various tasks specified

within a complex division of labor.

� Focuses on the management process and

 principles of management.� Provides a more general theory of 

management.

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Classical Bureaucratic Management� Max Weber was the major contributor 

to bureaucratic management.

� Bureaucratic management focuses on

the ideal form of organization.

� Bureaucracy, characterized by division

of labour, hierarchy, formalized rules,

impersonality, and the selection and

 promotion of employees based onability, would lead to more efficient

management.

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P rincipl es

� A well-defined hierarchy.

 ± All positions within a bureaucracy are structured in a

way that permits the higher positions to supervise and

control the lower positions. This clear chain of command facilitates control and order throughout the

organization.

� Division of labor and specialization.

 ± All responsibilities in an organization are specializedso that each employee has the necessary expertise to

do a particular task.

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Principles (Contd«)� Rules and regulations.

 ± Standard operating procedures govern all organizationalactivities to provide certainty and facilitate coordination.

� Impersonal relationships between managers andemployees.

 ± Managers should maintain an impersonal relationshipwith employees so that favoritism and personal prejudicedo not influence decisions.

� Competence.

 ± Competence, not ³who you know,´ should be the basisfor all decisions made in hiring, job assignments, and

 promotions in order to foster ability and merit as the primary characteristics of a bureaucratic organization.

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 Are c lassic al theories any g ood? � They do not exactly cater for human needs.

� Do organizations improve efficiency?:

 ± workers feel a sense of empowerment and ownership,

 ± they take decisions,

 ± technical expertise determines some management

 processes,

 ± produces a higher quality value added product

 ± individual and team psychology unites with the

objectives of the organization.