CLASSIC SCHOOL OF MANAGEMENT

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 test solutions.

Definition
As a result, the classical management theory developed from efforts to find the one 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

Classical Scientific Management

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

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

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

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

Classical Administrative Management

An early form of organization theory, pioneered mainly by Henri Fayol (1841 1925), which was concerned principally with achieving the most 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.

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 on ability, would lead to more efficient management.

Principles
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 specialized so that each employee has the necessary expertise to do a particular task.

Principles (Contd)
Rules and regulations. Standard operating procedures govern all organizational activities to provide certainty and facilitate coordination. Impersonal relationships between managers and employees. Managers should maintain an impersonal relationship with employees so that favoritism and personal prejudice do not influence decisions.

Competence.
Competence, not who you know, should be the basis for all decisions made in hiring, job assignments, and promotions in order to foster ability and merit as the primary characteristics of a bureaucratic organization.

Are classical theories any good?

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.