Classical Management Approaches

1. Classical Management Approaches Unit 1: Foundations of Management

2. Major branches in the classical approach to management

3. Classical Approach to Management Assumes that people are rational and driven by economic concerns Management may be traced back to 5000 BCE Management was important to the construction of the Egyptian Pyramids, rise of the Roman Empire and the commercial success of the 14th Century.

4. Frederick Taylor (1911) “Father of Scientific Management” • From his book: “the principle objective of management should be to secure maximum prosperity for the employer, coupled with maximum prosperity for the employee”. • Found that many workers did their jobs their own way, without clear and uniform specifications • Thought this could be resolved if workers were taught to perform their job in the right way. • Needed: training for the worker and support from supervision in the form of proper direction, work assistance and monetary incentives.

5. Four Guiding Principles: (Scientific Management) Develop for every job a ‘science’ that includes rules of motion* and standardized work implements. Carefully select workers with the right abilities for the job Carefully train workers to do the job and give them incentives to cooperate with the job science Support workers by carefully planning their work and by smoothing the way as they go about their work. *motion study is the science of reducing a job to its basic physical motions

6. The Gilbreths (Frank & Lillian) Continued the efforts in motion studies Reduced motions to increase productivity Established foundation for job simplification, work standards, incentive wage plans – all of which are used today.

7. Administrative Principles 1. Henry Fayol(1841-1925) • Identified 5 duties of management which closely resemble the 4 functions of management today (planning, organization, leading and controlling) • 5 duties on next slide

8. Administrative Principles: Henry Fayol Five Principles: • Foresight– to complete a plan of action for the future • Organization – to provide and mobilize resources to implement the plan • Command – to lead, select, evaluate workers to get the best work • Coordination – to fit diverse efforts together and ensure information is shared and problems are solved • Control – to make sure things happen according to plan and to take necessary corrective action

9. Administrative Principles: Henry Fayol • Believed management could be taught. • Guiding Principles: • Scalar chain principle – clear and unbroken line of communication from top to bottom or organization • Unity of command principle: each person should receive orders from only one boss • Unity of direction principle – one person should be in charge of all activities that have the same performance objective.

10. Administrative Principles 2. Mary Parker Follett(1868-1933) • Displayed an understanding of groups and a deep commitment to human cooperation. • Groups: combined talents for the greater good • Organizations: think of as “communities” • Make every employee an owner in the business (today: profit sharing, ESOPs) • Believed in public good (today, CSR)

11. Bureaucratic Organization: Max Weber • Bureaucracy: is a rational and efficient form of organization founded on logic, order and legitimate authority Max Weber(1864-1920) • Believed that bureaucracy could fix the fact that many individuals in positions of authority were there because of their social standing/status and not job capabilities • Bureaucracy today has negative connotations • disadvantages can include: excessive paperwork, ‘red tape’, slowness in handling problems, rigidity, resistance to change, employee apathy.

12. Bureaucratic Organization: Max Weber – Defining Characteristics • Clear division of labour: jobs are well-defined, workers become skilled at performing them • Clear hierarchy of authority: authority and responsibility are clearly defined i.e. who reports to whom. • Formal rules and procedures: written records of guidelines • Impersonality: rules/procedures are impartially and uniformly applied – no preferential treatment. • Careers based on merit: workers are selected/promoted based on ability and performance.