Classical management theory Created by novyandra ilham bahtera, m.sc.
They are Historical Context Three Main Theories Relevance Today
Historical Context starting at Industrial Revolution 1.0 (Late 1700s to Late 1800s) Industry = work Revolution = rapid change farms factories small shops large companies
Major ingredients power sped up work grow quick
Major ingredients machinery innovations 1851 by Isaac Merritt Singer sped up work as well
Major ingredients Transportation started on 1800 roads improving those created great need
Three Major ingredients in IR Power machinery innovations Transportation
Emerging Issues Large group of people working together people working alongside machinery Increasing pace of industry companies were looking for answers those leads to new Questions…
New Questions How are we going to organize all of this? How are we going to maximize productivity? How are we going to manage all of these people? there are three people answered these questions..
Three people are (Founding Fathers): Max Weber Frederick Taylor Henry Fayol
Max Weber Bureaucracy organizations should look like the government and the legal system a legal-rational approach Not traditional, family-based leadership Not charisma based leadership
Max Weber Bureaucracy one’s authority should be tied to the official position he or she occupies (balancing power) clear rules should govern performance standardized guidelines should determine hiring and firing against favoritism or “particularism” “thinker than other two persons
Frederick Taylor Scientific Management applying science to work customized, self- styled work as a serious productivity problem solution: popularized time and motion studies then discover “one right way” to do every single task
Frederick Taylor Reduce the amount of time Reduce the number of motions break each task into small steps standardize each step do ALL tasks the new “one right way”
Time and motion Bricklaying study Bending down to pick up brick took too much time and too many motions Raised bricks on a shelf and made other changes to reduce time and motion Results” 300% increase
Henry Fayol Administrative Science or Classical Management
Henry Fayol wanted more systematic principles to train managers saw a noticeable lack of available management theory in his day
“It’s a case of setting it going, starting general discussion– that is what I am trying to do by publishing this survey, and I hope a [management] will emanate from it” ( Fayol , 1949, p.16) His book “ General and Industrial Management”
Management Activities PLANNING : look ahead, chart a course ORGANIZATION : select and arrange people COMMAND: oversee, lead, drive COORDINATE: harmonize and facilitate CONTROL : ensure compliance
Commonalities and overlap Hierarchy Division of labor Standardized approach to work Centralization of authority Separation of personal and work life Wanted to select the best employees Wanted people paid fairly, in theory paying best employees, profit sharing
Relevance Today? group of 5 Is it relevance today? Why yes/no? Example? country, product etc