Classical approach (2)

1. INTRODUCTION TO CLASSICAL APPROACH

2. DEFINITION OF CLASSICAL APPROACH “Classical approach of management professes the body of management thought based on the belief that employees have only economical and physical needs and that the social needs & need for job satisfaction either does not exist or are unimportant. Accordingly it advocates high specialization of labour,centralized decision making & profit maximization.”

3. Classical approach is the oldest formal school of thought which began around 1900 and continued into the 1920s. Its mainly concerned with the increasing the efficiency of workers and organizations based on management practices, which were an outcome of careful observation. Classical approach mainly looks for the universal principles of operation in the striving for economic efficiency. Classical approach includes scientific, administrative & bureaucratic management.

4. SCIENTIFIC MANAGEMENT focuses on the “one best way” to do a job. ADMINISTRATIVE MANAGEMENT focuses on the manager & basic managerial functions. BUREAUCRACTIC MANAGEMENT focuses on the guidelines for structuring with formaliazation of rules,procedures and a clear division of labour .

5. MAJOR CONTRIBUTORS FREDERICK WINSLOW TAYLOR (1856-1915) FRANK GILBERTH (1868-1924) & LILLIAN GILBERTH(1878-1972)

6. HENRI FAYOL (1841-1925) MAX WEBER (1864-1920)

7. CLASSICAL APPROACH SCIENTIFIC MANAGEMENT THEORY FREDERICK W.TAYLOR (1856-1915) - FATHER OF SCIENTIFIC MANAGEMENT ANALYSED MANAGEMENT SCIENTIFICALLY TO FIND OUT THE MOST EFFICTIVE WAY TO DO A JOB - “ONE BEST WAY” TO DO THE JOB. GENERAL ADMINSTRATIVE MANAGEMENT THEORY HENRI FAYOL (1841- 1925) - FATHER OF MODERN MANAGEMENT ANALYSED MANAGEMENT AS A UNIVERSAL PROCESS OF PLANNING,ORGANIZING, COMMANDING,COORDINATI-NG& CONTROLLING. ALSO INTRODUCED FOURTEEN PRINCIPLES OF MANAGEMENT.

8. THEORIES TAYLOR’S THEORY OF SCIENTIFIC MANAGEMENT FAYOL’S ADMINISTRATIVE THEORY WEBER’S THEORY OF BUREAUCRACY

9. SCIENTIFIC MANAGEMENT

10. FEDRICK WINSLOW TAYLOR(1856-1915) Father of Scientific Management “one best way for doing the job”

11. Definition

12. Time Studies

13. The main things Taylor noticed for inefficiency

14. General approach

15. Contributions

16. Criticism

17. FRANK B GILBRETH & LILLIAN M GILBRETH Followers of Taylor

18. Experiments

19. Implementation

20. Drawbacks of Scientific Management

21. General Management Theory

22. Henri Fayol(1841-1925) Father of modern operational management theory

23. Fayol : - French mining engineer and a management theorist. - Started as an engineer at a mining company and became Director in 1888. - Viewed management as a profession that can be trained and developed. -First one to analyze the functions of management.

24. Contd. - Made three major contributions to the theory of Management : ( A )A clear distinction b/n technical & managerial skills. (B)Identified functions constituting the management process. (C)Developed principles of management.

25. (A) According to , - Activities of an industrial enterprise can be grouped in to six categories: technical, commercial, financial, security, accounting & managerial.

26. (B) Fayol described management as a scientific process built up of five immutable elements: Planning, Organizing, Commanding, Coordinating, Controlling

27. Functions of Management 1. Planning –process of activities required to meet a goal. 2. Organizing – making orderly determination & arrangement of a task. 3. Commanding (Directing) – involves guiding, supervising, motivating & leading people for attainment of the time-oriented tasks.

28. Contd. 4. Coordinating - bringing together the elements 5. Controlling - having control over all of the aspects that contribute to meeting the goal.

29. (C) Fayol’s Principles Henri Fayol, developed a set of 14 principles: 1. Division of Labour : allows for job specialization. Fayol noted firms can have too much specialization leading to poor quality and worker involvement. 2.. Authority and Responsibility : Fayol included both formal and informal authority resulting from special expertise. 3. Discipline : obedient, applied, respectful employees needed 4. Line of Authority : a clear chain from top to bottom of the firm[ ‘ Gang Plank ’] 5. Centralization : the degree to which authority rests at the very top.

30. Fayol’s Principles 6. Unity of Direction : One plan of action to guide the organization. 7 . Unity of Command : Employees should have only one boss . 8. Order : Each employee is put where they have the most value. 9. Initiative : Encourage innovation. 10. Equity : Treat all employees fairly in justice and respect.

31. Fayol’s Principles 11 . Remuneration of Personnel : The payment system contributes to success. 12. Stability of Tenure : Long-term employment is important. 13. General interest over individual interest : The organization takes precedence over the individual. 14. Esprit de corps : ‘ Union is strength’- refers to harmony & mutual understanding among the members of an organization .

32. MAX WEBER(1864-1920)

33. German theorist and sociologist. Follower of General Administrative Theory proposed by Henry Fayol. Introduced most of the concepts on Bureaucratic Organizations.

34. During 1800’s, European Org. were managed on a personal, family-like basis. Employees loyal towards a single individual. Resources used to realize individual desires. Weber envisioned Org. would be managed on an impersonal, rational basis. This form of Org. is known as Bureaucracy. Birth of Bureaucracy

35. Org. based on rational authority would be more efficient and adaptable to changes. Employee selection and advancement is based on competence and technical qualification. Org. relies on rules and regulations which are impersonal and applied uniformly to all employees. Characteristics

36. Division of labour . Positions in an Org. are organised in a hierarchy. Managers depends not on personality for successfully giving orders but on legal power invested in managerial position. Cont…