Classical Management Theories ppt.pptx

MANAGEMENT

1. organizational Classical Theory Scientific Management Bureaucracy Administrative theory

2. Organizational theories ? Management theories are the set of general rules that guide the managers to manage an organization. Management theories focus on the role of supervision, organization, and group performance. Theories are an explanation to assist employees to effectively relate to the business goals and implement effective means to achieve the same.

3. Early management theories base leadership on a system of reward and punishment. Managerial theories are often used in business; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished.

4. Classical Management Theory Classical management theory is based on the belief that workers only have physical and economic needs and prescribes specialization of labor. Classical theories recommend centralized leadership and decision-making and focus on profit maximization. The classical writers viewed organization as a machine and human beings as components of that machine.

5. Pillars of Classical Theory Division of labor Hierarchy Standardized approach to work Centralization of authority Separation of personal and work life Select the best employees Fair wages

6. Criticism of Classical Theory It takes a rigid as well as a static view of organizations. Most classical theorists view an organization as a closed system with no interaction with its environment. This theory did not lay emphasis on decision-making processes. Human behaviour was ignored in this theory. Classical thinkers did not realize the complexity of human nature.

7. Types of Classical Theory Bureaucratic Theory of Management (Max Weber) Administrative Management Theory (Henri Fayol ) Theory of Scientific Management (Frederick Taylor)

8. Bureaucratic Theory of Management (Max Weber) What is bureaucracy? Bureaucracy is an organizational structure that is characterized by many rules, standardized processes, procedures and requirements, number of desks, thorough division of labour and responsibility, clear hierarchies and professional, almost impersonal interactions between employees. Rules, regulations, rigid hierarchy and specialized functions are important feature of bureaucracy.

9. Bureaucratic Theory of Management (Max Weber) Max Weber believed that Bureaucracy was a better than traditional structures. In a bureaucratic organization, everyone is treated equal and the division of labour is clearly described for each employee. According to the bureaucratic theory of Max Weber, such a structure was indispensable in large organizations in structurally performing all tasks by a great number of employees. In addition, in a bureaucratic organization, selection and promotion only occur on the basis of technical qualifications.

10. Bureaucratic Theory of Management (Max Weber) Problems? Because employees of an bureaucratic organization have no opportunity to voice their opinion or influence decision making, a bureaucracy may demotivate employees in the long run. Employees may start to get annoyed at the various rules and requirements, with the risk that they may start boycotting and / or abusing these rules and standing up to the established order. It is therefore very important that bureaucratic organizations properly inform employees well in advance about their approach to work and requires them to accept this. Only employees who agree to this approach are suitable to work within a bureaucratic organization.

11. Administrative Management Theory (Henri Fayol ) The Administrative Theory of Management was first generalized by Henri Fayol (1841-1925) with his work and publications, Fayol's 14 Principles of Management (1888) and Administration Industrielle et Generale (1916). Fayol is considered the father of Administrative Management Theory, often called Process Theory or Structural Theory. Fayol focused on organization and structure of work tasks. He looked specifically at how management and workers are organized within a business to allow for the completion of task.

12. Administrative Management Theory (Henri Fayol ) Fayol followed a top-down approach to organizational efficiency. He believed that the effective organization of management would ultimately have an effect on the productivity of operational-level workers. Administrative management theory is in contrast to the scientific approach to management, which posited that worker efficiency would lead to greater managerial efficiency.

13. Administrative Management Theory (Henri Fayol ) 14 Principles of Management Functions of a Manager Planning Organizing Commanding Coordinating Controlling Division of Labor Authority Discipline  Unity of Command Unity of Direction Subordination of Individual Interest Remuneration  Centralization and Decentralization   Line of Authority (Scalar Chain) Order  Equity  Stability of Tenure Initiative  Esprit de Corps (sense of unity)

14. Theory of Scientific Management (Frederick Taylor) It uses scientific methods to analyze the most efficient production process in order to increase productivity. Taylor’s scientific management theory argued it was the job of workplace managers to develop the proper production system for achieving economic efficiency. Taylor proposed that by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed to cooperate with one another.

15. Theory of Scientific Management (Frederick Taylor) Principles of Scientific Management Select methods based on science, not “rule of thumb.” Assign workers jobs based on their aptitudes Monitor worker performance Properly divide the workload between managers and workers