CLASSICAL THEORIES OF MANAGEMENT PRESENTATION.pptx

This presentation dives into the origin of management theories focusing on Scientific Management or Taylorism and Administrative Management. Here you will find key features, principles, functions advantages, drawbacks, and examples of real-world application of these theories in structured presentable format.

1. CLASSICAL THEORIES OF MANAGEMENT Presented by- Shubham Rai Barsha Maiti Prithviraj pukhrambam

2. Definition Classical Theories of Management is a term used in management studies to describe the early approaches made in the 19 th and 20 th centuries that focussed on improving efficiency, productivity and organizational structure through principles of hierarchy, division of labour and standardized procedures.

3. CLASSICAL THEORIES SCIENTIFIC MANAGEMENT ADMINISTRATIVE MANAGEMENT

4. SCIENTIFIC MANAGEMENT THEORY Frederick Taylor , known as the Father of Scientific Management , developed a theory aimed at improving industrial efficiency in the late 19 th and early 20 th centuries. Scientific management , also known as Taylorism , is a management theory that emphasizes the systematic analysis of work processes to maximize efficiency and productivity. “ The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee ,” Taylor wrote. “ The words ‘maximum prosperity’ are used, in their broad sense, to mean not only large dividends for the company or owner, but the development of every branch of the business to its highest state of excellence, so that the prosperity may be permanent. ”

5. PRINCIPLES Systematic distribution of work based on skills, efficiency and job requirements. Employers should select, train and develop employees using a scientific approach. Employees and employers must collaborate and work as a single unit to maximize productivity. Employers should divide work and responsibilities among employees in a scientific manner so that each employee performs their specific task efficiently. He saw these as key to increasing company efficiency and achieving “maximum prosperity” for both the business and its employees. Scientific Task Allocation Selection & Training Collaboration Division of Work

6. KEY FEATURES Task Management Clearly defined tasks with instructions, schedules, and expected outputs. Trained Employees Employees trained for specific roles. Time and Motion Studies Analyse time taken for each task to determine the best way to perform it. Standardization of Tools and Procedures Uniform methods to improve predictability and efficiency Separation of Planning and Doing Managers plan work scientifically; workers carry it out. Differential Piece-Rate System Workers paid based on output, so more productivity = more pay.

7. ADVANTAGES & DRAWBACKS Advantages Increased Productivity Scientific methods eliminate waste and maximize output. Higher Wages Linked to Performance Motivational incentive for workers. Improved Efficiency Standardized processes reduce variability and errors. Better Training and Job Matching Ensures workers are suited and trained for specific tasks. Clear Role Definition Eliminates ambiguity between management and labour roles. Drawbacks Dehumanization of Workers Viewed as machines; ignored human and social needs. Over-specialization Repetitive tasks led to boredom and dissatisfaction. Conflict with Labor Unions Taylor's system was seen as favoring management interests. Reduced Worker Autonomy Workers lost control over their work process. Short-Term Focus Emphasis on productivity sometimes compromised long-term development.

8. REAL WORLD APPLICATION 1. Manufacturing & Assembly Lines (e.g., Ford Motor Company) Example: Henry Ford applied scientific management in the early 20th century by introducing the moving assembly line . How it applied: Tasks were broken into small, repetitive steps. Workers were trained to specialize in one task. Standardized tools and procedures were used . Result: Drastically reduced production time and costs. 2. Fast Food Chains (e.g., McDonald's) How it's applied: Tasks are simplified and standardized Employees are trained to follow set procedures. Time and motion studies used to optimize kitchen workflow. Result: Efficiency, consistency, and fast service across locations. Some other examples include Amazon warehouse layouts based on time and motion studies and standardization of machineries and methods in food manufacturing and processing industry.

9. ADMINISTRATIVE MANAGEMENT THEORY Henri Fayol (Father of Administrative Management) in 1916 published a book named “ Administration Industrielle et Générale" (translated as General and Industrial Management). This ground breaking work helped him earn the title “ Father of Modern Management ”. In this book he came up with the Administrative Theory of Management, which is a management theory developed to focus on the structure and functioning of organizations by emphasizing management principles and managerial functions that can be universally applied.

10. 5 FUNCTIONS OF MANAGEMENT- H. FAYOL Planning:  Managers must plan and schedule every part of the industrial process. Organizing:  Management must ensure that all of the necessary resources, such as raw materials and personnel, come together at the appropriate time of production. Commanding or Leading: Directing and motivating employees to carry out tasks. Coordinating: Aligning efforts and resources to ensure smooth workflow and cooperation. Controlling: Management monitoring performance of employees and making adjustments to stay on track with goals.

11. 14 PRINCIPLES OF MANAGEMENT- H. FAYOL Division of work:  Dividing work among employees helps improve productivity, accuracy and efficiency. Authority:  Managers have the authority to enforce processes that make employees work as efficiently as possible; they are responsible for their team’s output. Discipline:  It is up to managers to discipline workers to ensure compliance and collaboration.   Unity of command:  To streamline the chain of command and avoid confusion, employees should answer to only one manager.  Unity of direction:  Everyone in an organization should work toward the same goal. Subordination of individual interest:  All employees, including managers, should set aside their personal interests and focus solely on the company’s success.  Remuneration of employees:  Managers need to reward their employees, monetarily or otherwise, for their efforts.

12. 14 PRINCIPLES OF MANAGEMENT- H. FAYOL Centralization:  Management’s authority should be centralized, but decision-making should be divided equally among leaders so no single entity has the autonomy to make decisions unilaterally. Scalar chain:  Managers must communicate the leadership hierarchy across the company so everyone knows whom they report to. Order:  Maintaining order across the business increases productivity and output. Equity:  All employees should be treated equally and it is managers’ responsibility to protect their teams from discrimination. Stability:  Employees who feel secure in their positions perform better and managers are responsible for providing job security to their teams. Initiative:  Managers should encourage employees to be proactive whenever possible. Esprit de corps:  Managers are responsible for motivating their teams and setting a positive, supportive and collaborative tone.

13. REAL WORLD APPLICATION It is very common for modern businesses to incorporate Fayol’s management principles in business administration. Some commonly noticeable real world applications are : Tata Group’s Unity of Direction : Each business unit aligns with the group’s values and vision. Amazon’s Scalar Chain : Clear reporting structure from warehouse workers up to executives. Apple’s Remuneration : Competitive pay and performance bonuses to retain talent. ITC’s Order : Everything and everyone has a designated place and role.

14. CONCLUSION Taylor’s scientific theory came in at a time when there was no such prior effort made to treat management as a science rather an art. He replaced traditional, rule-of-thumb methods with scientific, data-driven approach towards management. Although it played a role in dehumanization of employees, the fact that it served as a foundational work for people like Fayol and Webber to develop their theories, cannot be overlooked. Fayol provides a broad administrative blueprint for how managers should run organizations and balances structure with morale. This is the reason his principles can be seen in action in the modern world more often.

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