are sets of ideas and rules that are designed to help in
facilitate proper management in planning, organising,
leading and controlling.
A.CLASSICAL MANAGEMENT THEORY
Emphasis on structure
Prescriptive about “ what is good for the firm”
Henri Fayol – ( 1841 – 1925 ) – France
first person give a definition of management
which is generally familiar today
Give much of the basic terminology and concepts which would be
elaborated by future researchers such as division of labor, unity of
command and centralization.
Division of labor – reduces the span of attention or effort for any person
- develops practice and familiarity
Unity of command – one man superior
Centralisation – is always present to a greater or less extent , depending
on the size of the company and quality of its
Fayol was describing the structure of formal organizations
Absence of attention to issues such as individual versus general interest,
Mention the issues relating to the sensitivity of a patients needs ,such as
initiative and “ esprit de corps “ he saw them as issues in the context of
rational organisational structure.
Principles absorbed into modern day organisations , but they were not
designed to cope with conditions of rapid change and issues of employee
participation in the decision making process of organisations, such as are
current today in the early 21st century.
FW TAYLOR –( 1856 – 1915 )- USA
Key Points about Taylor, who is credited with what we call now
Taylorism – involved breaking down the components of manual tasks in
manufacturing environments, timing each movement ( time
and motion studies ) so that there could be a proven best way
to perform each task. Thus employees could be trained to be
“first class” within their job.
He was in the scientific management school
His emphasis were on efficiency and productivity
It provided the formation for modern work studies
He ignored many of the human aspects of employment
It ruled out any realistic bargaining about wage rates since every job was
measured and rated “ scientifically “
Team Building theory
emphasizes best practices, and continuous improvement.
It is a theory that mainly hinges on reliance of teamwork.
Edward Deming ( 1841 – 1925 ) France
- founder of modern quality management and is regarded by the Japanese
as the key influence in their post-war economic miracle.
Focus on production and service
Institute modern methods of training on- the- job for including
Adopt and institute leadership aimed at helping people to do a better job
Drive out fear
Encourage effective two-way communication
Breakdown barriers between departments and staff areas
Eliminate quotas and numerical targets
Remove barriers to pride of workmanship
Encourage education and self- improvement for everyone
Define top management’s permanent commitment to ever improving quality and
productivity and their obligation to implement all these principles.
Douglas McGregor ( 1906 – 1964 )
Theory X and Theory Y – using human behaviour research, he noted : that the
way an organization runs depends on the beliefs of its managers.
Theory X - gives a negative view of human behaviour and management that
he considered to have dominated management theory from Henri
Fayol onwards – especially Taylorism.( FW Taylor )
- it also assumes that most people are basically immature, need
direction and control, and are incapable of taking responsibility.
- they are viewed as lazy, dislike work and need a mixture of financial
inducements and threat of loss of their job to make them work
( “ carrot and stick mentality )
- The opposite of “ Theory X “, argues that people want to fulfil themselves by
seeking self- respect, self – development ,and self – fulfilment at work as in life in
Six Basic Assumptions for “Theory Y”
1. Work is as natural as play or rest the average human being does not inherently
dislike work, whether work is a source of pleasure or a punishment ( to be
avoided ) depends on nature of the work and its management.
2. Effort at work need not depend on threat of punishment
- if committed to objectives then self – direction and self -control
rather than external controls.
3. Commitment to objectives is a function of the rewards associated with
- satisfaction of ego and self-actualization needs can be directed
towards the objectives of the organization
4. The average human being learns, under proper conditions , not only to
accept but to seek responsibility.
5.High degrees of imagination, ingenuity and creativity are not restricted
to a narrow group but are widely distributed in the population.
6. Under modern industrial life, the intellectual potentials of the average
human being are partly utilized.
If you are looking for ready – made theories that will turn a failing
business into a successful one, then you will find the answer will
remain elusive and your quest will end in disappointment.
However, a flexible approach and combining old and new
management theories can be far more effective than relying on one
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