CLASSICAL THEORY
OF
MANAGEMENT
By- Sweety Gupta
Classical Management Theory
 Henry Fayol Theory
Taylor theory (Scientific
management Theory)
Fayol’s Principles
Of
Management
Henry Fayol Theory
Made clear distinction between technical and
managerial work.
Identified the main steps in the proces...
Principles Of Management
Principles
 Division of work
 Authority and Responsibility
 Discipline
 Unity Of command
 Un...
Principle Of Division Of Work
Whole work must be divided into small tasks or units
of work.
Technical, Managerial and Sk...
Principle Of Authority And
Responsibility
Authority means power to take decision
Responsibility means obligation to comp...
Priciple Of Discipline
Discipline refers to general rules and regulations of
an organization.
It also mean developing co...
Principle Of Unity Of Command
Employee should take order from only one boss.
No confusion in the mind of a subordinate.
...
Principle Of Unity Of Direction
‘One unit one plan’.
Everyone should work in harmony to achieving
common goal of the org...
Subordination Of Individual Interest To
General Interest
Interest of the organization must supersede the
interest of indi...
Principle Of Remuneration Of Persons
Employees must be paid fairly and adequately to
give them maximum satisfaction
Remu...
Principle Of Centralization And
Decentralization
Centralization means concentration on authority and
power with top level...
Principle Of Scalar Chain
Scalar chain means ‘Line Of authority’ from highest
to lowest rank.
 Everyone in the organisat...
Principle Of Order
Orderly arrangement of men and material, i.e., a
fixed place for everything and everyone in an
organiz...
Principle Of Equity
Fair and just treatment to employees.
No bias in dealing with employees
Gives maximum satisfaction ...
Principle Of Initiative
Employees must get an opportunity to take some
initiative in making and executing plans.
Gives i...
Principle Of Esprit De Corps
Means union is strength.
Develop Team spirit
Every employee must work as a part of team
M...
Stability Of Tenure Of Personnel
No frequent Termination or Transfer
Must provide job security among employees.
No wast...
Taylor’s Theory
 Taylor theory was introduced in 1911
He introduced scientific management principles
replacing the rule ...
Techniques
Functional foremanship
Standardization and simplification of work
Fatigue study
Method study
Time study
M...
Scientific
Techniques
of
Taylor
Functional Foremanship
He advocated that specialisation must be introduced
in a factory.
Division of factory in two depa...
Standardization And Simplification Of
Work
Standardization means maintaining standard among
size, type, weight, measure a...
Advantages of STANDARDISATION
It is economical to have standardised material, tools
and equipments.
Operators can be tr...
Fatigue Study
Fatigue is generally caused by long working hours.
It emphasis on:
 The Frequency of rest intervals
 The...
Method Study
Find one best method of performing the job which
maximizes the profit.
All methods should be tried first an...
Time Study
The Standard time required to perform a job.
Setting up standard target for workers.
Determining the number ...
Motion Study
Observe an average worker when he is performing a
job by determining his movements.
Differentiate between p...
Differential Piece Wage System
Paying different rate of wage to efficient and
inefficient employees.
Extra wages paid to...
Mental Revolution
Change in mental attitude of workers and
management towards each other.
Co-operation between worker an...
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Fayol's principle of management and scientific techniques of taylor- Classical theory

  1. 1. CLASSICAL THEORY OF MANAGEMENT By- Sweety Gupta
  2. 2. Classical Management Theory  Henry Fayol Theory Taylor theory (Scientific management Theory)
  3. 3. Fayol’s Principles Of Management
  4. 4. Henry Fayol Theory Made clear distinction between technical and managerial work. Identified the main steps in the process of management (planning, Organizing, Staffing, Directing and Controlling). Developed fourteen principles of management which act as a guidelines for managers for managerial work.
  5. 5. Principles Of Management Principles  Division of work  Authority and Responsibility  Discipline  Unity Of command  Unity of direction  Remuneration of persons  Centralization and Decentralization  Scalar chain  Order  Equity  Stability of tenure of personnel  Initiative  Esprit De Corps
  6. 6. Principle Of Division Of Work Whole work must be divided into small tasks or units of work. Technical, Managerial and Skilled jobs should also be divided into small segments. Increases the specialization of an employee. Improves efficiency of employees by performing only one part of the job.
  7. 7. Principle Of Authority And Responsibility Authority means power to take decision Responsibility means obligation to complete the assign job on time When some responsibility is given to a person, the matching authority should also be given. Excess authority may lead to negative results.
  8. 8. Priciple Of Discipline Discipline refers to general rules and regulations of an organization. It also mean developing commitment in the employees towards organization and towards each other. Discipline is required at every level of organization, not only at a subordinate level.
  9. 9. Principle Of Unity Of Command Employee should take order from only one boss. No confusion in the mind of a subordinate. No ego clashes. Improves effectiveness in working
  10. 10. Principle Of Unity Of Direction ‘One unit one plan’. Everyone should work in harmony to achieving common goal of the organisation. No wastage of resources and efforts of employees
  11. 11. Subordination Of Individual Interest To General Interest Interest of the organization must supersede the interest of individuals All employees should work towards the interest of an organization Employees should know that their growth depends upon the company’s growth.
  12. 12. Principle Of Remuneration Of Persons Employees must be paid fairly and adequately to give them maximum satisfaction Remuneration must be just and fair. Employees get motivated. Devotion and commitment of employee improve.
  13. 13. Principle Of Centralization And Decentralization Centralization means concentration on authority and power with top level. Decentralization means evenly distribution of power at every level There must be a combination of both in an organization Fast decision at operational level and strict control by top level.
  14. 14. Principle Of Scalar Chain Scalar chain means ‘Line Of authority’ from highest to lowest rank.  Everyone in the organisation must follow the rules of scalar chain. But in case of emergency, a short cut can be taken, known as ‘Gang-Plank’.
  15. 15. Principle Of Order Orderly arrangement of men and material, i.e., a fixed place for everything and everyone in an organization. No wastage of time in search of men and material. Smooth and systematic working of organization.
  16. 16. Principle Of Equity Fair and just treatment to employees. No bias in dealing with employees Gives maximum satisfaction to employees. Motivate employees and boost up the moral of employees.
  17. 17. Principle Of Initiative Employees must get an opportunity to take some initiative in making and executing plans. Gives immense satisfaction among employees. Managers must welcome the suggestions and ideas of employees before making a plan. Develops feeling of belongingness in employees.
  18. 18. Principle Of Esprit De Corps Means union is strength. Develop Team spirit Every employee must work as a part of team Managers must develop a feeling of belongingness among employees
  19. 19. Stability Of Tenure Of Personnel No frequent Termination or Transfer Must provide job security among employees. No wastage of time and resourses. Frequent turnover of employees is bad for organization.
  20. 20. Taylor’s Theory  Taylor theory was introduced in 1911 He introduced scientific management principles replacing the rule of thumb He simply applied scientific tools and methods to solve management problems
  21. 21. Techniques Functional foremanship Standardization and simplification of work Fatigue study Method study Time study Motion study Differential Piece wage system Mental Revolution SCIENTIFIC TECHNIQUES
  22. 22. Scientific Techniques of Taylor
  23. 23. Functional Foremanship He advocated that specialisation must be introduced in a factory. Division of factory in two department: Planning department and Production department Experts in every department to guide the workers
  24. 24. Standardization And Simplification Of Work Standardization means maintaining standard among size, type, weight, measure and quality of the product. Simplification means eliminating unnecessary diversity of product, size and types.
  25. 25. Advantages of STANDARDISATION It is economical to have standardised material, tools and equipments. Operators can be trained easily. Helps in achieving economies of large scale production. Reduce cost of production.
  26. 26. Fatigue Study Fatigue is generally caused by long working hours. It emphasis on:  The Frequency of rest intervals  The duration of rest intervals  The no. of rest intervals This study aims at providing proper rest interval to the employees to increase the effectiveness of the work.
  27. 27. Method Study Find one best method of performing the job which maximizes the profit. All methods should be tried first and then the best should be selected.
  28. 28. Time Study The Standard time required to perform a job. Setting up standard target for workers. Determining the number of workers required to perform a job. Categorizing the workers in efficient and inefficient categories.
  29. 29. Motion Study Observe an average worker when he is performing a job by determining his movements. Differentiate between productive and unproductive movements. Cut down all unproductive and wasteful movements.
  30. 30. Differential Piece Wage System Paying different rate of wage to efficient and inefficient employees. Extra wages paid to efficient employees will motivate both efficient and inefficient employees. When payment given acc. to no. of units produced, it will automatically maximize the production.
  31. 31. Mental Revolution Change in mental attitude of workers and management towards each other. Co-operation between worker and employees. Develop positive thinking among each other.
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