Classical theory is a branch of management theory that evolved between the late 19th and early 20th centuries. It includes scientific management, administrative management, and bureaucratic management. Scientific management focused on finding the best way to perform tasks through systematic study and scientific methods. It was pioneered by Frederick Taylor and emphasized task performance, supervision, and monetary motivation. Administrative management developed general management principles and was pioneered by Henri Fayol. Bureaucratic management focused on establishing firm rules, policies, procedures, and a clear hierarchy within organizations, as envisioned by Max Weber. The behavioral perspective followed and acknowledged the importance of human behavior in management, exemplified through the works of Elton Mayo, Douglas McGregor, and others.

2. Classical Theory
⚫It is a branch of ManagementTheory.
century and early
⚫Evolved between late 19th
20th century.
⚫To find out the bestway todo the task.
⚫The classical theory of management is divided
in mainly three focus areas:
⚫Scientific Management
⚫Administrative Management
⚫Bureaucratic Management

3. Scientific Management
 He is known as the fatherof Scientific Management.
 Todoa task, the bestway is:
 Perform task with Systematic Study.
 And with Scientific Method.
 He believed that improved management practices lead to
improved productivity.
o F.W. Taylor believed that these three tools should be used
for management:
 Task Performance
 Supervision
 Motivation
(1856-1915)

4. Task Performance
⚫ Scientific management incorporates basic expectations of
management, including:
 Development of Work Standards – Company sets a work standard with which a worker
has towork accordingly.
 Selectionof workers – Should beon Scientific Basis.
 Training of workers – If machinery has to operated by workers then training for
operating the machines should be provided first because the company cannot afford
any mistake byworker.
 Supportof workers – Supportof worker is needed to performa task in aorganization.
It is defined as the method with which
theworkerperformactivities to
contribute towards theorganization.
It should beeffectiveand efficient.

5. SUPERVISION
⚫Taylor felt thata single supervisorcould not be an expertat all
tasks.
Managers must provide detailed instructions and
supervision to each worker to ensure the job is done in a
scientific way.

6. Workers who met a standard level of production were paid
a standard wage rate.
Workers whose production exceeded the standard were
paid at a higher rate for all of their production output.
MOTIVATION
Taylor believed money was the
way to motivate workers to their
fullest capabilities.
Also bygiving Bonus, Incentives totheemployee’sworking in
Company.

8. Science,
Not Rule of Thumb
It is the basic
principleof scientific
management as
formulated byTaylor.
The one should must
havethe knowledge in
theselected field.
Formanaging activities in
ascientific mannerwe
have to start with
understanding, analyzing
and applying scientific
methodsand techniques.
Positive Impactsof the
principle:
• Objectivescan be achieved in
a betterway
.
• Betterutilization of available
resources & skills.

9. Scientific Selection, Training
& Development
of Workers
Thereshould be Scientific designed procedurefor
selectionof workers.
Physical, Mental & Education must meet theeligible
qualification.
Workersmust beselected and provided with training
to makethem fit forthe job.
Management mustprovideworkersthe
opportunitiestoshow theircapabilities.
Effortsshould be made todevelopeach employeeto
do hisgreatest level and efficiency of work.

10. Close Co-Operation between
Worker and Management
There must not be individualism.
Thereshould becompletecooperation between
management and worker.
Managementalways thinks thatworkersareworking
upto the mark and workersalways thinks management
is burdening them.

11. Equal Division of Work
and Responsibility
Management should not makeadifference between
theirworkers.
There must beequal division of responsibility between
the particularpositionof work.
Thereshould be parity(balance) b/w responsibilityand
authoritywhich is given toaworker.
Management should decide the method of work,
working conditions, time forcompletion of work.

12. Maximum Prosperity for
both Employers
& Employees
Scientific Management is tosee maximum prosperity for
employerand employees.
It is importantonlywhen there is opportunity foreach
workertoattain his highestefficiency
.
Both managers & workersshould be paid according to
theireligibility.

13. Thestaff should focuson the primary target
of the company which is to maximize their
profit in an efficient and effectiveway.
The personal targetof the workerand
managersshould be kept secondary.
Mental Revolution

15. • Work is divided intosmall partsand each
part is assigned toan expert.
Functional
Foremanship
• Workers should work according to thegiven
standard by thecompany.
Standardization of
Work
• It means to conduct a work according to
time, motion, eliminating uselessactivities
which hinders thecourseof task.
Scientific Studyof
Work
• Wagesare paid on the basisof work doneand
not on the basis of time spent in doing the
work.
Differential Wage
System/Differential
Piece Rate

16. Administrative Management
He is known as the father of
Administrative Management.
First recognized that successful managers
had to understand the basic managerial
functions.
Developed a set of 14 general principles of
management.
(1841-1925)

17. 1. Division of work – Equal Work Division according to their capabilities.
2. Authority and responsibility – Parity b/w authority and responsibility of
work given to a worker.
3. Discipline – Must follow rules and regulations.
4. Unity of command – One worker should be allotted with a single instructor.
5. Unity of direction – All the worker should go in one direction only which is
the target of the company.
6. Subordination of individual interest to the common good – Workers
personal interest should be secondary and company goals should be primary.
7. Remuneration of personnel – Workers should be paid according to their
capabilities, eligibility and task performance.
8. Centralization – The power of making any decision for the company is in
the hands of top level management(i.e. BOD’s & CEO’s).
9. Scalar chain - Fig 1
10. Order – Task should be perform step by step.
11. Equity – Equality b/w workers.
12. Stability – Management should provide a meaning of security.
13. Initiative – Workers should be encouraged to give their opinion’s.
14. Esprit de corps – Unity is Strength.

18. Scalar Chain

19. ⚫Focuseson theoverall organizational system.
⚫Bureaucratic management is based upon:
⚫Firm rules.
⚫Policies and procedures.
⚫A fixed hierarchy.
⚫A cleardivisionof labor.
BureaucraticM
anage
m
e
nt

20. ⚫A German sociologist and
a
historian who envisioned
system of management that
would be based upon impersonal
and rational behavior—the
approach to management now
referred to as “bureaucracy
.
”
Features:
⚫ Divisionof labor
⚫ Hierarchy of authority
⚫ Rulesand procedures
⚫ Impersonality
⚫ Employeeselectionand promotion
BureaucraticM
anage
m
e
nt:W
eb
e
r
(1864-1920)

21. Bure
a
ucra
ticHierarchica
lPow
e
rStructure

22. Neo-Classical
Theory
Focused on
rational behavior
Classical
Perspective
Behavioral
Perspective
Acknowledged the
importanceof human
behavior

23. Followed theclassical perspective in thedevelopmentof management
thought.
Acknowledged the importanceof human behavior in shaping
managementstyle
Isassociated with:
Mary Parker Follett, Elton Mayo, Douglas McGregor, ChesterBarnard
BehavioralPerspective

24. ⚫Conducted the famous Hawthorne
Experiments.
⚫ “Hawthorne Effect”- Human
relationsapproach
⚫ Productivity increased because
attention was paid to the workers in the
experiment.
group performance is influenced
⚫ Phenomenon whereby individual or
by
human behavior factors.
⚫His work represents the transition
from scientific management to the
early human relations movement.
ELTON MAYO
(1880-1949)

25. ⚫Proposed the Theory X and
Theory Y stylesof management.
⚫Theory X managers perceive that
DOUGLAS McGregor
their subordinates have an
inherent dislike of work and will
avoid it if at all possible.
⚫Theory Y managers perceive that
their subordinates enjoy work and
that they will gain satisfaction
from performing their jobs.
(1906-1964)

26. Factor
Employee attitude
toward work
Theory X Assumptions
Employees dislike work and.
will avoid it if at all possible.
Theory Y Assumptions
Employees enjoy work and
will actively seek it.
Management view
of direction
Employees must be directed,
coerced, controlled, or threatened
to get them to put forth adequate effort.
Employees are self-motivated
and self-directed toward achieving
organizational goals.
Employee view
of direction
Employees wish to avoid responsibility;
they prefer to be directed and told what
to do and how to do it.
Employees seek responsibility;
they wish to use their creativity,
imagination, and ingenuity in
performing their jobs.
Comparison of theory x and y Assumptions