Business Studies

1. CLASSICAL
MANAGEMENT
APPROACH

2. Introduction
• Managed have been used for thousands of years. I.e.
Pyramids of Giza in Egypt  well coordinated
management practices.
• Industrial revolution(1700’s) promoted different
management theories. Increasing number  need for
management
• To a large extent, management tends to focus on the
needs of the society at the time. Each different i.e social
and economic

3. Introduction
• Management approaches influence;
 The organization and allocation of tasks to staff
 The organizational structure
 levels of management
 Management styles.

4. Activity-Paper Plane
You are about to embark on your latest venture… Running a large
paper plane business. Your team’s task is to make the ultimate paper
plane. *awards for best plane and best design.
•
1. Get into groups of three or four. Each team becomes a business.
2. Your team has 5 minutes to make the best paper plane that will
travel the longest distance.
3. As a team, determine what the goals for your business will be.
Write down an action plan for your business (your strategies).
4. Discuss a design for your plane and then produce it, making sure
you do your best to meet all of your goals.
5. Find a safe place to test your planes. Use a tape measure to
determine the distance. Record measurements
6. The winner will be the group whose plane travelled furthest. And
awards for best looking plane.

5. Classical management approach
• Industrial revolution encountered mass production, off the
back of reliable steam powered machines.
• Problems, Employees, managerial structure, worker
satisfaction.
• Response Find the best way, Evolution of classical
approach had begun.

6. Classic – Scientific approach
• Managed approach, Frederick W Taylor (1856–1915)
Taylor's four principles of scientific management are as
follows:
• Examine task to determine the most efficient method
• Train workers to use the developed work methods.
• Supervise workers to ensure they use work methods
• Allocate responsibility for carrying out work as planned.

7. Classical – Scientific approach E.G
MacDonald's using this approach for their preparation of
food.
It adopts other management practices with dealing with
employees i.e human relations aspect.
Management approaches changes, although the managers
realize that motivating employees is crucial for success.

8. FORD MODEL T- 100 years later
• Examine task to determine the most efficient method
• Henry Ford cleverly payed his employees $5 a day which
was a huge increase in pay compared to other jobs that
were available at the time
• Allocate responsibility for carrying out work as planned.

9. Classical - Bureaucratic approach
Pioneered by Max Weber and Henri Fayol
Most efficient form of organization and should have:
• strict hierarchical organizational structure
• clear lines of communication and responsibility
• jobs broken down into simple tasks; specialization
• rules and procedures
• impersonal evaluation of employee performance to avoid
favoritism and bias.
Self-serving and
uncaring ??

10. The process

11. Management as planning
Planning is the preparation of a predetermined course of action for a business which is
often referred to as the primary management function. Effective planning provides a
vision and goals for a business, strategies to achieve the vision/ goals, and anticipation
of future directions for change.
Levels of planning:
There are 3 types of plans which allow business goals to be achieved:
Strategic planning is planning for the following 3-5 years. Strategic planning specifically assists in
the whereabouts of the business in the market and what the business wants to achieve in relation
to it’s competitors. For example, Dr. Lambert’s primary goal for Scots in the next 3-5 years is Brave
Hearts Bold Minds.
Tactical planning is flexible planning over 2-3 years which primarily assists in implementing the
strategic plan. Tactical planning allows the business to respond quickly to changes through
achieving business goals by reallocating resources. For example, Mr Browning
Operational planning provides detail about how the business will operate in the short-term.
Management controls the day-to-day operations that contribute to achieving short-term actions and
goals. An example of an operational plan is daily/weekly production schedules.

12. Management as organising
Organising is the next part of the process when management puts into practice the goals
that were determined in the planning stage. Organising is determining what is to be
done, who is to do it and how it is to be done.
The organization process:
The organization process is the range of activities that translate the goals of a business
into reality. These activities include the following three steps:
1. Determining the work activities – Work activities required to achieve management
objectives must be determined then broken down into smaller steps.
2. Classifying and grouping activities – This Is efficient after breaking down work
activites into smaller steps as it enables the most appropriate allocation of resources.
3. Assigning work and delegating authority – This step in the organization process
determines who is to carry out the work, and who has the responsibility to ensure that
the work is carried out. Delegation also involves ensuring that the person who has been
given responsibility does carry out the processes.

13. Management as controlling
Controlling compares what was intended to happen with what has actually occurred.
There are three steps in the control process:

14. Control methods:
There are three types of control methods:
1. Quality Control – This involves inspectors checking finished products, and detecting
and removing any components or final products that do not meet the required
standard.
2. Quality assurance – This occurs both during and after production, and seeks to stop
faults occurring in the first place. Quality assurance aims to make sure that products
are produced to pre-set standards.
3. Total quality management – Is concerned with encouraging all employees in the
workplace
to think about quality in everything they do. Every employee sets out to satisfy
customers, placing them at the center of the production process. For example, to ensure
perfect buns, Tip top bakery uses a combination of quality control and quality assurance.

15. Question
• Discuss what the appropriate management
style for a school would be?
• 6 marks
• Peel Structure

16. Hierarchical organisational structure
Marketing
Manager
Sales
Rep
Sales
Clerks

17. Definitions:
• Management hierarchy is the arrangement that provides
increasing authority at higher levels of the hierarchy
• Specialisation of labour refers to the degree to which tasks
are divided into separate jobs
• A chain of command is a system that determines
responsibility, supervision and accountability, supervision
and accountability of members of the organisation

18. Leadership styles
• The two main types of leadership styles are:
• -autocratic
• -democratic
Autocratic or
authoritarian (high
task/low process)
Participative or
democratic
Management makes decision and
tells staff
Management makes decision
and invites questions
Management presents
problem, asks for suggestions
and makes decision
Management presents
problem and staff and
management work
together to make
decision

19. Definitions:
• A manager’s leadership style is essentially their way of
doing things-their behaviour and attitude
• A manager using an autocratic leadership style tends to
make all the decisions, frequently checks employee
performance and sometimes gives feed back that is
punitive

20. Gordon Ramsay-Autocratic Manager
• Gordon Ramsay displays many of the characteristics of an autocratic
manager.
• He is tough, and communicates exactly what he expects from staff.
This can be fantastic constructive criticism but can also be quite
demoralizing as shown in the clip below

21. The end