MANAGEMENT

1. Classical
Scientific Management
Bureaucracy
Administrative theory

2. Organizational theories ?
Management theories are the set of general rules
that guide the managers to manage an organization.
Management theories focus on the role of
supervision, organization, and group performance.
Theories are an explanation to assist employees to
effectively relate to the business goals and
implement effective means to achieve the same.

4. Early management theories base
leadership on a system of reward and
punishment. Managerial theories are often
used in business; when employees are
successful, they are rewarded; when they
fail, they are reprimanded or punished.

5. Classical Management Theory
Classical management theory is based on the belief
that workers only have physical and economic needs
and prescribes specialization of labor. Classical
theories recommend centralized leadership and
decision-making and focus on profit maximization.
The classical writers viewed organization as a
machine and human beings as components of that
machine.

6. Pillars of Classical Theory

7. Criticism of Classical Theory
1. It takes a rigid as well as a static view of organizations.
2. Most classical theorists view an organization as a closed
system with no interaction with its environment.
3. This theory did not lay emphasis on decision-making
processes.
4. Human behaviour was ignored in this theory. Classical
thinkers did not realize the complexity of human nature.

8. Types of Classical Theory
1. Bureaucratic Theory of Management (Max Weber)
2. Administrative Management Theory (Henri Fayol)
3. Theory of Scientific Management (Frederick Taylor)

9. 1. Bureaucratic Theory of Management
(Max Weber)
What is bureaucracy?
Bureaucracy is an organizational structure that is characterized
by many rules, standardized processes, procedures and
requirements, number of desks, thorough division of labour and
responsibility, clear hierarchies and professional, almost
impersonal interactions between employees.
Rules, regulations, rigid hierarchy and specialized functions are
important feature of bureaucracy.

10. 1. Bureaucratic Theory of Management
(Max Weber)
Max Weber believed that Bureaucracy was a better than traditional
structures. In a bureaucratic organization, everyone is treated equal and
the division of labour is clearly described for each employee.
According to the bureaucratic theory of Max Weber, such a structure was
indispensable in large organizations in structurally performing all tasks
by a great number of employees. In addition, in a bureaucratic
organization, selection and promotion only occur on the basis of
technical qualifications.

11. 1. Bureaucratic Theory of Management
(Max Weber)
Problems?
Because employees of an bureaucratic organization have no opportunity to voice their
opinion or influence decision making, a bureaucracy may demotivate employees in the
long run.
Employees may start to get annoyed at the various rules and requirements, with the
risk that they may start boycotting and / or abusing these rules and standing up to the
established order.
It is therefore very important that bureaucratic organizations properly inform
employees well in advance about their approach to work and requires them to accept
this. Only employees who agree to this approach are suitable to work within a
bureaucratic organization.

12. 2. Administrative Management Theory
(Henri Fayol)
The Administrative Theory of Management was first generalized
by Henri Fayol (1841-1925) with his work and publications,
Fayol's 14 Principles of Management (1888) and Administration
Industrielle et Generale (1916).
Fayol is considered the father of Administrative Management
Theory, often called Process Theory or Structural Theory.
Fayol focused on organization and structure of work tasks. He
looked specifically at how management and workers are
organized within a business to allow for the completion of task.

13. 2. Administrative Management Theory
(Henri Fayol)
Fayol followed a top-down approach to organizational
efficiency. He believed that the effective organization of
management would ultimately have an effect on the
productivity of operational-level workers.
Administrative management theory is in contrast to the
scientific approach to management, which posited that worker
efficiency would lead to greater managerial efficiency.

14. 2. Administrative Management Theory
(Henri Fayol)
14 Principles
of Management
Functions of a
Manager
Planning
Organizing
Commanding
Coordinating
Controlling
Division of Labor
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of Individual Interest
Remuneration
Centralization and Decentralization
Line of Authority (Scalar Chain)
Order
Equity
Stability of Tenure
Initiative
Esprit de Corps (sense of unity)

15. 3. Theory of Scientific Management
(Frederick Taylor)
It uses scientific methods to analyze the most efficient
production process in order to increase productivity. Taylor’s
scientific management theory argued it was the job of
workplace managers to develop the proper production system
for achieving economic efficiency.
Taylor proposed that by optimizing and simplifying jobs,
productivity would increase. He also advanced the idea that
workers and managers needed to cooperate with one another.

16. 3. Theory of Scientific Management
(Frederick Taylor)
Principles of Scientific Management
1. Select methods based on science, not “rule of thumb.”
2. Assign workers jobs based on their aptitudes
3. Monitor worker performance
4. Properly divide the workload between managers and workers