Faculty of nursing

Faculty Of Nursing
Mansoura University
Nursing Administration Department
CLASSICAL SCHOOL OF MANAGMENT
PREPARED BY
Dr. Ahlam Mahmoud El-Shaer
Lecturer of Nursing Administration
Faculty of Nursing - Mansoura University

Henri Fayol in his book titled "Industrial and
General Administration" published in 1916, gave
following
14 principles of management :-
1. Division of Work,
2. Discipline,
3. Authority and responsibility,
4. Subordination of Individual Interest to
General Interest,
5. Remuneration,
6. Centralisation,
7. Order,
8. Equity,
9. Initiative,
10. Esprit De Corps,
11. Stability of Tenure,
12. Unity of Direction,
13. Scalar Chain, and
14. Unity of Command.
Henri Fayol also
classified (divided) the business activities
into :-

Definition
Body of management thought based on the belief that employees have only economical
and physical needs, and that social needs and need for job-satisfaction either don't exist or
are unimportant. Accordingly, this school advocates high specialization of labor,
centralized decision making, and profit maximization. See also behavioral school of
management, contingency school of management, quantitative school of management,
and systems school of management.
Read more: http://www.businessdictionary.com/definition/classical-school-of-management.
html#ixzz3Bv6i48yH

1
Introduction
Managing is one of the most important human activities.
From the time human
beings began forming social organizations to accomplish
aims and objectives
they could not accomplish as individuals, managing has
been essential to ensure
the coordination of individual efforts. As society
continuously relied on group
effort, and as many organized groups have become large,
the task of managers
has been increasing in importance and complexity.
Henceforth, managerial
theory has become crucial in the way managers manage
complex organizations.
The central thesis of this paper is that although some
managers in different parts
of the world could have achieved managerial success
without having basic
theoretical knowledge in management, it has to be
unequivocally emphasized
that those managers who have mixed management theory in
their day-to-day
practice, have had better chances of managing their
organizations more
efficiently and effectively to achieve both individual and
organizational
objectives. Therefore, managers of contemporary
organizations ought to

Definition of Management
Management is the art, or science, of achieving goals through
people. Since
managers also supervise, management can be interpreted to mean
literally
“looking over” – i.e., making sure people do what they are supposed
to do.
Managers are, therefore, expected to ensure greater productivity or,
using the
current jargon, ‘continuous improvementManagement Objectives,
Functions, Goals, and Essentiality
Management Objectives
There are basically three management objectives. One objective is
ensuring
organizational goals and targets are met – with least cost and
minimum waste.
The second objective is looking after health and welfare, and safety
of staff. The
third objective is protecting the machinery and resources of the
organization,
including the human reso
Management Functions
To understand management, it is imperative
that we break it down into five
managerial functions, namely; planning, organizing, staffing,
leading, and
controlling.
Planning involves selecting missions and objectives and the actions
to achieve
them. It requires decision-making – i.e., choosing future courses of
action from
among alternatives. Plans range from overall purposes and
objectives to the most
detailed actions to be taken. No real plan exists until a decision – a
commitment

4
of human and material resources – has been made. In other words,
before a
decision is made, all that exists is planning study, analysis, or a
proposal; there is
no real plan.
People working together in groupsurcesto achieve some goal must
have roles to play.
iDefinition of classical management theory
of management thought based on the belief that employees have
only economical and physical needs, and that social needs and
need for job-satisfaction either don't exist or are unimportant.
Accordingly, this school advocates high specialization of labor,
centralized decision making, and profit maximization. See also
behavioral school of management, contingency school of
management, quantitative school of management, and systems
school of management.
Read more: http://www.businessdictionary.com/definition/classical-school-
of-management.html#ixzz3Bv6i48yH

Different School of Management Theories:
)0Classical Theory : One of the first schools of management
thought, the classical management theory, was developed during
the age of Industrial Revolution during the period from 1900's to
mid-1930. During this period the classical theories of organization
began to emerge. This theory belief that employees have only
economical and physical needs, and their social needs and job-satisfaction
either don't exist or are unimportant. Accordingly, this
school advocates high specialization of labor, centralized decision
making, and profit maximization.
This school of thought is made up of two branches : a) classical
scientific and b) classical administrative, described as follows:
a) Classical Scientific Theory : Frederick Taylor is called as the
“father of scientific management.” It is focused on the main work
force involved directly with the production. This method
emphasized to ensure productivity of the individual workers by : •
Select workers with appropriate abilities for each job • Train
workers to carry out the given job efficiently • Support workers by
proper planning
•Provide wage incentive to the workers for increased output With
this theory, Time And Motion Studies and Differential Piece Rate
Methods are also used to increase the productivity.

b) Classical Administrative Theory : Among all well-known
contributors, Henry Fayol is called as the most notable contributor
to this theory. Administrative theory focused on the total
organization It is focused on the administrative aspects of
management which directly or indirectly effect productivity of the
organisation. He discussed 14 general principles of management.
.0Division of labor. Specialization of labour results in increased
productivity. Both managerial and technical work are amenable to
specialization. 2. Authority. Authority was defined by Fayol as the
"right to give orders and the power to exact obedience". It is
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Home > More Subjects > Principles of Management > Classical
Schools of Management The Nature of Management
Functions of Managers Dispelling Common Management Myths
Management and Organizations
The Evolution of Management Thought
Behavioral Management Theory
Quantitative School of Management

Contingency School of Management
Quality School of Management
Management in the Future
Classical Schools of Management
Managerial Environments
Adapting to Environments Introduction to Managerial Environments
The External Environment The Internal Environment
Decision Making and Problem Solving
Conditions that Influence Decison Making Personal Decison‐Making
Styles Decision Making with Quantitative Tools The Decision‐
Making Process
Organizational Planning
Detailing Types of Plans Identifying Barriers to Planning Defining
Planning Recognizing the Advantages of Planning Using Plans to
Achieve Goals
Creating Organizational Structure
Concepts of Organizing The Informal Organization Going from
Planning to Organizing The Organizational Process
Organizational Design and Structure

Bureaucracy Basics Factors Affecting Organizational Design Five
Approaches to Organizational Design Organizational Design Defined
Managing Change
Challenges of Organizational Change Diagnosing the Need for
Change Steps in Planned Change Opposition to Organizational
Changes Causes of Organizational Change Types of Organizational
Change
Staffing and Human Resource Management
HR Management: Laws and Regulations Determining Human
Resource Needs Selecting the Best Person for the Job Orientation
and Training Programs Evaluating Employee Performance Making
Employment Decisions Staffing as a Management Function
Compensating Employees
Understanding Teams
Effectiveness of Teams Team Building Stages of Team Development
Managing Team Conflict Teamwork Defined Types of Teams
Motivating and Rewarding Employees
Motivation Theories: Behavior Management Philosophies and
Motivation Motivation Strategies Defining Motivation Motivation
Theories: Individual Needs
Leadership and Management
Challenges Facing Leaders Leadership Defined Situational
Approaches to Leadership
Communication and Interpersonal Skills

The Communication Process Methods of Communication
Interpersonal Communication Organizational Communication
Improving Communications The Significance of Communication
Control: The Linking Function
Effective Organizational Control Systems Organizational Control
Techniques Organizational Control Objectives The Organizational
Control Process Types of Organizational Controls
Productivity and Total Quality Management
Major Contributors to TQM The Implementation of TQM World‐Class
Quality: ISO 9000 Certification Productivity and Quality Total
Quality Management (TQM )
Management in a Global Environment
The International Environment Functions of the International
Manager Personal Challenges for Global Managers The Multinational
Corporation
Related Topics :
Accounting Principles I
Accounting Principles II
Economics 35Classical Schools of Management
One of the first schools of management thought, the classical
management theory, developed during the Industrial Revolution
when new problems related to the factory system began to appear.
Managers were unsure of how to train employees (many of them
non‐English speaking immigrants) or deal with increased labor
dissatisfaction, so they began to test solutions. As a result, the
classical management theory developed from efforts to find the

“one best way” to perform and manage tasks. This school of
thought is made up of two branches: classical scientific and
classical administrative, described in the following sections .
The classical scientific branch arose because of the need to
increase productivity and efficiency. The emphasis was on trying to
find the best way to get the most work done by examining how the
work process was actually accomplished and by scrutinizing the
skills of the workforce .
The classical scientific school owes its roots to several major
contributors, including Frederick Taylor, Henry Gantt, and Frank and
Lillian Gilbreth.
Frederick Taylor is often called the “father of scientific
management.” Taylor believed that organizations should study
tasks and develop precise procedures. As an example, in 1898,
Taylor calculated how much iron from rail cars Bethlehem Steel
plant workers could be unloading if they were using the correct
movements, tools, and steps. The result was an amazing 47.5 tons
per day instead of the mere 12.5 tons each worker had been
averaging. In addition, by redesigning the shovels the workers used,
Taylor was able to increase the length of work time and therefore
decrease the number of people shoveling from 500 to 140. Lastly,
he developed an incentive system that paid workers more money
for meeting the new standard. Productivity at Bethlehem Steel shot
up overnight. As a result, many theorists followed Taylor's
philosophy when developing their own principles of management .

Henry Gantt, an associate of Taylor's, developed the Gantt chart, a
bar graph that measures planned and completed work along each
stage of production. Based on time instead of quantity, volume, or
weight, this visual display chart has been a widely used planning
and control tool since its development in 1910 .
Frank and Lillian Gilbreth, a husband‐and‐wife team, studied job
motions. In Frank's early career as an apprentice bricklayer, he was
interested in standardization and method study. He watched
bricklayers and saw that some workers were slow and inefficient,
while others were very productive. He discovered that each
bricklayer used a different set of motions to lay bricks. From his
observations, Frank isolated the basic movements necessary to do
the job and eliminated unnecessary motions. Workers using these
movements raised their output from 1,000 to 2,700 bricks per day.
This was the first motion study designed to isolate the best
possible method of performing a given job. Later, Frank and his wife
Lillian studied job motions using a motion‐picture camera and a
split‐second clock. When her husband died at the age of 56, Lillian
continued their work .
Thanks to these contributors and others, the basic ideas regarding
scientific management developed. They include the following:
•Developing new standard methods for doing each job

•Selecting, training, and developing workers instead of allowing
them to choose their own tasks and train themselves
•Developing a spirit of cooperation between workers and
management to ensure that work is carried out in accordance with
devised procedures
•Dividing work between workers and management in almost equal
shares, with each group taking over the work for which it is best
fitted
Whereas scientific management focused on the productivity of
individuals, the classical administrative approach concentrates on
the total organization. The emphasis is on the development of
managerial principles rather than work methods.
Contributors to this school of thought include Max Weber, Henri
Fayol, Mary Parker Follett, and Chester I. Barnard. These theorists
studied the flow of information within an organization and
emphasized the importance of understanding how an organization
operated.
In the late 1800s, Max Weber disliked that many European
organizations were managed on a “personal” family‐like basis and
that employees were loyal to individual supervisors rather than to
the organization. He believed that organizations should be managed
impersonally and that a formal organizational structure, where
specific rules were followed, was important. In other words, he
didn't think that authority should be based on a person's
personality. He thought authority should be something that was part
of a person's job and passed from individual to individual as one

person left and another took over. This nonpersonal, objective form
of organization was called a bureaucracy .
Weber believed that all bureaucracies have the following
characteristics:
•A well‐defined hierarchy. All positions within a bureaucracy are
structured in a way that permits the higher positions to supervise
and control the lower positions. This clear chain of command
facilitates control and order throughout the organization.
•Division of labor and specialization. All responsibilities in an
organization are specialized so that each employee has the
necessary expertise to do a particular task.
•Rules and regulations. Standard operating procedures govern all
organizational activities to provide certainty and facilitate
coordination.
•Impersonal relationships between managers and employees.
Managers should maintain an impersonal relationship with
employees so that favoritism and personal prejudice do not
influence decisions.
•Competence. Competence, not “who you know,” should be the
basis for all decisions made in hiring, job assignments, and
promotions in order to foster ability and merit as the primary
characteristics of a bureaucratic organization.
•Records. A bureaucracy needs to maintain complete files regarding
all its activities.

Henri Fayol, a French mining engineer, developed 14 principles of
management based on his management experiences. These
principles provide modern‐day managers with general guidelines on
how a supervisor should organize her department and manage her
staff. Although later research has created controversy over many of
the following principles, they are still widely used in management
theories .
•Division of work: Division of work and specialization produces more
and better work with the same effort.
•Authority and responsibility: Authority is the right to give orders
and the power to exact obedience. A manager has official authority
because of her position, as well as personal authority based on
individual personality, intelligence, and experience. Authority
creates responsibility.
•Discipline: Obedience and respect within an organization are
absolutely essential. Good discipline requires managers to apply
sanctions whenever violations become apparent.
•Unity of command: An employee should receive orders from only
one superior.
•Unity of direction: Organizational activities must have one central
authority and one plan of action.
•Subordination of individual interest to general interest: The
interests of one employee or group of employees are subordinate to
the interests and goals of the organization.

•Remuneration of personnel: Salaries — the price of services
rendered by employees — should be fair and provide satisfaction
both to the employee and employer.
•Centralization: The objective of centralization is the best utilization
of personnel. The degree of centralization varies according to the
dynamics of each organization.
•Scalar chain: A chain of authority exists from the highest
organizational authority to the lowest ranks.
•Order: Organizational order for materials and personnel is
essential. The right materials and the right employees are
necessary for each organizational function and activity.
•Equity: In organizations, equity is a combination of kindliness and
justice. Both equity and equality of treatment should be considered
when dealing with employees.
•Stability of tenure of personnel: To attain the maximum
productivity of personnel, a stable work force is needed.
•Initiative: Thinking out a plan and ensuring its success is an
extremely strong motivator. Zeal, energy, and initiative are desired
at all levels of the organizational ladder.
•Esprit de corps: Teamwork is fundamentally important to an
organization. Work teams and extensive face‐to‐face verbal
communication encourages teamwork.
Mary Parker Follett stressed the importance of an organization
establishing common goals for its employees. However, she also
began to think somewhat differently than the other theorists of her
day, discarding command‐style hierarchical organizations where
employees were treated like robots. She began to talk about such

things as ethics, power, and leadership. She encouraged managers
to allow employees to participate in decision making. She stressed
the importance of people rather than techniques — a concept very
much before her time. As a result, she was a pioneer and often not
taken seriously by management scholars of her time. But times
change, and innovative ideas from the past suddenly take on new
meanings. Much of what managers do today is based on the
fundamentals that Follett established more than 80 years ago .
Chester Barnard, who was president of New Jersey Bell Telephone
Company, introduced the idea of the informal organization — cliques
(exclusive groups of people) that naturally form within a company.
He felt that these informal organizations provided necessary and
vital communication functions for the overall organization and that
they could help the organization accomplish its goals .
Barnard felt that it was particularly important for managers to
develop a sense of common purpose where a willingness to
cooperate is strongly encouraged. He is credited with developing
the acceptance theory of management, which emphasizes the
willingness of employees to accept that managers have legitimate
authority to act. Barnard felt that four factors affected the
willingness of employees to accept authority :
•The employees must understand the communication.
•The employees accept the communication as being consistent with
the organization's purposes.

•The employees feel that their actions will be consistent with the
needs and desires of the other employees.
•The employees feel that they are mentally and physically able to
carry out the order.
Barnard's sympathy for and understanding of employee needs
positioned him as a bridge to the behavioral school of management,
the next school of thought to emerge.
Cite this article
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.
HENRI FAYOL IN HIS BOOK TITLED "INDUSTRIAL AND GENERAL
ADMINISTRATION" PUBLISHED IN 1916, GAVE FOLLOWING 14
PRINCIPLES OF MANAGEMENT :-
1. Division of Work,
2. Discipline,
3. Authority and responsibility,
4. Subordination of Individual Interest to General Interest,
5. Remuneration,
6. Centralisation,

7. Order,
8. Equity,
9. Initiative,
10. Esprit De Corps,
11. Stability of Tenure,
12. Unity of Direction,
13. Scalar Chain, and
14. Unity of Command.
Henri Fayol also classified (divided) the business activities into :-
1. Technical,
2. Commercial,
3. Financial,
4. Accounting,
5. Security, and
6. Managerial Activities.
According to Henri Fayol, there are five functions of management,
viz.,
1. Planning,
2. Organising,
3. Commanding (Directing),
4. Coordinating, and
5. Controlling.
According to Fayol, a manager requires the following qualities and
skills :-
1. Physical Qualities,
2. Mental qualities,
3. Moral qualities,
4. General education,

5. Special knowledge, and
6. Work Experience
Criticism of Administrative Management Theory
Henri Fayol's management principles and functions are used even
today for managing the organisations. However, his Administrative
Management Theory is criticised on the following grounds :-
1. Management Oriented Theory : The administrative
management theory is management oriented. It does not give much
attention to the problems of the workers.
2. Lack of Importance to Informal Organisation : The
administrative management theory does not give any importance to
informal organisation or groups. It gives importance only to the
formal organisation structure.
3. Concepts Borrowed From Military Science : Some of the
concepts of administrative management theory were borrowed from
military science. They tried to apply these concepts to the social
and business organisations. For e.g. Henri Fayol gave importance to
"commanding" and not "directing" the workers.
4. Mechanical Approach : The administrative management theory
has a mechanical approach. It does not deal with some of the
important aspects of management such as motivation,
communication and leading.
CONCLUSION

To conclude it can be said that the classical principles of
management were basically concerned with and emphasized single
minded to make organizations effective and efficient in terms of
making profit. However modern organizations have several
motivations to perform besides making profit, thus modern
organizations have to integrate various aspects of social and
economic factors related to productivity and satisfaction of human
needs. Nevertheless classical principles of management are totally
not irrelevant to modern organizations. Some of the assumption
pointed out by the principles has informed managers in co-ordinating
the day to day activities of most modern organizations.
REFERENCE Mahmoud M. Alajloni, Ziad. M. S. Almashaqba, Marzouq
Ayed Nemer Al-Qeed. (2010). The Classical Theory of Organisation
and it's Relevance. International Research Journal of Finance and
Economics. ISSN 1450-2887 Issue 41.
Michael Adusei (2011). Management and Entrepreneurship. Kumasi,
Kwame Nkrumah University of Science and Technology at School of
Business

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