The classical school of management thought believed employees only had economic and physical needs and saw social needs as unimportant. It advocated for specialized labor, centralized decision-making, and profit maximization. Henry Fayol is considered the father of modern operational management theory. His 1916 book outlined how industrial activities could be divided into six groups and identified six qualities required in managers. Fayol's principles of management included specialization of labor, unity of command, and subordination of individual interests to the overall organization.
2. Body of the classical school's management thought was
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
labour, centralized decision making, and profit maximization.
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3. The classical school is the oldest formal school of management
thought. Its roots pre-date the twentieth century. The classical
school of thought generally concerns ways to manage work
and organizations more efficiently. Three areas of study that
can be grouped under the classical school are scientific
management, administrative management, and bureaucratic
management.
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4. The real father of modern operational management theory is the
French industrialist Henry Fayol.
His contribution generally termed as operational management.
His contribution 1st published in book from titled ‘Administration
Industriealle at Generale’ in French language in 1916.
Its English version was published in 1949 in the U.S.A. therefore,
in the early period, Fayol’s contribution could not make much
impact on the development of management thought. However,
after the publication of his book in English , he got prominence in
the filed of management very quickly.
He looked at the problems of managing an organization from
top management point of view. Nimesh
5. Activities of industrial
organization
Fayol found that activities of an industrial org. could be divided into six
groups :
1. Technical (relating to production)
2. Commercial (buying,selling and exchange)
3. Financial (search for capital and its optimum use)
4. Security (protection of property and person)
5. Accounting (including statistics)
6. Managerial (P O C Co and Ctrl)
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6. Managerial qualities & training
Fayol was the 1st person to identify the qualities required in
the manager . According to him there are six type of qualities
that in the manager requires.These are follows :
1) Physical,
2) Mental,
3) Moral,
4) Educational,
5) Technical and
6) Experience.
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7. 1. Specialisation/division of labour :- Division of work and speciali-
zation produces more and better work with the same effort.
2. Authority with corresponding responsibility :- a manager should
never be given authority without responsibility - and also should
never be given responsibility without the associated authority to get
the work done.
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.
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8. 3.Unity of command: An employee should receive orders
from only one superior.
4.Unity of direction: Organizational activities must have
one central authority and one plan of action.
5.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
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9. 6.Remuneration of personnel: Salaries — the price of
services rendered by employees — should be fair and
provide satisfaction both to the employee and employer.
7.Centralization: The objective of centralization is the best
utilization of personnel. The degree of centralization varies
according to the dynamics of each organization.
8.Scalar chain: A chain of authority exists from the highest
organizational authority to the lowest ranks.
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10. 9.Order: Organizational order for materials and personnel is
essential. The right materials and the right employees are
necessary for each organizational function and activity.
10.Equity: In organizations, equity is a combination of
kindliness and justice. Both equity and equality of treatment
should be considered when dealing with employees.
11.Stability of tenure of personnel: To attain the maximum
productivity of personnel, a stable work force is needed.
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11. 13.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.
14.Esprit de corps: Teamwork is fundamentally
important to an organization. Work teams and extensive
face-to-face verbal communication encourages
teamwork.
Nimesh
