Classical- scientific theories

What is it?  Ideally aim establish business to achieve rational goals such as profit or return on assets  Reduce cost of productions + increase sales  Improve efficiency of the business

Frederick Taylor and scientific managment Four principles:  Scientifically selected or test, train, teach and develop the worker  Develop a science for each part of an individuals work which will replace the rule of thumb-method – specialisation  Division of labour: management take harder jobs or responsibilities  Cooperate: workers will only work, if they get incentive $$$

 Taylorism: introduced when mass production started  reduce cost of many products  Improve production efficiency

Henri Fayol and the functions of management  Focus on function of management  Develop the business as a whole

Fayol's 14 principles  division of work: specialisation increase  - Authority of manager: give order  - disciplines of employees: obey and respect the rules  - unity of command: receving the orders from superior  - unity of direction: single plan of business  - remuneration: fair wage

 subordination of individual interests to the general interest: employees should not take precedence over the interest  - stability of tenure of personnel: provide orderly personnel planning  - centralisation: degree to which subordinates are involved in decision making  - order: at the right place at the right time  - initiative  - equity: fair to their subordinate  - scalar chain: the rank from top to lowest  - esprit de corps: promoting team spirit

Max Weber  he developed the bureaucracy  Bureaucracy is characterised by...

Bureaucracy  Career orientation  Division of labour  Authority hierarchy  Formal selection  Formal rules and regulation  Impersonality

Management as planning, organizing and controlling  Division between managers (planning and controlling) and workers (follow)  Manager: work out the best way job could be done/ ensure  Management: train and motivate workers  ensure they work best

Management function  Planning, organising, commanding, coordinating and controlling  Setting the strategies and direction for business organisatio  Measure performance of the business

Hierarchical organisation structure based on division of labour The chain of command  Authority running from upper level to lower level management  Generally narrow span of control – layers and levels  Levels of management: Pyramid (number of employees are greater than managers)

First line manager  lowest level  Supervisors line manager, office manager or foremen  Work of non-managerial employees (day- to-day)

Middle line manager  All level between first line managers and top level of business  Work for first line  Title: department head, project leader or division manager

Top manager  Main responsibility in setting up strategic direction  Making decision  Plan  Goal  Title: managing director, chief executive officer or chairman of the board