INTRODUCTION TO CLASSICAL APPROACH Presented By- Prakash Kumar Rishabh Kapoor

DEFINITION OF CLASSICAL APPROACH “Classical approach of management professes the body of management thought based on the belief that employees have only economical and physical needs and that the social needs & need for job satisfaction either does not exist or are unimportant. Accordingly it advocates high specialization of labour,centralized decision making & profit maximization.”

Classical approach is the oldest formal school of thought which began around 1900 and continued into the 1920s. Its mainly concerned with the increasing the efficiency of workers and organizations based on management practices, which were an outcome of careful observation. Classical approach mainly looks for the universal principles of operation in the striving for economic efficiency. Classical approach includes scientific, administrative & bureaucratic management.

SCIENTIFIC MANAGEMENT focuses on the “One Best Way” to do a job. ADMINISTRATIVE MANAGEMENT focuses on the “manager & basic managerial functions”. BUREAUCRACTIC MANAGEMENT focuses on the guidelines for “structuring with formaliazation of rules,procedures” and a clear division of labour.

MAJOR CONTRIBUTORS FREDERICK WINSLOW TAYLOR ( ) FRANK GILBERTH ( ) & LILLIAN GILBERTH( )

HENRI FAYOL ( ) MAX WEBER ( )

CLASSICAL APPROACH SCIENTIFIC MANAGEMENT THEORY FREDERICK W.TAYLOR ( ) - FATHER OF SCIENTIFIC MANAGEMENT ANALYSED MANAGEMENT SCIENTIFICALLY TO FIND OUT THE MOST EFFICTIVE WAY TO DO A JOB - “ONE BEST WAY” TO DO THE JOB. GENERAL ADMINSTRATIVE MANAGEMENT THEORY HENRI FAYOL ( ) - FATHER OF MODERN MANAGEMENT ANALYSED MANAGEMENT AS A UNIVERSAL PROCESS OF PLANNING,ORGANIZING, COMMANDING,COORDINATI- NG& CONTROLLING. ALSO INTRODUCED FOURTEEN PRINCIPLES OF MANAGEMENT.

THEORIES TAYLOR’S THEORY OF SCIENTIFIC MANAGEMENT FAYOL’S ADMINISTRATIVE THEORY WEBER’S THEORY OF BUREAUCRACY

SCIENTIFIC MANAGEMENT

FEDRICK WINSLOW TAYLOR( ) Father of Scientific Management “one best way for doing the job”

Definition Scientific management was a theory of management that analyzed and workflows, with the objective of improving labor productivity management of a business, industry, or economy, according to principles of efficiency derived from experiments in methods of work and production, especially from time-and-motion studies- (mass noun)

In 1898, Taylor joined Bethlehem Steel. Taylor was a mechanical engineer who sought to improve industrial efficiency. Working in the steel industry, Taylor had observed the phenomenon of workers' purposely operating well below their capacity, that is, soldiering. He attributed soldiering to three causes:

The main things Taylor noticed for inefficiency The lack of standard tools or techniques There is no match between skill and job No motivation from the management

Taylor's 4 Principles of Scientific Management

Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each worker rather than passively leaving them to train themselves. Cooperate with the workers to ensure that the scientifically developed methods are being followed. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.

Basic idea of Scientific Management

General approach Developed standard method for performing each job Selected workers with appropriate abilities for each job Trained workers in standard method. Supported workers by planning their work and eliminating interruptions. Provided wage incentives to workers for increased output.

FRANK B GILBRETH & LILLIAN M GILBRETH Followers of Taylor

 Hierarchical Structure- One of the advantages of the classical management structure is a clear organizational hierarchy with three distinct management levels. Each management group has its own objectives and responsibilities.  Division of Labour- One of the advantages of classical management approach is the division of labour. Projects are broken down into smaller tasks that are easy to complete. Employees' responsibilities and expectations are clearly defined. This approach allows workers to narrow their field of expertise and to specialize in one area.  Monetary Incentive- According to classical management theory, employees should be motivated by monetary rewards. In other words, they will work harder and become more productive if they have an incentive to look forward to. This gives management easier control over the workforce.  Autocratic Leadership- The autocratic leadership approach is the central part of classical management theory. It states that an organization should have a single leader to make decisions, to organize and direct the employees. All decisions are made at the top level and communicated down. STRENGTHS OF CLASSICAL APPROACH Ravi Muchhal (R) DBS

General Management Theory

o Henri Fayol( ) Father of modern operational management theory

Fayol: - French mining engineer and a management theorist. - Started as an engineer at a mining company and became Director in Viewed management as a profession that can be trained and developed. -First one to analyze the functions of management.

Contd. - Made three major contributions to the theory of Management: (A)A clear distinction b/n technical & managerial skills. (B)Identified functions constituting the management process. (C)Developed principles of management.

(A) According to, - Activities of an industrial enterprise can be grouped in to six categories: technical, commercial, financial, security, accounting & managerial.

(1)Technical  Processing production & operation (2)Commercial  Buying, selling & exchange (3)Financial  Optimum use of capital (4)Security  Protection of asset and resources (5)Accounting  Ascertaining the financial position (6)Managerial  Optimum use of resources for optimum result

(B) Fayol described management as a scientific process built up of five immutable elements: Planning, Organizing, Commanding, Coordinating, Controlling

Functions of Management 1. Planning –process of activities required to meet a goal. 2. Organizing – making orderly determination & arrangement of a task. 3. Commanding(Directing) – involves guiding, supervising, motivating & leading people for attainment of the time-oriented tasks.

Contd. 4. Coordinating- bringing together the elements 5. Controlling- having control over all of the aspects that contribute to meeting the goal.

(C) Fayol’s Principles Henri Fayol, developed a set of 14 principles: 1. Division of Labour: allows for job specialization. Fayol noted firms can have too much specialization leading to poor quality and worker involvement. 2.. Authority and Responsibility: Fayol included both formal and informal authority resulting from special expertise. 3. Discipline: obedient, applied, respectful employees needed 4. Line of Authority: a clear chain from top to bottom of the firm[ ‘Gang Plank’] 5. Centralization: the degree to which authority rests at the very top.

Fayol’s Principles 6. Unity of Direction: One plan of action to guide the organization. 7. Unity of Command: Employees should have only one boss. 8. Order: Each employee is put where they have the most value. 9. Initiative: Encourage innovation. 10. Equity: Treat all employees fairly in justice and respect.

Fayol’s Principles 11. Remuneration of Personnel: The payment system contributes to success. 12. Stability of Tenure: Long-term employment is important. 13. General interest over individual interest: The organization takes precedence over the individual. 14. Esprit de corps: ‘Union is strength’- refers to harmony & mutual understanding among the members of an organization.

MAX WEBER( )

During 1800’s, European Org. were managed on a personal, family-like basis. Employees loyal towards a single individual. Resources used to realize individual desires. Weber envisioned Org. would be managed on an impersonal, rational basis. This form of Org. is known as Bureaucracy. Birth of Bureaucracy

Hierarchy Bureaucratic organisation is based upon a well-defined hierarchy. Hierarchy, based on authority. Highest Office High Office Low Office Lowest Office

Division of Labor Division of work, functional specialisation. Every employee in the organisation has a well defined power & authority,based upon employee’s specialisation & expertise. Executive Operations Policy & Planning Strategic Planning Policy Development Regional Management Special Projects Legislative Relations Office StaffingMaintenance

Consistency Bureaucratic organisation functions within a framework of fixed rules & regulations. Rules regulate all matters “abstractly.” – i.e. no one is special Not Special

Qualification The Bureaucrats. should be properly & scientifically selected. This enables efficiency of Bureaucracy. PhD Master’s Bachelor’s Associate’s

The Ideal Bureaucracy Division of labour Management & ownership is separate Decisions recorded in writing Selection based on technical qualification Positions organised in hierarchy Managers subject to rules & procedures

Today, the term Bureaucracy is taken on a negative meaning. Its associated with endless rules and red tapism. But still they provide a standard way of dealing with employees. Equal treatment for all employees. This foundation enables many Org. to become extremely efficient.

Ravi Muchhal (R) DBS