THE CLASSICAL

THEORY

SCIENTIFIC MANAGEMENT THEORY, ALSO CALLED CLASSICAL MANAGEMENT THEORY, ENTERED THE MAINSTREAM IN THE EARLY 1900S, WITH AN EMPHASIS ON INCREASING WORKER PRODUCTIVITY. DEVELOPED BY FREDERICK TAYLOR, THE CLASSICAL THEORY OF MANAGEMENT ADVOCATED A SCIENTIFIC STUDY OF TASKS AND THE WORKERS RESPONSIBLE FOR THEM. ALTHOUGH ITS GOAL WAS PROVIDING WORKERS THE TOOLS NECESSARY FOR MAXIMIZING THEIR EFFICIENCY AND OUTPUT, IT IS ALSO CRITICIZED FOR CREATING AN "ASSEMBLY-LINE" ATMOSPHERE, WHERE EMPLOYEES DO ONLY MENIAL JOBS. FOR THIS REASON, IT HAS FALLEN OUT OF FAVOR AMONG MANY COMPANIES AND SCHOOLS OF THOUGHT, BUT COULD STILL BE A VALUABLE TOOL FOR YOUR ORGANIZATION, PROVIDED YOU CAREFULLY EXAMINE ALL OF ITS PRINCIPLES. FOR EXAMPLE, THE SCIENTIFIC THEORY OF MANAGEMENT IS CONSIDERED BETTER SUITED TO BUSINESSES BASED ON REPETITIVE TASKS, SUCH AS A FACTORY.

TAYLOR’S THEORY OF SCIENTIFIC TAYLOR’S THEORY OF SCIENTIFIC MANAGEMENTMANAGEMENT

• FREDERICK TAYLOR (1856-1915)• “THE FATHER OF SCIENTIFIC MANAGEMENT”• MAXIMIZE WORKER CAPACITY AND PROFITS• PROBLEM: GET EMPLOYEES TO WORK AT THEIR

MAXIMUM CAPACITY• PRIMARY FOCUS: TASKS• HTTP://WWW.NORTHSTAR.K12.AK.US/SCHOOLS/RYN/PROJECTS/INVENTORS/TAYLOR/TAYLOR.HTML

• SYSTEMATIC SOLDIERING• DELIBERATELY WORKING SLOWLY AS TO AVOID

EXPANDING MORE EFFORT THAN DEEMED NECESSARY• REASONS

• REDUCTION IN WORKFORCE DUE TO DECREASED NEED• PIECEWORK SYSTEM OF REMUNERATION - RAISE

PRODUCTION REQUIREMENTS WITHOUT INCREASING PAY• RULE OF THUMB TRAINING METHODS - INEFFICIENT

TAYLOR’S THEORY OF SCIENTIFIC TAYLOR’S THEORY OF SCIENTIFIC MANAGEMENTMANAGEMENT

• ELEMENTS OF SCIENTIFIC MANAGEMENTELEMENTS OF SCIENTIFIC MANAGEMENT• SCIENTIFIC DESIGN OF EVERY ASPECT OF EVERY TASK

• TIME AND MOTION STUDIES• CAREFUL SELECTION AND TRAINING OF EVERY TASK• PROPER REMUNERATION FOR FAST AND HIGH-QUALITY

WORK• MAXIMIZE OUTPUT - INCREASE PAY

• EQUAL DIVISION OF WORK AND RESPONSIBILITY BETWEEN WORKER AND MANAGER

• UNDERLYING THEMESUNDERLYING THEMES• MANAGERS ARE INTELLIGENT; WORKERS ARE AND SHOULD

BE IGNORANT• PROVIDE OPPORTUNITIES FOR WORKERS TO ACHIEVE

GREATER FINANCIAL REWARDS• WORKERS ARE MOTIVATED ALMOST SOLELY BY WAGES• MAXIMUM EFFORT = HIGHER WAGES• MANAGER IS RESPONSIBLE FOR PLANNING, TRAINING, AND

EVALUATING

TAYLOR’S THEORY OF SCIENTIFIC TAYLOR’S THEORY OF SCIENTIFIC MANAGEMENTMANAGEMENT

• APPLICATION IN THE MODERN WORKPLACEAPPLICATION IN THE MODERN WORKPLACE• ASSEMBLY LINE PLANTS AS PROTOTYPICAL

EXAMPLES• “PRISONERS OF TAYLORISM”• SYSTEM OF REMUNERATION (QUOTAS -

COMMISSION)• RE-DESIGN - REENGINEERING• BENCHMARKING• DATA ARE USED TO REFINE, IMPROVE, CHANGE,

MODIFY, AND ELIMINATE ORGANIZATIONAL PROCESSES

• LEAN MANUFACTURING

FAYOL’S ADMINISTRATIVE THEORYFAYOL’S ADMINISTRATIVE THEORY• HENRI FAYOL (1841-1925)HENRI FAYOL (1841-1925)• GENERAL AND INDUSTRIAL MANAGEMENT• PRINCIPLES AND ELEMENTS OF

MANAGEMENT - HOW MANAGERS SHOULD ACCOMPLISH THEIR MANAGERIAL DUTIES• PRIMARY FOCUS: MANAGEMENT

(FUNCTIONS OF ADMINISTRATION)• MORE RESPECT FOR WORKER THAN TAYLOR

• WORKERS ARE MOTIVATED BY MORE THAN MONEY• EQUITY IN WORKER TREATMENT

• MORE PRESCRIPTIVE• HTTP://WWW.LIB.UWO.CA/BUSINESS/FAYOL.H

TML

FAYOL’S ADMINISTRATIVE THEORYFAYOL’S ADMINISTRATIVE THEORY• FIVE ELEMENTS OF MANAGEMENT -- MANAGERIAL FIVE ELEMENTS OF MANAGEMENT -- MANAGERIAL

OBJECTIVESOBJECTIVES• PLANNING• ORGANIZING• COMMAND• COORDINATION• CONTROL

• KEEP MACHINE FUNCTIONING EFFECTIVELY AND KEEP MACHINE FUNCTIONING EFFECTIVELY AND EFFICIENTLYEFFICIENTLY

• REPLACE QUICKLY AND EFFICIENTLY ANY PART OR REPLACE QUICKLY AND EFFICIENTLY ANY PART OR PROCESS THAT DID NOT CONTRIBUTE TO THE PROCESS THAT DID NOT CONTRIBUTE TO THE OBJECTIVESOBJECTIVES

FAYOL’S ADMINISTRATIVE THEORYFAYOL’S ADMINISTRATIVE THEORY• FOURTEEN PRINCIPLES OF MANAGEMENT (TOOLS FOR FOURTEEN PRINCIPLES OF MANAGEMENT (TOOLS FOR

ACCOMPLISHING OBJECTIVES)ACCOMPLISHING OBJECTIVES)• DIVISION OF WORK - LIMITED SET OF TASKS• AUTHORITY AND RESPONSIBILITY - RIGHT TO GIVE ORDERS• DISCIPLINE - AGREEMENTS AND SANCTIONS• UNITY OF COMMAND - ONLY ONE SUPERVISOR• UNITY OF DIRECTION - ONE MANAGER PER SET OF ACTIVITIES• SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST• REMUNERATION OF PERSONNEL - FAIR PRICE FOR SERVICES• CENTRALIZATION - REDUCE IMPORTANCE OF SUBORDINATE’S ROLE• SCALAR CHAIN - FAYOL’S BRIDGE• ORDER - EFFECTIVE AND EFFICIENT OPERATIONS• EQUITY - KINDLINESS AND JUSTICE• STABILITY OF TENURE OF PERSONNEL - SUFFICIENT TIME FOR

FAMILIARITY• INITIATIVE - MANAGERS SHOULD RELY ON WORKERS’ INITIATIVE• ESPRIT DE CORPS - “UNION IS STRENGTH” “LOYAL MEMBERS”

FAYOL’S ADMINISTRATIVE THEORYFAYOL’S ADMINISTRATIVE THEORY• POSITIONED COMMUNICATION AS A NECESSARY POSITIONED COMMUNICATION AS A NECESSARY

INGREDIENT TO SUCCESSFUL MANAGEMENTINGREDIENT TO SUCCESSFUL MANAGEMENT

• APPLICATION IN THE MODERN WORKPLACEAPPLICATION IN THE MODERN WORKPLACE• FAYOL’S ELEMENTS OF MANAGEMENT ARE FAYOL’S ELEMENTS OF MANAGEMENT ARE

RECOGNIZED AS THE MAIN OBJECTIVES OF RECOGNIZED AS THE MAIN OBJECTIVES OF MODERN MANAGERSMODERN MANAGERS

• PLANNING - MORE PARTICIPATORYPLANNING - MORE PARTICIPATORY• ORGANIZING - HUMAN RELATIONSHIPS AND ORGANIZING - HUMAN RELATIONSHIPS AND

COMMUNICATIONCOMMUNICATION• IMPORTANT TABLE 2.1 COMPARISON OF IMPORTANT TABLE 2.1 COMPARISON OF

MANAGERIAL SKILLS (P. 32)MANAGERIAL SKILLS (P. 32)• ESPECIALLY APPLICABLE FOR LARGE ESPECIALLY APPLICABLE FOR LARGE

ORGANIZATIONS (MILITARY)ORGANIZATIONS (MILITARY)

WEBER’S THEORY OF BUREAUCRACYWEBER’S THEORY OF BUREAUCRACY• MAX WEBER (1864-1920)MAX WEBER (1864-1920)• GERMAN SOCIOLOGIST• THEORY OF SOCIAL AND ECONOMIC

ORGANIZATION (1947)• PRINCIPLES AND ELEMENTS OF MANAGEMENT -

DESCRIBE AN IDEAL OR PURE FORM OF ORGANIZATIONAL STRUCTURE (GENERAL POLICY AND SPECIFIC COMMANDS• PRIMARY FOCUS: ORGANIZATIONAL

STRUCTURE• WORKER SHOULD RESPECT THE “RIGHT” OF

MANAGERS TO DIRECT ACTIVITIES DICTATED BY ORGANIZATIONAL RULES AND PROCEDURES• MORE DESCRIPTIVE• HTTP://WWW2.PFEIFFER.EDU/~LRIDENER/DSS/WEBER/WEBRPER.HTML

WEBER’S THEORY OF BUREAUCRACYWEBER’S THEORY OF BUREAUCRACY• BUREAUCRACY ALLOWS FOR THE BUREAUCRACY ALLOWS FOR THE

OPTIMAL FORM OF AUTHORITY - OPTIMAL FORM OF AUTHORITY - “RATIONAL AUTHORITY”“RATIONAL AUTHORITY”

• THREE TYPES OF LEGITIMATE AUTHORITYTHREE TYPES OF LEGITIMATE AUTHORITY• TRADITIONAL AUTHORITY - PAST CUSTOMS;

PERSONAL LOYALTY• CHARISMATIC AUTHORITY - PERSONAL

TRUST IN CHARACTER AND SKILLS• RATIONAL AUTHORITY - RATIONAL

APPLICATION OF RULES OR LAWS

WEBER’S THEORY OF BUREAUCRACYWEBER’S THEORY OF BUREAUCRACY• TENETS OF BUREAUCRACY TENETS OF BUREAUCRACY • RULES• SPECIFIED SPHERE OF COMPETENCE• HIERARCHY• SPECIALIZED TRAINING• WORKERS DO NOT OWN TECHNOLOGY• NO ENTITLEMENT TO “OFFICIAL POSITION”

BY INCUMBENT• EVERYTHING WRITTEN DOWN• MAINTENANCE OF “IDEAL TYPE” -

BUREAUCRACY

WEBER’S THEORY OF BUREAUCRACYWEBER’S THEORY OF BUREAUCRACY• CONCERNED WITH DESCRIBING THE CONCERNED WITH DESCRIBING THE

IDEAL STRUCTURE OF AN IDEAL STRUCTURE OF AN ORGANIZATIONORGANIZATION• CORNERSTONE: EXISTENCE OF CORNERSTONE: EXISTENCE OF

WRITTEN RULESWRITTEN RULES

• THE RATIONAL APPLICATION OF THE RATIONAL APPLICATION OF WRITTEN RULES ENSURES THE WRITTEN RULES ENSURES THE PROMOTION OF LEGITIMATE AUTHORITY PROMOTION OF LEGITIMATE AUTHORITY AND THE EFFECTIVE AND EFFICIENT AND THE EFFECTIVE AND EFFICIENT FUNCTIONING OF THE ORGANIZATION.FUNCTIONING OF THE ORGANIZATION.

WEBER’S THEORY OF BUREAUCRACYWEBER’S THEORY OF BUREAUCRACY• APPLICATION IN THE MODERN APPLICATION IN THE MODERN

WORKPLACEWORKPLACE• LARGE ORGANIZATIONS GUIDED BY COUNTLESS RULES LARGE ORGANIZATIONS GUIDED BY COUNTLESS RULES

ARE BUREAUCRACIESARE BUREAUCRACIES• LINKED WITH INEFFICIENT, SLOW-MOVING LINKED WITH INEFFICIENT, SLOW-MOVING

ORGANIZATIONSORGANIZATIONS• ORGANIZATIONS HAVE SEVERAL CHARACTERISTICS OF ORGANIZATIONS HAVE SEVERAL CHARACTERISTICS OF

BUREAUCRACIESBUREAUCRACIES

COMPARISON BETWEEN TAYLOR AND FAYOL

THEORY OF MANAGEMENT (SIMILARITIES AND DISSIMILARITIES)

SIMILARITY:1. BOTH OF THEM FELT THE UNIVERSALITY OF MANAGEMENT.2. BOTH APPLIED SCIENTIFIC METHODS TO THE PROBLEMS OF MANAGEMENT.3. BOTH OBSERVED THE IMPORTANCE OF PERSONNEL AND ITS MANAGEMENT AT ALL LEVELS.4. BOTH WANTED TO IMPROVE THE MANAGEMENT PRACTICES.5. BOTH OF THEM DEVELOPED THEIR IDEAS THROUGH PRACTICAL EXPERIENCE.6. BOTH OF THEM EXPLAINED THEIR IDEAS THROUGH THEIR BOOKS.7. BOTH OF THEM STRESSED MUTUAL CO-OPERATION BETWEEN EMPLOYERS AND EMPLOYEES. 

DISSIMILARITY:1. TAYLOR LAID HIS ATTENTION ON THE PROBLEMS OF SHOP FLOOR WHILE FAYOL CONCENTRATED ON THE FUNCTIONS OF MANAGERS AT TOP LEVEL.2. TAYLOR WORKED FROM THE BOTTOM OF THE INDUSTRIAL HIERARCHY UPWARDS, WHILE FAYOL FOCUSSED ON THE CHIEF EXECUTIVE AND WORKED DOWNWARDS.3. THE MAIN AIM OF TAYLOR WAS TO ENHANCE PRODUCTIVITY OF LABOUR AND ELIMINATE WASTAGES. FAYOL TRIED TO DEVELOP A UNIVERSAL THEORY OF MANAGEMENT.4. TAYLOR CALLED HIS PHILOSOPHY OF WORK AS ‘SCIENTIFIC MANAGEMENT’ WHEREAS FAYOL EXPRESSED HIS WORK AS ‘GENERAL THEORY OF ADMINISTRATION’.

5. TAYLOR IS KNOWN AS FATHER OF SCIENTIFIC MANAGEMENT AND FAYOL AS THE FATHER OF PRINCIPLES OF MANAGEMENT.6. TAYLOR’S PHILOSOPHY HAS UNDERGONE A BIG CHANGE UNDER THE INFLUENCES OF MODERN DEVELOPMENTS, BUT FAYOL’S PRINCIPLES OF MANAGEMENT HAVE STOOD THE TEST OF TIME ARID ARE WELL ACCEPTED EVEN IN THE PRESENT DAYS.7. FAYOL LOOKS TO THE MANAGEMENT IN THE WIDER PERSPECTIVE AS COMPARED TO TAYIOR.