Classical management theory Essay

August 28, 2017 Management

Classical direction theory was introduced in the late nineteenth century. It became widespread in the first half of the twentieth century. as organisations tried to turn to issues of industrial direction. including specialisation. efficiency. higher quality. cost decrease and management-worker relationships. While other direction theories have evolved since so. classical direction attacks are still used today by many small-business proprietors to construct their companies and to win. There are three well-established theories of classical direction: Taylor’s Theory of Scientific Management. Fayal’s Administrative Theory. and Weber’s Theory of Bureaucracy.

Although these schools. or theories. developed historical sequence. subsequently thoughts have non replaced earlier 1s. Alternatively. each new school has tended to complement or coexist with old 1s. Theory acknowledging the function that direction plays in an organisation. The importance of the map of direction was foremost recognized by Gallic industrialist Henri Fayol in the early 1900s.

In contrast to the strictly scientific scrutiny of work and organisations conducted by F W Taylor. Fayol proposed that any industrial project had six maps: proficient ; commercial ; fiscal ; security ; accounting ; and managerial. Of these. he believed the managerial map. ‘to prognosis and program. to form. to command. to organize. and control’ . to be rather distinguishable from the other five. Fayol besides identified general rules of direction: division of work ; authorization and duty ; subject ; integrity of bid ; integrity of way ; subordination of single involvement to general involvement ; wage of forces ; centralisation ; scalar concatenation of authorization ; order ; equity ; stableness of term of office of forces ; enterprise ; and esprit de corps. Fayol’s positions on direction remained popular throughout a big portion of the twentieth century.

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Development of Classical Approach to Management

Traditional procedure of acquisition is either through obsevation and experiment. Nature or environment is considered unvarying and when we observe certain phenomenon or events uniformly taking to the same consequence or consequences. we conclude a cause and consequence relationship between the two. This is larning by observation or in other words by experience. Earlier minds on direction followed this attack in developing theories of direction. Learning chiefly is through empirical procedure and through analysis of the informations collected through observation. Pull the rules of direction by looking at and analysing the occupations that all directors normally do.

This attack served as a starting point for innovators on direction scientific discipline to verify the cogency and better the pertinence of the rules and patterns of direction. Analysis of ascertained informations is what constitutes a instance survey. The experimental method of instance survey helps geting at logical decisions about past experience and to prove the same as criterions for future events. The German socialists. Max Weber followed the classical attack and developed his theory of Bureaucracy. which portrays the construction and design of organisation characterized by a hierarchy of authorization. formalized regulations and ordinances that serve to steer the co-ordinated operation of an organisation.

Basic Postulates of the Classical Approach by Max Weber

1. Management of an organisation is considered as a concatenation of inter-related maps. The survey of the range and characteristics of these maps. the sequence through which these are performed and their inter-relationship leads one to pull rules of direction suitable for cosmopolitan application 2. Learning rules of direction is done through the past experiences of existent practicing directors. 3. As concern environment consists of unvarying rhythms exhibiting an implicit in integrity of worlds. maps and rules of direction derived through procedure of empirical logical thinking are suited for cosmopolitan application 4. Emerging new directors through formal instruction and instance survey can develop accomplishment and competence in direction constructs and patterns 5. The classical attack besides recognized the importance of economic efficiency and formal organisational construction as steering pillars of direction effectivity. 6. Business activity is based on economic benefit. Organizations should therefore control economic inducements

Advantages and Benefits of the Classical Management Theory

Hierarchical Structure One of the advantages of the classical direction construction is a clear organisational hierarchy with three distinguishable direction degrees. Each direction group has its ain aims and duties. The top direction is normally the board of managers or the main executives who are responsible for the long-run ends of the organisation. Middle direction oversees the supervisors. puting section ends harmonizing to the sanctioned budget. At the lowest degree are the supervisors who oversee daily activities. address employee issues and supply employee preparation. The degrees of leading and duties are clear and good defined. While the three-level construction may non be suited for all little concerns. it can profit those that are spread outing.

Division of Labor One of the advantages of classical direction attack is the division of labour. Undertakings are broken down into smaller undertakings that are easy to finish. Employees’ duties and outlooks are clearly defined. This attack allows workers to contract their field of expertness and to specialise in one country. The division of labour attack leads to increased productiveness and higher efficiency. as workers are non expected to multitask. Small-businesses proprietors can profit from taking this attack if they are looking to increase production with minimum disbursal.

Monetary Incentive Harmonizing to classical direction theory. employees should be motivated by pecuniary wagess. In other words. they will work harder and go more productive if they have an inducement to look frontward to. This gives direction easier control over the work force. Employees feel appreciated when being rewarded for difficult work. A small-business proprietor can take this attack to actuate the employees to accomplish production ends.

Autocratic Leadership The bossy leading attack is the cardinal portion of classical direction theory. It states that an organisation should hold a individual leader to do determinations. to form and direct the employees. All determinations are made at the top degree and communicated down. The bossy leading attack is good in cases when small-business determinations need to be made rapidly by a leader. without holding to confer with with a big group of people. such a board of managers. Small concerns. particularly exclusive proprietaries. can hold an advantage in taking this attack. as they need a strong leader to turn.

Mistakes with the Classical View

The classical position of direction is frequently criticized as sing a worker as a mere tool to better efficiency. Taylorism and classical direction manners negatively affected the morale of workers which created a negative relationship between workers and directors.


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