Classical Approach of management theory, Study notes of Management Theory

Download Classical Approach of management theory and more Study notes Management Theory in PDF only on Docsity! Classical approach of management: The classical approach to management (1900-1930) was the product of the first concentrated effort to develop a body of management thought. In fact, the management writers who participated in this effort are considered the pioneers of management study. The classical approach recommends that managers continually strive to increase organizational efficiency in order to increase production- the classical approach is based on the following tenets (Certo S C & Certo § T, 2006). The classical approach to management can be divided into mainly three distinct areas. These are: a) Lower level management analysis or scientific management b) Comprehensive analysis of management or administrative management c) Bureaucratic management Scientific management theory: Scientific management concentrates on the “one best way to perform a task; that is, it investigates how a task situation can be structured to get the highest production from workers. The process of finding this “one best way” has become known as scientific management (Certo S C & Certo § T, 2006). Although the techniques of scientific management could conceivably be applied to management at all levels, the research, research applications and illustrations relate mostly to lower-level managers. Therefore theory is also referred to lower level management analysis. Scientific management consists primarily of the work of Frederick W. Taylor, Frank and Lilian Gilbreth, and Henry L. Gantt. Frederick W Taylor (1856-1915) is commonly called the father of scientific management because of the significance of his contribution. He started his career as an apprentice in a small shop in Philadelphia (USA) in 1875. Taylor witnessed much inefficiency (Robbins et al. 2003). He sought to create a mental revolution among both workers and managers by defining clear guidelines for improving production efficiency. He argued that the four principles of management would resull in prosperity for both workers and managers. The principles (Robbins et al, 2003) are 1. Develop a science for each element of an individual's work to replace the old rule of thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equality between management and workers. Management does all work for which it better suited than the workers. Frank Gilbreth (1868-1924) and Lilian Gilbreth (1878-1972) were also significant contributors to the scientific method. As a paint of interest, the Gilbreths facused on handicapped as well as normal workers, Like other contributors to the scientific method, they subscribed to the idea of finding and using the best way to perform a job. The primary investigative tools in the Gilbreths research were mation study, which consist of reducing each job to the most basic movements possible. Motion analysis is used today primarily to establish job performance standards. Henry L. Gantt (1861-1919) too, was interested in increasing worker efficiency. Gantt attributed unsatisfactory or ineffective tasks and piece rates (incentive pay for each product piece an individual produces) Scanned with CamScanner primarily to the fact that these tasks rate were set according to what had been done by workers in the past or on somebody's opinion of what workers could do. Administrative management: Whereas scientific managers emphasize job design approaching the study of management. managers who embrace the comprehensive view — the second area of classical appraach are concerned with the entire range of managerial performance. Administrative management focuses on organizational efficiency. This approach is also called comprehensive analysis of management. Among the well-known contributors ta the comprehensive view are Henri Fayol, Chester | Barnard, Alvin Brown, Henry Dennision, Luther Gulick and Lyndall Urwick, J Mooney and A C Reily, and Oliver Sheldon (Heames, et al, 2010). The most notable contributor, however, was Henri Fayol (1841-1925). His book General and Industrial management presents a management philosophy that still guides many modern managers. Because of his writings on elements and general principles of management, Henri Fayol is usually regarded as the pioneer of administrative theory (Certo S C & Certo S T, 2006). The elements of management have outlined — planning, organizing, commanding, coordinating and contralling are still considered worthwhile divisions under which to study, analyze and affect the management process. The general principles of management suggested by Fayol are stall considered useful in contemporary management practices. Here are the principles in order developed by Fayol division of work, authority, discipline, unity of command unity of direction, subordination of individual interest to general interests, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de carps. Bureaucratic Management: Bureaucratic management is a stream of classical theory of management. It is “a formal system of organization that is based on clearly defined hierarchical levels and rales in order to maintain efficiency and effectiveness” (Hodgetts et al, 1981). This theory was developed by Max Weber and is widely used in the management of both public and private sector organizations. According to the bureaucratic management approach, organizations are usually divided into hierarchies. These divisions help in creating “strong lines of authority and control (Singh R N, 1983) within the organization Max Weber (1864-1924) was the first of management theorists who developed a theory of authority structures and relations based on an ideal type of organization he called a bureaucracy — a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships (Wren D A, 1994). Bureaucratic management depends upon administration devices. Max Weber presents the ideal organization structure. According to Weber the bureaucratic management approach is based on four principles -Hierarchical positions, rules of system, division of labor for specialization, and impersonal relationship. Appraisal of classical approach: Classical approach made a significant contribution to the development of management theories. This perspective had three primary thrusts (Griffin RW. 2006). Scientific management focused on employees within organizations and on ways to improve their productivity. Administrative theory focused on the total organization and on way to make it more efficient. Bureaucratic management focused an eliminating managerial inconsistencies that means it emphasized the position rather than person and organization continues even when individual leave. Classical approach highlighted the universal character of management principles (Berdayes V, 2002). It made a clear distinction between operative activities and managerial activities. It also identified the application of scientific method to the problems of management and highlighted the need for mutual cooperation between employers and employees. Classical approach has been criticized on several counts. First, this theory is said to be too formal, secondly, it is more appropriate for stable and simple organization than for today’s dynamic and complex organizations. Thirdly, it often prescribed the universal procedures that are not appropriate in some setting. Neoclassical approach of management (1930-1960): The Neoclassical approach began with the Hawtharne studies in the 1920s (Wikipedia, 2013) It grew out of the limitations of the classical theory. Under classical approach, attention was focused on jobs and machines. After some time workers resisted this approach as it did not provide the social and psychological satisfaction. Therefore, attention shifted towards the human side of management George Elton Mayo (1890- 1949) ts considered to be the founder to the neoclassical theory (Gupta C B, 1992). He was the leader of the team which conducted the famous Hawthorne Experiments at the Western Electric Company (USA) during 1927-1932. There are mainly three elements of neoclassical theory of management They are Hawthome Experiment, Human Relation Movement, and Organizational Behavior. Scanned with CamScanner