5. Management Theories
Classical Viewpoint
1. Scientific Management
F. W. Taylor (USA)
2. Bureaucratic Management
Max Weber (Germany)
3. Administrative Management
Henry Fayol (France)
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7. Classical organizational
theory espouses two
perspectives:
Scientific management – focusing on the management of work and workers
Administrative management - addressing issues concerning how overall organization
should be structured
8. Major contributors to the Classical
Organizational Theory:
Scientific Management:
◦ Frederick Taylor
Administrative Management:
◦ Henri Fayol
◦ Max Weber
9. Frederick Taylor
•TAYLOR IS BORN IN PENNSYLVANIA ON MARCH 20, 1856
•AFTER STUDYING IN EUROPE, HE PLANS TO GO TO HARVARD, BUT
DOES NOT PASS THE ENTRANCE EXAMS
•INSTEAD TAYLOR WORKS AS A PATTERN MAKER AT A PUMP
MANUFACTURING COMPANY IN PHILADELPHIA
•LATER, HE STUDIES MECHANICAL ENGINEERING AT STEVENS,
FINISHING IN JUST THREE YEARS.
10. John Griffith teaches Taylor how to be an appreciative, respectful, and admirable
working mechanic
• Lucian Sharpe impresses Taylor with his focus,
concentration, and task commitment
11. Midvale Steel Company
Taylor begins working for the Midvale steel Company in 1878.
While there he succeeds in doubling the work of his men, is soon promoted to
foreman
As foreman, he begins studying productivity as a means of measuring of
manufacturing.
Later he becomes the chief engineer at Midvale.
12. Ingenuity and
Accomplishments
Creates systems to gain maximum efficiency from workers and machines in the factory.
Focuses on time and motion studies to learn how to complete a task in the least
amount of time.
Becomes consulting engineer for many other companies
Publishes—The Principles of Scientific Management
13. Key Points of
Scientific Management
1. Scientific Job Analysis – observation, data
gathering, and careful measurement determine
“the one best way” to perform each job
2. Selection of Personnel – scientifically select and
then train, teach, and develop workers
3. Management Cooperation – managers should
cooperate with workers to ensure that all work is
done in accordance with the principles of the
science that developed the plan
4. Functional Supervising – managers assume
planning, organizing, and decision-making
activities, and workers perform jobs
14. Management Theories
Scientific Management
Frederick Taylor four Principles of Scientific Management
Study of each part of a task scientifically, and develop a best method to perform it.
Carefully select workers and train them to perform a task using the scientifically
developed method.
Cooperate fully with workers to ensure all work is done in accordance with the
principles of the science that has been developed.
Divide work and responsibility so management is responsible for planning work
method using scientific principles and workers are responsible for executing work
accordingly.
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15. Henri Fayol
Engineer and French industrialist
In France works as a managing director in coal-
mining organization
Recognizes to the management principles rather
than personal traits
While others shared this belief, Fayol was the first
to identify management as a continuous process of
evaluation.
16. Fayol’s 5 Management Functions
Fundamental roles performed by all managers:
Planning
Organizing
Commanding
Coordinating
Controlling
Additionally Fayol recognizes fourteen principles that should
guide the management of organizations.
17. Fayol’s 14 Principles:
1. Division of Work —improves efficiency through a reduction
of waste, increased output, and simplification of job
training
2. Authority and Responsibility—authority: the right to give
orders and the power to extract obedience –
responsibility: the obligation to carry out assigned duties
3. Discipline—respect for the rules that govern the
organization
18. 4. Unity of Command—an employee should receive orders
from one superior only
5. Unity of Direction—grouping of similar activities that are
directed to a single goal under one manager
6. Subordination of Individual Interests to the General Interest
—interests of individuals and groups should not take
precedence over the interests of the organization as a whole.
7. Remuneration of Personnel—payment should be fair and
satisfactory for employees and the organization
8. Centralization—managers retain final responsibility –
subordinates maintain enough responsibility to accomplish
their tasks
19. 9. Scalar Chain (Line of Authority)—the chain of command
from the ultimate authority to the lowest
10. Order—people and supplies should be in the right place at
the right time
11. Equity—managers should treat employees fairly and
equally
12. Stability of Tenure of Personnel—managerial practices that
encourage long-term commitment from employees create a
stable workforce and therefore a successful organization
13. Initiative—employees should be encouraged to develop
and carry out improvement plans
14. Esprit de Corps—managers should foster and maintain
teamwork, team spirit, and a sense of unity among employees
20. Management Theories
Structural/Bureaucratic Management
2. Bureaucratic Management
Max Weber (German Sociologist 1864 – 1920)
An approach emphasizing the need for organizations to operate in a
rational manner rather than relying on owners and managers whims!
He describe a theory of authority structures and describing
organizational activity as based on authority relations. Weber
describe an ideal type of organization that he called a bureaucracy.
Bureaucracy was a system characterized by division of labor, a clearly
defined hierarchy, detailed rules and regulations and impersonal
relationship.
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21. Weber’s Ideal Bureaucracy
1. Job Specialization: Jobs are broken down into simple, routine, and well-defined tasks.
2. Authority Hierarchy: Offices or positions are organized in a hierarchy, each lower one being
controlled and supervised by a higher one.
3. Formal Selection: All organizational members are to be selected on the basis of technical
qualifications demonstrated by training, education, or formal examination.
4. Formal Rules and Regulations: To ensure uniformity and to regulate the actions of the
employees, managers must depend heavily on formal organizational rules.
5. Impersonality: Rules and controls are applied uniformly, avoiding involvement with
personalities and personal preferences of employees.
6. Career Orientation: Managers are professionals rather than owners of the units they manage.
They work for fixed salaries and pursue their careers within the organization.
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