OER for a Post Graduate Programme in HRM
MHRM Module 1 : Principles of Management Module Content Map |
Topic 2 : Management Theories |
The Classical Management SchoolThe twentieth century witnessed tremendous management theory ferment and activity. Efforts were taking place for the development of a comprehensive management theory. Traditional or classical management school of theory is a result of such efforts. Henri Fayol (1841-1925) is widely acclaimed as the founder of the Classical management school.Classical Management Theory concentrates on efficiency. Classical school has three distinct branches, viz scientific management, bureaucratic management, and administrative management. It envisages a pyramid hierarchical structure, autocratic management, clear chain of command and short spans of control. Scientific ManagementFrederick Winslow Taylor (1856-1915)is known as the "father of scientific management". Taylor began work at the age of 18 as a machinist apprentice to a pattern-maker. He later joined the Midvale Steel Company as a laborer and became chief engineer in eight years. During his period at the steel mill Taylor performed comprehensive experiments on worker productivity and tested what he called the "task system," later developed into the Taylor System and eventually progressed into scientific management.Scientific management theory analyzes and synthesizes workflow processes and improving labor productivity. Scientific management is also called Taylorism, the Taylor system, or the Classical Perspective. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911). Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. Taylor's experiments included determining the best way of performing each work operation, the time it required, materials needed and the work sequence. He wanted to establish a clear division of labor between management and employees.
The scientific management is a 'manager centric' approach. The most fundamental aspect of scientific management is that the manager is primarily responsible for increasing an organization's productivity. Scientific management principles are to be applied by managers in a very specific fashion. The shortcomings of the Scientific Theory had triggered the quest for more workable solutions and resulted in the formulation of bureaucratic management, and administrative management theories. The scientific method was also got refined further during the course of time. Bureaucratic ManagementMax Weber (1864-1920)is one of the strong advocates of bureaucracy. According to Weber the major characteristics of bureaucracy are:A well defined hierarchyAll positions within a bureaucracy are structured in a way permitting the higher positions to supervise and control the lower positions. This provides a clear chain of command facilitating control and order throughout the organization. Division of labor and specializationAll responsibilities in an organization are streamlined in a way that each employee will have the necessary expertise to master a particular task. This necessitates granting each employee the requisite authority to complete all such tasks. Rules and regulationsAll organizational activities are streamlined in a way that standard operating procedures are developed to provide certainty and facilitate coordination. Impersonal relationships between managers and employeesWeber believed that managers should maintain an impersonal relationship with the employees so that the managers will be free to take rational decisions rather than one influenced by favoritism and personal prejudice. This organizational atmosphere would also facilitate rational evaluation of employee outcomes where personal prejudices shall not interfere. CompetenceCompetence should be the basis for all decisions made in hiring, job assignments, and promotions. This would encourage ability and merit as the most important characteristics of a bureaucratic organization. RecordsWeber felt it is absolutely essential for a bureaucracy to maintain complete files regarding all its activities. This ncessitates an accurate organizational "memory" where accurate and complete documents will be available concerning all bureaucratic actions and decisions. Administrative ManagementHenri Fayol (1841-1925) is the prominent advocate of administrative management. He spent his entire working career with a mining company, where he rose from an apprentice to General Manager. As a result of his long management career, Fayol developed fourteen management principles:
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