This week we studied the classic theory of management, particularly the theories of Max Weber,

Henri Fayol, and Frederick Taylor. We also took a look at corporate giants McDonald’s and Home
Depot’s business models and how they reflect these theories. We then took a look at a local
sandwich shop, Which Which to see if we could also see any of these theories mirrored in their
business.

First of all, what is classical theory? The primary idea behind it is that organizations run like
machines. The theories are all about maximizing efficiency, making sure that all parts of the machine
are running to maximize the utmost productivity. The three theories that define classical
management are scientific management, administrative theory, and bureaucracy theory.

Frederick Taylor is the man responsible for scientific management. He believed that any task or job
could be completed by breaking it down to a science. He thought that we could study each job while
it is being done and find one specific way to do or one specific body type for the job, which would
then be used to maximize efficiency throughout the organization. Another underlying idea in Taylor’s
theory is systematic soldiering. He believed that men were inherently lazy, and that if given any
chance at all, would slack off and not be as productive. Therefore, they needed to have no social
time and spend all of their time focused on tasks.

Max Weber’s bureaucracy theory also treated organizations as machines. However this machine
had many more rules. Some core values of this theory are a clearly defined hierarchy with a
consistent order of authority and very strict rules. An organization that we looked at this past week
that I believe still has a very bureaucratic structure is Home Depot. Home Depot’s CEO and ex
military officer, Robert Nardelli, runs his business like so. He has a very clearly defined hierarchy
and communication is closed. Some say he has created “an organization of fear” while he would
argue that this not true, he has created an extremely efficient operation. Things so far have been
working very well for him at Home Depot but many argue that with such a bureaucratic
organizational structure, employees will eventually get sick of it and find somewhere new to work. I
think that the fact that the majority of his employees are ex military definitely works to his advantage.

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Another company that we all know so well is McDonalds. Here is an example of classic management
that has worked and still is working well. McDonalds has all of their operations down to a science.
They are all about maximizing efficiency. In the Forbes article Why McDonalds Wins in Any
Economy, CEO Skinner explains that they thought about putting deli sandwiches on the menu but
had to turn the idea away because there was no way to assemble the sandwiches in thirty to ninety
seconds (like the rest of the items on the menu). McDonalds’ main focus is speed. They are not like
typical restaurants where you can small chat with your waiter or waitress; they want you in and out of
the store or drive through as fast as humanly possible. They make sure that they keep up to these
standards by constantly monitoring operations and analyzing how they can be more efficient,
productive, and make and sell the most amount of burgers and chicken sandwiches possible during
the day.

Another fast food chain where classical management has worked well is Chick Fill-A. Their approach
is a little different. They do focus on speed and getting orders out in under a minute and a half, but
they also differentiate themselves from other fast food restaurants as far as cleanliness and
customer service. When you say thank you to a Chick-Fill-A employee you will never hear “no
problem” back, you will always hear “my pleasure”. This, even though so small, really differentiates
them from other fast food restaurants. I have also noticed that their facilities tend to be much
cleaner. However, behind the counter it is all the same. Analysts have found the most efficient way
to make the sandwiches and the methods have been taught to the crewmembers, which has
maximized their efficiency. There is also incentive created by generating store-to-store competition
between the employees.
Right next to Chick-Fill-A on Woodlawn rd. is Which Which sandwich shop. This is another great
example of classic management working well. When you enter the store there is a large board
displaying the menu with organized boxes filled with empty sandwich bags beneath it. You pick what
kind of sandwich you want and check off on the bag any specifications you would like on your
sandwich. Your bag is placed on a zip line and gets sent down through the process just like an
assembly line. There is a different person at each station (one that toasts, one that does toppings,
wraps it up, ETC). This eliminates error because you actually fill out what you want yourself. It is
much more efficient than the traditional sandwich shops like Panera Bread co. or Bruegger’s Bagel
Bakery. I noticed that the wait for my sandwich was significantly shorter than at other shops. They
have found a system that allows them to create the most sandwiches during the day the most
quickly.

The last part of this quest was to look at a case study on Creamy Creations, an ice cream sundae
shop. The business was run for a couple years under its owner and founder Bob Peterson as a
“specialty ice cream shop”. It had a loyal customer base that enjoyed having their favorite “creamy
creator” construct their sundae from start to finish just the way they wanted it. When Peterson sold
the shop to the fast food chain Burger Barn, classical management practices began to be
implemented right away. The executives of Burger Barn did not like the inefficiencies they saw in
Creamy Creations’ operations. They wanted to speed up the process of making the sundaes so they
could get more customers in and out of the store in a shorter amount of time, ultimately generating
more profit. They did this by breaking up the sundae line into stations and assigning one person to
each station. This did speed things up; the sundaes were being made faster. They also noticed a
slight increase in profits. However, the turnover of employees had increased. This was of no worry to
the Burger Barn executives because the low skilled labor positions at the sundae stations were not
hard to fill. This is typical classic management; the executives value speed and efficiency more than
their employees. However, as we can see through all of these different clues for our badge, classical
management can work as long as it is in an industry that requires low-skilled labor.

As you can see, classical management theory can work in today’s marketplace, as super corporation
McDonalds proves. This model also works for Home Depot, Chick Fill-A, Which Wich, and Creamy
Creations. Due to the revolution and change during the 60’s and the wide use of Human Resource
theory management systems that are in place today, I do not think that bureaucracy, administrative,
or scientific theory can work in any industry other than those that require low skilled, high volume
labor.

In conclusion, I do not think that classical management theories such as bureaucracy,

administrative, and scientific theories are the best options for today’s businesses. Through adapting
a classic management lens we can learn to make our businesses much more efficient and generate
the highest productivity and volume. However, since the organization is being treated like a machine
and the employee’s well-being is not taken into account, the systems can be very oppressive. This is
why unions are formed. Employees need to feel heard and appreciated in order to work to their
fullest potential.