Classical Management Theory

The work of Fayol and Weber

Henri Fayol
Identified 6 management
activities:

– Forecasting
– Planning
– Organising
– Commanding
– Co-ordinating
– Controlling
 6 Managerial activities
• Forecasting – predicting what will happen in the future
• Planning – devising a course of action to meet expected
demand
• Organising – Allocating resources then allocating separate
tasks by department, unit and individual
• Commanding – directing or motivating
• Co-ordinating – ensuring synergy between activities and
resources
• Controlling – monitoring progress
 14 Principles of management
1. Specialisation/division of
work
2. Authority with
responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interests
7. Remuneration
8. Centralisation
9. Chain/line of authority
10. Order
11. Equity
12. Lifetime jobs for good
workers
13. Initiative
14. Espirit de Corp
 Principles of management
• Division of labour – repetition of the same function brings
speed and efficiency

• Authority with responsibility – the right to give orders and

the power to exact obedience

• Discipline – obedience, application, behaviour & respect

• Unity of command – an employee should receive orders from

only one person
 Principles of management
• Unity of direction – having the same direction/objective

• Subordination of individual interests – no conflict between

personal ambition and the well being of the organisation as a
whole

• Remuneration – a fair days work for a fair days work

• Centralisation – elements of it must be present

 Principles of management
• Line of authority - line management

• Order - a place for everyone and everyone in his place

• Equity – employees must be treated equally and fairly

• Stability of tenure – employees need a degree of stability in

their job to deliver their best
 Principles of management
• Initiative – being allowed to think through a problem and
implement a solution

• Espirit de corps – dividing enemy forces to weaken them is

clever, but dividing one’s own team is a sin against the
business
 Similarities with F W Taylor
• Taylor (1911) - focus on work methods,
measurement and simplification to gain efficiency

• Fayol (1916) – principles of management and work

organisation

• Both identify ‘one best way of working’ developed

from experience
Criticisms of Classical Management Theory
• Based on personal knowledge and experience
• Proposed a single, standardised organisational model as the
optimum one
• Promoted a mechanistic organisation which stressed
discipline, command and order
• It neglected conflict management, decision-making and
communication
• It underestimated the complexity of organisations
• Lack of concern with the interaction between people
• Misunderstood how people thought
Max Weber
• German sociologist
• Studied – power and
authority
• Bureaucracy was the most
efficient form of social
organisation
• His work complements that
of F W Taylor
 Authority
• Traditional - the ruler has a natural right to rule,
either God given or by descent

• Charismatic – the ruler has some special, unique

virtue

• Legitimate – based on formal, written rules which

have the force of law
 Bureaucracy

Based on legitimate authority

The clear definition of tasks and responsibilities leads

to a permanent administration and standardisation
of work procedures

Based on ‘order’ and ‘rationality’

 Main characteristics
• Official duties
• Division of labour/specialisation
• Hierarchy of authority
• Uniformity of decisions and actions
• Rules and regulations
• Impersonal orientation – rational judgments
• Employment based on technical qualifications
 Strengths of the bureaucracy
• Standardisation
• Employee behaviour – controlled and
predictable
• Little time is spent on decision making
• Routine administration
 Criticisms of bureaucracies
• Over-emphasis on rules, procedures, record keeping
and paperwork
• Difficulty in adapting to changing circumstances
• Position and responsibilities can lead to officious
behaviour
• Result in mindless, unquestioning bureaucracy
• Can have a dehumanising effect on individuals
• Can stifle creativity and innovation
 Chris Agyris (1964)

Bureaucracies restrict the psychological

growth of the individual and cause feelings of
failure, frustration and conflict
 Public Sector organisations
• Demand uniformity of treatment, regularity of
procedures and accountability for their operations
• Specified rules and regulations limit the degree of
discretion exercised by management
• Detailed record keeping
• Necessary functions run on a consistent and fair
basis
 Summary
• Procedures provide a standard way of dealing
with employees, avoiding favouritism and
personal bias
• Everyone knows what the rules are and
receives equal treatment
• However, there can be frustration in having to
follow seemingly illogical rules and experience
delays
 A final thought……..
Research in 1960 - 1970

The question changed from

whether or not an
organisation was a
bureaucracy, to one that
asked to what degree an
organisation was
‘bureaucratised’