MPOB

PRESENTATION
 WHAT IS CLASSICAL MANAGEMENT THEORY?

 Classical management theory is based on the belief that workers only have
physical and economic needs. Unlike more modern workplace management
theories, it does not take into account social needs or job satisfaction.
Instead, classical management theory advocates a specialization of labor,
centralized leadership and decision-making, and profit maximization.

 Designed solely to streamline operations, increase productivity and enhance

the bottom line, this management theory arose in the late 19th century
and gained prominence through the first half of the 20th century. While
not as widely subscribed to in modern times, the classical management
theory offers some principles that remain valid, to an extent, in small
business settings in regard to manufacturing.
SCIENTIFIC
MANAGEMENT BY F.W.
TAYLOR
 SCIENTIFIC MANAGEMENT BY TAYLOR

F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’
proved with his practical theories that a scientific method can be implemented to
management. Taylor gave much concentration on the supervisory level of management and
performance of managers and workers at an operational level.

  Five principles of management by F.W Taylor:-

1). Science, not the Rule of Thumb - This rule focuses on increasing the efficiency of an
organization through scientific analysis of work and not with the ‘Rule of Thumb’ method.
Taylor believed that even a small activity like loading paper sheets into boxcars can be planned
scientifically.

2). Harmony, Not Discord - Taylor indicated and believed that the relationship between the
workers and management should be cordial and completely harmonious. Difference between
the two will never be beneficial to either side. Management and workers should acknowledge
and understand each other’s importance. Taylor also suggested the mental revolution for both
management and workers to achieve total harmony.
3). Mental Revolution - This technique involves a shift of attitude of management and
workers towards each other. Both should understand the value of each other and work
with full participation and cooperation. The aim of both should be to improve and boost
the profits of the organization. Mental Revolution demands a complete change in the
outlook of both the workers and management; both should have a sense of togetherness.

4). Cooperation, not Individualism - It is similar to ‘Harmony, not discord’ and believes
in mutual collaboration between workers and the management. Managers and workers
should have mutual cooperation and confidence and a sense of goodwill. The main
purpose is to substitute internal competition with cooperation.

5). Development of Every Person to his Greatest Efficiency - The effectiveness of a

company also relies on the abilities and skills of its employees. Thus, implementing
training, learning best practices and technology, is the scientific approach to brush up
the employee skill. To assure that the training is given to the right employee, the right
steps should be taken at the time of selection and recruiting candidates based on a
scientific selection.
ADMINISTRATIVE
MANAGEMENT BY
HENRI FAYOL
 ADMINISTRATIVE MANAGEMENT BY HENRI FAYOL

Henri Fayol’s Administrative Management Theory, allowed managers to get the tools that were
required to manage and lead more effectively. It can be said that Fayol and other theorists like
him are responsible for the basis of modern management theory. 

 Principles of Management by Henry Fayol:-

1). Division of Work - Henri Fayol considered that separating work in the organizations for
workers will improve the product quality.

2). Responsibility and Authority - Responsibility brings responsibility for the assigned work,
whereas authority enables the management to perform those tasks efficiently.

3). Discipline - We all know the importance of discipline in management. It has been seen that
without discipline, tasks cannot be accomplished efficiently and effectively. Therefore, discipline is
termed as the core value for any management project.

4). Unity of Command - Unity of Command generally states that employees should work under
one boss and should follow his/her command.
BUREAUCRACY BY
MAX WEBER
 BUREAUCRACY THEORY BY MAX WEBER

Max Weber, a German scientist, defines bureaucracy as a highly structured, formalized, and also an
impersonal organization. He also instituted the belief that an organization must have a defined
hierarchical structure and clear rules, regulations, and lines of authority which govern it.

 Principles of bureaucracy by max weber:-

1). A formal hierarchical structure – In a bureaucratic organization, each level controls the level
below it. Also, the level above it controls it. A formal hierarchy is the basis of central planning and
centralized decision-making.

2). Rules-based Management – The organization uses rules to exert control. Therefore, the lower
levels seamlessly execute the decisions made at higher levels.

3). Functional Specialty organization – Specialists do the work. Also, the organization divides
employees into units based on the type of work they do or the skills they possess.
4). Up-focused or In-focused Mission – If the mission of the organization is to serve the
stockholders, board, or any other agency that empowered it, then it is up-focused. On the other
hand, if the mission is to serve the organization itself and those within it (like generating profits,
etc.), then it is in-focused.

5). Impersonal – Bureaucratic organizations treat all employees equally. They also treat all
customers equally and do not allow individual differences to influence them.

6). Employment-based on Technical Qualifications – Selection as well as the promotion of

employees is based on technical qualifications and skills.
CONCEPTS &
CHARACTERISTICS OF
CLASSICAL THEORY
 CONCEPTS OF CLASSICAL MANAGEMENT THEORY
 Centralized structure of leadership:-
The first level is composed of the business owners and/or executives of the company. These
individuals are given the highest level of authority and set the long-term goals of an organization.
The second level of leadership consists of middle management. Individuals considered to be middle
management are in charge of overseeing managers and setting department-level goals. The third
level is composed of supervisors or managers who oversee the day-to-day operations of a
company.

 Labor specialization:-
This concept focuses on an “assembly line” set up within an organization. This structure involves
breaking down large tasks or projects into smaller tasks that are assigned to employees. Workers
are typically responsible for only one specific task to prevent multitasking and increase
productivity.

 Wage incentives:-
The classical management theory places emphasis not on employees’ job satisfaction or social
needs but rather on physical needs. This theory holds that these physical needs can be met
through income and monetary incentives and uses the opportunity for wage increases to motivate
employees.
 CHARACTERISTICS OF CLASSICAL MANAGEMENT THEORY

 Accounting model is considered for building classical theory.

 Classical theory focuses on identifying errors and efforts are made for overcoming them once
they occur.

 This theory treats human beings as homogenous and unmodifiable. Labor need not to be divided
on the basis of distinct role to be carry out with the organization.

 Amount of output generated by organization is given more emphasis rather than human beings.

 Employees are assumed to be stable in respect to changes taking place within the organization.

 A centralized and integrated system should be maintained within organization by providing

control and authority in the hands of central authority. 
ADVANATAGES & DISADVANTAGES OF
CLASSICAL THEORY
ADVANTAGES & DISADVANTAGES OF CLASSICAL THEORY
ADVANTAGES
 Classical Management theory has a clear
structure for management.
 Classical management theory increased the
productivity and efficiency of the workers.
 Classical management theory helps to
create better working conditions.
 Classical management theory increases the
wages of the workers.
 Classical management theory creates bonds
among managers and workers.
DISADVANATAGES
 Classical management theory creates pressure
and burden of work among the employees.
 Classical management theory is based upon
the one best way and it is applicable to the
simple organization’s structures. it does not fit
on today’s complex structures.
 Classical management theory focuses on the
individual performance of the employees and
categories them into efficient and inefficient.
 Classical management theory kills the
creativity of the workers and creates
frustrations among the employees.
TIPS FOR
IMPLEMENTING
THE CLASSICAL
MANAGEMENT
THEORY IN YOUR
BUSINESS
 TIPS FOR IMPLEMENTING CLASSICAL MANAGEMENT THEORY IN YOUR BUSINESS

 Establish a standard operating procedure:

A standard operating procedure should be clearly outlined for each specific task within the
workplace. This operating procedure should include the amount of time the task is expected to
take as well as other goals for each task. This will ensure that workers have a clear understanding
of their responsibilities and goals when beginning a task.

 Complete the task selection process in a considerate way:

Selecting the right workers for a particular task is key to ensuring that employees can meet their
job expectations. Consider each worker’s abilities and skills and match them accordingly to the
most appropriate tasks.

 Regularly provide worker incentives:

Offering incentives regularly as well as providing verbal praise and recognition for employees
performing well can greatly increase worker motivation and productivity.
 DEFINITION OF CLASSICAL
APPROACH

 The classical approach is also called Management Process , Functional , and Empirical

Approach.

 “The classical theory represents the traditional thoughts about organizations. It is based on
the prototype industrial and military organization. The theory concentrates on
organization structure and their management.”

 Fayol, Taylor, Weber, and others are the classical writers. They emphasized principles of
management, work planning, formal structure, technical requirements, and the
assumption of logical and rational behavior.
 DIFFERENCE BETWEEN TAYLOR AND FAYOL

TAYLOR
DEFINITIONS Taylor principles of
management are principles that
consider management styles and
activities that help to achieve
maximum output.
FAYOL
Fayol principles of management
are principles that consider the
workflows and operator
efficiency improvements in an
organization.

EMPHASIS Low level management Top level management

DIRECTION Production and engineering Managerial function

APPLICABILITY Specialized organizations Universally

METHOD OF Different payment method Sharing of profit with managers

REMUNERATION
APPROACH Engineer’s Managers

MAIN ACTIVITIES Work study, time study Planning and controlling

 CONCLUSION

Given its exemplary benefits, the classical management theory seems

perfect for companies in the manufacturing, mining or production
sector. Since this theory assumes that workers do not have social or
self-actualization needs, it does not help the top management get a
360-degree view of the enterprise.

Workers need to be ready both in terms of skills as well as have a

balanced state of mind in order to take the best possible care of the
customer. The theory has been criticized for creating an assembly line
atmosphere and new age organizations eager to rank high in employee
satisfaction surveys are seeking new age solutions for their HR
challenges discarded this theory.
 ACKNOWLEDGEMENT

We would like to express our special thanks of

gratitude to Dr. Chandra Shaardha Ma’am who gave
us the golden opportunity to do this wonderful project
on the topic “CLASSICAL MANAGEMENT THEORY” as
well which also helped us in doing a lot of research
and, We come to know about so many new things.
Secondly thanks again to all the People Who
Supported.
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