C l a ss i c a l

Ma n a g e m e nt
The o r y
Table of contents
01 Historical Context

02 Three Main Theories

03 Relevance Today
 t r i a l R e v o l u t i o n
Ind u s
io d o f p ro fo un d and
l R e v o lu t i on w as a per
The Industr ia at began
ic a l c h a n g e th
ec o n o m ic a n d te chnolog
rapid socio t o t h e 1 9 th c en tury.
e n tu ry a n d co n ti nued in
in the late 18th c ia n , h a n d cra ft-b ased
n i fic an t s h ift fro m agrar
It marked a sig z e d ones.
in d u stri a li
economies to
 Power
Most manufacturing was done
using human labor and basic
tools. However, the Industrial
Revolution brought about
major changes in the sources of
power used in manufacturing,
leading to the rise of factories
and mechanized production.
Machinery Innovations
Machinery innovations were
instrumental in transitioning
from manual labor to
mechanized production,
increasing efficiency, and
driving economic growth.
Transportation
Innovations in transportation
played a crucial role in the
movement of goods, people,
and ideas, facilitating the
growth of industries and
urbanization.
Classical Management
Theory
The classical theories of management are a set of
early management principles and approaches that
emerged during the late 19th and early 20th
centuries. These theories laid the foundation for
modern management practices and are still
relevant today in various organizational contexts.
 Founding Fathers

Max Weber Frederick W. Taylor Henri Fayol

Bureaucratic Scientific Administrative
Management Management Management
Weberian
Bureaucracy
Max Weber, a German sociologist and
economist, developed the concept of
bureaucratic management as he studied
various types of organizations. His
work started in the late 19th century
and continued into the early 20th
century. Weber was interested in
understanding how organizations could
achieve rationality and efficiency
through a formalized structure and
clearly defined roles.
 6 Major Principles of Max Weber’s
Bureaucracy
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.
Rules-based
Management
The organization uses rules to exert
control. Therefore, the lower levels
seamlessly execute the decisions made
at higher levels.
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.
 6 Major Principles of Max Weber’s
Bureaucracy
Up-focused or In-focused Impersonal Employment-based on Technical
Mission Qualifications
If the mission of the organization is to Bureaucratic organizations treat all Selection as well as the promotion of
serve the stockholders, board, or any employees equally. They also treat all employees is based on technical
other agency that empowered it, then customers equally and do not allow qualifications and skills.
it is up-focused. On the other hand, if individual differences to influence
the mission is to serve the them.
organization itself and those within it
(like generating profits, etc.), then it is
in-focused.
Critiques on Bureaucracy
Lack of Flexibility
The rules are inflexible and rigid.
Further, there is too much emphasis on
these rules and regulations.
Teamwork Emphasis
Informal groups do not receive any
importance. In current times, informal
groups play a huge role in most
business organizations.
Critiques on Bureaucracy
Bureaucratic Red Tape Bureaucratic Dysfunction

Involves a lot of paperwork which The rules and formalities lead to an

leads to a waste of time, money, and unnecessary delay in the decision-
also effort. making process.
Taylorism
Frederick W. Taylor, an engineer and
management consultant, is often
considered the father of scientific
management. He began his work in the
late 19th century while observing
industrial workplaces. Taylor's
approach emerged from his desire to
find better ways to organize work and
optimize employee performance. He
introduced concepts like time and
motion studies to analyze work
processes scientifically and improve
productivity.
 Taylorism
• In 1909, Taylor published “The Principles of
Scientific Management”.
• Promoted the idea of “a fair day's pay for a fair
day's work.”
• Designed workplace experiments to determine
optimal performance levels that he called time
studies, (also known as time and motion studies).
• Experimented with shovel design until he had a
design that would allow workers to shovel for
several hours straight. With bricklayers, he
experimented with the various motions required
and developed an efficient way to lay bricks.
• He found that by calculating the time needed for
the various elements of a task, he could develop
the "best" way to complete it.
 4 Major Principles of
Taylorism
Standardization of Work
Process
Replace working by "rule of thumb,"
or simple habit and common sense,
and instead use the scientific method
to study work and determine the most
efficient way to perform specific
tasks.
Division of Labors
Rather than simply assign workers to
just any job, match workers to their
jobs based on capability and
motivation, and train them to work at
maximum efficiency.
Incentive Systems
Monitor worker performance, and
provide instructions and supervision
to ensure that they're using the most
efficient ways of working.
4 Major Principles of
Taylorism
Time and Motion Studies

Allocate the work between managers

and workers so that the managers
spend their time planning and training,
allowing the workers to perform their
tasks efficiently.
 Critiques on Taylorism
Dehumanization Ignoring Social Context

Taylorism promotes rigid approaches, Taylorism breaks tasks into steps;

while modern methods value worker modern practices focus on holistic
autonomy and adaptability. efficiency and collaboration.
 Critiques on Taylorism
Manual vs. Mental Work
Taylorism separates work types;
modern approaches integrate workers'
knowledge and experiences.
Motivation and Workplace
Satisfaction
Taylorism overlooks motivation and
job satisfaction, key elements for
productivity.
Fayolism
Henri Fayol, a French mining engineer
and management theorist, began his
work around the same time as Taylor.
Fayol's approach was rooted in his
experiences managing large
organizations. He aimed to provide a
comprehensive set of principles that
could guide managers in various
aspects of organization and
administration. His ideas emphasized
the managerial functions that help
organizations operate smoothly.
Management Activities
• Planning – Look ahead, chart a course
• Organization – Select and arrange people
• Command – Oversee, lead, drive
• Coordinate – Harmonize and facilitate
• Control – Ensure Compliance
 Critiques on Fayolism
Management Oriented
Theory
The administrative management theory
is management oriented. It does not
give much attention to the problems of
the workers.
Lack of Importance to
Informal Organisation
The administrative management theory
does not give any importance to
informal organisation or groups. It
gives importance only to the formal
organisation structure.
 Critiques on Fayolism
Concepts Borrowed from
Military Science
Some of the concepts of administrative
management theory were borrowed
from military science. They tried to
apply these concepts to the social and
business organisations. For e.g. Henri
Fayol gave importance to
"commanding" and not "directing" the
workers.
Mechanical Approach
The administrative management theory
has a mechanical approach. It does not
deal with some of the important
aspects of management such as
motivation, communication and
leading.
Commonalities & Overlap
• Hierarchy
• Division of Labor
• Standardized Approach to Work
• Centralization of Authority
• Separation of Personal and Work Life
• Wanted to Select the Best Employees
• Wanted People Paid Fairly, in Theory
 Relevance
The classical management theories, despite being
developed over a century ago, still hold relevance in
contemporary management practices. While modern
management approaches have evolved and integrated
new concepts, the foundational principles of the
classical theories continue to provide valuable insights
and frameworks for managing organizations.