CLASSICAL THEORY OF

MANAGEMENT

By- Sweety Gupta

Classical Management Theory

Henry Fayol Theory

Taylor theory (Scientific management Theory)

Fayol’s Principles

OfManagement

Henry Fayol Theory

Made clear distinction between technical and managerial work.

Identified the main steps in the process of management (planning, Organizing, Staffing, Directing and Controlling).

Developed fourteen principles of management which act as a guidelines for managers for managerial work.

Principles Of Management

Principles

Division of work Authority and Responsibility Discipline Unity Of command Unity of direction Remuneration of persons Centralization and

Decentralization Scalar chain Order Equity Stability of tenure of

personnel Initiative Esprit De Corps

Principle Of Division Of Work

Whole work must be divided into small tasks or units of work.

Technical, Managerial and Skilled jobs should also be divided into small segments.

Increases the specialization of an employee.Improves efficiency of employees by

performing only one part of the job.

Principle Of Authority And Responsibility

Authority means power to take decision

Responsibility means obligation to complete the assign job on time

When some responsibility is given to a person, the matching authority should also be given.

Excess authority may lead to negative results.

Priciple Of Discipline

Discipline refers to general rules and regulations of an organization.

It also mean developing commitment in the employees towards organization and towards each other.

Discipline is required at every level of organization, not only at a subordinate level.

Principle Of Unity Of Command

Employee should take order from only one boss.

No confusion in the mind of a subordinate.

No ego clashes.

Improves effectiveness in working

Principle Of Unity Of Direction

‘One unit one plan’.

Everyone should work in harmony to achieving common goal of the organisation.

No wastage of resources and efforts of employees

Subordination Of Individual Interest To General Interest

Interest of the organization must supersede the interest of individuals

All employees should work towards the interest of an organization

Employees should know that their growth depends upon the company’s growth.

Principle Of Remuneration Of Persons

Employees must be paid fairly and adequately to give them maximum satisfaction

Remuneration must be just and fair.

Employees get motivated.

Devotion and commitment of employee improve.

Principle Of Centralization And Decentralization

Centralization means concentration on authority and power with top level.

Decentralization means evenly distribution of power at every level

There must be a combination of both in an organization

Fast decision at operational level and strict control by top level.

Principle Of Scalar Chain

Scalar chain means ‘Line Of authority’ from highest to lowest rank.

Everyone in the organisation must follow the rules of scalar chain.

But in case of emergency, a short cut can be taken, known as ‘Gang-Plank’.

Principle Of Order

Orderly arrangement of men and material, i.e., a fixed place for everything and everyone in an organization.

No wastage of time in search of men and material.

Smooth and systematic working of organization.

Principle Of Equity

Fair and just treatment to employees.

No bias in dealing with employees

Gives maximum satisfaction to employees.

Motivate employees and boost up the moral of employees.

Principle Of Initiative

Employees must get an opportunity to take some initiative in making and executing plans.

Gives immense satisfaction among employees.

Managers must welcome the suggestions and ideas of employees before making a plan.

Develops feeling of belongingness in employees.

Principle Of Esprit De Corps

Means union is strength.

Develop Team spirit

Every employee must work as a part of team

Managers must develop a feeling of belongingness among employees

Stability Of Tenure Of Personnel

No frequent Termination or Transfer

Must provide job security among employees.

No wastage of time and resourses.

Frequent turnover of employees is bad for organization.

Taylor’s Theory

Taylor theory was introduced in 1911

He introduced scientific management principles replacing the rule of thumb

He simply applied scientific tools and methods to solve management problems

Techniques

Functional foremanshipStandardization and simplification of workFatigue studyMethod studyTime studyMotion studyDifferential Piece wage systemMental Revolution

SCIENTIFIC TECHNIQUES

Scientific Techniques

ofTaylor

Functional Foremanship

He advocated that specialisation must be introduced in a factory.

Division of factory in two department: Planning department and Production department

Experts in every department to guide the workers

Standardization And Simplification Of Work

Standardization means maintaining standard among size, type, weight, measure and quality of the product.

Simplification means eliminating unnecessary diversity of product, size and types.

Advantages of STANDARDISATIONIt is economical to have standardised

material, tools and equipments.Operators can be trained easily.Helps in achieving economies of large scale

production.Reduce cost of production.

Fatigue Study

Fatigue is generally caused by long working hours.

It emphasis on: The Frequency of rest intervals The duration of rest intervals The no. of rest intervals

This study aims at providing proper rest interval to the employees to increase the effectiveness of the work.

Method Study

Find one best method of performing the job which maximizes the profit.

All methods should be tried first and then the best should be selected.

Time Study

The Standard time required to perform a job.

Setting up standard target for workers.

Determining the number of workers required to perform a job.

Categorizing the workers in efficient and inefficient categories.

Motion Study

Observe an average worker when he is performing a job by determining his movements.

Differentiate between productive and unproductive movements.

Cut down all unproductive and wasteful movements.

Differential Piece Wage System

Paying different rate of wage to efficient and inefficient employees.

Extra wages paid to efficient employees will motivate both efficient and inefficient employees.

When payment given acc. to no. of units produced, it will automatically maximize the production.

Mental Revolution

Change in mental attitude of workers and management towards each other.

Co-operation between worker and employees.

Develop positive thinking among each other.