13th Lecture Max Weber (1)

8/9/2019 13th Lecture Max Weber (1)

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Classical Theory ofManagement

Dr. Ajay Gupta

[email protected]

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mailto:[email protected]:[email protected]


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$rgani%ation Theories

Classical Theory

&cienti'c Management approach

Weber'sBureaucratic approach

Administrati)e theory

*eo+Classical Theory ,Modern organi%ation theor&ystems approach&ocio+technical approachContingency or &ituational approach

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Main ideaof Classical $rgani%ational Theory

There is one est 0ay to perform a tas

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T0o "erspecti)es of Classical

Theory of Management Scientifc management3 focusing on the

management of 0or and 0orers

Administrative management+ addressing issuesconcerning ho0 o)erall organi%ation should e

structured

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5rederic Taylor

Taylor 0as orn in "ennsyl)ania on March 29 1:!;

After studying in


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Taylor>s Theory of &cienti'c Manageme

5rederic 8inslo0 Taylor 0as 'rst person 0ho ga)e &cienti'cManagement in 1?11. 6e also called the father of scienti'cmanagement. &cienti'c Management 0as concerned to impro)operational eiciency at the shop+oor le)el.

According to Taylor9 scienti'c management means no0ing e

0hat you 0ant men to do and seeing that they do it in the estcheapest 0ay.

Taylor called it as Mental Be)olution9 ecause it creates the understanding9 trust and con'dence et0een the managemen0orers for achie)ing goal ,higher production-.

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Taylor "rinciples of &cienti'cManagement

&cience9 not rule+of+thum&cienti'c selection of the 0orerManagement and laour cooperation rather than

conict

&cienti'c training of 0orers

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ey "oints of &cienti'c Managem

1. &cienti'c o Analysis 3 oser)ation9 data gathering9 andcareful measurement determine the one est 0ay to peeach jo

2. &election of "ersonnel 3 scienti'cally select and then trateach9 and de)elop 0orers

E. Management Cooperation 3 managers should cooperate 0orers to ensure that all 0or is done in accordance 0iprinciples of the science that de)eloped the plan

F. 5unctional &uper)ising 3 managers assume planning9organi%ing9 and decision+maing acti)ities9 and 0orersperform jos

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6enri 5ayol


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6enry 5ayol>s "rinciples of Management

Division o work (seciali!ation" #$%ity

Authority and responsiility &taility of tenure of personne

Discipline #nitiati)e

nity of command


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5ayol>s ! Management 5unction

5undamental roles performed y all managers4"lanning$rgani%ingCommanding

CoordinatingControlling

Additionally 5ayol recogni%es fourteen principles that sguide the management of organi%ations.

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1. "lanning + de)eloping an outline of the things that muaccomplished and the methods for accomplishing the

2. $rgani%ing + estalishes the formal structure of authothrough 0hich 0or sudi)isions are arranged9 de'nand coordinated to implement the plan

E. &taing + selecting9 training9 and de)eloping the stamaintaining fa)orale 0oring conditions

F. Directing + the continuous tas of maing decisions9communicating and implementing decisions9 ande)aluating suordinates properly

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!. Coordinating + all acti)ities and eorts needed ind together the organi%ation in order to achiecommon goal

;. Beporting + )eri'es progress through records9

research9 and inspectionH ensures that thingshappen according to planH taes any correcti)eaction 0hen necessaryH and eeps those to 0hothe chief e7ecuti)e is responsile informed

I. Judgeting + all acti)ities that accompany udgeincluding 'scal planning9 accounting9 and contr

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5ayol>s 1F "rinciples

1. Di)ision of 8or Kimpro)es eiciency throughreduction of 0aste9 increased output9 andsimpli'cation of jo training

2. Authority and BesponsiilityKauthority4 the rig

gi)e orders and the po0er to e7tract oedienceresponsiility4 the oligation to carry out assignduties

E. DisciplineKrespect for the rules that go)ern thorgani%ation

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F. nity of CommandKan employee should recei)e orders from onsuperior only

!. nity of DirectionKgrouping of similar acti)ities that are directesingle goal under one manager

;. &uordination of #ndi)idual #nterests to the General #nterestKinterests of indi)iduals and groups should not tae precedence o)interests of the organi%ation as a 0hole.

I. Bemuneration of "ersonnelKpayment should e fair and satisfacfor employees and the organi%ation

:. Centrali%ationKmanagers retain 'nal responsiility 3 suordinamaintain enough responsiility to accomplish their tass

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?. &calar Chain ,=ine of Authority-Kthe chain of command fthe ultimate authority to the lo0est

1. $rderKpeople and supplies should e in the right placethe right time

11.


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Ma7 8eer ,1:;F+1?2-

arl


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Ma7 8eer>s JureaucraticApproach

&tructure&peciali%ation"redictaility and stailityBationality

Democracy

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Ma7 8eer>s Jureaucratic

Approach& A ormal hierarchical str%ct%re


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Approach* +rgani!ation by %nctional secialty 8or is to e done y specialists9 and people are organi%ed into

ased on the type of 0or they do or sills they ha)e

, An -%.oc%sed- or -in.oc%sed- mission

#f the mission is descried as up+focused9 then the organi%atio

purpose is to ser)e the stocholders9 the oard9 or 0hate)er agempo0ered it. #f the mission is to ser)e the organi%ation itself9 athose 0ithin it9 e.g.9 to produce high pro'ts9 to gain maret shaproduce a cash stream9 then the mission is descried as in+focu

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Approach/ 0%rosely imersonal The idea is to treat all employees eLually and custom

eLually9 and not e inuenced y indi)idual dierenc

1 #mloyment based on technical $%alifcations

There may also e protection from aritrary dismiss The ureaucratic form9 according to "arinson9 has

another attriute.

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Common Criticisms of Classical$rgani%ational Theory

Classical principles of formal organi%ation may lead to aen)ironment in 0hich4


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Classical Theory of Management

Criteria Scientifc Administrative 2%rea%c

Comm%nication $ne 0ay top do0n $ne 0ay $ne 0ayCareer ath Missing Missing "resentCooeration 5or 0or 5or 0or "resentCommitment Missing "resent "resentCommand "resent top do0n "resent top do0n "resent )anager worker

relation

Missing Jetter than

scienti'c

Jetter

administAroach CommandU control Command9

opportunity9 retain$pportuncomman

3nteraction Missing Jetter Jetter4%man treatment &uppression Jetter Jetter5oyalty Missing Jetter JetterTeam work Missing "resent Jetter

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Thank you!1TA"M#

13th Lecture Max Weber (1)

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