2. Contents
Introduction
Classical Theory Approach
Definition of classical approach
Scientific Management Theory
Definition of scientific management
4 principles of F.W Taylor
Techniques of scientific management
Administrative Management Theory
About Henri Fayol
Division of industrial activities
Qualities of an effective manager
Functions of management
14 principles of management
3. Bureaucratic Management
Definition of bureaucracy
Characteristics of bureaucratic management
Principles of bureaucratic management
Neo- classical Theory Of Management
Definition f neo-classical theory
Elements of neo-classical management
Human Relation Theory
Definition of human relation theory
Hawthorne experiment
Behavioral Science Approach
Definition of behavioral science approach
Contribution of behavioral science approach
4. Introduction
At the end of 19th century, when factory production became
pervasive and large scale organization raised, people started
looking for the ways to motivate employees and improve
productivity .
A need of management idea came up, which directed to
classical contributors such as F.W Taylor ,Henri Fayol and
max generating management theories such as scientific
management , administrative management and Bureaucratic
management.
As a reaction to approaches of classical theory which over –
emphasized the mechanical and physiological character of
management , came up the school of neo-classical theory
with a more human – oriented approach.
6. Definition of classical approach
Classical approach is the oldest
formal school of thought which
began around 1900 and
continued into the 1920’s.
Its mainly concerned with the
increasing the efficiency of
workers and organization based
on management practices, which
were an outcome of careful
observation.
Classical approach mainly looks
for the universal principles of
operation in the striving for
economic efficiency.
8. SCIENCETIFIC MANAGEMENT
THEORY
F.W Taylor is the father of
Scientific Management theory.
He is the person who have given
importance on efficiency for that
reason he has published a book
known as Piece Rate theory
system.
Born into a wealthy family in the
US in 1856
Graduated from Stevens
Institute Technology as a
mechanical engineer in 1853.
Frederick Winslow Taylor
(1856-1915)
9. Definition of Scientific
Management Scientific management is a theory
of management that analyzes and synt
hesizes workflows. Its main objective
is improving economic efficiency,
especially labor productivity. It was
one of the earliest attempts to apply
science to the engineering
of processes and to management.
The Principles of Taylor's Scientific
Management introduced systematic
selection and training procedures, it
provided a way to study workplace
efficiency, and it encouraged the idea
of systematic organizational design.
10. THE 4 PRINCIPLE OF F.W. TAYLOR
1.Science, Not Rule of Thumb:
2. Harmony, Not Discord:
3. Cooperation, Not Individualism:
4. Development of each and every person to
his /her greatest efficiency and prosperity:
11. TECHNIQUES OF SCIENTIFIC MANAGEMENT
METHOD STUDY
DIFFERENTIAL PIECE RATE SYSTEM
FATIGUE STUDY
TIME STUDY
MOTION STUDY
12. ADMINISTRATIVE MANAGEMENT
Administrative management attempts to find a rational
way to design an organization as a whole.
The theory generally calls for a formalized
administrative structure , a clear division of labor , and
delegation of power and authority to administrators
relevant to their area of responsibility.
According to this theory, you should design an
organization using a very formalized structure with clear
lines of authority from the top to down. This is
hierarchical structure
13. About Henri Fayol
Life Time: 1841-1925
Profession: Mining engineer
and management theorist .
Education: Graduated from
mining academy at
st. Entinne in 1880.
Position Held: Founded a
mining
company and became its
managing director .
Contribution: Mainly 14
Principles
of management.
14. Fayol’s contribution to management
are divided in four section:
Division of Industrial Activities
Quality of an effective manager
Functions of management
Principles of management
18. 14 Principles of management
Division of work
Authority and responsibility
Unity of command
Discipline
Unity of direction
Fair remuneration to workers
Subordination of individual
interest to general interest
19. 14 Principles of management
Scalar chain
Effective Centralization
Order
Stability in tenure of personnel
Equity
Initiative
Espirit de corps
20. BUREAUCRATIC MANAGEMENT
The German
sociologist Max
Weber argued
that bureaucracy constit
utes the most efficient
and rational way in
which human activity
can be organized and
that systematic processes
and organized
hierarchies are necessary
to maintain order,
maximize efficiency, and
eliminate favoritism
21. Definition of Bureaucracy
“Bureau and Kratos” refers to the office the
Greek suffix “kratia or kratos” means power or
rule
“Is a non personal of organisation that follows
a formal structure, where rules, formal
legitimate authority and competence are
characteristic of appropriate management
practice”
: a large group of people who are involved in
running a organisation but who are not
elected
: a system of government or business that has
many complicated rules and ways of doing
things
: a system of administration marked by
officialism, red tape and proliferation
23. .
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.
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.
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.
25. INTRODUCTION
The term classical refers to work done by a group of
economists in18th and 19th centuries.
The word neo means “New”.
Much of these work was developing theories about the
way markets and markets economists and the are
generally termed “Neo-classical economists”.
The neo classical approach was set out by Alfred
Marshall in his principles of economics, published in
1890.
26. .
• It may be noted here that the theories stated by Taylor
and Fayol are called by writers as classical theories
• while the theories stated by writers as classical
theories the human relations movement and the
behavioural science movement are called new-classical
theories.
27. Elements of Neo-classical theories
1.Individual
2. Work Group
3.Participative management
4.Oreintation
5. Motivation
6. Leadership
7. Employee Development
28. Individual
Neo-classical theory recognized the individual
differences which were ignored by the classical theory.
Every individual has emotions, feelings, attitudes,
hopes, aspirations, and expectations.
The new-classical theory advocated a package deal of
motivation, including financial and non financial
incentives, to make the workers feel at ease at work
and increase their productivity.
29. Work Group
• An individual in a group develops Social wants.
• As he is a social being, he develops a desire to belong &
to be accepted by his work group.
Participative Management
• Neo-classical theory suggested workers
participation in management for improving their
productivity.
30. Orientation
Classical theory was job oriented while neo-classical
theory is employee oriented.
There is a shift in managerial style from product
oriented approach to employee and group centred
approach.
classical theory was concerned with the basic needs of
organization and society whereas neo-classical
approach tried to satisfy the personal security and
social needs of workers.
31. Motivation
• No-classical writers considered business organization as a
social system,
• The employees could be motivated by social and
psychological wants and not solely by economic incentives.
Leadership
• Democratic style of leadership is essential to develop co-
operative attitude of employee towards management.
32. Employee Development
As there is a close connection between moral and
production, neo-classical writers emphasized that
management that must take greater interest in
employee development workers satisfaction.
34. Human relation theory of
management
The human relation theory of
management began development in
the early 1920’s during the industrial
revolution
At that time productivity was the focus
of business .
Professor Elton mayo began his
experiment(the Hawthorne studies) ,
to prove the importance of people for
productivity not machine
35. Human relation theory of
management
The human relations management theory is a
researched belief that people desire to be part of a
supportive team that facilitates development and
growth .
Therefore , if employees receive special attention and
are encouraged to participate , they perceive their work
has significance , and they are motivated to be more
productive , resulting in high quality
36. Hawthorne Experiment
George Elton Mayo(1880-1949)
was an Australian born
psychologist , researcher and
organizational theorist.
Mayo is known as the founder of
the human relations movement.
The research he conducted under
the rubric of the Hawthorne
Studies in the late 1920s and early
1930s showed the importance of
groups in affecting the behaviour of
individuals at work.
He carried out a number of
investigations to look at ways of
improving productivity
37. Hawthorne Effect
The Hawthorne effect is the idea that “behaviour
during the course of an experiment can be altered by a
subject’s awareness of participating in an experiment”.
The initial Hawthorne effect took place in the
Hawthorne plant of western electric company in the
1920’s and 1930’s.
The studies were composed of many long
“investigations into the importance for work behaviour
and attitudes of a variety of physical , economic and
social variables”.
38. Hawthorne Experiment
The Hawthorne experiment were first conducted in November ,
1924 at western electric company’s Hawthorne plant in Chicago.
The initial tests were sponsored by the National research council
(NRC) of the national academy of sciences.
In 1927 , a research team from Harvard business school was
invented to join the studies after the illumination test drew
unanticipated results.
A team of researchers led by George Elton Mayo from the
Harvard business school carried out the studies.
(General Electric originally contributed funding , but they
withdrew after the first trial was completed).
39. Four Parts Of Hawthorne
Experiment
I. Part 1-Illumination Experiments (1924-27).
II. Part 2-Relay Assembly Test Room Study (1927-1929).
III. Part 3-Mass Interviewing Programme (1928-1930).
IV. Part 4-Bank Wiring Observation Room Experiment
(1932)
40. Part 1 – Illumination Experiments
(1924-1927)
These experiments were performed to find out the effect
of different levels of illumination (lighting) on
productivity.
The brightness of the light was increased and decreased
to find out the effect on the productivity of the test group.
Surprisingly , the productivity increased even when the
level of illumination was decreased.
It was concluded that factors other than light were also
important.
41. Part 2 – Relay assembly test room
study ( 1927-1929)
Under these test two small groups of six female telephone
relay assemblers were selected. Each group was kept in a
separate rooms. From time to time, changes were made in
working hours , rest periods, lunch breaks, etc. They were
allowed to choose their own rest periods and to give
suggestions. Output increased in both the control rooms.
It was concluded that social relationship among workers,
participation in decision-making, etc. had a greater effect
on productivity than working conditions.
42. Part 3 – Mass interviewing
programme (1928-1930)
21,000 employees were interviewed over a period of three
years to find out reasons for increased productivity. It was
concluded that productivity can be increased if workers
are allowed to talk freely about matters that are important
to them.
43. Part 4 – Bank wiring observation
room experiment (1932)
A group of 14 male workers in the bank wiring room
were placed under observation for six months. A
workers' pay depended on the performance of the
group as a whole . The researchers thought that the
efficient workers would put pressure on the less
efficient workers to complete the work. However, it
was found that the group established its own
standards of output , and social pressure was used to
achieve the standards of output.
45. Behavioural science theory
It is redefined form of human relations approach.
This approach focuses on individual behaviour, group
behaviour, job design,motivation,leadership and
communication.
This approach emerged in the later years of 1940s.
This approach is the basis of management discipline-
organisational behaviour.
But this approach is not applicable universally to all the
organisations which operate in different social, religious
and cultural background.
49. Contributors to behavioural science
approach
David
McClelland
Needs theory
Need for power : desire to influence or
control others ,be responsible and have
authority over others.
Need for achievement : desire to
accomplish something difficult , attain high
standards of success , master complex tasks ,
surpass others.
Need for affiliation : desire to form close
personal relationships and friendships , avoid
conflicts.
50. It believes that-
1. Organisational is a socio-economic and technical system.
2. A variety of factors influence the interpersonal and group
behaviour of people in organisations.
3. Individuals working in an organisation have goals which may
differ from organisational goals.
4. Conflict is inevitable.
5. Individuals differ in personality , attitude , beliefs , perception ,
etc.
6. Motivated workers are key to productivity.
7. High performance can be better be achieved by self direction and
control.
8. An open and trusting organisational climate improves
productivity.
51. Conclusion
Classical and neoclassical approaches made a crucial role in
the advancement of management theories and practices
Though classical theory is now outdated, it is still important
as it introduced the concept of management as a subject for
intellectual analysis . Neoclassical approach put
overemphasis on human variable and symbolic reward .
So it is clear that the field of management has some
remarkable theories which are underpinned by pragmatic
study evidence . The development holds a rather brighter
future for the study , research and practice of management .
