1. Classical Management Theory
The work of Fayol and Weber

2. Henri Fayol Identified 6 management activities: Forecasting Planning
Organising
Commanding
Co-ordinating
Controlling

3. 6 Managerial activities
Forecasting – predicting what will happen in the future
Planning – devising a course of action to meet expected demand
Organising – Allocating resources then allocating separate tasks by department, unit and individual
Commanding – directing or motivating
Co-ordinating – ensuring synergy between activities and resources
Controlling – monitoring progress

4. 14 Principles of management
Specialisation/division of work
Authority with responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interests
Remuneration
Centralisation
Chain/line of authority
Order
Equity
Lifetime jobs for good workers
Initiative
Espirit de Corp

5. Principles of management
Division of labour – repetition of the same function brings speed and efficiency
Authority with responsibility – the right to give orders and the power to exact obedience
Discipline – obedience, application, behaviour & respect
Unity of command – an employee should receive orders from only one person

6. Principles of management
Unity of direction – having the same direction/objective
Subordination of individual interests – no conflict between personal ambition and the well being of the organisation as a whole
Remuneration – a fair days work for a fair days work
Centralisation – elements of it must be present

7. Principles of management
Line of authority - line management
Order - a place for everyone and everyone in his place
Equity – employees must be treated equally and fairly
Stability of tenure – employees need a degree of stability in their job to deliver their best

8. Principles of management
Initiative – being allowed to think through a problem and implement a solution
Espirit de corps – dividing enemy forces to weaken them is clever, but dividing one’s own team is a sin against the business

9. Similarities with F W Taylor
Taylor (1911) - focus on work methods, measurement and simplification to gain efficiency
Fayol (1916) – principles of management and work organisation
Both identify ‘one best way of working’ developed from experience

10. Criticisms of Classical Management Theory
Based on personal knowledge and experience
Proposed a single, standardised organisational model as the optimum one
Promoted a mechanistic organisation which stressed discipline, command and order
It neglected conflict management, decision-making and communication
It underestimated the complexity of organisations
Lack of concern with the interaction between people
Misunderstood how people thought

11. Max Weber German sociologist Studied – power and authority
Bureaucracy was the most efficient form of social organisation
His work complements that of F W Taylor

12. Authority
Traditional - the ruler has a natural right to rule, either God given or by descent
Charismatic – the ruler has some special, unique virtue
Legitimate – based on formal, written rules which have the force of law

13. Bureaucracy
Based on legitimate authority The clear definition of tasks and responsibilities leads to a permanent administration and standardisation of work procedures Based on ‘order’ and ‘rationality’

14. Main characteristics Official duties Division of labour/specialisation
Hierarchy of authority
Uniformity of decisions and actions
Rules and regulations
Impersonal orientation – rational judgments
Employment based on technical qualifications

15. Strengths of the bureaucracy
Standardisation
Employee behaviour – controlled and predictable
Little time is spent on decision making
Routine administration

16. Criticisms of bureaucracies
Over-emphasis on rules, procedures, record keeping and paperwork
Difficulty in adapting to changing circumstances
Position and responsibilities can lead to officious behaviour
Result in mindless, unquestioning bureaucracy
Can have a dehumanising effect on individuals
Can stifle creativity and innovation

17. Chris Agyris (1964)
Bureaucracies restrict the psychological growth of the individual and cause feelings of failure, frustration and conflict

18. Public Sector organisations
Demand uniformity of treatment, regularity of procedures and accountability for their operations
Specified rules and regulations limit the degree of discretion exercised by management
Detailed record keeping
Necessary functions run on a consistent and fair basis

19. Summary
Procedures provide a standard way of dealing with employees, avoiding favouritism and personal bias
Everyone knows what the rules are and receives equal treatment
However, there can be frustration in having to follow seemingly illogical rules and experience delays

20. A final thought…….. Research in 1960 - 1970
The question changed from whether or not an organisation was a bureaucracy, to one that asked to what degree an organisation was ‘bureaucratised’