Classical Management Theory The work of Fayol and Weber

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

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

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

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

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

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

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

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

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

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

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

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’

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

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

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

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

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

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

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’