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Classical Management Theory

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Presentation on theme: "Classical Management Theory"— Presentation transcript:

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’

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