Items Description of Module

Subject Name Human Resource Management

Paper Name Development of Management Thoughts, Principles and Types

Module Title Classical School of Thoughts

Module Id Module no-3

Pre- Requisites Basic knowledge about Classical Thoughts of Management

Objectives  To study the meaning and concept of classical thoughts of management

 To study various classical approaches of Management
Keywords Management, Classical thoughts, Scientific Management
 QUADRANT-I

Module 3:Classical School of Thoughts

3.1 Learning Objective
3.2 Introduction
3.3 Classical Approach of Management
3.4 Scientific Management
3.4.1 Principles of Scientific Management
3.4.2 Contributions of F.W.Taylor
3.5 Administrative Management
3.6 Bureaucratic Management
3.6.1 Features of Bureaucratic Administration
3.7 Summary

3.1. Learning Objective

After completing this module, you will be able to:
i. Understand the historical aspect of management thoughts.
ii. Understand various classical approaches of management.
iii. Know about the salient features of classical thoughts of management.

CLASSICAL SCHOOL OF THOUGHTS

3.2 Introduction:In management history, two events are very significant. First, in 1776, when Adam
Smith published a book named ‘The Wealth of Nations’. In this book Adam Smith argued the economic
advantage that organisations would gain from job specialization/ Division of labour. According to Smith,
division of labour increased productivity by increasing each workers skill, saving time and creating labour
saving inventions and machinery.
The second important event is the Industrial Revolution. Starting in the late eighteenth century when
machine power was substituted for human power, it became more economical to manufacture goods in
factories instead at home. So they needed someone who forecast demand, ensure enough material in hand
to make products, supervise as well as assign task to people, direct daily activities and so on. That
“Someone” was managers, and these managers would need formal theories to get the directions in order
to smooth running of the organisations. So in early 1900s, first step was taken toward developing such
theories.
The classical thought to management developed during industrial revolution in the year 1900 when
different problems related to production and labour began to appear. Some of these were low
productivity, low wages, wastage in production and distribution, disaffection of relations between labour
and management resulting in loss of man day’s etc. It contributed significantly to inefficiency. Both
labour and management were suspicious to each other and did not see eye to eye. Communication system
was also defective which enhance the degree of discord between labour and management. So at that time
managers think how to increase the productivity and efficiency of the workers. Efforts were made to find
out the best way to get the most work done by examining the work process and dividing the work
according to the skills of the workforce. As a result, the classical thought to management developed. It is
the oldest thought to management and the principles developed under this thought are accepted even
today.
3.3 Classical Approach of Management:These first studies of management, described as the Classical
Approach, focused rationality and making organisations and workers as efficient as possible. Frederic
Winslow Taylor, Frank & Lillian Gilberth, Henri Fayol and Max Weber are the major contributors to the
classical school of management. Classical management thought is divided into three separate school of
thoughts:
 Scientific Management
 Administrative Management and
 Bureaucratic Management
 Classical Appraoch
of Management

Scientific Administrative Bureaucratic

Management Management Management

3.4 Scientific Management

The concept of scientific management is developed by Taylor and his contemporary owes it origin to the
middle of nineteenth century. A number of business scientists have made significant contribution to
management science which may be stated as the pace setter for evolving the concept of scientific
management.

Frederick Winslaw Taylor developed the concept of scientific management on the basis of practical
experience he gathered while working with a number of firms starting with Midvale Steel Company as a
day labour in 1878. After a few months he became the gang boss and after three years became the
foreman. As a foreman hedecided to change the old system of management. All these efforts gave him
promotion to the status of Chief Engineer in 1884 at the age of 28 years. In 1886, Taylor joined the
American Society of Mechanical Engineer and heard a paper read by Henry R. Towne entitled “The
Engineer as an Economist”. It exercised a propound impact on him. With his experience on the job, in
1893 he presented a thought- provoking paper on “A Piece Rate System”. In this paper he had developed
a system of management which was applicable to any system of wage payment. In 1903 he wrote the
second paper on “Shop management” which was the extension of his previous paper on piece rate system.
In this paper the emphasis was on “coupling the high wages for the worker with low labour cost for the
employers”. In 1911 his famous book “The Principles of Scientific Management” was published by
Harper and Bros,NewYork.

F.W.Taylor defined Scientific Management as the substitution of exact scientific investigations and
knowledge for the old individual judgment or opinion; either of the workmen or the boss, in all matters
relating to the work done in the establishment. The workers are selected scientifically and training is
providing to both new and existing workers.

According to F.W.Taylor “Scientific management means knowing exactly what you want men to do and
seeing that they do it in the best and the cheapest way”

3.4.1 Principles of Scientific Management

Principles of Scientific Management are given below:
1. Science not rule of thumb/Research: It means the replacement of old method of doing work
scientifically. In simple words, it means develop a science for each element of a man’s work
which replaces the old rule-of-thumb method. It includes the allotment of fair work to each
worker, standardization in work, adoption of differential piece rate of payment system etc.
2. Co-operation: Heartily cooperate with the men as to ensure all of the work being done in
accordance with the principles of scientific management which has been developed. In simple
words there should be cordial relationship between workers and management so that workers
should help the management to get larger profits, better quality products and lower cost of
production. According to Taylor, mutual understanding and change in thinking are the factors
necessary for cooperation.

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3. Equal division of work and responsibility: There should be equal division of work and
responsibility between the management and workmen. This principle states that only that work
should be assigned to groups which can be perform effectively and efficiently. Management
should take decisions and make plan and labour should be responsible for actually doing the
work. In this way, each will be responsible and accountable for their tasks and the productivity of
the organization will increase. All this promoted the division of responsibility and work.
4. Harmony in group action: Taylor emphasized peace and friendship in group action. In simple
words, dissatisfaction of any worker is to be avoided in the group action. In case, there is any
dissatisfaction among workers then, it is eliminated through scientific selection, training and
 strategic placing of workers. Taylor further elaborated that all the workers should be given
opportunity to improve and it will added the value for a company.
5. Maximum output: The objective of maximum output is achieved through equal division of work
and responsibility by the management and workers jointly. If production increases regularly
thenit results in the increasing profit to the management and wages and incentives to the workers.
So the workers must be provided proper training from time to time, so that their knowledge and
efficiency may be increased.

3.4.2 Contributions of F.W.Taylor

F.W.Taylor was the father of Scientific Management. He has applied the principles of Scientific
Management to solve the problems of management. According to him, it was the duty of the management
to aware the employees about the expectations of management from employees. He further stated that
management should specify the way through which the job is to be completed. He made several
important contributions which are classified under Scientific Management.

I. Time and Motion Study: Taylor was the first person to conducted Time Study and Motion
Study. Time Study refers to the act of measuring the time required to perform a particulat job. A
standard time to do a job is fixed by conducting the time study. Motion Study is relating to the
movement of a machine operator and his machine while performing the job. The purpose of
conducting this study is elimination of unnecessary movement of machine operator and machine.
Thus the best way of doing a job was found. This replaced the old rule-of-thumb-knowledge of
the workmen.

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II. Differential Piece Rate System: F.W.Taylor focused upon fair wages to workers, and had
introduced a new payment plan called the differential piece work, in which he linked incentives
 with production. According to this system worker get low piece rate if he produced less than the
standard number of pieces and high rate if surpassed the standard. According to Taylor high piece
rate would encourage the workers to increase production.
III. Scientific Selection and Training: Taylor strongly recommended the need for scientific
selection and training. According to him, adequate training should be given to new as well as
existing workers in order to update their knowledge and enable the workers to do a higher, more
interesting and more profitable class of work than he has done in the past.
IV. Work Study: It refer to the systematic critical assessment of efficiency required to do the job.
According to Taylor, Method Study, Motion Study, Time Study, and Fatigue Study are parts of
Work Study.
V. Separation of Planning Function: Taylor known as the first person to separate the planning
function from executive function. Previously both planning and executive function were
performed by the same person. Taylor suggested two new concepts: (a) separation of planning
and execution of work and (b) foremanship. In those days, foreman simply told the worker what
job to perform, not how to do them. Taylor recommended that the work should be planned by a
foreman and not by the worker so, he suggested the concept of functional foremanship. This
concept is totally based on the principle of specialization and makes full utilization of the
expertise of various experts. In those days, foreman simply told the worker what job to perform,
not how to do them. Taylor recommended that the work should be planned by a foreman and not
by the worker.he further stated that four foremen should be appointed for planning department
and four for production department which is known as ‘functional foremanship’. In planning
department they were route clerk, instruction cord clerk, time and cost clerk and disciplinarian
and in production department they were speed boss, gang boss, repair boss and inspector.

VI. Concept of Mental Revolution: Taylor was the first person who supported mental revolution
both on the part of the employer and the employee. By mental revolution he meant transformation
in the traditional thinking of labour and management. He strongly believed enterprise is a
cooperative venture of labour and management. If there is no cooperation between two then the
whole concept of scientific management become useless. Such cooperation is possible if both
have respect for one another and both partners in decision- making process. Taylor advised to
workers that they should have a sense of belongingness to the enterprise and to the management
to accept workers as partner and involve them in the decision making process. So in his belief the
success of implementation of Scientific Management depends upon the mental revolution of
Management and Workers.

3.5Administrative Management

Henry Fayol wrote during the same time-period as Taylor.While Taylor was concerned with first-line
managers and the Scientific Management but Fayol’s focus was on the activities of all the managers.
Henry Fayol is considered as the Father of Administrative Management theory. Henry Fayol focuses on
the development of broad administrative principles which are applicable to general and higher managerial
levels. He was a French industrialist. The observations of Henry Fayol on the principles of management
were brought out in French language in 1916. He wrote a book entitled “General and Industrialist
Administration”. Later on it was published In English language. The principles of Management of Henry
Fayol were known to the world only after 1949.Fayol joined as an engineer in mining company and
become the chief managing director of the same company for his remarkable abilities and skills. From
1918 to 1926, he worked hard to popularize his principles of management.

Fayol wrote that all the activities of business which are describe as technical, commercial, financial,
accounting, security or administrative (management). Henry Fayol used the word administrative for what
we call management. He concentrated on top management. It is known from his book “General and
Industrial Management”. Management plays a very important role in the government undertakings
whether large or small, industrial, commercial, religious or any other. In the words of Henry Fayol,
business activities could be classified as commercial, financial, security, accounting, technical and
managerial or administrative. Of course, Henry’s primary focuses on managerial activity because he felt
that managerial skills had been the most neglected aspect of business operations. He indicated that
managerial activity was by far the most important and deserved the most attention.

Henry Fayol draws a clear line between principles of management and elements or functions of
management. He considered planning, organizing, commanding, co-ordination and control as an element
or functions of management. Many management theorists and even practitioners have found this
classification very realistic and useful. Further the process of management as a series of functions
originated with Henry Fayol. He continuously emphasized that this process is the same at every level of
an organization and is common to all types of organizations. Fayol also presented 14 principles of
management as general guides to management process and management practice. These are given below:

1. Division of Work: Specialisation increases output by making employees more efficient so,
principles of specialisation necessary for efficiency in utilising labour.
2. Authority and Responsibility: Responsibility is the outcome of Authority and arises from it.
Managers must be able to give orders and authority gives them the right.
3. Discipline: Every employee must obey and respect the rules that govern the organisation. It
requires supervision at all levels, clear and fair agreements. Disciple is obtained through judicial
application of penalties.
4. Unity of Command: Each employee should receive orders from one superior only. In other
words, each employee is responsible to only one superior.
5. Unity of Direction: It means each group of activities having a common object must have one
head and one plan. So there should be complete harmony between individual and organizational
goals on the one hand and between departmental goals on the other hand.
6. Subordination of Individual interest to group interests: The interest of the group should have
priority over the individual interest. In the event of clash between the general and the personal
interests, the management should bring reconciliation between the two on the basis of priority of
general interests.
7. Remuneration: Workers should be paid a fair wage for their services. Because fair remuneration
increases worker’s efficiency and morale and foster good relations between worker’s and
management.
8. Centralisation: The Management must decide the degree of centralization or decentralization of
authority on the basis of nature of circumstances, size of undertakings, type of activities and
nature of organizational structure.
 9. Scalar chain: The line of authority from top management to the lowest ranks is the scalar chain.
According to Fayol, Scalar chain is the chain of superiors ranging from the ultimate authority to
the lowest ranks.
10. Order: People and materials should be in the right place at the right time. In simple words, a
place for every-one and everything in its place.
11. Equity: Mangers should be kind and fair to the employees by dealing with employees in a just
and kindly manner, loyalty and distribution of power are required to inspire.
12. Stability of tenure of personnel: Security of job is the fundamental aspect of morale and
motivation. Management should provide orderly personnel planning and ensure that replacement
is available to fill the vacancies.
13. Initiative: A manager should have the conceiving and executing initiative. It will have
psychological effect over the employees.
14. Esprit de corps: Promoting team spirit will build harmony and unity within the organisation. It
emphasise the need for the team work and the importance of communication in obtaining it.

3.6 Bureaucratic Management

Max Weber, a German social scientist, is known as the Father of the theory of Bureaucratic Management.
He wanted to frame a rigid form of organization. He proposed a form of organization which is very
similar to the form of organization by Henry Fayol. In the early 1900 he made a study of different types
of business and Government organizations and distinguished three basic type of administration in them:
(a) Leader Oriented (b) Tradition-Oriented and (c) Bureaucratic.Weber believed that an efficient form of
organization cannot be founded if managerial inconsistencies exist. So, he framed rigid rules to eliminate
managerial inconsistence in order to bring effectiveness in an organization. He advocated the strict
adherence of rules and regulation in an organization. His firm belief that these would make an efficient
form of organization and he called it Bureaucratic –A form of organization characterized by
divisionoflabour, a clearly defined hierarchy, detailed rules and regulations and impersonal relationship.
https://s-media-cache-ak0.pinimg.com/originals/61/c0/0e/61c00ee7b69e8e1b1f4b95d88897377a.jpg

3.6.1 Features of Bureaucratic Administration

Max Weber analysed the various points before finalising an idear form of organisation. Bureaucratic
organisation offers a lot of benefit to the public. Important features of bureaucratic administration are as
given below:
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1) SystematicDivision of Work: Weber stated that systematic division of work increases
production by improving efficiency and saving time in changing over the one job to another.
Each person performs his work in a pre-determined manner. In this way a high degree of
functional specialization can be obtained.
2) Hierarchy of Authority: Each lower officer is under the control and supervision of a higher
authority. A clearly defined hierarchy is needed to give commands for performance of duties.
Each superior has control over his subordinates with a right for making a report to higher
authorities in a specified manner.
3) Rights and Duties: Weber stated that each employee should understand his rights and the duties
to be performed. The procedure is to be taken into account while performing the work.
4) Rules and Regulations: Rules and regulations are framed to ensure consistency in the
performance of work. To achieve this objective a special training is provided to impart
knowledge of rules and regulation
5) Impersonal Relationships:Peoples are selected on the basis of their credentials and merits and
are paid according to their position in the hierarchy. Promotions are made systematically. It helps
in winning people’s loyalty and commitment.
 6) Administrative acts, decisions and rules are recorded in writing: This makes the organization
independent of people besides making peoples understanding more accurate.

3.7 Summary
Management has developed since the time when the world came into existence. Classical approach
contains three theories that is scientific theory, Administrative theory and Bureaucratic theory. Each one
of these approaches has made a distinct contribution to management theory. The stress in the scientific
management approach is on task aspect of group effort, in administrative management approach, it is on
laying down universal principles of management and in bureaucracy it is on following standard
rules.F.W.Taylor, known as the father of Scientific Management, studied manual work using scientific
principles as guidelines for improving production efficiency and to find the best way to do these jobs.
Henry Fayol believed that the functions of management were common to all business endeavors but were
different process from other business functions. He developed 14 principles of management from which
many current management concepts have evolved. Weber described an ideal type of organization he
called bureaucracy, which is a type still used by many of today’s large organizations.