THE CLASSICAL MANAGEMENT

THEORIES
BUREAUCRATIC MANAGEMENT

 Organizations employing large numbers of workers require rules and regulations to control
activities
 Ideal form based on rules and procedures within the organization

1. DIVISION OF LABOUR
 Tasks and activities assigned to employees depending on ability skills and aptitude
 Repeated performance of same task would lead to high degree of specialization
2. HIERARCHY OF AUTHORITY
 Follos the principle of hierarchy, each lower person/office is under control and
supervision of higher one
3. IMPERSONALITY
 In Bureaucratic orgainisation there is no place for emotions personal attachment or
sentiments
 Employee share very formal relationship
 Work in accordance with system of rules laid down in order to avoid arbitrary
decisions
4. RATINONALITY
 System of rules, aims to provide efficient and impersonal operation
 System of rules generally stable, though it may be changed and modified at times
 Control and regulate the working behavior of employees
5. TECHNICAL COMPETENCE
 People are hired based on technical competence
 Promotions of employees according to seniority or achievement
 Protection of employees against arbitrary dismissal

SCIENTIFIC MANAGEMENT

 Improve operational efficiency of workers

 Instead following traditional work method, Jobs should be broken down into various
components and should be one best way of doing it
 Study and planning of work determine a fair day work for each worker
 Time and motion study, speed study, work study should be conducted on various aspects of
the work
 Help workers on what to do and how to do it efficiently
 Selection based on the knowledge and skills required for job
 Training should be imparted regularly to enhance capability
 Division of work and responsibility between management and workers to ensure benefits
 One Supervisor for entire production department, all activities split into two groups
 Each group should have four supervisor to command
  Wages incentives

THE ADIMISTRATIVE APPROACH

1. DIVISION OF LABOUR
 Divide work into specialised task on order to perform efficiently
2. AUTHORITY
 Managers must give orders to get things done
3. DISCIPLINE
 Everyone must follow rules
4. UNITY OF COMMAND
 To avoid conflicts, Employee should receive orders from one superior
5. UNITY OF DIRECTION
 One Manager to direct various operations to achieve organisational objectives
6. REMUNERATION
 Worker and company must be satisfied with payment of salary/wages
7. SUBORDINATE OF INTEREST
 Employee should not precedence over the interest of the organisation
8. CENTRALISATION
 Optimal level of centralisation necessary for effectiveness
9. HIERARCHY
 Positions must be in order from Top Management to lowest level
10. ORDER
 Materials and people should be in right place at the right time
11. EQUALITY
 Managers should be friendly and fair to subordinates
12. STABILITY OF STAFF
 High employee turnover rate undermines the efficient of functioning of organization
13. INITIATIVE
 Initiative of workers should be encouraged and welcomed
14. ESPRIT DE CORPS
 Unity is strength for company