Principles of

Management –
ME3104D
Classical Management Theories

1. Scientific
Management
(Taylor)
2. Bureaucratic
Management
(Weber)
3. Administrative
Principles (Fayol)
Bureaucratic Management
Max Weber
Max Weber

1864-1920
German sociologist, historian,
political economist
Bureaucratic Management
Theory
Along with Emile Durkheim,
Karl Marx, considered as
among three Founders of Sociology
What Weber saw in orgs?

Authority
Most workplaces used relationships,
kinships, and customs to lead and
make decisions – traditional authority

Particularism (favouritism)
People were hired/fired for non-org
reasons – religion, race, sex,
relation/family connection
What Weber wanted?

Orgs should act rationally

1. Clear organisational structure
(hierarchy)
Hierarchy should have legal-rational
authority
Authority sits with position; not person

2. Clear rules for decision making

Organisations should be governed by
rules
Bureaucratic Management

Organisation is well structured

Proper chain of command
Set rules and regulations
Communication and decision
making are formalised
Characteristics
1. Hierarchical management structure

2. Division of labour

3. Formal selection process

4. Career orientation

5. Formal rules and regulation

6. Impersonality
1. Hierarchy in management

Each level controls the level

below; is controlled by the level
above
Authority & responsibilities –
clearly defined
Top level

Middle level

Lower level
2. Division of labour

Tasks are clearly defined and

divided
Employees become skilled by
specialising in doing one thing
Clear definition of authority and
responsibility
3. Formal selection process

Employee selection/promotion
based on experience,
competence, qualifications
No nepotism
4. Career orientation

Management is separate from

ownership
Managers are career employees
Protection from arbitrary
dismissal
5. Formal rules & regulations

Documented rules and

regulations – reliable and
predictable behaviour
Managers must follow org rules
in employee relations
6. Impersonality

Rules are uniform for everyone

No preferential treatment or
favouritism
Criticism

Ideal bureaucracy non-existing –

some one will attempt to take
advantage
Red tape – over emphasis on
structure, policies, rules
slows/prevents action
Iron cage – too much emphasis on
efficiency and control – threat to
individual freedom
Administrative Management
Henri Fayol
Henri Fayol

1841-1925
French mining engineer,
author
Developed management
theory known as Fayolism
Known as Father of Modern
Management
Six Activities of Industry
1. 2.
Technical Commerci
al
3. 4. Security
Financial

5. 6. Managerial
Accounting
Five Managerial Activities/Functions
Managerial

1. Planning 2. 3.
Organising Commandin
g

4. Co- 5.
ordinating Controlling
14 Principles of Management
1. Division of work

2. Authority &
Responsibility
3. Discipline

4. Unity of Command

5. Unity of Direction
14 Principles of Management
6. Subordination

7. Remuneration

8. Centralisation &
Decentralisation

9. Scalar Chain

10. Order
14 Principles of Management
11. Equity

12. Stability of Tenure of

Personnel

13. Initiative

14. Esprit de Corps

 1. Division
of work Work must be divided among
different people based on their
specialisation
2. Right of superiors to get exactness
Authority & from sub-ordinates
Responsibil Manager exercises authority and
ity power, and also must bear
responsibility for the work
Sincerity, obedience, respect of
3.
authority and rules of the org
Discipline
Sub-ordinates must respect the
authority of superiors
4. Unity of
Command Each sub-ordinate receives orders
from only one manager, not
5. Unity of multiple managers
People engaged in similar
Direction
business/objectives must be under
one manager
 6. Organisation – bigger than individual
Subordinati Org’s interests – take precedence over
on individual/group interests
7. Remuneration should be fair, reasonable,
Remunerati satisfactory & rewarding of the efforts
on Satisfaction to both employer and the
employees
Centralisation  degree to which sub-
8. ordinates are involved in decision making
Centralisati Management must find optimum degree of
on & centralisation for each situation
Decentralis
Chain of superiors  highest
ation
9. Scalar authority to the lowest.
Chain Communications should follow this
chain.
If this causes delays, cross-
10. Order communications
Systematic can be
arrangement allowed
of things and
(gang-plank)
people if agreed by all
Arrangement of things  material order;
 Equity means combination of
11. Equity fairness, kindness & justice
Employees must be treated with
12. kindness & equity
Stability Employees should not be moved
of Tenure frequently from one position to
of another
Personnel Service period should be fixed and
13. Eagerness to initiate actions
stable
without asking
Initiative
Management should provide
opportunity to its employees to
suggest ideas, experiences & new
It refers to team spirit i.e.
14. Esprit method of work
harmony in the work groups
de Corps
and mutual understanding
among the members
Esprit de Corps inspires
Criticism

Management oriented – doesn’t

give much attention to workers’
problems
Some concepts borrowed from
military science – Fayol preferred
“commanding” to “directing”
Mechanical approach – doesn’t deal
with motivation, communication,
leading