Subject Name:-Principles of Management

Subject Code:-
Unit No.:- 1
Topic Name :- Approaches of Management”:
Classical Approach

Dr. Honey Gupta

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1.Classical Approach

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3 Main Concepts of the Classical Management Theory

 Classical management theory outlines an

ideal workplace as one that rests on three
main concepts:
 Hierarchical structure, Specialization and

Incentives.

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 Hierarchical Structure
 Under the classical model, workplaces are divided

into three distinct layers of management in a

hierarchical structure. At the very top are the
owners, board of directors and executives that set
the long-range objectives for a firm. Middle
management takes on the responsibility of
overseeing supervisors while setting goals at the
department level to fit within the confines of the
managers’ budget. At the lowest level of the chain
are supervisors, who manage day-to-day activities,
address employee problems and provide training.

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 Specialization
 The classical management theory involves an

assembly line view of the workplace in which

large tasks are broken down into smaller
ones that are easy to accomplish. Workers
understand their roles and typically specialize
in a single area. This helps increase
productivity and efficiency while eliminating
the need for employees to multi-task.

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 Incentives
 The classical theory believes that employees

are motivated by financial rewards. It

proposes that employees will work harder
and be more productive if they are awarded
incentives based on their work. Employers
who can motivate their employees with
incentives may be able to achieve increased
production, efficiency and profit.

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Flaws in the Classical Model

 By attempting to predict and control human

behavior, this management theory overlooks the
importance of human relations and creativity.
 In essence, the classical model views workers
almost as machines but fails to take into account
what job satisfaction, employee input and
morale can bring to the workplace.
 The reliance on prior experience and the ability
to apply the classical model almost solely to
manufacturing settings is another drawback of
this management theory.

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CLASSICAL APPROACH
SCIENTIFIC

ADMINISTRATIVE

BUREAUCRATIC

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9
SCIENTIFIC MANAGEMENT

 Industrialization led to numerous problems in

production and in labor control. Managers could not
solve the problems by trial and error methods.
 F.W. Taylor is being called as the Father of scientific
management , the concept of SMT was developed by
him between 1895 and 1911.
 He published papers on “piece rate system”, “the art of
cutting metals” and “shop management”. He published a
book on “The Principles of Management” in 1911.
 F.W. Taylor discovered the application of method of
science for solving industrial problems.
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 Scientific management theory is a method of
improving efficiency in the workforce. As its
name implies, this management theory uses
scientific methods to assess work processes.
 managers use scientific management theory

to observe their workplaces, test different

methods of completing tasks, and analyze
the effect of the changes.

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Features/ Principles of Scientific Management

1. Science, not Rule of Thumb

2. Harmony not Discord
3. Cooperation, not Individualism
4. Development of Each and Every Person to His /
Her Greatest Efficiency and Prosperity
5. Scientific Selection , Training and Development of
Workers

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 Science, not Rule of Thumb

 By applying the scientific methods the industrial

efficiency can be improved as explained .
1. Standardization of working condition.
I. Proper lighting.
II. Ventilation.
III. Temperature
IV. Humidity
2. Standardization of Working Methods.
3 .Establishing the Standard of Performance.

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 Harmony and Not Discord
Taylor said that the employer and employee should have
complete understanding. The interest of employer and
employees should be same. Both should realise they
require each other
 Maximum Output and Not Restricted Output

Workers must be encouraged for higher production. It

can be achieved by giving incentive wages for higher
producers. He introduced differential piece rate system
for this purpose.

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 Cooperation, Not Individualism
According to this principle, all the activities
done by different people must be carried on
with a spirit of mutual cooperation. Taylor
has suggested that the manager and the
workers should jointly determine standards.
This increases involvement and thus, in turn,
increases responsibility. In this way we can
expect miraculous results.

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 Development of Each and Every Person to His /
Her Greatest Efficiency and Prosperity:
 According to this principle, the efficiency of each
and every person should be taken care of right
from his selection. A proper arrangement of
everybody’s training should be made.
 It should also be taken care that each individual
should be allotted work according to his ability
and interest. Such a caring attitude would create
a sense of enthusiasm among the employees
and a feeling of belongingness too.

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FAYOL’S ADMINISTRATIVE APPROACH
 Administrative management focused on
formal organization structure and the
describing the basic process of general
management.
 It is also known as functional or process

approach.
 It is based primarily on the ideas of Henry

Fayol (1841-1925).

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 Henry Fayol, also known as the ‘father of
modern management theory’ gave a new
perception of the concept of management. He
introduced a general theory that can be
applied to all levels of management and every
department. The Fayol theory is practised by
the managers to organize and regulate the
internal activities of an organization. He
concentrated on accomplishing managerial
efficiency.

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 1. Division of Work-
 Henri believed that segregating work in the

workforce amongst the worker will enhance

the quality of the product. Similarly, he also
concluded that the division of work improves
the productivity, efficiency, accuracy and
speed of the workers. This principle is
appropriate for both the managerial as well
as a technical work level.

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 2. Authority and Responsibility-
 These are the two key aspects of

management. Authority facilitates the

management to work efficiently, and
responsibility makes them responsible for the
work done under their guidance or
leadership.

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 3. Discipline-
 Without discipline, nothing can be accomplished. It is
the core value for any project or any management.
Good performance and sensible interrelation make
the management job easy and comprehensive.
Employees good behaviour also helps them smoothly
build and progress in their professional careers.
 4. Unity of Command-
 This means an employee should have only one boss
and follow his command. If an employee has to follow
more than one boss, there begins a conflict of
interest and can create confusion.

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 5. Unity of Direction-
 Whoever is engaged in the same activity should have

a unified goal. This means all the person working in

a company should have one goal and motive which
will make the work easier and achieve the set goal
easily.
 6. Subordination of Individual Interest-
 This indicates a company should work towards the

interest of a company rather than personal interest.

Be subordinate to the purposes of an organization.
This refers to the whole chain of command in a
company.

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 7. Remuneration-
 This plays an important role in motivating the
workers of a company. Remuneration can be
monetary or non-monetary. However, it should be
according to an individual’s efforts they have
made.
 8. Centralization-
 In any company, the management or any authority
responsible for the decision-making process
should be neutral. However, this depends on the
size of an organization. Henri Fayol stressed on
the point that there should be a balance between
the hierarchy and division of power.

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 9. Scalar Chain-
 Fayol on this principle highlights that the
hierarchy steps should be from the top to the
lowest. This is necessary so that every employee
knows their immediate senior also they should
be able to contact any, if needed.
 10. Order-
 A company should maintain a well-defined work
order to have a favourable work culture. The
positive atmosphere in the workplace will boost
more positive productivity.

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 11. Equity-
 All employees should be treated equally and

respectfully. It’s the responsibility of a

manager that no employees face
discrimination.
 12. Stability-
 An employee delivers the best if they feel

secure in their job. It is the duty of the

management to offer job security to their
employees.

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 13. Initiative-
 The management should support and encourage
the employees to take initiatives in an
organization. It will help them to increase their
interest and make then worth.
 14. Esprit de Corps-
 It is the responsibility of the management to
motivate their employees and be supportive of
each other regularly. Developing trust and
mutual understanding will lead to a positive
outcome and work environment.

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Bureaucratic Model
 Max Weber (1864-1920), a German sociologist; described
a theory to operate an organization in an effective way
which is known as the Bureaucratic management approach
or Weberian bureaucracy.
 Weber developed a set of rational ideas about
administrative structure of large, complex organizations
that define what has come to be known as bureaucracy.
 He also instituted the belief that an organization must have

a defined hierarchical structure and clear rules, regulations,

and lines of authority which govern it.

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Characteristics

 Division of labor.
 Hierarchy of authority.
 System of rules concerning the rights and duties and

System of procedures for dealing with work situations.

 Impersonal Relationships.
 Selection and promotion based on technical
competence.
 Office Record

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6 Principles of Bureaucratic Management Approach

 Proper Division of Labor

Division of labor specialization should be
fixed and there should be a balance between
power and responsibilities.
 Chain of Command

The chain of command or organizational

hierarchy should be constructed in a way that
information related to decisions and works
can flow effectively from top to bottom.

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 Separation of personal and official property

 Owners and organization’s assets are separate and

can to be treated as same by the owner or the
organization.
 Application of Consistent and Complete Rules

 There should be proper rules and regulations in the

organization for running the organization.
 These rules should be followed in every step of the
organization and they are equally applicable to every
member of the organization.

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 Selection and Promotion Based on
Qualifications

 The selection and promotion of workers

should be based on equalization like; skills,
experience, age. It should not be influenced
by personal relations and benefits.
 .

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Limitations
 The rules are inflexible and rigid. Further, there is
too much emphasis on these rules and regulations.
 Informal groups do not receive any importance. In

current times, informal groups play a huge role in

most business organizations.
 Typically, bureaucracy involves a lot of paperwork

which leads to a waste of time, money, and also

effort.
 The rules and formalities lead to an unnecessary

delay in the decision-making process.

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 Suggested Questions

Q1. Discuss the Classical Approach of Management.

Q2. Discuss the 14 principles of Management by Henri
Fayol.
Q3. Discuss the Scientific Approach of Management.

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References
 Reference Books:-
i) Essentials of Management By Harold Koontz and
Heinz Weihrich
Publisher – McGraw Hill Education, Tenth Edition
ii) Management Principles and Practice By
R.Srinivasan and S.A Chunawalla
Publisher – Himalaya Publishing House, Revised
Edition - 2014

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Thank You

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