Classical Theory

of Management
Lakshita chaudhary
Laksh Kumar Chitkara
Krishna
 About

Classical theory a.k.a. traditional theory of management, Is the oldest theory of management.
The classical viewpoints find a way to manage the business organization effectively. It is the
first step towards the study of management as a distinct field of studies.

22/12/2022 2
 Approach to Classical Management Theory
The three approaches to classical management
1. Includes early works of management which provide
foundationto modern management theory Financials
Millennials account for about a quarter of the
Bureaucratic Scientific$48 billion spent on other products
Administrative
in 2018

The bureaucratic approach The scientific approach The administrative approach

focuses on the leadership focuses on discovering the looks at the tasks performed by
Customers best way to perform
Costs
tasks
structure and it eventually led the administration to create
to the development of the and hiring the Lossright of productivity costing consumers
66% of US consumers spend money on multiple maximum efficiency.
scientific and administrative employee for the job. 
thousands of dollars 
products that only partially resolves their issue
approaches.

22/12/2022 Pitch deck title 3

 Features
1. Includes some of the early works on management
Close the gap
which provide a foundation for modern
management
Our theory.
product makes consumer lives easier, and no
other product on the market offers the same features
2. Attempts to find methods to increase the output of
workers.
Target audience
3. Gen Z
Stresses theyears
(18-25 formal
old) structure of jobs and works
schedule to satisfy individual and organizational
needs.
Cost savings
4. Reduce
Views organization as a closedproducts 
expenses for replacement system that does not
interact with the external environment.
Easy to use
5. Develops a set of ‘Management Principles’ which
Simple designapplies
universally that gives
to customers the targeted
all organizations: information
business or
non-business
they need

22/12/2022 Pitch deck title 4

 Bureaucratic Theory
Bureaucratic theory a.k.a. Weber’s Bureaucracy
Unique
Theory, Testedin which many
relates to the formal hierarchy
tasks are delegated to individualsConducted
Only product specifically
and departments.
testing with It
was introduced
dedicated by Max Webber (1864-1920),
to this niche college studentsainGerman
the area
sociologist,
market and is regarded as the “Father of
Bureaucracy”.
This theory is quite popular and is used by a host of
both private and public institutions. Theoretically, the
First to market
bureaucratic Authentic
model has a hierarchical structure along
with the specialized departments, making a clear
Designed with the help and
First beautifully
outline for the division of labor, which
designed product that's both
is defining and
input of experts in the field 
breaking work
stylish and into well-defined tasks, and delegated
functional
to be manageable. The I idea of division of labor is a
key factor in the bureaucratic theory.
MAX WEBBER
(1864-1920)

22/12/2022 Pitch deck title 5

 Features of Bureaucratic Theory
Division of Labour

 Division of Labor
Product benefits
Jobs are broken into smaller units where each
person carries out a specialized task.

 Scalar Chain
Business follows a hierarchy of authority where
Cool and stylish product
orders flow from top to bottom and obedience
flows fromfor
Areas bottom to top. connections 
community
 Online store and
Appointments market
based swap
on Merit

 Formal Rules and Procedures

Rules and regulations are in writing to ensure
uniformity, coordination, and consistency in
behavior.

22/12/2022 Pitch deck title 6

  Impersonal
All individuals are treated at par irrespective of
their position or status. This involves impartiality
in managing people and events.

 Professional officials
Managers are not the owners of the units they
manage. They ate the career-oriented, qualified,
competent officials who work for the salary.

 Official Records
All decisions and activities of the organization are
formally maintained in official records and
preserved for future reference.

22/12/2022 Pitch deck title 7

 Administrative Theory
Administrative theory a.k.a Henri Fayol's
classical organization theory is focused on
the organization as a whole. He was
regarded as the first person to systemize
the administrative approach to
management. Earlier, there was a general
belief that ‘managers are born, not made’,
that is, only those who inherit the qualities
of being a manager, can be a manager.
Managers cannot be made through formal
knowledge and training. But, this idea was
opposed by Fayol who said that managers
need not necessarily be born;
fundamental principles underlying the
managerial theory can be taught, once its
underlying principles were understood
and a general theory was formulated.
22/12/2022
Fayol's administrative management
theory can be described as an approach
Freedom to invent Few competitors
to management and increasing
productivity by emphasizing
Selectively inclusive market Specifically targeted market
organizational structure and human
behavior. Fayol'sobtainable
theory is grounded
Serviceable available market Serviceable market in
the five functions that represent
management: planning, organizing,
command, coordination, and control.
These functions give rise to the principles
of management developed by Fayol later.
HENRI FAYOL
(1841-1925)
Pitch deck title 8
 Principles of Administrative Theory
 Division of Labour
 Centralisation and Decentralisation
 Authority and Responsibility
• Our product is priced below that of other • Company
ScalarAchain
Product is more expensive
 Discipline
companies on the market  Order
• Companies B & C Product is expensive and
 Unity of Command
• Design is simple and easy to use, compared to the inconvenient
Equity to use
 Unity of Direction
complex designs of the competitors  Stability of tenure
• Companies D & E Product is affordable but
 Subordination of individual interest to
• Affordability is the main draw for our consumers to inconvenient
Initiativeto use
general interest
our product  Espirit de corps
 Remuneration

22/12/2022 Pitch deck title 9


a.k.a Taylor’s Scientific Management Theory
The scientific theory of management
focuses Feb 22/12/2022
on individual efficiency and
productivity. The father of this theory is
Fredrick Winslow Taylor (1890-1940),
from his text Principles of Scientific
Management (1911). His proposal was
to apply principles of the scientific
method to the practice
management. His influence is such that
the scientific theory of management is
often referred to as Taylorism.
22/12/2022
Scientific Theory
The objective of the scientific theory is
to increase production within an
May 22/12/2022 Octby22/12/2022
organization increasing the
productivity of the individual. Taylor
envisioned one best way to perform an
organizational task. Taylor's research
focused on repetitive, routine tasks -
rather than complex or problem-
solving activities. Each task was
carefully specified and measured. If
these tasks could be standardized they
of
could be made more efficient. For
example, these types of activities could
FREDERICK W. TAYLOR be largely automated through the
(1856-1915) introduction of technology. 
Pitch deck title 10
 Principles of Scientific Theory
Science, not the Rule Harmony, Not Mental Revolution  Cooperation, not
of Thumb Discord Individualism
This rule focuses on increasing Taylor indicated and
the efficiency of an organization- believed that the This technique involves a It is similar to ‘Harmony,
through scientific analysis of relationship between the shift of attitude of not discord’ and believes
workers and management management and workers in mutual collaboration
work and not with the ‘Rule of
should be cordial and towards each other. Both between workers and
Thumb’ method. Taylor believed should understand the
that even a small activity like completely harmonious. management. Managers
The difference between the value of each other and
loading Properties
paper sheets into two will never be beneficial work withCashfull participation Shares
and workers should have
boxcars can be planned and cooperation. The aim
mutual cooperation and
to either side. Management confidence and a sense of
scientifically. This will save time and workers should of both should be to
improve $32,000
and boost the goodwill. The main
and also human$12,000 energy. This $14,000
acknowledge and $82,000
purpose is to substitute
decision should be based on understand each other’s profits of the organisation.
Revenue obtained fromand Amount obtained
importance. Taylor also Mental Revolution demands internal competition with
scientific analysis and cause
property rentals suggested
through other a investors
mental a complete change in the cooperation.
effect relationships rather than
revolution for both outlook of both the workers
the ‘Rule of Thumb’ where the and management; both
decision is taken according to management and workers
to achieve total harmony. should have a sense of
the manager’s judgment. togetherness.

22/12/2022 Pitch deck title 11

 Contribution of Classical
Theory to Management Thought

1. Classical theory was the first to focus on management as

a separate field of study.
2. It provided a groundwork for the development of later
theories. It highlighted basic organizational problems to
the management.
3. Many principles and functions of the management of the
classical theory hold true even today.
4. It provides a set of management principles and functions
based on experiments and scientific methods which can
be applied to large no of business and non-business
organisations

22/12/2022 Pitch deck title 12

 .comMirjam Nilsson​

Thank you
206-555-0146
mirjam@contoso.com
www.contoso

22/12/2022 Pitch deck title 13