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“Management is doing

things right; leadership is


doing the right things.” –
Peter Ferdinand Drucker
Scientific Management Approach of
Fredrick Taylor

Fredrick Winslow Taylor, an engineer,


proposed and developed the Scientific
Management Theory. He is also known as
the Father of Scientific Management and
his school of thought came to be known as
Taylorism.
The Evolution Of Management Through
Theories

1. Classical Approach

• Scientific Management Approach of


Fredrick Taylor
• Functional Approach of Henry Fayol
• Bureaucratic Model of Max Weber
Scientific Management

Taylor introduced a scientific approach to


productivity, which meant that an
increase in efficiency can lead to higher
productivity and profits.
Scientific Management Approach of Fredrick
Taylor

The classical approach to management emphasizes


the manager's role in the formal hierarchy of
authority, it focuses on the tasks machines and
systems needed to perform the task efficiently.
Principles of Scientific Management by
Taylor:

1. Science,not the Rule of Thumb


2. Harmony, Not Discord
3. Mental Revolution
4. Cooperation, not Individualism
5. Development of Every Person to his
Greatest Efficiency
Principles of Scientific Management by Taylor:

1. Science, not the Rule of Thumb

This rule focuses on increasing the efficiency of an


organization through scientific analysis of work and not
with the ‘Rule of Thumb’ method.

Taylor believed that even a small activity like loading paper


sheets into boxcars can be planned scientifically. This will
save time and also human energy.
Principles of Scientific Management by Taylor:

2. Harmony, Not Discord

Management and workers should acknowledge and


understand each other’s importance.

Taylor also suggested the mental revolution for both


management and workers to achieve total harmony.
Principles of Scientific Management by Taylor:

3. Mental Revolution

This technique involves a shift of attitude of management and


workers towards each other. Both should understand the value
of each other and work with full participation and cooperation.
Principles of Scientific Management by Taylor:

4. Cooperation, not Individualism

It is similar to ‘Harmony, not discord’ and believes in mutual


collaboration between workers and the management.

Managers and workers should have mutual cooperation and


confidence and a sense of goodwill.
Principles of Scientific Management by Taylor:

5. Development of Every Person to his Greatest Efficiency

The effectiveness of a company also relies on the abilities and


skills of its employees. Thus, implementing training, learning
best practices and technology, is the scientific approach to
brush up the employee skill.
Functional Approach
of Henry Fayol
Henri Fayol is widely regarded as the Father
of Modern Management.

Fayol developed theories on management


and work organization that was widely
influential in the early 20th century; his
school of thought is known as the Classical
Theory of Management.
Henri Fayol’s 14 Principles of Management

1. Division of labor 9. Scalar Chain

2. Authority and Responsibility 10. Order


3. Discipline 11. Equity
4. Unity of Command 12. Stability of Tenure of
Personnel
5. Unity of Direction 13. Initiative
6. Subordination of Individual Interest 14. Esprit de Corps
7. Remuneration
8. Degree of Centralization
1. Division of Labor

Involves dividing the tasks within any organization into different teams specialized in
those tasks.

2. Authority and Responsibility

Fayol defines authority as “the right to give orders and obedience,” where the worker
must be responsible for complying with the order.

3. Discipline

The discipline principle of management follows the previous principle and depends
on obedience and compliance with established rules, that is, on behaving correctly.
4. Unity of Command

There needs to be clarity on the chain of command within the teams.

5. Unity of Direction

Unity of direction suggests that all employees work towards the goal. All activities must be led
by a manager responsible for the plan.

6. Subordination of Individual Interest

In any organization, the company’s interests must always be privileged over the particular
interests of the owners and employees. This is called subordination of individual interest
against the company’s interest. Meaning it will always be necessary to give more importance
to what happens in the company than personal issues.
7. Remuneration
The salary paid to staff (remuneration) must be equitable, fair, and
guaranteed for all company employees to perform the same task.

8. Degree of Centralization
Centralization is the concentration of power and decision-making in
the top hierarchy. In this situation, there is almost no or minor
delegation of tasks or decision-making.
9. Scalar Chain

The scalar chain principle of management suggests that hierarchy is


the order in the command lines from the highest levels.
10. Order

The principle of order suggests that there should be a fixed place for everything and everyone, and
everything and everyone should be in its place.

11. Equity
In any company, consistently to achieve the employees’ loyalty, it will be necessary to treat the
employees in a friendly manner, without any preferences, and fairly.
Equity is a combination of kindness and justice.

12. Stability of Tenure of Personnel

Fayol argues that it is essential to ensure that employees last a long time in their positions and avoid
staff turnover as much as possible. The idea of the stability of tenure of personnel is to inculcate a
sense of job security and loyalty in the teams so they don’t think of leaving the organization.
13. Initiative
Fayol defines initiative as “the ability to see a plan and ensure its success.”
Extending this definition, we can add that the initiative links to people’s
ability to propose, develop or devise projects that improve current situations
and the chances of meeting the business goals with lesser costs and time.

14. Esprit de Corps

Esprit de Corps is a French term that means “Team Spirit.” Therefore, the
management should create unity, cooperation, and team spirit among
employees.
Max Weber, a German
scientist, defines
bureaucracy as a highly
structured, formalized, and
also an impersonal
organization.

Bureaucratic Model
of Max Weber
Max Weber listed six major principles of the
bureaucratic form as follows:

1. A formal hierarchical structure


2. Rules-based Management
3. Functional Specialty organization
4. Up-focused or In-focused Mission
5. Impersonal
6. Employment-based on Technical
Qualifications
1. A formal hierarchical structure

In a bureaucratic organization, each level controls the level


below it. Also, the level above it controls it.

Amazon is an example of an organization with a hierarchical


structure, largely due to its size. As the largest internet retailer,
the company currently employs approximately 560,000 people
around the world. With the hierarchical structure, all of
Amazon's employees report up to the founder and CEO, Jeff
Bezos.
2. Rules-based Management

The Formal Rules and Regulations in an


ideal bureaucracy are the guidelines that
dictate how things should be done.
3. Functional Specialty organization

Specialists do the work. Also, the organization divides


employees into units based on the type of work they do or
the skills they possess.

For example, there might be separate


departments for marketing, accounting, and
engineering. Generally, all the functional heads
will report directly to the company president or
CEO.
4. Up-focused or In-focused Mission

If the mission of the organization is to serve the


stockholders, board, or any other agency that
empowered it, then it is up-focused.
5. Impersonal
Bureaucratic organizations treat all employees equally. They
also treat all customers equally and do not allow individual
differences to influence them.

Example, impersonality is an attempt by large formal


organizations to protect their members. Large business
organizations like Walmart often situate themselves as
bureaucracies. This allows them to effectively and efficiently
serve volumes of customers quickly and with affordable
products.
6. Employment-based on Technical
Qualifications

Selection as well as the promotion of


employees is based on technical
qualifications and skills.
Neoclassical or Behavioral
Approach of Elton Mayo

Elton Mayo is known as


the father of Human
relations. His most famous
work was associated with
the Hawthorne Studies.
Behavioral Approach
This theory significantly revolutionized Human
Relations Management (HRM), which considers
employee behavior in the workplace.

It significantly helped institutions and managers


effectively retain their employees at work. Following
the Elton Mayo theory, many establishments focus
on job satisfaction and their employees' value.
Hawthorne Effect

The Hawthorne effect is a phenomenon observed as a


result of an experiment conducted by Elton Mayo. In an
experiment intended to measure how a work
environment impacts worker productivity, Mayo’s
researchers noted that workers productivity
increased not from changes in environment, but
when being watched.

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