Classical Management

General
• With the industrial Rev. producing goods began to change
• Increased mechanization and industrialization led to the organization of larger groups of people in factory settings
• 3 major Theories:
o Henri Fayol’s Theory of Classical Management
o Max Weber’s Theory of Bureaucracy
o Frederick Taylor’s Theory of Scientific Management
• What they all have in common: the belief that organizations should be modeled after machines
Machine Metaphor of organizing
• And organization is like a pizza; it must have
o people (flour)
o communication (water that holds the flour together)
o goals (yeast that makes the dough rise)
specialization of tasks
division of labor
standardization
• related notion of replaceability- something or someone can be easily replaced
predictable
• these are rules that govern the way a machine is built and how it operates
• it runs according to specific rules and standards
• if the organization is dysfunctional, it can be fixed by a rational consideration of the manner in which the rules and standards are being applied
Fayol
• Father of modern operational-management theory
Fayol’s Theory of Classical Management
2 aspects

o elements of management
o principles of management

Elements of management
planning, organizing, command, coordination, control
planning
best way to attain organizational goals
organizing
arrangement of human resources
command
managers set tasks for employees in order to meet organizational goals
coordination
separate activites of an organization must be harmonized into a single whole
control
comparison btw goals and activites to ensure the organization is functioning in the manner planned
principles of organizational structure
scalar chain, unity of command, unity of direction, division of labor, order, span of control
scalar chain
o Organization should be arranged in a strict vertical hierarchy
o Communication should be limited to this vertical flow
unity of command
o An employee should receive orders from only one supervisor
unity of direction
o Activities having similar goals are placed under a single supervisor
division of labor
o Work can be best accomplished if employees are assigned to limited number of specialized tasks
order
o An appointed place for each employee and task
span of control
o Managers will be most effective if they have control of a limited number of employees
• 20-30 employees to first-level manager
• 6 employees to higher level managers
Fayol’s bridge
• Horizontal communication across the hierarchy could sometimes facilitate organizational functioning
• He proposed a “gangplank” or bridge that would horizontally link employees at the same hierarchical level
o Should be used only when authorized by a manager at the next highest level
Principles of Organizational Power
centralization, authority/responsibility, discipline
centralization
o Organizations will be most effective when central management has control over decision-making and employee activities
authority/responsibility
o Managers should hold authority that derives from both their position in the organization and their personal characteristics
o Responsibility must accompany authority in equal measure
discipline
o All organizational member should be obedient to the rules of the organization and to the managers who enforce them
principles of organizational reward
remuneration (pay) of personnel, equity, tenure (term) stability
remuneration (pay) of personnel
o Employees should be rewarded for their work with appropriate salaries and benefits
equity
o In remuneration employees should be treated justly
tenure (term) stability
o Guarantee sufficient time in the job for employees to achieve maximum performance
o too much could lead to counter productivity
principles of organizational attitude
subordination of individual interest to general interest, initiative, esprit de corps
subordination of individual interest to general interest
o Organizations can be effective only when the interests of the whole take precedence over the interests of individuals
initiative
o Managers should value and direct an employees efforts to work in the best interest of the organization
esprit de corps
o “all for one and one for all”
• no opposition to the organizational ranks
Webber’s Theory of Bureaucracy
• Takes a more scholarly approach
• Termed an “ideal type” theory
o Does not advocate a particular organizational for as best but rather lays out the feature of an idealized organization
six facets of bureaucracy
• Operated through (first 3 similar to Fayol)
o Clearly defined hierarchy
o Division of labor
o Centralization of decision making and power
o Closed systems
• Will shut itself off from influences of the outside bc environmental interruptions could hamper it
o Importance of rules
• Should be codified in written form
o Functioning of authority
• Working through a system of authority, power, discipline
functioning authority
traditional authority (legit authority), charismatic authority, rational-legal authority
traditional authority (legit authority)
o Power based in long-standing beliefs about who should have control and is often vested in particular positions within an organizational hierarchy
o Ex: queen of England or the President
charismatic authority
o Power based on an individuals personality and ability to attract and interact with followers
o This kind or power is highly unstable
o Ex: cults, Donald Trump
rational-legal authority
o Based on the rational application of rules developed through a reliance on info and expertise
o Power rest not in the individual but in the expertise and rationality
o This power dominates the bureaucratic system
Frederick Taylor’s Theory of Scientific Management
• Goal: provide prescriptions for how organizations could be better run
• Concentrates on the “micro” level or organizational functioning
o Concerned with the relationship btw manager and employee and the control of the individual at work
Motivation for the Theory of Scientific Management
• 2 things bothered him
o 1) most tasks in organization were learned by newcomers watching more experienced workers at a particular job
• could lead to work of uneven work
o 2) the manner in which people were rewarded for their work
• this social pressure to keep productivity down and wages up and labeled it “systematic soldiering”
Components of Scientific Management
• 1) There is one best way to do every job
o Can be determined through time and motion studies
• 2) Proper selection of workers for the job
• 3) Importance of training workers
• 4) Inherent difference btw management and workers
o Managers: thinking, planning, administrative tasks
o Workers: laboring
Taylor faced opposition from unions and became known as the “enemy of the working man”
Communication in classical appraches
content of communication, direction of communication flow, channel of communication, style of communication
communication in classical approaches
• Organizations rely on the principles of standardization, specialization, and predictability in order to operate
content of communication
• There are certain things that should and should not be talked about in the organization
• Direction of communication flow- vertical (downward)
• Mode/channel of communication- usually written
• Style of communication- formal
direction of communication flow
• How messages are routed through the organizational system
• Vertical- up and down (through the hierarchy)
o Most important
o Vast majority flows downward
• Horizontal- employees at the same level of the organization talking to each other
• Free flowing- all member talk will all member
channel of communication
• Face-to-face
• Written- most important
• Telephone/computer
style of communication
• Communication tends to be top-down, written, and task related
• Tone/style: highly formal