Classical management theory

Classical management theory is based on the concept that workers need only physical and
economic needs. It does not include social and job satisfaction of the workers. It has the main
aim to maximize the profit of the company. It is developed in the 19th century to increase the
productivity of the workers. But it was gained the attention in the 20th century. It is based on
the belief that workers only have physical and economic needs. Unlike more modern workplace
management theories, it does not take into account social needs or job satisfaction. Instead,
classical management theory advocates a specialization of labor, centralized leadership and
decision-making, and profit maximization.
Designed solely to streamline operations, increase productivity and enhance the bottom line,
this management theory arose in the late 19th century and gained prominence through the first
half of the 20th century. While not as widely subscribed to in modern times, the classical
management theory offers some principles that remain valid, to an extent, in small business
settings in regard to manufacturing.
Advantages Of Classical Management Theory
 Classical Management theory has a clear structure for management.
 Classical management theory increased the productivity and efficiency of the workers.
 Classical management theory helps to create better working conditions.
 Classical management theory increases the wages of the workers.
 Classical management theory creates bonds among managers and workers.
Disadvantages Of Classical Management Theory
 Classical management theory creates pressure and burden of work among the
employees.
 Classical management theory is based upon the one best way and it is applicable to the
simple organization’s structures. it does not fit on today’s complex structures.
 Classical management theory focuses on the individual performance of the employees
and categories them into efficient and inefficient.
 Classical management theory kills the creativity of the workers and creates frustrations
among the employee

Max Weber Bureaucracy Theory

Definition: The bureaucratic management theory, introduced by Max Weber stated that to
manage an organization efficiently, it is essential to have a clear line of authority along with
proper rules, procedures and regulations for controlling each business operation. Bureaucracy
refers to the possessing of control over a group of people or activities through knowledge,
power or authority.
This theory focuses on the following two primary criteria:

 developing a hierarchical system in the organization;

 defining clear procedures, methods, rules, and regulations to carry out business
operations and transactions.
 Principles of Bureaucratic Theory
 Government organizations majorly adopted Max Weber’s bureaucracy theory. Weber
gave the following six principles for managing an organization effectively and efficiently.
 Advantages of Bureaucracy

 Weber’s bureaucracy theory has been widely applied in the era of the 1900s by the
business entities, government organizations and political associations.
Scientific Management Theory

The theory centered on the systematic study of people, behavior, and tasks. The core of

Taylor’s theory that they followed the technique of breaking the work process into sub-tasks or

least possible units to regulate the most efficient method for accomplishing a particular task.

Also mentioned as classical management theory, scientific management theory made its entry

in the early 1900s to enhance worker productivity.

Functions of Scientific Management Theory:

Though the scientific theory of management provided tools for workers to enhance their

output and efficiency, employees did only menial work and hence the theory criticism of the

classical theory of management faced critics for developing an assembly-line atmosphere. With

this as a reason, the theory falls out of favor by various companies but still consider as a

valuable tool in many companies for its principles.

A good example where techniques of classical and scientific management theory can apply is in

factories where repetitive tasks achieved. The importance of scientific management theory and

principles are,

 Employees must be selected based on their skills and abilities related to the job.
 Incentives and wages provide to employees should base on encouraging them and
enhancing their output.
 The leadership within the organization should be one that develops a standard
method for doing a certain job with the assistance of scientific management theory.
 There should be attention to eradicating interruptions while planning work.
 Rule of thumb work methods replaced with other methods which are based on the
scientific study of tasks
Main Principles of Scientific Management

1. Science, not Rule of Thumb

2. Scientific Selection, Training, and Development of Workers
3. Harmony, not Discord (Conflict)
4. Cooperation, not Individualism
5. Maximum, not Restricted Output
6. Equal Division of Responsibility between Management and Workers

Advantages and Disadvantages of Scientific Management Theory:

S.no Advantages Disadvantages

1 Enhanced production Requires huge capital

2 Ability to control Management takes control

3 Decreases inaccuracy Planning reduces productivity

4 Decreased autocracy Demotivating approach

5 Cost of production reduced Overly bureaucratic

6 Pay system Mechanistic

7 Quick decision making Not suitable for teams

8 A benefit to customers Work division

9 Efficiency increased Avoids bargaining

10 Best use of resources and development Loss

11 Beneficial to the nation Unemployment

12 Less production time Adverse effects

13 Worker instructions Stress

 14 Good working conditions Wrong assumption

15 Owners and investors benefitted Follows narrow application

16 Avoids labor and management disputes Time-consuming

4 Appraisal of classical approach

Classical approach made a significant contribution to the development of management
theories. This perspective had three primary thrusts (Griffin R.W. 2006). Scientific management
focused on employees within organizations and on ways to improve their productivity.
Administrative theory focused on the total organization and on way to make it more efficient.
Bureaucratic management focused on eliminating managerial inconsistencies that means it
emphasized the position rather than person and organization continues even when individual
leave. Classical approach highlighted the universal character of management principles
(Berdayes V, 2002). It made a clear distinction between operative activities and managerial
activities. It also identified the application of scientific method to the problems of management
and highlighted the need for mutual cooperation between employers and employees. Classical
approach has been criticized on several counts. First, this theory is said to be too formal,
secondly, it is more appropriate for stable and simple organization than for today‟s dynamic
and complex organizations. Thirdly, it often prescribed the universal procedures that are not
appropriate in some setting.

#2

1 ,The motivation theory that suits for this team problem is McGregor’s Theory X .Because Mc
George’s theory says that if you feel that your team members dislike their work, have little motivation,
need to be watched every minute and are incapable of being accountable for their work, avoid
responsibility and avoid work whenever possible, then you are likely to use an authoritarian style
of management. According to McGregor, this approach is very "hands-on" and usually involves
micromanaging people's work to ensure that it gets done properly.

2, Human skills which helps for managing the team during un precedent times are:
 Planning. Planning is a vital aspect within an organization. ...
 Communication. Possessing great communication skills is crucial for a manager. ...
 Decision-making. ...
 Problem-solving. ...
 Motivating
 Diagnostic and Analytical Skills. Interpersonal skills.
 Organization and delegation.
 Forward planning and strategic thinking.
 Problem solving and decision-making.
 Commercial awareness.
 Mentoring.
3, The effectiveness of the team can be enhanced through

Ensure proper communication

Communication is one of the critical factors that contribute mainly to team productivity.
Without effective communication, businesses fail. Because in the absence of communication,
comes miscommunication and this breeds a lot of failures. A lot of successful businesses thrive
on effective communication. Now, a project manager must ensure effective
communication prevails in a team.

Use a project management tool

These days no one can deny the role online project management software plays in boosting
teamwork and productivity. Having the right project management tool by your side can help in
effective work management and increased collaboration between the team members.
For instance, Proof Hub is one such online project management software that brings together
your team members, projects, and clients in one place. With features like discussions and group
chat, you can take your productivity game to a whole new level.
Wholesome work environment
The work environment and infrastructure are essential contributors in improving team
efficiency and productivity. According to a recent study, the physical environment dramatically
affects how employees feel, think and perform at the workplace.

4, Characteristics of successful organizational cultures

 Encouraging real teamwork. Employees work well together and don’t often fight among
themselves.so we can solve the team problem by encouraging real team work.
 Making employee morale high. This can be gauged through employee engagement
surveys. we have to make their morale high in order to improve their performance.
 Workload expectations are appropriate, minimizing employee burnout. (Employee
burnout can lead to stress, negativity, and reduced morale.) so if there is such kind of
problem we have to avoid it.
 Giving consideration to work/life balance, and steps are taken to help employees
achieve it so that they may be inspired.
 Employees are treated fairly, and there is consistency in how employees are treated
across groups and teams. There’s no sense of unfairness or favoritism.
  Dealing Problems with employees appropriately and promptly. Other employees want
to know the employer can be trusted to protect them and not foster a workplace that
has problems. This make them to feel that they take responsibilities.
 The employer finds ways to show employees appreciation. Employee efforts are
recognized. Recognition is frequent so they will be inspired.
 Employee development programs have been implemented, and employees know
where they are in relation to their long-term development plans. This usually includes
an employee training program to augment employee development plans. Employees
should see that the organization is invested in their future.
 Employees are given feedback frequently and in an appropriate way. Employees want
to know how they’re doing—tell them. This make them to judge themselves whether
they are doing well or not.

So by applying these methods we can create a good organizational cultures.