MANAGEMENT

Classical Theory of Management, Administrative Theory, Scientific Management Theory,

and Bureaucracy Theory are all important perspectives in the field of management and
organizational theory. Here's an overview of each:

Scientific Management Theory

Scientific management theory is an objective approach that leads to economic efficiency and
workflow productivity in an organization. Frederick Winslow Taylor, the father of scientific
management theory, used it as a management practice in the manufacturing sector back in the
late 19th century.

It is not used to its fullest extent today, but many modern industries still use it to some degree.
It is on this theory of management, that many of the modern management theories are based.

The blog attempts to explore scientific management theory in more detail.

Before reading further, it is recommended that you gather some ideas about the different types
of management theories.

What is Scientific Management Theory?

The scientific theory of management changed how organizations perceived workers as lazy
and who work, but inefficiently, for earning income.

Frederick Winslow Taylor, who formulated the scientific management theory, came up with a
solution for the inefficiency by observing worker productivity through scientific methods.

His work, Principles of Scientific Management, published in 1911, differentiated the scientific
method from the traditional management approach.

Taylor opined that under classical management, the workers are incentivized only through
higher pay and that management itself is not responsible for any issues causing bad work
environments.

According to Taylor, the ‘remedy for the inefficiency lies in systematic management’. He
believed that workers are not inherently lazy. Bad working conditions are a reason for their
inefficiency.

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

But this is not the only reason for the worker’s inefficiency. Taylor identified two more reasons
causing it. One was that workers cannot produce the desired output in a given time. Second,
the job was not understood by the worker and was done wrong.

Scientific management theory aims to analyze the workflow of workers to improve labour
productivity which leads to improved economic efficiency. By improving efficiency, it reduces
the waste of resources and time.

Taylor proposed an empirical observation of how employees in an organization worked. And

in his research, he focused on the routine tasks of the employees. Then, in his management
methods, he would look into the equipment or technology used and try to customize it for the
worker’s ease of use.

Taylor proposed that every task of the labourer must be planned in advance by a dedicated
department. This approach led to the idea of a systematic organizational structure that is found
in Max Weber’s bureaucratic management theory.

Let’s explore the main principles of this scientific management theory.

Principles of Scientific Management

Mentioned below are the four principles that are still followed by many organizations in
different industries in some form or the other.

First Principle – Replace the “rule of thumb” with science and standardization

There should only be one method of working. It must be defined scientifically. According to
Taylor, the best way to do a job must be determined beforehand in a scientific fashion. If
workers have devised their own ways of working, it will not lead to productivity.

The ‘ways of working’ here refer to the tools used. These tools must be standardized and that
will remove the factor of bad working conditions.

There should be no rule of thumb, nor any trial and error for any job. That way, the worker’s
performance will increase.

Second Principle – The Right Person for the Job

For any job, the management should hire the right person for the right job. That worker should
have the necessary skills to perform the tasks to fruition. The management should also hire a

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

worker knowing they will have challenges too. For that, training workers would be required
once they are selected. Then the worker should be introduced to standardized tools for their
work process.

Third Principle – Proper Division of Work Between Workers and Managers

The core functions of management, planning, organising, controlling, and directing, must be
adopted by the organization. The worker who is assumed to be able to work should not be
assumed to know and apply these facets of management. By assigning the worker with the
correct workload, there can be a better mutual understanding between two parties, and will
further eliminate uncertainties in the future.

Fourth Principle – Collaboration Between Workers and Managers

Workers and managers should work in harmony, according to this principle. It is the
responsibility of the management to create a healthy environment for the workers by
eliminating distrust. For that, there should be clear communication and development of team
spirit.

Goals of Scientific Management

Scientific management theory aims to increase efficiency so that revenue is increased. This can
be achieved through the following goals.

• Improving productivity by standardizing tools to achieve a high production rate.

• Ensuring quality is consistent in products through research and quality control.
• Introducing cost control techniques to minimize the cost of production.
• Making sure consumers find a regular supply of goods.

Applications of Scientific Management Theory

Scientific management theory is applicable in a variety of modern-day business contexts.

For Ensuring Quality

For the function of management to help plan documents that meet standards is equivalent to
the documentation used today in quality management best practices, such as ISO 9000.

For Eliminating Repetitive Tasks

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

Another application of scientific management in practice is using tools that eliminate mundane
tasks. One example can be marketing automation which can be used for email delivery to the
right consumers at different stages of the marketing funnel. This way,
the marketing department can work on more creative tasks and improve efficiency there.

Limitations of Scientific Management Theory

There are a few criticisms of this scientific theory of management.

• The basic limitation is that workers are not treated humanely, as the focus is only on
productivity and efficiency. There is no concern for the emotional or psychological
well-being of the employees.
• Focusing on one type of skill, the other skills the worker may have are not considered
in this theory. So any initiative a worker may have is not considered by the
management.
• Doing the same kind of work can lead to monotony in the future.
• Too much focus on performance based on time can demotivate employees. This can
lead to absenteeism. It can also adversely affect their mental states, of which the
theory is unconcerned with.

Henri Fayol's Principles of Management/ Administrative

theory of management

Who Was Henri Fayol?

Fayol was an engineer who worked his way up to become manager of the Compagnie

de Commentry-Fourchambault-Decazeville mining company in France, at the tail end

of the industrial revolution. Under his watch, the struggling firm prospered.

He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did

not rely on my technical superiority... I relied on my ability as an organizer [and my]

skill in handling men." [1]

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

Fayol's 14 Principles of Management identified the skills that were needed to manage

well. As well as inspiring much of today's management theory, they offer tips that you

can still implement in your organization. Fayol also created a list of the five

primary Functions of Management, which go hand in hand with the Principles.

What Is Administrative Theory?

Fayol called managerial skills "administrative functions." In his 1916 book,

"Administration Industrielle et Générale," he shared his experiences of managing a

workforce.

Fayol’s book – and his 14 Principles of Management – helped to form what became

known as Administrative Theory. It looks at the organization from the top down, and

sets out steps for managers to get the best from employees and to run a business

efficiently.

What Are Fayol's 14 Principles of Management?

It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't,

that informed his 14 Principles of Management. By focusing on administrative over

technical skills, the Principles are some of the earliest examples of treating management

as a profession. They are:

1. Division of Work. Assign each employee a task that they can become proficient

at. Productivity increases as employees become more skilled, assured and

efficient. Today, experts still warn against multi-tasking.

2. Authority. Managers must possess the authority to give orders, and recognize

that with authority comes responsibility. As well as rank, Fayol argues that a
manager's intelligence, experience and values should command respect.
Dr. Reetika Singh
Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

3. Discipline. Everyone should follow the rules. To help, you can make agreements

between the organization and employees clear for all to see. [2]

4. Unity of Command. Fayol wrote that "an employee should receive orders from

one supervisor only." Otherwise, authority, discipline, order, and stability are

threatened.

5. Unity of Direction. Teams with the same objective should be working under the

direction of one manager, using one plan. That, Fayol wrote, "is the condition

essential to unity of action, coordination of strength and focusing of effort."

6. Collective Interest Over Individual Interest. Individuals should pursue team

interests over personal ones – including managers.

7. Remuneration. Employee satisfaction depends on fair remuneration for

everyone – financial and non-financial. Fayol said pay should be fair and reward

"well-directed effort."

8. Centralization. Balancing centralized decision making (from the top) with

letting employees make decisions. Or as Fayol wrote, "A place for everyone and

everyone in his place."

9. Scalar Chain. Employees should know where they stand in the organization's

hierarchy and who to speak to within a chain of command. Fayol suggested the

now-familiar organization chart as a way for employees to see this structure

clearly. [3]

10. Order. Fayol wrote that, "The right man in the right place" forms an effective
social order. He applied the same maxim to materials: right one, right place.

Academics note that this principle pre-empted the Just in Time (JIT) strategy for

efficient production. [4]

11. Equity. Managers should be fair to all employees through a "combination of

kindliness and justice." Only then will the team "carry out its duties with...

devotion and loyalty."

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

12. Stability of Tenure of Personnel. Organizations should minimize staff

turnover and role changes to maximize efficiency. If people are secure and good

at their jobs, they are happier and more productive.

13. Initiative. Employees should be encouraged to develop and carry out plans for

improvement. As Fayol wrote, "At all levels of the organizational ladder, zeal

and energy on the part of employees are augmented by initiative."

14. Esprit de Corps. Organizations should strive to promote team spirit, unity, and

morale.

What are Fayol's Five Functions of Management?

While Fayol's 14 Principles look at the detail of day-to-day management, his Five

Functions of Management provide the big picture of how managers should spend their

time. They are:

1. Planning: the need "to assess the future and make provision for it." That includes

a flexible action plan that considers a firm's resources, work in progress, and

future market trends.

2. Organizing: laying out lines of authority and responsibility for employees. This

covers recruitment and training, coordinating activities, and making employees'

duties clear.

3. Commanding: getting the most from people. So, managers must know their

employees' skills, delegate to tap into these skill sets, and set a good example.

4. Coordinating: in a well-coordinated organization, departments know their

responsibilities, the needs of other teams, and their obligations to them.

5. Controlling: continually checking that rules, plans and processes are working as

well as they should be.

Is Fayolism Still Relevant Today?

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

You only have to look at the language he used to see that Fayol was writing over 100

years ago. For example, he refers to employees as "men."

But, as Daniel Wren writes, "Without the contributions of these pioneers, such as Fayol,

we would probably be teaching industrial engineering, sociology, economics, or perhaps

ergonomics to those who aspire to manage. To be doing so would push us back to the

19th century when technical know-how reigned supreme as a path to managerial

responsibility."

And if you look closer, you'll discover that many of Fayol's points are fresh and relevant.

Such as:

• His Principles advocate teamwork and working together for the mutual benefit

of the business.

• The Five Functions reveal the need for organizations to plan and be agile in the

face of changing market conditions.

• Fayol was one of the first people to recognize that management is a continuous

process.

• Before human resources management, Fayol wrote about motivating people by

inspiring initiative, commanding respect through values, and ensuring that

people have the time and training they need to be happy and productive at work.

• The manager who is respected for their values leads by example, makes time to
get to know their employees, and gives them the training they need, sounds a lot

like a modern manager. Some of these ideas may seem a bit obvious, but at the

time they were groundbreaking. And the fact that they've stuck shows just how

well Fayol's Principles work.

Criticism of Fayol's Principles of Management

Dr. Reetika Singh
Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

That's not to say that everyone is a fan of Fayol's Administrative Theory. Some

detractors claim that:

It's unscientific. Fayol's critics question whether you can ground a theory in the

observations of one person. But Fayol stressed that he was laying a foundation for others

to build on.

This is just what Luther Gulick and Lyndall Urwick did in 1937 when they used Fayol's

ideas to form their POSDCORB model for working efficiently. And research shows that

more modern critics of Fayol – such as Mintzberg, Kotter and Hales – in fact use many

of his ideas.

It's too prescriptive. If some of Fayol's Principles look dated, there's a reason for that.

Many critics argue that one set of Principles can't govern all managers. In fact, Fayol

wrote that his list was "incomplete," and that the Principles were flexible and adapt able.

Today, academics have shown how Fayol's work can be updated to complement modern

management theorists, such as Porter. [2]

It's cold and inhuman. Critics of historical management theories point to an emphasis

on efficiency over the social and psychological needs of workers. But managing with

kindness, instilling a sense of initiative, and building morale reveal a level of

consideration for workers that was enlightened at the time.

Max Weber Bureaucracy Theory

Max Weber, a German scientist, defines bureaucracy as a highly structured, formalized, and also
an impersonal organization.

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. Max Weber bureaucracy ideally
has the following characteristics:

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

• Specialization of labor

• A formal set of rules and regulations

• Well-defined hierarchy within the organization

• Impersonality in the application of rules

Bureaucratic organizations evolved from traditional structures due to the following

changes:

• In traditional structures, the leader delegates duties and can change them at any
time. However, over time, this changed and there was a clear specification
of jurisdiction areas along with a distribution of activities as official duties.

• In a bureaucratic organization, the subordinates follow the order of superiors but

can appeal if they feel the need. On the other hand, in traditional structures, the
authority was diffused.

• Rules are exhaustive, stable, and employees can learn them easily. Further, the
organization records them in permanent files.

• Personal property is separate from the office property. Also, the means of
production or administration belong to the office.

• The selection of officials is based on technical qualification and appointment and

not an election. Further, officials receive a salary as compensation for their work.

• The official is taken in for a trial period and then offered a permanent position with
the organization. This protects him from arbitrary dismissal.
Learn more about Classical Organizational Theory here in detail.

Max Weber’s Bureaucratic Form – 6 Major Principles

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

1. A formal hierarchical structure – In a bureaucratic organization, each level

controls the level below it. Also, the level above it controls it. A formal hierarchy
is the basis of central planning and centralized decision-making.

2. Rules-based Management – The organization uses rules to exert control.

Therefore, the lower levels seamlessly execute the decisions made at higher levels.

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.

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

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. On the other hand, if the mission is to serve the organization itself and
those within it (like generating profits, etc.), then it is in-focused.

5. Impersonal – Bureaucratic organizations treat all employees equally. They also

treat all customers equally and do not allow individual differences to influence
them.

6. Employment-based on Technical Qualifications – Selection as well as the

promotion of employees is based on technical qualifications and skills.
While these rules have received criticisms from many corners, the bureaucratic form of the
organization continues to live on.

Why is a Bureaucratic Organization criticized?

Here are some reasons:

• 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.

• While Government organizations can benefit from a bureaucratic structure,

business organization need quick decision-making and flexibility in procedures.
Therefore, it is not suitable for the latter.

• While the technical qualifications of the employee is an important aspect of his

promotion, a bureaucratic organization does not consider the employee’s
commitment and dedication.

• There is limited scope for Human Resource management.

• Coordinating and communicating is difficult.

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow
MANAGEMENT

Dr. Reetika Singh

Faculty, Department of Commerce
University of Lucknow