Classical Management Theory (1880–1920) - 2.2 | 2. Evolution of Management Thought | Management 1 (Organizational Behaviour/Finance & Accounting)
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Scientific Management

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0:00
Teacher
Teacher

Today, we're diving into Scientific Management, introduced by Frederick Winslow Taylor. He believed there was 'one best way' to complete a task. Can anyone tell me what this might mean?

Student 1
Student 1

Does it mean that if we find the most efficient method, everyone should use it?

Teacher
Teacher

Exactly! Taylor emphasized standardizing tools and methods to enhance productivity. He also introduced wage incentives to motivate workers. Can someone explain how that might work in practice?

Student 2
Student 2

I think it would mean that if a worker meets targets using Taylor's methods, they could earn bonuses.

Teacher
Teacher

Right! But let's not forget, Taylor's methods faced criticism for ignoring human and social elements. What are some possible human factors that could affect productivity?

Student 3
Student 3

Things like job satisfaction and teamwork, right?

Teacher
Teacher

Excellent point! To summarize: Scientific Management focuses on efficiency and productivity but has been criticized for overlooking human aspects.

Administrative Management

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Teacher
Teacher

Next, let’s discuss Administrative Management by Henri Fayol. He proposed 14 principles of management. Can anyone name one?

Student 4
Student 4

Unity of command? Is that one of them?

Teacher
Teacher

Yes, it is! The unity of command principle ensures that every employee receives orders from only one superior, preventing confusion. Now, Fayol also outlined five essential functions. Does anyone remember what they are?

Student 1
Student 1

I think they are planning, organizing, commanding, coordinating, and controlling.

Teacher
Teacher

Great job! These functions remain foundational in management today. By ensuring these functions are in place, managers can effectively coordinate their teams.

Student 2
Student 2

So, it seems like Fayol's approach brings structure to management, especially in bigger organizations.

Teacher
Teacher

Exactly! To wrap up, Fayol's principles and functions enhance organizational efficiency and help guide management practices.

Bureaucratic Management

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Teacher
Teacher

Now we will look at Bureaucratic Management developed by Max Weber. Who can share what this approach emphasizes?

Student 3
Student 3

It focuses on rules and hierarchy, right?

Teacher
Teacher

That’s correct! Bureaucratic management involves structured hierarchical systems. What do you think are the benefits of having such a system?

Student 4
Student 4

I think it creates clear roles and responsibilities, which helps in managing large teams.

Teacher
Teacher

Absolutely! And for modern relevance, these principles underpin many structures in technology. For example, how might this apply to an ERP system?

Student 2
Student 2

I guess an ERP system uses a clear hierarchy of data flows and responsibilities.

Teacher
Teacher

Exactly! So to summarize, Weber's Bureaucratic Management focuses on formal structures that support clarity and efficiency in organizations.

Introduction & Overview

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Quick Overview

Classical Management Theory emphasized efficiency, productivity, and formal structure in organizations through scientific, administrative, and bureaucratic management approaches.

Standard

Between 1880 and 1920, Classical Management Theory emerged, focusing on enhancing organizational efficiency through three main streams: Scientific Management by Taylor, Administrative Management by Fayol, and Bureaucratic Management by Weber. Each stream introduced specific principles and structures that supported productivity and organizational order, though they faced criticisms regarding human aspects.

Detailed

Classical Management Theory (1880-1920)

The Classical Management Theory developed during the late 19th and early 20th centuries marked a significant shift towards understanding and organizing managerial practices in a more scientific way. This theory primarily focuses on enhancing organizational efficiency and productivity through structured management practices. It can be divided into three main streams:

1. Scientific Management (Frederick Winslow Taylor)

  • Key Concepts: Taylor's approach emphasized finding 'the one best way' to perform tasks, introducing standardized tools, methods, and wage incentives to improve productivity.
  • Key Contributions: Included time and motion studies to optimize work processes, functional foremanship (specialization of managerial roles), and scientific selection and training of workers.
  • Criticism: The approach has been criticized for ignoring human and social aspects of work, focusing too heavily on task specialization.

2. Administrative Management (Henri Fayol)

  • Core Focus: Fayol shifted attention towards overall organizational structures, proposing 14 principles of management (e.g., unity of command, scalar chain).
  • Functions of Management: He outlined five management functions: planning, organizing, commanding, coordinating, and controlling.

3. Bureaucratic Management (Max Weber)

  • Foundation: Weber's work emphasized systems of governance within organizations based on rules, hierarchy, and rationality.
  • Key Features: Includes a formal hierarchy, defined impersonal relationships, merit-based employment, and labor division.
  • Relevance to CSE: Many modern systems, like ERP and databases, borrow bureaucratic principles to ensure structure and clarity.

Understanding these classical approaches is essential for students, particularly in fields like Computer Science & Engineering, where robust management frameworks are crucial for successful project execution and organizational effectiveness.

Youtube Videos

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Audio Book

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Overview of Classical Management Theory

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This school emphasized efficiency, productivity, and formal structure. It can be divided into three main streams:

Detailed Explanation

Classical Management Theory emerged during the late 19th and early 20th centuries as a reaction to the complexities of managing larger organizations. This theory focused on improving efficiency and productivity through a structured approach. It is broadly categorized into three main streams: Scientific Management, Administrative Management, and Bureaucratic Management. Each of these streams provided different perspectives on management practices.

Examples & Analogies

Think of Classical Management Theory like a well-oiled machine. Just as a machine has specific parts that work together in a planned manner to provide a desired output, organizations can enhance their performance through structured management practices.

Scientific Management by Frederick Winslow Taylor

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Key Concepts:
• “One best way” to perform a task
• Standardized tools and methods
• Wage incentives for higher productivity

Key Contributions:
• Time and motion studies
• Functional foremanship
• Scientific selection and training

Criticism:
• Ignored human and social aspects
• Overemphasis on task specialization

Detailed Explanation

Scientific Management, introduced by Frederick Winslow Taylor, focuses on finding the most efficient way to perform tasks. Taylor believed there was a 'one best way' to do every job, leading to standardization of tools and methods. He introduced concepts like time and motion studies, which analyze how long tasks take and how they can be improved. Although it increased productivity, critics argue it overlooked human emotions and social factors, reducing workers to mere components of a task.

Examples & Analogies

Imagine a factory assembly line where each worker is responsible for one specific task. By timing how long it takes each worker to complete their task, managers can find the quickest way to produce products. However, this could also make workers feel like robots, performing the same action over and over without considering their needs.

Administrative Management by Henri Fayol

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Fayol focused on top-down administrative structure and proposed 14 principles of management:
Some examples:
• Unity of command
• Scalar chain
• Division of work
• Esprit de corps

Fayol's five functions of management:
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling

Detailed Explanation

Henri Fayol's Administrative Management theory aimed at establishing a framework for organizational structure and management principles. He presented 14 principles of management, focusing on the hierarchy and clear lines of authority. Fayol also identified five core functions: Planning (setting objectives), Organizing (allocating resources), Commanding (leading and directing), Coordinating (integrating activities), and Controlling (monitoring progress). Together, these elements create a strong foundation for effective management.

Examples & Analogies

Consider a sports team as an organization. The coach (manager) must plan strategies (planning), allocate positions for players (organizing), guide the players (commanding), ensure all players work together during the game (coordinating), and review performance after the game (controlling). Each function is essential for the team's success.

Bureaucratic Management by Max Weber

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Focused on rules, hierarchy, and rationality.
Features:
• Formal hierarchy
• Impersonal relationships
• Employment based on merit
• Division of labor

Relevance to CSE: Modern ERP and database systems are structured using bureaucratic principles.

Detailed Explanation

Max Weber's Bureaucratic Management theory emphasizes a structured and formalized approach to organization. It features a clear hierarchical structure where each level has defined roles. Weber advocated for rationality in management, ensuring that processes are efficient and based on rules. Employment should be merit-based rather than based on favoritism. This theory is crucial in various modern organizations, including tech companies that utilize formal structures in their operations.

Examples & Analogies

Think of a government organization. There are specific rules and a clear hierarchy that employees must follow, ensuring that everything is conducted fairly and efficiently. Similarly, in many modern tech companies, employee roles are defined, and processes are standardized to enhance productivity.

Definitions & Key Concepts

Learn essential terms and foundational ideas that form the basis of the topic.

Key Concepts

  • Scientific Management: Focuses on finding the most efficient way to perform tasks and emphasizes productivity and standardization.

  • Administrative Management: Emphasizes a structured approach to management through established principles and functions.

  • Bureaucratic Management: Focuses on a formal hierarchy, rule-based management, and systematic procedures.

Examples & Real-Life Applications

See how the concepts apply in real-world scenarios to understand their practical implications.

Examples

  • Taylor's time and motion studies optimized tasks in factories leading to increased productivity.

  • Fayol's principle of unity of command is exemplified when a manager oversees their direct reports without interference from other managers.

  • Weber's bureaucratic management applies to modern corporate structures that maintain clear hierarchies, such as within large multinational corporations.

Memory Aids

Use mnemonics, acronyms, or visual cues to help remember key information more easily.

🎵 Rhymes Time

  • Taylor's techniques for productivity, make your tasks flow smoothly and free.

📖 Fascinating Stories

  • Imagine a factory where every worker knows their place, thanks to Fayol's clear roles, they work with grace.

🧠 Other Memory Gems

  • Fayol's functions are P-O-C-C-C: Planning, Organizing, Commanding, Coordinating, Controlling.

🎯 Super Acronyms

SAB

  • Scientific
  • Administrative
  • Bureaucratic - the three pillars of Classical Management Theory.

Flash Cards

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Glossary of Terms

Review the Definitions for terms.

  • Term: Classical Management Theory

    Definition:

    A management approach developed during the late 19th and early 20th centuries that emphasizes efficiency and productivity through structured managerial practices.

  • Term: Scientific Management

    Definition:

    An approach focusing on optimizing work processes and productivity through standardization and time studies, pioneered by Frederick Winslow Taylor.

  • Term: Administrative Management

    Definition:

    A management theory by Henri Fayol that emphasizes a top-down management approach and includes principles and functions to improve organizational efficiency.

  • Term: Bureaucratic Management

    Definition:

    A management model established by Max Weber that emphasizes organizational hierarchy, rules, and clear roles within a structured framework.