2.2. Classical Management Theory (1880–1920)

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

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.

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.

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

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.

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.

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

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.

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.

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.

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.

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.

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