Classical Theories of Management

Management and Engineering ConceptsBy:Michael Angelo LedesmaHelvin Obanil

-Henry FayolTo manage is to forecast and plan, to organize, to command, to coordinate and to control. To foresee and plan means examining the future and drawing up the plan of action. To organize means building up the dual structure, material and human, of the undertaking. To command means binding together, unifying and harmonizing all activity and effort. To control means seeing that everything occurs in conformity with established rule and expressed demand.

-Max WeberPrecision, speed, unambiguity, knowledge of files, continuity, discretion, unity, strict subordination, reduction of friction and of material and personal costs - these are raised to the optimum point in the strictly bureaucratic administration.Niccolo MachiavelliHe was for many years an official in theFlorentine Republic, with responsibilities in diplomatic and military affairs.Machiavellian to describe cunning and manipulative opportunists.

Principles of MachiavelliAn organization is more stable if members have the right to express their differences and solve their conflicts within it.While one person can begin an organization, it is lasting when it is left in the care of many and when many desire to maintain it.Principles of MachiavelliA weak manager can follow a strong one, but not another weak one, and maintain authority.A manager seeking to change an established organization should retain at least a shadow of the ancient customs.

Sun TzuHe was aChinesemilitary general, strategist, and philosopher during theZhou dynasty'sSpring and Autumn Period.Wrote The Art of WarSun Tzus DictumsWhen the enemy advances, we retreat!When the enemy halts, we harass!When the enemy seeks to avoid battle, we attack!When the enemy retreats, we pursue!

WHY STUDY MANAGEMENT THEORY?TheoriesThese are perspectives with which people make sense of their world experiences. Formally, a theory is a coherent group of assumptions put forth to explain the relationship between two or more observable factsReasonsFirst, theories provide a stable focus for understanding what we experience. A theory provides criteria for determining what is relevant.Second, theories enable us to communicate efficiently and thus move into more and more complex relationships with other people.Lastly, theories make it possible to keep learning about our world.Classical Theories of Management

-Frederick TaylorIf a work is analysed scientifically, it will be possible to find one best way to do it.14Scientific ManagementApplication of scientific principles for studying and identifying management problemsPrinciples of Scientific ManagementScience, not rule of thumbHarmony, not discordCooperation, not individualismDevelopment of each and every person to his/her greatest efficiency and prosperityScience, not rule of thumbDetermine time required to perform a job.Determine a fair days work for workmen.Determine the best way of doing work.Set work standards.

Harmony, not discordAll members of the group should carry out their tasks in harmony to contribute more than the sum of their individual contributions.

Cooperation, not individualismThere should be complete cooperation between management and employees.

Development of each and every person to his/her greatest efficiency and prosperity

Managers should select each employee scientifically, assign work according to his/her physical, mental and intellectual capabilities.

Techniques of Scientific ManagementFunctional foremanshipStandardisation of workSimplification of workFatigue studyMethod studyTime studyMotion studyDifferential piece wage systemMental revolutionFunctional foremanshipA technique which involves supervision of a worker by several specialist foremen.

Standardisation of workStandardisation of process, raw material, time, product, machinery, methods or working conditions is necessary to achieve standard output from workers.Simplification of WorkSimplification refers to elimination of superfluous varieties, sizes and dimensions.This results in a reduced inventories, further utilization of equipment and increasing turnover.Fatigue StudyTechnique to determine the amount of rest intervals in completing a task.Taylor suggested that workers in an organization should be given frequent rest process to regain stamina and work again with the same capacity. This will result in increased productivity.Method StudyTechnique used to determine the best way of doing a job in order to reduce the cost of production and increase the satisfaction of costumers.Time StudyThis determines the standard time taken to perform a well-defined job.Motion StudyClose observation of the movements of body and limbs required to perform a job.Differential Piece Wage SystemMethod of wage payment in which workers are paid at different rates as per their performances.Mental RevolutionsInvolves a complete change in the attitude of workers and management towards each other