Evolution of

Management Theories
CLASSICAL APPROACHES TO
MANAGEMENT

Competency Code: ABM_AOM11-Ia-b-2

ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT
THE INDUSTRIAL REVOLUTION

It was the rise of the Industrial

Revolution and factories were
becoming more common. Inside
these factories, managers were
constantly looking for ways to
improve productivity and
efficiency.

ORGANIZATION AND MANAGEMENT

 AN OVERVIEW TO
THE INDUSTRIAL REVOLUTION

Machines were invented improving productivity

Prices became low for the consumers

Low price resulted to greater demand for products

Greater demand for factories and workers

ORGANIZATION AND MANAGEMENT

As factories increased in numbers, managers
continued to search for ways to;

• Improve productivity
• Lower cost
• Improve product quality
• Increase efficiency

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

Professes the body of

management thought based on
the belief that employees have
only economical and physical
needs and that the social needs
& need for job satisfaction either
does not exist or are unimportant.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

It advocates high specialization

of labor, centralized decision
making & profit maximization.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT
• Classical approach is the oldest formal school of
thought which began around 1900 and
continued into the 1920s.
• Its mainly concerned with the increasing the
efficiency of workers and organizations based
on management practices, which were an
outcome of careful observation.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT
• Classical approach mainly looks for the
universal principles of operation in the striving for
economic efficiency.
• Classical approach includes scientific,
administrative & bureaucratic management.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

Scientific Bureaucratic Administrative

Management Management Management

ORGANIZATION AND MANAGEMENT

 Major Contributors to the
Classical Management Theories

Frederick W. Taylor Max Weber

(1856-1915) (1864-1920)

Franck Gilberth Henri Fayol

Lillian Gilberth (1841-1925)
(1878-1972)

ORGANIZATION AND MANAGEMENT

SCIENTIFIC MANAGEMENT THEORY

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Scientific Management
also called Taylorism, is a theory of management
that analyzes and synthesizes workflows.

Its main objective is improving economic

efficiency, especially labor productivity. It was
one of the earliest attempts to apply science to
the engineering of processes and to
management.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Scientific Management
Frederick W. Taylor, believed that even the
most basic, mindless tasks could be planned in
a way that dramatically would increase
productivity.

To scientifically determine the optimal way to

perform a job, Taylor performed experiments
that he called time studies, (also known as time
and motion studies).

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Scientific Management
The main causes of inefficiency according to
Taylor’s theory;
 The lack of standard tools or techniques
 There is no match between skill and job
 No motivation from the management

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Scientific Management
The four (4) Principles of Scientific Management;
1. Replace rule-of-thumb work methods with
methods based on scientific study of the tasks

2. Scientifically select, train, and develop each

worker rather than passively leaving them to train
themselves

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Scientific Management
The four (4) Principles of Scientific Management;
3. Cooperate with the workers to ensure that the
scientifically developed methods are being
followed

4. Divide work nearly equally between managers

and workers, so that the managers apply scientific
management principles to planning the work and
the workers actually perform the tasks

ORGANIZATION AND MANAGEMENT

BUREAUCRATIC MANAGEMENT THEORY

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Bureaucratic Management
 Emphasized the necessity of organizations to
operate in rational way instead of following the
“arbitrary whims” or irrational motions and
intentions of owners and managers.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Bureaucratic Management
Six (6) Principles of Bureaucratic Management Approach

1. Proper Division of Labor

Division of labor specialization should be fixed and there
should be a balance between power and responsibilities.

2. Chain of Command
The chain of command or organizational hierarchy should be
constructed in a way that information related to decision
and works can flow effectively from top to bottom.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Bureaucratic Management
Six (6) Principles of Bureaucratic Management Approach

3. Separation of personal and official property

Owners and organization’s assets are separate and can to
be treated as same by the owner or the organization.

4. Application of Consistent and Complete Rules

There should be proper rules and regulations in the
organization for running the organization.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Bureaucratic Management
Six (6) Principles of Bureaucratic Management Approach

5. Selection and Promotion Based on Qualifications

The selection and promotion of workers should be based on
equalization’s like; skills, experience, age. It should not be
influenced by personal relations and benefits.
6. Training in job requirements and skills
There is a difference between management and other parts
of organization and training and improving skills of
management is important.

ORGANIZATION AND MANAGEMENT

ADMINISTRATIVE MANAGEMENT THEORY

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
Developed at same time as scientific management,
administrative theory "emphasized management
functions and attempted to generate broad
administrative principles that would serve as
guidelines for the rationalization of organizational
activities”.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
While Taylor reorganized from "bottom up",
administrative theorists looked at productivity
improvements from the "top down".

Administrative theorists developed general

guidelines of how to formalize organizational
structures and relationships. They viewed the job as
antecedent to the worker. Primarily these principles
were broad guidelines for decision making.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;

1. Division of Work – When employees are specialized, output

can increase because they become increasingly skilled and
efficient.
2. Authority – Managers must have the authority to give orders,
but they must also keep in mind that with authority comes
responsibility.
3. Discipline – Discipline must be upheld in organizations, but
methods for doing so can vary.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;

4. Unity of Command – Employees should have only one direct

supervisor.
5. Unity of Direction – Teams with the same objective should be
working under the direction of one manager, using one plan.
This will ensure that action is properly coordinated.
6. Subordination of Individual Interests to the General Interest –
The interests of one employee should not be allowed to
become more important than those of the group. This
includes managers.
ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;

7. Remuneration – Employee satisfaction depends on fair

remuneration for everyone. This includes financial and non-
financial compensation.
8. Centralization – This principle refers to how close employees
are to the decision-making process. It is important to aim for
an appropriate balance.
9. Scalar Chain – Employees should be aware of where they
stand in the organization's hierarchy, or chain of command.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;

10. Order – The workplace facilities must be clean, tidy and safe
for employees. Everything should have its place.
11. Equity – Managers should be fair to staff at all times, both
maintaining discipline as necessary and acting with kindness
where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to
minimize employee turnover. Personnel planning should be a
priority.

ORGANIZATION AND MANAGEMENT

THE CLASSICAL APPROACHES TO MANAGEMENT

• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;

13. Initiative – Employees should be given the necessary level of

freedom to create and carry out plans.
14. Esprit de Corps – Organizations should strive to promote team
spirit and unity.

ORGANIZATION AND MANAGEMENT

 THE CLASSICAL APPROACHES TO MANAGEMENT

Scientific Bureaucratic Administrative

Management Management Management

Focuses on the individual Focuses on the overall Focuses on the functions

worker’s productivity organizational system of management

ORGANIZATION AND MANAGEMENT

[ END OF LESSON ]

ORGANIZATION AND MANAGEMENT