Monday, March 15, 2010

CLASSICAL THEORY OF MANAGEMENT

The classical theory includes three theories. Two theories-(a) The Scientific Management and (b) The Administrative Management Theory developed separately but at about the same time period.Another important classical theory is Bureaucratic theory.

(1) The Scientific Management Theory

Frederick Winslow Taylor (F.W.Taylor: 1856-1915) is widely known as Father of Scientific Management. Taylor joined Midvale Steel Company as a worker and later became supervisor there. Afterwards he joined Bethlehem Steel Company. After retirement, he worked as a consultant. At both companies, he experimented to increase the efficiency of men at work and developed a new philosophy known as 'Scientific Management''.

Fundamentally, the scientific management is an attitude and philosophy of discarding the old rule of thumb. It means scientific investigations should be under taken to solve problems of industrial management. Scientific investigations include research and experimentation, collection, and analysis of data and formulation of certain principles on the basis of such analysis.

(2) The Administrative Management Theory

Henry Foyal is considered to be the Father of Administrative Management theory. He focused on the development of broad administrative principles applicable to general and higher managerial levels. He was a French mining engineer and became managing director and successful industrialist. He took the functioning approach to management. In 1916 he published his famous book in French language 'Administration Industrielle Generale''which was translated into English in 1929 under the title 'General and Industrial Management'.

Fayol provided a broad analytical framework of the process of administration. He used the word 'administration' for 'management'. A contemporary of Taylor, Fayol for the first time attempted a systematic analysis of the overall management process.

(3) Bureaucratic Theory

Max Weber (1864-1920) propounded the bureaucratic theory of organization and management. He was a German sociologist and contemporary of Taylor and Fayol. Weber developed the bureaucratic model of organization, which is essentially a universal model of efficient management. Bureaucratic was defined as ideal system wherein positions and tasks were clearly defined, division of labor was precise and clear, objectives were explicit, and a clear chain of command was maintained. Weber viewed bureaucracy as ''the most efficient form or that could be used most effectively for complex organizations business, government, military, for example arising out of the needs of modern, society''.

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