CHAPTER-2 CLASSICAL MANAGEMENT THEORY(Business Studies)

 

CHAPTER-2

CLASSICAL MANAGEMENT THEORY

Scientific Management Theory(Taylors scientific management theory)

Scientific Management is a theory developed by Frederick Winslow Taylor (F.W Taylor), often referred to as the “Father of Scientific Management.” It focuses on using scientific methods to analyze work and find the most efficient ways of performing tasks. Taylor believed that management should be based on precise scientific principles rather than rule-of-thumb methods. The main aim of Scientific Management is to improve productivity, efficiency, and harmony in the workplace for the benefit of both employers and employees.

Taylor introduced several principles to guide managers in applying scientific techniques to management. These principles are:

 

Principle of Scientific Management Theory

1. Science, Not Rule of Thumb

Instead of relying on traditional methods, personal judgment, or guesswork, work should be performed based on scientific study and analysis. Taylor suggested studying every task scientifically to determine the best way to perform it. This ensures efficiency, standardization, and better results.

 

2. Harmony, Not Discord

Taylor emphasized maintaining harmonious relations between management and workers. There should be no conflicts or distrust. Both sides should understand each other’s interests and work together as a team. Harmony leads to better morale and higher productivity.

 

3. Cooperation, Not Individualism

There should be active cooperation between managers and workers rather than working in isolation or pursuing individual interests. Management must encourage teamwork and support workers to achieve organizational goals. Cooperation reduces misunderstandings and promotes smooth operations.

 

4. Development of Efficiency and Prosperity

Scientific Management aims to enhance the skills and capabilities of workers through proper training and scientific selection. Efficient work methods increase productivity, which leads to greater prosperity for both employers and employees, ensuring mutual benefits.

 

5. Maximum Output in Place of Restricted Output

Taylor was against the practice of deliberately restricting output due to fear of job cuts or overwork. He advocated that maximum production should be encouraged through scientific methods, proper work allocation, and incentive systems. This leads to better wages for workers and higher profits for the organization.

 

6. Equal Division of Responsibility between Management and Workers

Work should be divided between managers and workers according to their skills and capabilities. Managers are responsible for planning, organizing, and supervising work scientifically, while workers focus on executing the tasks efficiently. This equal sharing of responsibility improves efficiency and reduces workload stress.

 

7. Mental Revolution of Both Management and Workers

Taylor proposed a “mental revolution,” meaning a complete change in the attitude of both managers and workers. Managers should stop thinking of workers as mere tools for profit, and workers should avoid viewing managers as exploiters. Both should see themselves as partners working for mutual benefits, leading to trust, cooperation, and higher productivity.

 

Conclusion

Scientific Management introduced a systematic and scientific approach to managing work and workers. It replaced traditional practices with scientific techniques, leading to higher efficiency, reduced costs, and increased prosperity for both employers and employees. Taylor’s principles laid the foundation for modern management practices and continue to influence management thought today.

 

Limitations of Scientific Management

While Scientific Management, developed by F.W. Taylor, brought many benefits to industrial productivity, it also has several important limitations. These drawbacks are described below:

 

1. No Focus on Group Work

Scientific Management focuses mainly on individual performance rather than teamwork. It ignores the importance of group efforts, cooperation among employees, and team spirit, which are essential for organizational success.

 

2. Focus of Mechanistic Approach

Taylor’s principles treat workers like machines rather than human beings with emotions and social needs. The emphasis is on standardization, speed, and efficiency, which makes the approach mechanical and rigid.

 

3. Ignores Human Relation Approach

Scientific Management does not consider workers’ social and psychological needs. It ignores factors like motivation, job satisfaction, communication, and good relations between workers and management, which are crucial for long-term success.

 

4. Lack of Initiation

Workers have to follow the instructions and methods set by management. They have little or no chance to show creativity, suggest improvements, or take initiatives. This reduces employees’ interest and involvement in their work.

 

5. More Work Load

Scientific Management often leads to increased workloads and work pressure. Since the main aim is to increase productivity, workers are pushed to work faster, which can cause fatigue, stress, and physical or mental exhaustion.

 

6. Employees Feel Monotony

Because tasks are divided into small, repetitive steps and workers perform the same job daily, work becomes monotonous and boring. This reduces job satisfaction and can lead to frustration among employees.

 

Conclusion

Although Scientific Management improved industrial efficiency, it neglects important human aspects of management. Workers are treated like machines, leading to dissatisfaction and lack of motivation. Therefore, modern management tries to balance scientific techniques with human relations for better results.

 

 

Principles of Administrative Management Theory(Fourteen principle) 

Henry Fayol, a famous French management expert, is known as the Father of Administrative Management. He believed that management is a skill that can be learned, and managers should follow some basic rules to run organizations properly. He gave 14 Principles of Management which act as guidelines for managers. These principles help managers plan, organize, lead, and control work efficiently. They are explained below:

 

1. Division of Work

Fayol said work should be divided into small parts, and each person should do the job they are best at. This makes work faster, better, and increases skills and efficiency.

 

2. Authority and Responsibility

Managers must have the right to give orders (authority), but they should also be responsible for getting the work done properly. Both authority and responsibility should go together.

 

3. Discipline

Everyone in the organization should follow rules and maintain good behavior. Discipline is important for smooth working and respect between workers and managers.

 

4. Unity of Command

An employee should receive orders from only one boss. If a worker has more than one boss, there will be confusion and conflicts.

 

5. Unity of Direction

All activities that have the same goal should be controlled by one manager under one plan. This helps avoid confusion and keeps everyone focused.

 

6. Subordination of Individual Interest to General Interest

The interests of the organization should come before the personal interests of any worker. Everyone should work for the common good of the organization.

 

7. Remuneration

Workers should be paid fair wages so they stay happy, motivated, and loyal to the organization.

 

8. Centralization and Decentralization

Centralization means the top managers make all decisions, while decentralization means lower-level managers also take decisions. Fayol said there should be a balance depending on the situation.

 

9. Scalar Chain

This is the clear line of authority from the top manager to the lowest employee. Communication should normally follow this chain. However, in emergencies, people at the same level can talk directly if allowed, which Fayol called a “gang plank.”

 

10. Order

Everything and everyone should be in their proper place. Right placement of people and materials saves time and increases efficiency.

 

11. Equity

Managers should be fair and kind to employees. Equal and fair treatment builds trust and loyalty.

 

12. Stability of Tenure

Frequent changes in jobs are not good for an organization. Employees should be given job security so they can gain experience and work confidently.

 

13. Initiative

Managers should encourage workers to think of new ideas and take actions on their own. This increases creativity, interest, and energy in work.

 

14. Esprit de Corps

Managers should develop team spirit and unity among workers. Good relationships and cooperation help achieve goals faster and create a happy work environment.

 

Importance of Fayol’s Principles

Fayol’s 14 principles are very important because they help managers handle their work in a systematic way. These principles are useful in all types of organizations—business or non-business. They help managers solve problems, maintain discipline, motivate workers, and achieve goals effectively. Even today, many organizations follow Fayol’s principles because they provide a strong foundation for good management practices. His principles make management easier, clearer, and more successful.

 

In conclusion, Henri Fayol’s 14 Principles of Management are practical rules that guide managers in planning, organizing, leading, and controlling work. They help organizations run smoothly and achieve their goals efficiently, making them highly important in the field of management.

 

 

Limitations of Administrative Management Theory

Although Henry Fayol’s Administrative Theory is very useful, it also has some limitations, which are explained below:

 

1. Too General

Fayol’s principles are very broad and general. They do not give specific solutions for different types of business problems or situations.

 

2. Rigid Principles

Some principles are very strict and may not fit well in modern, changing business environments. For example, the principle of unity of command is sometimes difficult to apply in big organizations where employees may work under multiple managers in different projects.

 

3. Not Suitable for Small Businesses

Fayol’s theory mainly focuses on large organizations. Small businesses might not find all principles practical or necessary.

 

4. Ignores Human Relations

Fayol’s theory focuses more on structure, rules, and formal authority but pays less attention to human emotions, relationships, and worker satisfaction, which are very important in modern management.

 

5. Lack of Scientific Basis

Some of Fayol’s principles are based on his personal experiences rather than scientific research, so they may not work in all situations.

 

6. Overlapping of Principles

Some principles overlap and are similar in meaning, which can cause confusion in understanding and applying them.

 

In short, although Fayol’s Administrative Theory is very important and useful, it also has some limitations because it is too general, sometimes rigid, and does not fully consider human relations and modern business needs.