The Classical Approach

The classical approach to
management was developed in the period between the 1880s to the 1920s. It was
recommended that production can be increased by improving the efficiency of an organization.

The Classical Approach to
management can be studies under three main areas.

1.     Scientific
Management: The scientific management
approach was developed by Frederick
Winslow Taylor (1856-1915). Scientific management is also known as
Taylorism. His contribution in scientific management can be studied under the
following categories

·       
Time and motive study: It is a technique of scientific management that was
developed to define employee productivity standards.  Time and motion study is most appropriate for
repetitive jobs.

·       
Differential piece rate plan: This plan is developed by Taylor on the assumption
that all the workers have different capabilities and must be paid accordingly.
This is based on an assumption that the production system is based on piece
rates.

·       
Supervision:
Taylor suggested that work in an organization must be planned and assigned to
the workers by foreman.

·       
Scientific recruitment and training: Taylor laid emphasis on training workers and
developing their skills so that they can efficiently perform more than one type
of job.

·       
Friendly cooperation between management and workers: Taylor believed that both management and workers have
one common goal. I.e. Increase in production. So working together in harmony to
achieve the common goal.

2.    
Administrative Management: Henri Fayol (1841-1925) promoted the concept of administrative management
which could be             applicable to
both general and higher managerial levels. Fayol presented of management. These
principles are explained as follows

·       
Division of work: Work should be divided among individuals and groups according to their
skills and knowledge.

·       
Authority and responsibility: Authority is a right of an individual to give orders
and instructions and it arises from the position, intelligence, experiences and
skills of a manager. Responsibility is a state of being accountable for the
consequences of the decisions taken by an individual.

·       
Discipline: Discipline
in an organization refers to the obedience to authority. Employees must obey
and respect the governing policies and rules of the organization.

·       
Unity of command: Employees associated with a particular type of work should report to
one superior only.

·       
Unity of direction: It means that there should be one direction in which employees must
move to achieve a particular objective.

·       
Subordination and individual interest to general
interest: Fayol laid emphasis on
aligning individual personal goals to organizational goals.

·       
Remuneration: There
should be provision of fair wages for workers considering various factors such
as business environment, cost of living, capacity of organization to pay and
productivity of employees.

·       
Centralization: The degree of centralization should be decided to make the optimum
utilization of employee’s skills.

·       
Scalar chain: Scalar
chain refers to the hierarchy followed in an organization from top managers to
employees working at lower levels. According to this principle all
communication should pass through proper channels of hierarchy.

·       
Order: Order
is required for the efficient coordination of all the elements in an
organization.

·       
Equity: This
means fair treatment of all employees.

·       
Stability of tenure of personnel: Management must strive to stabilize the tenure of
employees by providing them job security.

·       
Initiative: Management
must provide freedom to employees so that they can carry out orders
effectively.

·       
Esprit de corps: It refers to team spirit. Management must adopt new ways to improve
team spirit among employees.

3.     Bureaucratic
Management: Max Webber (1864-1920) promoted bureaucratic management is the most
appropriate administration.

·       
Management by standard rules: An organization must be governed by a set of rules.
Upper level managers must follow these rules while controlling lower level
workers.

·       
Division of labour: Division of labour results in saving a lot of time consumed during
changing over from one job to another.

·       
Selection of personnel having technical skills: Employees having required technical skills must be
hired in order to perform their jobs efficiently.

·       
Hierarchical organization structure: In order to be successful, an organization must adopt
a hierarchical structure wherein lower level employees must be under the
supervision of higher level managers.

·       
Record of all administrative acts, decisions and rules:
An organization must keep a record of
all its administrative activities including policies, rules and decisions.