Classical Management Theories 3 important classical theories 1

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Classical Management Theories 3 important classical theories 1. Scientific Management 1

Classical Management Theories 3 important classical theories 1. Scientific Management 1

2. Administrative Principles (Henri Fayol) Ø Fayol saw business managers as having 4 main

2. Administrative Principles (Henri Fayol) Ø Fayol saw business managers as having 4 main functions: 1. 2. 3. 4. Planning Organizing Leading Controlling 2

2. Administrative Principles (Henri Fayol) Ø Fayol developed 14 “principles of management”: 1. Specialization

2. Administrative Principles (Henri Fayol) Ø Fayol developed 14 “principles of management”: 1. Specialization of labor. Encourages continuous improvement. Authority. The right to give orders and deserve obedience. Discipline. No slacking, bending of rules. Unity of command. Each employee has only one boss. Unity of direction. A single plan and all play their part in that plan. 2. 3. 4. 5. 3

2. Administrative Principles (Henri Fayol) Subordination of Individual Interests. When at work, only work

2. Administrative Principles (Henri Fayol) Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7. Remuneration. Employees receive fair payment for services. 8. Centralization. Decisions are made from the top. 9. Scalar Chain (line of authority). Formal chain of command running from top to bottom, like military. 10. Order. All materials and personnel have a prescribed place, and they must remain there. 6. 4

2. Administrative Principles (Henri Fayol) 11. Equity. Equality of treatment (but not necessarily identical

2. Administrative Principles (Henri Fayol) 11. Equity. Equality of treatment (but not necessarily identical treatment) 12. Personnel Tenure. Lifetime employment for good workers. 13. Initiative. Thinking out a plan and do what it takes to make it happen. 14. Esprit de corps. Harmony among personnel. 5

2. Administrative Principles (Mary Parker Follet) Groups and human cooperation: n n n Groups:

2. Administrative Principles (Mary Parker Follet) Groups and human cooperation: n n n Groups: mechanisms allowing individuals to combine their talents for a greater good. Organizations: are cooperating “communities” of managers and workers. Manager’s job is to help people in the organization cooperate to maximize achievements. 6

2. Administrative Principles (Mary Parker Follet) Ø Forward-looking management insights: n Making every employee

2. Administrative Principles (Mary Parker Follet) Ø Forward-looking management insights: n Making every employee an owner creates a sense of collective responsibility Example: n Private profits should be considered along with the public good 7

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