Classical Management Theories 4 important classical theories 1

Classical Management Theories 4 important classical theories 1. Scientific Management 1

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

2. Administrative Principles (Henri Fayol) Ø Fayol developed 14 Principles of Management: 1. 2. 3. 4. 5. Specialization of labor. Authority. Managers give orders and deserve obedience. Discipline. No slacking, bending of rules. Unity of command. Only one boss each. Unity of direction. One company plan. 3

2. Administrative Principles (Henri Fayol) Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7. Remuneration. Fair payment for work. 8. Centralization. Decisions made from the top. 9. Scalar 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 treatment) 12. Personnel Tenure. Lifetime employment for good workers. 13. Initiative. Managers must “make it happen. ” 14. Esprit de corps. Harmony among personnel. 5