Businwss scaffold Q1

CLASSICAL APPROACH TO MANAGEMENT

  • it derives from the work of three men of different countries: American Taylor, the Frenchman Fayol, and the German Weber - working in the 19th and 20th centuries - with various theories occurring early in the 20th century. 

  • there are three distinct streams of work which taken together are the classical approach. 

  • Those three streams, which are actually thoughts directed to the role of different levels of management within the business are:

                                 • classical scientific (Taylor)

                                 • classical administrative (Fayol)

                                 • classical bureaucratic (Weber).

Classical scientific (Taylor)

Classical Scientific Management Approach (Frederick Taylor)

Overview:

  • Developed by Frederick Winslow Taylor in the early 1900s during the Industrial Revolution.


  • Focuses on efficiency, productivity, and standardisation in the workplace.


  • Based on the belief that there is one best way to perform every job.


  • Aims to increase business output by scientifically studying each task and managing workers accordingly.


  • Workers are seen as parts of a machine, and their motivation is assumed to be monetary.

    Key Principles of Taylor’s Scientific Management:

    Scientific Study of Tasks

    • Each job is analysed using time and motion studies to determine the most efficient way to complete it.


    • Replaces traditional “rule-of-thumb” or intuitive work methods with data-driven decisions.


    • Tasks are simplified and standardised for uniformity.


    • Example: Taylor studied shovel use in steelworks and reduced the number of types of shovels to just a few optimal sizes for efficiency.


    Division of Labour and Specialisation

    • Jobs are broken down into small, precise components.


    • Workers are assigned to specific tasks, increasing speed and reducing errors.


    • This leads to high productivity but can cause monotony and lack of skill development.


    Scientific Selection and Training of Workers

    • Workers are carefully selected based on their suitability for specific tasks.


    • Provided with intensive training to ensure they can carry out tasks the “scientific” way.


    • Emphasis on matching the right person to the right job.


    Standardisation of Tools, Procedures, and Conditions

    • All work processes are standardised to ensure consistency across all employees.


    • Includes standard equipment, materials, and working conditions.


    • This reduces waste, lowers costs, and ensures quality.


    Strict Supervision and Control

    • Managers closely monitor employee performance to ensure procedures are followed exactly.


    • Workers have little autonomy or involvement in decision-making.


    • Management uses incentives, often financial, to maintain performance.





    Role of Management (Under Taylor’s Theory):

    • Plan, organise, and control – management handles all decision-making.


    • Separate the role of management from the role of workers.


    • Focus is on maximum efficiency, not worker satisfaction.


    • Managers are responsible for setting procedures and monitoring output.





    Role of Workers:

    • Expected to follow instructions exactly with no deviation from prescribed methods.


    • Workers do not contribute to decision-making or problem-solving.


    • Their role is to be productive and efficient using the techniques assigned by management.


    • Motivated mainly by monetary rewards (e.g. piece-rate pay system – paid per unit produced).





    Advantages:

    • Improved productivity due to efficient systems and reduced time wastage.


    • Predictable output – tasks are standardised and streamlined.


    • Easier to train new workers because jobs require minimal skill and are repetitive.


    • Clear roles and responsibilities reduce confusion in the workplace.


    • Suits large-scale, production-based industries like manufacturing.





    Disadvantages:

    • Can lead to low worker morale and job dissatisfaction due to repetitive, monotonous work.


    • Workers may feel alienated and unvalued, decreasing motivation in the long run.


    • Lack of innovation and creativity as workers are not encouraged to think independently.


    • High turnover rates may result from a lack of personal or professional growth.


    • May not be suitable for modern, team-based or service-oriented industries which rely on customer interaction and adaptability.


    • Focuses on output over human well-being – not ideal for companies that value a people-oriented culture.


     Henri Fayol – Administrative Management Theory

    Background

    • Henri Fayol (1841–1925) was a French mining engineer, executive, and management theorist.


    • Unlike Frederick Taylor who focused on task-level efficiency, Fayol focused on the overall structure and functioning of management.


    • Fayol is considered one of the founding fathers of modern management theory.


    • He introduced a top-down approach to management—how senior managers should organise and lead an organisation.





    Fayol’s Five Functions of Management

    These are universal functions that Fayol believed every manager should carry out:

    1. Planning


      • Defining the goals and direction of the organisation.


      • Creating action plans and forecasting future trends or challenges.


      • Establishes a roadmap for how the business will operate and succeed.


      • Involves considering resources, timelines, and market conditions.


    2. Organising


      • Arranging people and resources (e.g., equipment, capital) in the right place at the right time.


      • Allocating work and authority based on specialisation and competence.


      • Ensures a clear structure and division of responsibilities across departments.


    3. Commanding (Leading)


      • Instructing and motivating employees to carry out their tasks effectively.


      • Providing clear communication, leadership, supervision, and direction.


      • Encourages discipline, respect, and coordination among employees.


      • Promotes motivation through rewards and a sense of purpose.


    4. Coordinating


      • Ensuring all activities and efforts across the business are aligned and harmonised.


      • Encouraging collaboration between departments (e.g., marketing and operations).


      • Aims to prevent duplication, confusion, or conflict between teams.


      • Promotes synergy: the whole is greater than the sum of its parts.


    5. Controlling


      • Monitoring performance and outcomes to ensure goals are met.


      • Involves setting standards, measuring actual results, and correcting any deviations.


      • Allows managers to identify underperformance and make data-informed adjustments.


      • Ensures continuous improvement and accountability.





    Fayol’s 14 Principles of Management

    1. Division of Work


      • Specialisation allows individuals to become more efficient and skilled.


      • Encourages higher productivity and quality through repetition and focus.


    2. Authority and Responsibility


      • Managers must have the right to give orders and expect obedience.


      • With authority comes responsibility—managers must be held accountable for results.


    3. Discipline


      • Employees must respect rules and agreements.


      • Requires good leadership, clear communication, and fair penalties.


    4. Unity of Command


      • Each employee should report to one and only one manager.


      • Prevents confusion, conflict, and dual authority.


    5. Unity of Direction


      • Teams with the same objectives should be directed by one plan under one leader.


      • Encourages coordinated efforts toward common goals.


    6. Subordination of Individual Interest to General Interest


      • The goals of the business must take priority over personal or individual agendas.


      • Encourages loyalty, discipline, and alignment with the company’s mission.


    7. Remuneration


      • Workers should be fairly compensated for their work.


      • Pay should reflect both financial and non-financial rewards (e.g., bonuses, recognition).


    8. Centralisation


      • Decision-making should be concentrated at the top of the hierarchy, but must be balanced.


      • The right level of centralisation or decentralisation depends on the organisation’s needs.


    9. Scalar Chain (Chain of Command)


      • Clear line of authority from the top (CEO) to the lowest level of the hierarchy.


      • Communication should flow through this chain, though “gangplanks” may be used to improve speed in urgent matters.


    10. Order


    • Everything and everyone should be in the right place.


    • Encourages efficiency through proper organisation of resources and people.


    1. Equity


    • Managers should treat employees with kindness and fairness.


    • Promotes trust and loyalty within the organisation.


    1. Stability of Tenure of Personnel


    • High employee turnover reduces efficiency.


    • Staff should be given time to settle into roles and develop loyalty.


    1. Initiative


    • Employees should be encouraged to take initiative and contribute ideas.


    • Builds motivation and a sense of ownership in their work.


    1. Esprit de Corps (Team Spirit)


    • Promote team unity and harmony.


    • Encourages collaboration, boosts morale, and reduces conflict.





    Advantages of Fayol’s Theory

    • Provides a comprehensive framework for effective management.


    • Encourages discipline, accountability, and consistency across the organisation.


    • Highlights the importance of structure and clear communication.


    • Still widely used in modern management practice.


    • Useful in large organisations with a hierarchical structure.


    • Promotes long-term planning and stability.




    Limitations of Fayol’s Theory


    • Assumes a top-down, rigid hierarchy that may not suit today’s flexible workplaces.


    • Does not fully address informal structures, team dynamics, or creativity.


    • Less effective in innovative or fast-changing industries.


    • Can be overly bureaucratic and resistant to change.


    • Focuses more on the role of managers than on empowering employees.



    Max Weber – Bureaucratic Management Theory

    Background

    • Max Weber (1864–1920) was a German sociologist and political economist.


    • Developed the Bureaucratic Management Theory as a response to the inefficiencies and favouritism in 19th-century organisations.


    • Believed that organisations should be run like a bureaucracy – a system based on rational-legal authority, formal rules, and clearly defined roles.


    • Aimed to create fairness, consistency, and efficiency in large organisations.




    Key Features of Weber’s Bureaucratic Management Approach


    1. Clear Hierarchy of Authority

    • A well-defined chain of command where authority flows from the top down.


    • Each level controls the level below and is accountable to the one above.


    • Employees know who to report to and who gives instructions.


    2. Division of Labour

    • Jobs are divided into clearly defined, specialised tasks.


    • Each employee focuses on a specific role based on expertise.


    • Leads to efficiency, consistency, and predictable performance.


    3. Formal Rules and Procedures

    • All organisational activities are governed by a set of written rules, policies, and procedures.


    • Ensures that tasks are performed uniformly and fairly.


    • Reduces bias, subjectivity, and personal discretion in decision-making.


    4. Impersonality

    • Decisions are made objectively without personal feelings, favouritism, or nepotism.


    • Promotes fairness and equal treatment of all employees.


    • Employees are treated as part of the system, not based on personal relationships.


    5. Employment Based on Technical Qualifications

    • Recruitment and promotion are based on merit, qualifications, and performance, not personal connections.


    • Ensures the most competent individuals fill roles.


    • Encourages professionalism and accountability.


    6. Career Orientation

    • Employees view their work as a long-term career.


    • Opportunities for promotion and advancement are based on experience, skills, and performance.


    • Encourages loyalty, stability, and internal development of staff.





    Advantages of Weber’s Bureaucratic Management

    • Consistency and fairness – everyone is subject to the same rules.


    • Ensures clear responsibilities and structured roles.


    • Promotes efficiency and predictable outcomes.


    • Reduces the risk of favouritism or corruption.


    • Effective in large organisations with complex operations (e.g., government agencies, large corporations).


    • Creates a stable, professional environment with clear processes.




    Disadvantages of Bureaucratic Management


    • Can lead to rigidity and inflexibility – slow to adapt to change.


    • Excessive paperwork and red tape can reduce innovation and efficiency.


    • Employees may feel like just a number – no room for personal expression or creativity.


    • Limited employee involvement or input – top-down decision-making only.


    • May reduce morale and job satisfaction in dynamic or creative industries.


    • Often slow decision-making due to layers of approval and formal procedures.



    The Classical Approach to Management – Key Elements and Relationships

    Frederick W. Taylor – Scientific Management

    • Focused on improving worker productivity through scientific methods.


    • Aimed to find the “one best way” to perform tasks for maximum efficiency.


    • Believed managers should closely supervise workers and plan all aspects of their tasks.


    • Emphasised time-and-motion studies and standardised work procedures.


    • Saw workers as units of production – motivated primarily by financial rewards.


    • Management was responsible for selecting, training, and closely monitoring workers.


    • Goal: increase output and reduce waste by improving how tasks are done.


    Henri Fayol – Administrative Management

    • Focused on the broader role of managers across all levels of the organisation.


    • Introduced the functions of management: planning, organising, commanding, coordinating, controlling.


    • Developed 14 principles of management, e.g. unity of command, division of work, equity, scalar chain.


    • Believed management was a universal process and could be systematically taught.


    • Emphasised structure, coordination, and hierarchy.


    • Saw effective management as key to business success, not just worker productivity.


    Max Weber – Bureaucratic Management

    • Focused on rational authority and a structured, rule-based organisation.


    • Advocated for a formal hierarchy, division of labour, and clear rules and procedures.


    • Believed businesses should be governed by impersonal, merit-based systems, not favoritism or tradition.


    • Emphasised technical qualifications and formal selection for roles.


    • Viewed bureaucracy as the most efficient and fair form of organisation.


    • Ensured decisions were made with consistency, predictability, and objectivity.





    Common Element: Leadership Style

    • All three theorists supported an autocratic leadership style:


      • Managers make all decisions.


      • Employees have little or no input in decision-making.


      • Authority is centralised in the manager’s role.


      • Reflects the belief that order, discipline, and control are essential for productivity and efficiency.