Classical Management Theory

The work of Fayol and Weber

Henri FayolIdentified 6 management activities:

– Forecasting– Planning– Organising– Commanding– Co-ordinating– Controlling

6 Managerial activities• Forecasting – predicting what will happen in the future• Planning – devising a course of action to meet expected

demand• Organising – Allocating resources then allocating separate

tasks by department, unit and individual• Commanding – directing or motivating• Co-ordinating – ensuring synergy between activities and

resources• Controlling – monitoring progress

14 Principles of management1. Specialisation/division of

work2. Authority with

responsibility3. Discipline4. Unity of command5. Unity of direction6. Subordination of

individual interests7. Remuneration

8. Centralisation9. Chain/line of authority10. Order11. Equity12. Lifetime jobs for good

workers13. Initiative14. Espirit de Corp

Principles of management

• Division of labour – repetition of the same function brings speed and efficiency

• Authority with responsibility – the right to give orders and the power to exact obedience

• Discipline – obedience, application, behaviour & respect

• Unity of command – an employee should receive orders from only one person

Principles of management

• Unity of direction – having the same direction/objective

• Subordination of individual interests – no conflict between personal ambition and the well being of the organisation as a whole

• Remuneration – a fair days work for a fair days work

• Centralisation – elements of it must be present

Principles of management

• Line of authority - line management

• Order - a place for everyone and everyone in his place

• Equity – employees must be treated equally and fairly

• Stability of tenure – employees need a degree of stability in their job to deliver their best

Principles of management

• Initiative – being allowed to think through a problem and implement a solution

• Espirit de corps – dividing enemy forces to weaken them is clever, but dividing one’s own team is a sin against the business

Similarities with F W Taylor• Taylor (1911) - focus on work methods,

measurement and simplification to gain efficiency

• Fayol (1916) – principles of management and work organisation

• Both identify ‘one best way of working’ developed from experience

Criticisms of Classical Management Theory

• Based on personal knowledge and experience• Proposed a single, standardised organisational model as the

optimum one• Promoted a mechanistic organisation which stressed

discipline, command and order• It neglected conflict management, decision-making and

communication• It underestimated the complexity of organisations• Lack of concern with the interaction between people• Misunderstood how people thought

Max Weber

• German sociologist• Studied – power and

authority• Bureaucracy was the most

efficient form of social organisation

• His work complements that of F W Taylor

Authority

• Traditional - the ruler has a natural right to rule, either God given or by descent

• Charismatic – the ruler has some special, unique virtue

• Legitimate – based on formal, written rules which have the force of law

Bureaucracy

Based on legitimate authority

The clear definition of tasks and responsibilities leads to a permanent administration and standardisation of work procedures

Based on ‘order’ and ‘rationality’

Main characteristics

• Official duties• Division of labour/specialisation• Hierarchy of authority• Uniformity of decisions and actions• Rules and regulations• Impersonal orientation – rational judgments• Employment based on technical qualifications

Strengths of the bureaucracy

• Standardisation• Employee behaviour – controlled and

predictable• Little time is spent on decision making• Routine administration

Criticisms of bureaucracies

• Over-emphasis on rules, procedures, record keeping and paperwork

• Difficulty in adapting to changing circumstances• Position and responsibilities can lead to officious

behaviour• Result in mindless, unquestioning bureaucracy• Can have a dehumanising effect on individuals• Can stifle creativity and innovation

Chris Agyris (1964)

Bureaucracies restrict the psychological growth of the individual and cause feelings of failure, frustration and conflict

Public Sector organisations

• Demand uniformity of treatment, regularity of procedures and accountability for their operations

• Specified rules and regulations limit the degree of discretion exercised by management

• Detailed record keeping• Necessary functions run on a consistent and fair

basis

Summary

• Procedures provide a standard way of dealing with employees, avoiding favouritism and personal bias

• Everyone knows what the rules are and receives equal treatment

• However, there can be frustration in having to follow seemingly illogical rules and experience delays

A final thought……..

Research in 1960 - 1970

The question changed from whether or not an organisation was a bureaucracy, to one that asked to what degree an organisation was ‘bureaucratised’