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Classical Management Theory

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The 8 Major Schools of Management Thought You Must Know

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School of Management Thought

1. Scientific Management School

The Scientific Management School advocates for the application of scientific methods and principles in managing an enterprise. It emphasizes that the management of organizations should be approached systematically, employing techniques and tools derived from scientific research to improve efficiency and productivity.

Key Contributor:
Frederick Winslow Taylor (1856-1915), often referred to as the ‘Father of Scientific Management’, was pivotal in establishing this school of thought. Taylor began his career as a worker at the Midvale Steel Company in the USA and later advanced to chief engineer. His practical experiences led him to investigate the root causes of low efficiency in industrial settings. He concluded that inefficiency stemmed largely from a lack of systematic management practices.

Taylor’s Findings:
Through meticulous studies, Taylor identified several critical areas that needed improvement:

  • Work Standards: He noted that managers often lacked a clear understanding of the work capabilities of their employees.
  • Work Division: There was an absence of a clear division of labor between managers and workers.
  • Incentives: Workers were not incentivized sufficiently to perform at their best.
  • Selection and Placement: Employees were often not chosen or assigned to roles based on their skills and potential.

To address these issues, Taylor proposed a scientific approach to management that included:

  • Time studies to establish efficient work methods.
  • Standardization of tools and tasks to eliminate unnecessary movements.
  • Training programs for workers to enhance their skills and productivity.

His major work, “The Principles of Scientific Management,” outlines these concepts and remains a foundational text in management theory. Other notable figures who expanded upon Taylor’s work include H. S. Person, Henry L. Gantt, and Lillian Gilbreth.

2. Management Process School

The Management Process School posits that management is fundamentally a process of getting things done through people operating in organized groups. This school seeks to analyze the management process by delineating its core functions, which include planning, organizing, directing, coordinating, and controlling.

Key Contributor:
Henry Fayol is recognized as the ‘Founder of the Management Process School.’ He asserted that management is a universal function applicable to all types of enterprises, be they business-related or otherwise. Fayol’s contribution includes the identification of 14 Principles of Management, which serve as guidelines for effective managerial practice.

Additional Contributors:
Other influential figures in this school include:

  • J. D. Mooney
  • A. C. Reiley
  • Lyndall Urwick
  • Harold Koontz
  • O’Donnell and Newman
  • Luther Gullick
  • George Terry

These theorists emphasized that understanding the management process is essential for developing effective organizational strategies and improving overall efficiency.

3. Human Relations School

In contrast to the Scientific Management School, which prioritizes technical efficiency, the Human Relations School emphasizes the significance of human resources in management. This approach focuses on the relationships between management and employees, highlighting the need for managers to recognize and address the human aspects of work.

Core Ideas:

  • The effectiveness of an organization is heavily influenced by the morale, needs, and social dynamics of its workforce.
  • Managers must treat employees as valuable individuals and consider their aspirations and motivations.

Key Contributor:
Elton Mayo conducted the famous Hawthorne Experiments in the 1920s, which illustrated that social factors, rather than just physical work conditions, significantly impact worker productivity. His findings challenged the prevailing notion that work efficiency was solely determined by environmental factors, emphasizing the need for good interpersonal relationships in the workplace.

Other Notable Figures:

  • Roethlis Berger
  • William J. Dickson
  • Mary Parker Follet
  • A. F. Maslow

Maslow’s Hierarchy of Needs further supports the Human Relations School by suggesting that individuals have various levels of needs, from basic physiological requirements to self-actualization, and fulfilling these needs can lead to improved employee motivation and performance.

4. Human Behavioral School

The Human Behavioral School builds upon the insights from psychology and sociology to understand organizational behavior. This approach examines how individual actions and group dynamics influence workplace interactions and overall management effectiveness.

Key Concepts:

  • The emotional and psychological dimensions of employees are critical for successful management.
  • Managers must recognize and address the mental reactions of employees, such as their feelings, hopes, and desires.

Key Contributor:
Mary Parker Follet is a notable figure in this school, advocating for collaborative management and the integration of worker feedback into decision-making processes. She argued that effective management requires understanding the social dynamics within an organization.

Additional Contributors:

  • A. F. Maslow (also recognized for his contributions to the Human Relations School)
  • F. H. Herzberg, known for the Two-Factor Theory, which differentiates between hygiene factors and motivators.
  • Douglas McGregor, who developed Theory X and Theory Y, which explores management styles and employee motivation.

5. System Approach School

The System Approach School views management as a cohesive system that integrates various interrelated components working towards common goals. This perspective emphasizes the importance of recognizing how different elements within an organization influence one another.

Key Concepts:

  • Management should be seen as a system that coordinates various factors such as personnel, machinery, money, and materials.
  • The effectiveness of management practices depends on understanding the interdependencies among these factors.

Key Contributors:
Pioneers of this approach include:

  • Kenneth Boulding
  • F. E. Kast
  • J. E. Rosenzweig
  • Katz and Kahn

These theorists highlight that neglecting the relationships between different organizational components can hinder overall performance and success.

6. Decision Theory School

At the core of management is decision-making. The Decision Theory School emphasizes the significance of making informed and rational choices among available alternatives. This school focuses on understanding the decision-making process as a critical managerial function.

Key Concepts:

  • Effective management hinges on the ability to analyze options and make sound decisions.
  • The decision-making process should be structured and rational, taking into account various factors and potential outcomes.

Key Contributors:
Prominent figures in this school include:

  • Herbert Simon, who introduced the concept of bounded rationality, suggesting that individuals are limited in their ability to process information and must often rely on heuristics.
  • Stephen Robins
  • Chester Barnard

These contributors advocate for studying decision-making procedures to improve managerial effectiveness.

7. Mathematical or Quantitative School

The Mathematical or Quantitative School approaches management through mathematical models and quantitative techniques. Proponents of this school believe that complex management problems can be effectively addressed by applying mathematical reasoning and statistical analysis.

Key Concepts:

  • Management processes can be quantified, allowing for objective analysis and optimization.
  • Techniques such as operations research, linear programming, and simulation models are employed to inform decision-making.

Key Contributors:
Notable figures in this school include:

  • L. Ackoff
  • C. W. Churchman
  • Newman
  • Hicks
  • Joel Dean

By leveraging quantitative methods, managers can gain insights into performance metrics and improve operational efficiency.

8. Contingency Approach School of Management

The Contingency Approach posits that management is inherently situational and adaptable. This perspective rejects the notion of one-size-fits-all management principles, emphasizing the need to tailor strategies based on specific circumstances and variables.

Key Concepts:

  • Effective management requires flexibility and responsiveness to changing environments.
  • Identifying situational variables allows managers to implement the most appropriate actions based on context.

Key Contributors:
Prominent advocates of this approach include:

  • Lorsch and Lawrence
  • John Woodward
  • Fiedler
  • H. M. Carlisle

These theorists highlight that management practices must be responsive to both external and internal factors, ensuring that strategies align with the unique challenges faced by the organization.

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F.W. Taylor’s Scientific Management Theory Notes | BBA 1st Sem | Lucknow University | LUNotes

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Introduction to Taylor and His Work

Frederick Winslow Taylor (1856-1915) initiated his career as a machinist in 1875 at Midvale Steelworks in Philadelphia, USA. He pursued engineering studies in evening college, gradually rising to the position of Chief Engineer. Taylor is best known for his pioneering contributions to management practices through the concept of Scientific Management, which he developed and popularized. This philosophy is often referred to as “Taylorism,” representing a systematic approach to improving efficiency in industrial operations. His influential works are compiled in the book titled “Scientific Management,” which emphasizes the importance of applying scientific principles to management.

Taylor’s Main Observation:
Throughout his career, Taylor observed that there was excessive inefficiency in the management and functioning of industrial enterprises. He believed the primary blame for this inefficiency lay with management, which often lacked awareness of what constituted a fair day’s task and the best methods for accomplishing tasks. In response to this issue, Taylor introduced his concept of scientific management, which involves applying a scientific approach to managerial decision-making. This approach includes the collection of data, analysis of that data, and making decisions based on the outcomes of such analyses while discarding unscientific methods such as rule of thumb, trial and error, and hit-or-miss approaches.

Taylor defined scientific management as follows:

“Scientific Management consists in knowing what you (i.e., management) want men to do exactly; and seeing to it that they do it in the best and the cheapest manner.”

Principles of Scientific Management:
The fundamental principles that support the concept and practice of scientific management include the following:

  1. Science, Not the Rule of Thumb: Decisions should be based on scientific data rather than arbitrary methods.
  2. Harmony, Not Discord: Encourage cooperation among all workers to foster a more productive work environment.
  3. Cooperation, Not Individualism: Promote teamwork rather than isolated efforts to achieve common goals.
  4. Maximum Production: Focus on maximizing output rather than restricting it.
  5. Development of Each Person to Their Greatest Capabilities: Invest in the growth of each worker to harness their full potential.
  6. A More Equal Division of Responsibility Between Management and Workers: Balance responsibilities to enhance accountability and engagement.
  7. Mental Revolution on the Part of Management and Workers: Foster a change in mindset among both management and employees towards collaboration and efficiency.

These principles underpin a systematic approach to work, emphasizing productivity through scientific methods.

Functional Foremanship:
One of Taylor’s significant contributions to management theory is the concept of functional foremanship. This approach introduces specialization at the management level, suggesting that instead of a single foreman overseeing all aspects of production, there should be multiple foremen, each responsible for a specific area. Taylor identified eight distinct roles for foremen to enhance efficiency and accountability within the workforce:

  1. Route Clerk: Responsible for laying out the journey of raw materials from the initial stage to the final product, mapping the processes and machines involved.
  2. Instructions Card Clerk: Determines the detailed instructions required for completing jobs and prepares cards containing those instructions.
  3. Time and Cost Clerk: Records the time taken by workers to complete tasks and compiles the associated costs, providing critical data for efficiency analysis.
  4. Shop Disciplinarian: Maintains discipline within the workshop, addressing issues of absenteeism, misconduct, and other forms of indiscipline.
  5. Gang Boss: Acts as the supervisor who ensures that all necessary work facilities are available to workers and that they start their tasks according to the provided instructions.
  6. Speed Boss: Establishes the optimal operational speed for machines to prevent both over-speeding and under-speeding, ensuring efficiency while maintaining quality and safety.
  7. Repair Boss: Oversees maintenance and repairs of machines, ensuring that equipment is always in good working condition.
  8. Inspector: Responsible for maintaining quality control in production, ensuring that the final products meet established standards.

Outline Structure of Taylor’s Scientific Management:
Though Taylor’s work is comprehensive, the major aspects can be summarized into the following outline structure:

  1. Determination of a Fair Day’s Task: Establish scientifically informed standards for the amount of work a worker should accomplish in a day.
  2. Scientific Selection and Training of Workers: Implement rigorous hiring and training processes to ensure workers are well-equipped for their tasks.
  3. Standardization of Raw Materials, Tools, and Working Conditions: Ensure uniform quality in materials and consistency in working conditions to facilitate efficient production.
  4. Functional Foremanship: Apply specialized management roles to enhance productivity and ensure focused oversight of tasks.
  5. Differential Piece-Rate System of Wage Payment: Implement a compensation system based on performance to incentivize higher productivity among workers.

Scientific Work Studies:
To determine a fair day’s task, Taylor recommended conducting three types of work studies:

  1. Time Study: Analyzing the time taken for specific tasks to set realistic performance benchmarks.
  2. Motion Study: Examining the motions involved in tasks to eliminate unnecessary movements, thus enhancing efficiency.
  3. Fatigue Study: Assessing the limits of workers to establish reasonable work durations that prevent burnout and maintain productivity.

Key Points in Context:

  • An average or representative worker should be selected for conducting work studies to ensure the standards set are neither too high nor too low.
  • The three work studies (time, motion, and fatigue) should be considered collectively to arrive at a fair day’s task.

Scientific Selection and Training of Workers:
This aspect emphasizes that workers should be carefully selected based on a defined selection procedure. Moreover, once selected, workers must be trained in the most effective methods of performing their jobs to optimize productivity.

Standardization of Raw Materials, Tools, and Working Conditions:
Taylor emphasized two types of standardization:

  1. Quality Standardization: Ensuring that raw materials, tools, machines, and other work facilities are of good quality to maintain production standards.
  2. Uniformity of Work Conditions: Providing consistent working conditions and facilities to all workers performing similar tasks.

Conclusion:
Taylor’s scientific management approach revolutionized industrial practices by promoting efficiency through systematic methodologies. His emphasis on scientific principles and specialized management roles laid the foundation for modern organizational practices, influencing the way management is approached today. Through his insights, Taylor sought to harmonize the interests of workers, managers, and owners, advocating for a more effective and equitable workplace.

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