CLASSICAL THEORY

OF
MANAGEMENT
By- Sweety Gupta
 Classical Management Theory

Henry Fayol Theory

Taylor theory (Scientific

management Theory)
Fayols Principles
Of
Management
 Henry Fayol Theory

Made clear distinction between technical and

managerial work.

Identified the main steps in the process of

management (planning, Organizing, Staffing,
Directing and Controlling).

Developed fourteen principles of management which

act as a guidelines for managers for managerial
work.
 Principles Of Management
Principles

Division of work
Authority and Responsibility
Discipline
Unity Of command
Unity of direction
Remuneration of persons
Centralization and
Decentralization
Scalar chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit De Corps
 Principle Of Division Of Work

Whole work must be divided into small tasks or units

of work.
Technical, Managerial and Skilled jobs should also
be divided into small segments.
Increases the specialization of an employee.
Improves efficiency of employees by performing only
one part of the job.
 Principle Of Authority And
Responsibility
Authority means power to take decision

Responsibility means obligation to complete the

assign job on time

When some responsibility is given to a person, the

matching authority should also be given.

Excess authority may lead to negative results.

 Priciple Of Discipline

Discipline refers to general rules and regulations of

an organization.
It also mean developing commitment in the
employees towards organization and towards each
other.
Discipline is required at every level of organization,
not only at a subordinate level.
 Principle Of Unity Of Command

Employee should take order from only one boss.

No confusion in the mind of a subordinate.

No ego clashes.

Improves effectiveness in working

 Principle Of Unity Of Direction

One unit one plan.

Everyone should work in harmony to achieving

common goal of the organisation.

No wastage of resources and efforts of employees

 Subordination Of Individual Interest To
General Interest
Interest of the organization must supersede the
interest of individuals

All employees should work towards the interest of an

organization

Employees should know that their growth depends

upon the companys growth.
Principle Of Remuneration Of Persons

Employees must be paid fairly and adequately to

give them maximum satisfaction

Remuneration must be just and fair.

Employees get motivated.

Devotion and commitment of employee improve.

 Principle Of Centralization And
Decentralization
Centralization means concentration on authority and
power with top level.
Decentralization means evenly distribution of power
at every level
There must be a combination of both in an
organization
Fast decision at operational level and strict control
by top level.
 Principle Of Scalar Chain

Scalar chain means Line Of authority from highest

to lowest rank.

Everyone in the organisation must follow the rules

of scalar chain.

But in case of emergency, a short cut can be taken,

known as Gang-Plank.
 Principle Of Order

Orderly arrangement of men and material, i.e., a

fixed place for everything and everyone in an
organization.
No wastage of time in search of men and material.
Smooth and systematic working of organization.
 Principle Of Equity

Fair and just treatment to employees.

No bias in dealing with employees

Gives maximum satisfaction to employees.

Motivate employees and boost up the moral of

employees.
 Principle Of Initiative

Employees must get an opportunity to take some

initiative in making and executing plans.
Gives immense satisfaction among employees.
Managers must welcome the suggestions and ideas
of employees before making a plan.
Develops feeling of belongingness in employees.
 Principle Of Esprit De Corps

Means union is strength.

Develop Team spirit

Every employee must work as a part of team

Managers must develop a feeling of belongingness

among employees
 Stability Of Tenure Of Personnel

No frequent Termination or Transfer

Must provide job security among employees.

No wastage of time and resourses.

Frequent turnover of employees is bad for

organization.
 Taylors Theory

Taylor theory was introduced in 1911

He introduced scientific management principles

replacing the rule of thumb

He simply applied scientific tools and methods to

solve management problems
 SCIENTIFIC TECHNIQUES

Techniques

Functional foremanship
Standardization and simplification of work
Fatigue study
Method study
Time study
Motion study
Differential Piece wage system
Mental Revolution
 Scientific
Techniques
of
Taylor
 Functional Foremanship

He advocated that specialisation must be introduced

in a factory.

Division of factory in two department: Planning

department and Production department

Experts in every department to guide the workers

 Standardization And Simplification Of
Work
Standardization means maintaining standard among
size, type, weight, measure and quality of the
product.

Simplification means eliminating unnecessary

diversity of product, size and types.
 Advantages of STANDARDISATION
It is economical to have standardised material, tools
and equipments.
Operators can be trained easily.
Helps in achieving economies of large scale
production.
Reduce cost of production.
 Fatigue Study

Fatigue is generally caused by long working hours.

It emphasis on:
The Frequency of rest intervals
The duration of rest intervals
The no. of rest intervals

This study aims at providing proper rest interval to

the employees to increase the effectiveness of the
work.
 Method Study

Find one best method of performing the job which

maximizes the profit.

All methods should be tried first and then the best

should be selected.
 Time Study

The Standard time required to perform a job.

Setting up standard target for workers.

Determining the number of workers required to

perform a job.

Categorizing the workers in efficient and inefficient

categories.
 Motion Study

Observe an average worker when he is performing a

job by determining his movements.

Differentiate between productive and unproductive

movements.

Cut down all unproductive and wasteful movements.

 Differential Piece Wage System

Paying different rate of wage to efficient and

inefficient employees.

Extra wages paid to efficient employees will motivate

both efficient and inefficient employees.

When payment given acc. to no. of units produced, it

will automatically maximize the production.
 Mental Revolution

Change in mental attitude of workers and

management towards each other.

Co-operation between worker and employees.

Develop positive thinking among each other.