This document summarizes classical management theories proposed by Henry Fayol and Frederick Taylor. It discusses Fayol's principles of management including division of work, authority and responsibility, and unity of command. It also outlines Taylor's scientific management techniques such as functional foremanship, standardization of work, and differential piece wage system. The document provides an overview of the foundational theories in classical management.

1. CLASSICAL THEORY
OF
MANAGEMENT
By- Sweety Gupta

2. Classical Management Theory
 Henry Fayol Theory
Taylor theory (Scientific
management Theory)

3. Fayol’s Principles
Of
Management

4. 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.

5. 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

6. 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.

7. 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.

8. 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.

9. 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

10. 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

11. 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 company’s growth.

12. 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.

13. 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.

14. 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’.

15. 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.

16. 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.

17. 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.

18. 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

19. 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.

20. Taylor’s 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

21. Techniques
Functional foremanship
Standardization and simplification of work
Fatigue study
Method study
Time study
Motion study
Differential Piece wage system
Mental Revolution
SCIENTIFIC TECHNIQUES

22. Scientific
Techniques
of
Taylor

23. 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

24. 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.

25. 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.

26. 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.

27. 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.

28. 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.

29. 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.

30. 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.

31. 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.