Presented By:
Dheeraj Rawal
SRM University, Delhi NCR

Classical Theory
 It is a branch of Management Theory.
 Evolved between late 19th century and early
20th century.
 To find out the best way to do the task.
 The classical theory of management is divided
in mainly three focus areas:
 Scientific Management
 Administrative Management
 Bureaucratic Management

Scientific Management
 He is known as the father of Scientific Management.
 To do a task, the best way is:
 Perform task with Systematic Study.
 And with Scientific Method.
 He believed that improved management practices lead to
improved productivity.
o F.W. Taylor believed that these three tools should be used
for management:
 Task Performance
 Supervision
 Motivation
(1856-1915)

Task Performance
 Scientific management incorporates basic expectations of
management, including:
 Development of Work Standards – Company sets a work standard with which a
worker has to work accordingly.
 Selection of workers – Should be on Scientific Basis.
 Training of workers – If machinery has to operated by workers then training for
operating the machines should be provided first because the company cannot afford
any mistake by worker.
 Support of workers – Support of worker is needed to perform a task in a organization.
It is defined as the method with which
the worker perform activities to
contribute towards the organization.
It should be effective and efficient.

 Taylor felt that a single supervisor could not be an expert at all
tasks.
SUPERVISION
Managers must provide detailed instructions and
supervision to each worker to ensure the job is done in a
scientific way.

Workers who met a standard level of production were paid
a standard wage rate.
Workers whose production exceeded the standard were
paid at a higher rate for all of their production output.
MOTIVATION
Taylor believed money was the
way to motivate workers to their
fullest capabilities.
Also by giving Bonus, Incentives to the employee’s working in
Company.

Science,
Not Rule of Thumb
It is the basic
principle of scientific
management as
formulated by Taylor.
The one should must
have the knowledge in
the selected field.
For managing activities in
a scientific manner we
have to start with
understanding, analyzing
and applying scientific
methods and techniques.
Positive Impacts of the
principle:
• Objectives can be achieved in
a better way.
• Better utilization of available
resources & skills.

Scientific Selection, Training &
Development of Workers
There should be Scientific designed procedure for
selection of workers.
Physical, Mental & Education must meet the eligible
qualification.
Workers must be selected and provided with training
to make them fit for the job.
Management must provide workers the
opportunities to show their capabilities.
Efforts should be made to develop each employee to
do his greatest level and efficiency of work.

Close Co-Operation between Worker
and Management
Management always thinks that workers are working
upto the mark and workers always thinks management
is burdening them.
There must not be individualism.
There should be complete cooperation between
management and worker.

Equal Division of Work and
Responsibility
Management should not make a difference between
their workers.
Management should decide the method of work,
working conditions, time for completion of work.
There must be equal division of responsibility between
the particular position of work.
There should be parity(balance) b/w responsibility and
authority which is given to a worker.

Maximum Prosperity for both
Employers & Employees
Both managers & workers should be paid according to
their eligibility.
Scientific Management is to see maximum prosperity for
employer and employees.
It is important only when there is opportunity for each
worker to attain his highest efficiency.

The staff should focus on the primary target
of the company which is to maximize their
profit in an efficient and effective way.
The personal target of the worker and
managers should be kept secondary.
Mental Revolution

• Work is divided into small parts and each
part is assigned to an expert.
Functional
Foremanship
• Workers should work according to the given
standard by the company.
Standardization of
Work
• It means to conduct a work according to
time, motion, eliminating useless activities
which hinders the course of task.
Scientific Study of
Work
• Wages are paid on the basis of work done and
not on the basis of time spent in doing the
work.
Differential Wage
System/Differential
Piece Rate

Administrative Management
He is known as the father of
Administrative Management.
First recognized that successful managers
had to understand the basic managerial
functions.
Developed a set of 14 general principles of
management.
(1841-1925)

1. Division of work – Equal Work Division according to their capabilities.
2. Authority and responsibility – Parity b/w authority and responsibility of
work given to a worker.
3. Discipline – Must follow rules and regulations.
4. Unity of command – One worker should be allotted with a single instructor.
5. Unity of direction – All the worker should go in one direction only which is
the target of the company.
6. Subordination of individual interest to the common good – Workers
personal interest should be secondary and company goals should be primary.
7. Remuneration of personnel – Workers should be paid according to their
capabilities, eligibility and task performance.
8. Centralization – The power of making any decision for the company is in
the hands of top level management(i.e. BOD’s & CEO’s).
9. Scalar chain - Fig 1
10. Order – Task should be perform step by step.
11. Equity – Equality b/w workers.
12. Stability – Management should provide a meaning of security.
13. Initiative – Workers should be encouraged to give their opinion’s.
14. Esprit de corps – Unity is Strength.

Scalar Chain

 Focuses on the overall organizational system.
 Bureaucratic management is based upon:
 Firm rules.
 Policies and procedures.
 A fixed hierarchy.
 A clear division of labor.
Bureaucratic Management

 A German sociologist and
historian who envisioned a
system of management that
would be based upon impersonal
and rational behavior—the
approach to management now
referred to as “bureaucracy.”
Features:
 Division of labor
 Hierarchy of authority
 Rules and procedures
 Impersonality
 Employee selection and promotion
Bureaucratic Management : Weber
(1864-1920)

Bureaucratic Hierarchical Power Structure

Neo-Classical
Theory
Focused on
rational behavior
Acknowledged the
importance of human
behavior
Classical
Perspective
Behavioral
Perspective

Followed the classical perspective in the development of management
thought.
Acknowledged the importance of human behavior in shaping
management style
Is associated with:
Mary Parker Follett, Elton Mayo, Douglas McGregor, Chester Barnard
Behavioral Perspective

 Conducted the famous Hawthorne
Experiments.
 “Hawthorne Effect”- Human
relations approach
 Productivity increased because
attention was paid to the workers in the
experiment.
 Phenomenon whereby individual or
group performance is influenced by
human behavior factors.
 His work represents the transition
from scientific management to the
early human relations movement.
ELTON MAYO
(1880-1949)

 Proposed the Theory X and
Theory Y styles of management.
 Theory X managers perceive that
their subordinates have an
inherent dislike of work and will
avoid it if at all possible.
 Theory Y managers perceive that
their subordinates enjoy work and
that they will gain satisfaction
from performing their jobs.
DOUGLAS McGregor
(1906-1964)

Factor Theory X Assumptions Theory Y Assumptions
Employee attitude Employees dislike work and. Employees enjoy work and
toward work will avoid it if at all possible. will actively seek it.
Management view Employees must be directed, Employees are self-motivated
of direction coerced, controlled, or threatened and self-directed toward achieving
to get them to put forth adequate effort. organizational goals.
Employee view Employees wish to avoid responsibility; Employees seek responsibility;
of direction they prefer to be directed and told what they wish to use their creativity,
to do and how to do it. imagination, and ingenuity in
performing their jobs.
Comparison of theory x and y Assumptions

Presented By:
Dheeraj Rawal
30615210002
Bachelor of Business Administration
SRM University, Delhi-NCR