The document discusses the classical perspective of management theory, which includes scientific management, bureaucratic organizations, and administrative principles developed by thinkers like Taylor, Weber, and Fayol. It examines how their work laid the foundation for modern concepts of management by focusing on efficiency, standardized processes, and hierarchical structure. While classical management has limitations, its emphasis on measurement and specialized roles remains influential in organizations today.
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Table of Contents
Introduction ...........................................................................................................1
The Classical Perspective........................................................................................2
The 3 Subfields of Classical Management............................................................2
Scientific Management................................................................................................ 2
Bureaucratic Organizations ......................................................................................... 4
Administrative Principles............................................................................................. 5
Today’s View of Classical Management...............................................................7
Conclusion ..........................................................................................................8
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I. Introduction
The evolution of management theory has vastly impacted organizational success globally by
providing structure and guidance for nearly three centuries. Management practices were being
developed by the Sumerians and Egyptians as early as 3000 B.C., but the formal study of management is
relatively recent.1
Modern management is defined as the attainment of organizational goals in an
effective and efficient manner through planning, organizing, leading, and controlling organizational
resources. The development of management throughout time accumulates eight essential perspectives:
classical, humanistic, management science, systems thinking, contingency view, total quality
management (TQM), the technology-driven workplace and open innovation, each of which build upon
the basis and structures provided by the antecedent studies and follow the four key functions of
management. “In order to develop the skills necessary to be a good manager, one should be aware of
the past and should also be aware of the different methods that have been tested and found suitable for
use in today's workplace” (Boe, the development of management theory: how it all got started).
Before the formal study of management, individuals and organizations alike burgeoned through
the antediluvian practices of the agrarian era. This attributed the success of the organization to its ability
to acquire the man and muscle required to do the job because there were no procedures to ameliorate
the efficiency and effectiveness necessary to lower worker hours, heighten wages, expedite production,
and diversify the workforce. As industry and technology flourished in the late 19th
century into the early
20th
century, organizations quickly discovered they were not well attuned to address the new and
complex challenges, such as equipping the plants, creating a comprehensible managerial structure, and
selecting and training new employees—many of which were immigrants. This accretion of industry and
the growing labor force exposed organizations, and in order to thrive, an influx of managers,
1
Daniel A. Wren reviews the study of management and its rich history.
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procedures, and efficacy were implemented and defined what is now known as the classical perspective
to management.
II. The Classical Perspective
As numerous challenges mounted and organizational structure became seemingly intractable,
organizations began to develop a “new sub-species of economic man—the salaried manager,” as stated
by Alfred D. Chandler, Jr (Daft, Classical Management).2
These new managers lead with a command and
control credence that allowed for very little deviation from stated rules, procedures, and goals. The
original ideology was that, through consistency and efficiency, success could be replicated indefinitely
and a universal approach to decision making could be implemented. The classical perspective to
management encompasses three subfields, each of which cover unique aspects of the study and
application of management. These three subfields are scientific management, bureaucratic
organizations, and administrative principles.
III. The 3 Subfields of Classical Management
Scientific Management
The earliest form of management study was primarily focused on production efficiency and
organizational administration. As the industrial revolution changed the landscape of production,
innovative machinery challenged the relatively unskilled work force. This created a dissonance between
what was actually being produced and what the intended possibility of production was.
The first proponent of scientific management was Charles Babbage.3
His works began in the
early 1800’s, but he was unable to complete his studies, which focused on two main contributions-the
2
Alfred D. Chandler, Jr. was a historian and taught business history at Harvard Business School and Johns Hopkins
University.
3
Charles Babbage was credited with an invention called the “difference engine,” which was considered to be the
forerunner of modern data processing equipment.
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importance of dividing and assigning labor on the basis of skill and developing the resources to
determine the feasibility of replacing manual operations with automatic machinery (Boe, The
development of management theory: how it all got started).
Frederick Winslow Taylor continued Babbage’s early studies into the early 1900’s and became a
prominent and influential figure in the study of management.4
He proposed an organizational change in
thinking between labor and management in two phases, which he describes as a mental revolution, that
would abate conflicts and have them agree that the basis of skill is an economic necessity. He used
workers at Bethlehem Steel to further his studies and prove his process could work.
The first phase was the division of skilled labor. Workers at the time were factotums and were
not expertly skilled in any specific duty, but Taylor’s ideas of production efficiency revolved around the
minutia of each job in the line of production. Division of labor was imperative for an organization to
increase skilled labor, reduce training time, and enhance the overall efficiency to achieve its goals. The
second phase of Taylor’s mental revolution stated that scientific method must be the sole basis of
obtaining information within an organization. As noted earlier, production was a crucial component to
the study, and Taylor believed that the basis of the workers’ tendency to restrict output was a fear of
displacement—innovations in machinery and automation put the labor force on edge and ultimately
hindered production (Freeman, Don't Throw Scientific Management Out with the Bathwater).5
He
offered two methods for an organization to assuage their labor force. The first was to educate workers
on their economic worth to the company and reinforce the need for them. The second method was to
place workers on a piecework system that would pay commissions based on overall production, and by
doing this, workers would be able to recognize that increased production would yield higher salaries,
bonuses, and more time off.6
4
Frederick Winslow Taylor is commonly regarded as “The father of scientific management.”
5
Innovation and automation often causes fear of displacement in today’s society.
6
Methods of increased efficiency are partly responsible for higher wages and a shorter work-week.
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Taylor once said, “workers could be retooled like machines,” and he carried it out by identifying
and developing specific employees with certain skills to do a sole job repetitively and efficiently within
an organization. Through his work, Frank and Lillian Gilbreth were able to conduct a study now known
as the time and motion study that revolutionized the process of using specific steps and procedures to
do an intended task to achieve the most efficient outcome.7
Along with the Gilbreths, Henry Gantt
contributed the Gantt chart, which creates a model schedule of work that keeps jobs and tasks on time
and allows managers to measure the amount of work already completed as well as amounts to be done.
Again, this method focused on the individual rather than the whole, so it wasn’t long before
organizational effectiveness and efficiency became a necessity.
Bureaucratic Organizations
The next subfield within the classical perspective is the bureaucratic organization approach.
This is a systematic approach that was developed in Europe in the late 19th
, early 20th
century to create a
more efficient and adaptable organization (Sager, Weber, Wilson, and Hegel: Theories of Modern
Bureaucracy). During the late 1800’s, European workers’ loyalty resided in individuals rather than their
organization or its mission.8
These individuals fulfilled their desires instead of the organization’s goals
and utilized organizational resources for their own gain. This dissonance between the organization and
its employees sparked the creation of bureaucracy. Max Weber, a German theorist, was the pioneer
who formulated the characteristics of the ideal bureaucracy. According to Weber’s writings, rational
public administration is based on written rules, an impersonal order, and a clear division of labor. Along
with this base, Weber created the six distinct characteristics of bureaucracy, which are: 1) Division of
labor, 2) Hierarchy of authority, 3) Managers are subject to rules and procedures and are responsible for
reliable, predictable behavior, 4) Management is separate from the ownership of the organization, 5)
7
Lillian Gilbreth is known as the “First lady of management” for her contributions after her husband’s death.
8
Many European organizations were family owned and operated, which is still prevalent in modern Europe.
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Administrative acts and decisions are recorded in writing, and 6) Personnel is selected and promoted
based on technical qualifications (Weber, The Theory of Social and Economic Organization).
From these six characteristics, Weber believed a rational organization would be created. While
it is not shown first on the list, the dichotomy of management and ownership is likely the most
important component because it allows for organizations to be run on an impartial basis rather than by
emotion. The division of labor provides workers with clear definitions of authority and responsibility,
which in turn produces higher levels of efficiency. With an organizational hierarchy, each position is
understood to be under the authority of a higher one, so confusion is assuaged by having an assigned
direct contact. Because the hierarchy is imperative, managers from the top level to the front-line must
abide by a strict set of rules and procedures that serve as a guideline to run their respective
departments. While completing their tasks, managers at each level must document any tasks or
decisions that were completed or disseminated throughout the organization to ensure information is
known and recorded. Once management has outlined procedures and duties, employee selection must
be based on competence and technical qualification. Without separating management from ownership,
workforce may be limited to who is known instead of who is qualified. These principles were further
adjusted to become what is known today as the administrative principles.
Administrative Principles
While Frederick Winslow Taylor and Max Weber were conducting their studies of management,
Henri Fayol, a French miner, published his works that stated all organizational activities can be placed in
six groups and introduced what is known today as Fayol’s 14 principles of management (LexisNexis
Academic). The six groups of organizational activities are technical, commercial, financial, security,
accounting, and managerial. Each one deals with the completion of tasks, such as producing and
manufacturing products, buying raw materials, allocating funds efficiently, protecting the organization
as a whole, keeping balance sheets, and using the five managerial functions provided by Fayol.
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Fayol’s five managerial functions include planning, organizing, commanding, coordinating, and
controlling. Organizational planning assesses the future, while the organizing function assembles the
resources necessary to carry out the plan. Managers use commanding to provide direction and
coordinating to ensure all departments within the organization are working to achieve the same goal.
Controlling comes last and checks to make sure the organization is following procedures and is on the
path to success.
While developing his 14 general principles of management, Fayol focused on the entire
organization as a whole rather than the individual productivity of each employee. The first principle is
the division of labor. This allows workers to build expertise and become effective and efficient.9
The
second principle is authority. The hierarchy structure, which is the eighth principle, calls for authoritative
figures, and responsibility is placed on the one issuing orders. The third principle is discipline. It states all
employees need to respect upper management’s rules and procedures. Good discipline can lead to
better leadership and fair treatment throughout the organization. Unity of command is the fourth
principle, and it reinforces the hierarchy structure. Each employee should only receive instruction from
one person. Next, the unity of direction, where planning and organizing allows all departments to go
towards the same goal. The sixth principle is remuneration, or financial compensation for work that is
fair to both the organization and the employee. The seventh principle is centralization, which refers to
managers giving employees enough authority to do their jobs effectively while they take the
responsibility. Order is the ninth principle, and it concludes that the correct materials and employees
should be in the right place at the right time. Equity and initiative make up the tenth and eleventh
principles, and they complement each other by providing that however much initiative you show, you
will get out of the organization what you put in. the twelfth and thirteenth principles, employee tenure
and esprit de corps, come together in respects to how an employee is treated by the organization will
9
The division of labor is commonly associated with the assembly line.
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determine the length of work history and loyalty with the organization. The final principle is the scalar
chain, in which each level of managers has a certain amount of authority and the power to use it.
Modern management has taken Fayol’s principles and functions to solidify the four
management functions of today’s use, planning, organizing, leading and controlling.
IV. Today’s View of Classical Management
Although the classical study of management revolutionized the efficiency standards of
organizations and how they were structured as a whole, its command and control maxim failed to
account for the human aspect of organizations (Huang, A Review and Critical Analysis of the Principles of
Scientific Management). Studies, such as the theory x and theory y types of people and Maslow’s
hierarchy, have concluded there are other, more effective strategies for organizations to motivate
employees and increase efficiency. Although it has been largely moved away from today, a Harvard
Business Review article placed scientific management among the top twelve most influential
innovations. Taylor’s works have influenced almost every proceeding management perspective and laid
the groundworks for total qualities management (Freeman, Don't Throw Scientific Management Out
with the Bathwater).
Modern bureaucracy is viewed with a negative connotation, and is often seen as having to jump
through arbitrary hoops and endless cutting of red tape, but America’s government is still functioning
though these principles. Other organizations prove that, to be successful on a large, possibly global
scale, a hierarchy of authority and solid procedures must be in place. Most innovative corporations still
implement a modified, flat version of the hierarchy structure, but autonomy is given to individual
workers or departments to achieve its goals, which in aggregate contributes to the entire organization.
As organizations shifted towards the communication and coordination era, many of Henri
Fayol’s principles have become defunct. A couple principles that can be applied to today’s organizations
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include the division of work and unity of command. The division of work allows employees to do what
they are best at, and the unity of command permits the flattening of the hierarchy so workers can report
to one main manager. This approach creates organizational efficiency.
V. Conclusion
To effectively understand and appreciate management, you must study its history and all of the
theories and perspectives it comprises. The classical perspective, the first major perspective of eight,
began what has now become over two centuries of management studies. Included in the classical
perspective are its three subfields, which are scientific management, bureaucratic organizations, and
administrative principles, where contributors such as Charles Babbage, Frederick Taylor Winslow, Max
Weber, and Henri Fayol proved to be important proponents to old and new management. Without
these pioneers, innovation and applied knowledge may not have come so quickly, and industry could
very well have imploded due to the lack of organizational structure and employee efficiency.
Peter Drucker has written various books expanding on the models and perspectives presented
before him and is commonly referred to as “The father of management theory.”10
His declaration of
“what gets measured gets managed” is apropos to the foundation of classical management in the sense
of the increased importance to meticulously measure each task and manage it to be as effective and
efficient as possible.
10
Peter Drucker can be attributed with the creation of the decentralization theory, and transformed the world of
marketing by pointing out that an organization cannot succeed without satisfying their customers.
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