1. ORGANIZATION AND MANAGEMENT
Evolution of
Management Theories
CLASSICAL APPROACHES TO
MANAGEMENT
Competency Code: ABM_AOM11-Ia-b-2

2. ORGANIZATION AND MANAGEMENT

3. ORGANIZATION AND MANAGEMENT
THE INDUSTRIAL REVOLUTION
It was the rise of the Industrial
Revolution and factories were
becoming more common. Inside
these factories, managers were
constantly looking for ways to
improve productivity and
efficiency.

4. ORGANIZATION AND MANAGEMENT
Greater demand for factories and workers
Low price resulted to greater demand for products
Prices became low for the consumers
Machines were invented improving productivity
AN OVERVIEW TO
THE INDUSTRIAL REVOLUTION

5. ORGANIZATION AND MANAGEMENT
As factories increased in numbers, managers
continued to search for ways to;
• Improve productivity
• Lower cost
• Improve product quality
• Increase efficiency

6. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
Professes the body of management
thought based on the belief that
employees have only economical
and physical needs and that the
social needs & need for job
satisfaction either does not exist or
are unimportant.

7. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
It advocates high specialization of
labor, centralized decision making &
profit maximization.

8. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Classical approach is the oldest formal school of
thought which began around 1900 and continued into
the 1920s.
• Its mainly concerned with the increasing the
efficiency of workers and organizations based on
management practices, which were an outcome of
careful observation.

9. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Classical approach mainly looks for the universal
principles of operation in the striving for economic
efficiency.
• Classical approach includes scientific, administrative
& bureaucratic management.

10. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
Scientific
Management
Bureaucratic
Management
Administrative
Management

11. ORGANIZATION AND MANAGEMENT
Major Contributors to the
Classical Management Theories
Frederick W. Taylor
(1856-1915)
Franck Gilberth
Lillian Gilberth
(1878-1972)
Max Weber
(1864-1920)
Henri Fayol
(1841-1925)

12. ORGANIZATION AND MANAGEMENT
SCIENTIFIC MANAGEMENT THEORY

13. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Scientific Management
also called Taylorism, is a theory of management that
analyzes and synthesizes workflows.
Its main objective is improving economic efficiency,
especially labor productivity. It was one of the earliest
attempts to apply science to the engineering of
processes and to management.

14. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Scientific Management
Frederick W. Taylor, believed that even the most
basic, mindless tasks could be planned in a way
that dramatically would increase productivity.
To scientifically determine the optimal way to
perform a job, Taylor performed experiments that he
called time studies, (also known as time and motion
studies).

15. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Scientific Management
The main causes of inefficiency according to Taylor’s
theory;
 The lack of standard tools or techniques
 There is no match between skill and job
 No motivation from the management

16. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Scientific Management
The four (4) Principles of Scientific Management;
1. Replace rule-of-thumb work methods with methods
based on scientific study of the tasks
2. Scientifically select, train, and develop each worker
rather than passively leaving them to train themselves

17. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Scientific Management
The four (4) Principles of Scientific Management;
3. Cooperate with the workers to ensure that the
scientifically developed methods are being followed
4. Divide work nearly equally between managers and
workers, so that the managers apply scientific
management principles to planning the work and the
workers actually perform the tasks

18. ORGANIZATION AND MANAGEMENT
BUREAUCRATIC MANAGEMENT THEORY

19. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Bureaucratic Management
 Emphasized the necessity of organizations to operate
in rational way instead of following the “arbitrary
whims” or irrational motions and intentions of owners
and managers.

20. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Bureaucratic Management
Six (6) Principles of Bureaucratic Management Approach
1. Proper Division of Labor
Division of labor specialization should be fixed and there should be
a balance between power and responsibilities.
2. Chain of Command
The chain of command or organizational hierarchy should be
constructed in a way that information related to decision and works
can flow effectively from top to bottom.

21. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Bureaucratic Management
Six (6) Principles of Bureaucratic Management Approach
3. Separation of personal and official property
Owners and organization’s assets are separate and can to be
treated as same by the owner or the organization.
4. Application of Consistent and Complete Rules
There should be proper rules and regulations in the organization for
running the organization.

22. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Bureaucratic Management
Six (6) Principles of Bureaucratic Management Approach
5. Selection and Promotion Based on Qualifications
The selection and promotion of workers should be based on
equalization’s like; skills, experience, age. It should not be
influenced by personal relations and benefits.
6. Training in job requirements and skills
There is a difference between management and other parts of
organization and training and improving skills of management is
important.

23. ORGANIZATION AND MANAGEMENT
ADMINISTRATIVE MANAGEMENT THEORY

24. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
Developed at same time as scientific management,
administrative theory "emphasized management
functions and attempted to generate broad administrative
principles that would serve as guidelines for the
rationalization of organizational activities”.

25. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
While Taylor reorganized from "bottom up",
administrative theorists looked at productivity
improvements from the "top down".
Administrative theorists developed general guidelines of
how to formalize organizational structures and
relationships. They viewed the job as antecedent to the
worker. Primarily these principles were broad guidelines
for decision making.

26. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;
1. Division of Work – When employees are specialized, output can
increase because they become increasingly skilled and efficient.
2. Authority – Managers must have the authority to give orders, but
they must also keep in mind that with authority comes
responsibility.
3. Discipline – Discipline must be upheld in organizations, but
methods for doing so can vary.

27. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;
4. Unity of Command – Employees should have only one direct
supervisor.
5. Unity of Direction – Teams with the same objective should be
working under the direction of one manager, using one plan. This
will ensure that action is properly coordinated.
6. Subordination of Individual Interests to the General Interest –
The interests of one employee should not be allowed to become
more important than those of the group. This includes managers.

28. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;
7. Remuneration – Employee satisfaction depends on fair
remuneration for everyone. This includes financial and non-
financial compensation.
8. Centralization – This principle refers to how close employees are
to the decision-making process. It is important to aim for an
appropriate balance.
9. Scalar Chain – Employees should be aware of where they stand in
the organization's hierarchy, or chain of command.

29. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;
10. Order – The workplace facilities must be clean, tidy and safe for
employees. Everything should have its place.
11. Equity – Managers should be fair to staff at all times, both
maintaining discipline as necessary and acting with kindness where
appropriate.
12. Stability of Tenure of Personnel – Managers should strive to
minimize employee turnover. Personnel planning should be a
priority.

30. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
• Administrative Management
Henry Fayol’s principles carries the concepts of
Administrative Management;
13. Initiative – Employees should be given the necessary level of
freedom to create and carry out plans.
14. Esprit de Corps – Organizations should strive to promote team
spirit and unity.

31. ORGANIZATION AND MANAGEMENT
THE CLASSICAL APPROACHES TO MANAGEMENT
Scientific
Management
Bureaucratic
Management
Administrative
Management
Focuses on the individual
worker’s productivity
Focuses on the overall
organizational system
Focuses on the functions
of management

32. ORGANIZATION AND MANAGEMENT
[ END OF LESSON ]