2. Contents
 Introduction
 Classical Theory Approach
 Definition of classical approach
 Scientific Management Theory
 Definition of scientific management
 4 principles of F.W Taylor
 Techniques of scientific management
 Administrative Management Theory
 About Henri Fayol
 Division of industrial activities
 Qualities of an effective manager
 Functions of management
 14 principles of management

3. Bureaucratic Management
 Definition of bureaucracy
 Characteristics of bureaucratic management
 Principles of bureaucratic management
Neo- classical Theory Of Management
 Definition f neo-classical theory
 Elements of neo-classical management
Human Relation Theory
 Definition of human relation theory
 Hawthorne experiment
Behavioral Science Approach
 Definition of behavioral science approach
 Contribution of behavioral science approach

4. Introduction
At the end of 19th century, when factory production became
pervasive and large scale organization raised, people started
looking for the ways to motivate employees and improve
productivity .
A need of management idea came up, which directed to
classical contributors such as F.W Taylor ,Henri Fayol and
max generating management theories such as scientific
management , administrative management and Bureaucratic
management.
As a reaction to approaches of classical theory which over –
emphasized the mechanical and physiological character of
management , came up the school of neo-classical theory
with a more human – oriented approach.

5. Classical Theory Approach

6. Definition of classical approach
Classical approach is the oldest
formal school of thought which
began around 1900 and
continued into the 1920’s.
Its mainly concerned with the
increasing the efficiency of
workers and organization based
on management practices, which
were an outcome of careful
observation.
Classical approach mainly looks
for the universal principles of
operation in the striving for
economic efficiency.

7. Classical
theory of
management
Scientific
management
theory
Bureaucracy
management
theory
Administrative
management
theory

8. SCIENCETIFIC MANAGEMENT
THEORY
F.W Taylor is the father of
Scientific Management theory.
He is the person who have given
importance on efficiency for that
reason he has published a book
known as Piece Rate theory
system.
Born into a wealthy family in the
US in 1856
Graduated from Stevens
Institute Technology as a
mechanical engineer in 1853.
Frederick Winslow Taylor
(1856-1915)

9. Definition of Scientific
Management Scientific management is a theory
of management that analyzes and synt
hesizes 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.
The Principles of Taylor's Scientific
Management introduced systematic
selection and training procedures, it
provided a way to study workplace
efficiency, and it encouraged the idea
of systematic organizational design.

10. THE 4 PRINCIPLE OF F.W. TAYLOR
1.Science, Not Rule of Thumb:
2. Harmony, Not Discord:
3. Cooperation, Not Individualism:
4. Development of each and every person to
his /her greatest efficiency and prosperity:

11. TECHNIQUES OF SCIENTIFIC MANAGEMENT
METHOD STUDY
DIFFERENTIAL PIECE RATE SYSTEM
FATIGUE STUDY
TIME STUDY
MOTION STUDY

12. ADMINISTRATIVE MANAGEMENT
Administrative management attempts to find a rational
way to design an organization as a whole.
The theory generally calls for a formalized
administrative structure , a clear division of labor , and
delegation of power and authority to administrators
relevant to their area of responsibility.
According to this theory, you should design an
organization using a very formalized structure with clear
lines of authority from the top to down. This is
hierarchical structure

13. About Henri Fayol
Life Time: 1841-1925
Profession: Mining engineer
and management theorist .
Education: Graduated from
mining academy at
st. Entinne in 1880.
Position Held: Founded a
mining
company and became its
managing director .
Contribution: Mainly 14
Principles
of management.

14. Fayol’s contribution to management
are divided in four section:
Division of Industrial Activities
Quality of an effective manager
Functions of management
Principles of management

15. Division of industrial activities
Technical Activities
Commercial Activities
Financial Activities
Security Activities
Accounting Activities
Managerial Activities

16. Qualities of an effective manager
Physically fit
Mental Qualities (Smart)
Moral Qualities
Educational Qualities
Technical Qualities
Experience

17. Functions of management
Organizing
Planning
Commanding
controlling
Coordinating

18. 14 Principles of management
Division of work
Authority and responsibility
Unity of command
Discipline
Unity of direction
Fair remuneration to workers
Subordination of individual
interest to general interest

19. 14 Principles of management
Scalar chain
Effective Centralization
Order
Stability in tenure of personnel
Equity
Initiative
Espirit de corps

20. BUREAUCRATIC MANAGEMENT
 The German
sociologist Max
Weber argued
that bureaucracy constit
utes the most efficient
and rational way in
which human activity
can be organized and
that systematic processes
and organized
hierarchies are necessary
to maintain order,
maximize efficiency, and
eliminate favoritism

21. Definition of Bureaucracy
 “Bureau and Kratos” refers to the office the
Greek suffix “kratia or kratos” means power or
rule
 “Is a non personal of organisation that follows
a formal structure, where rules, formal
legitimate authority and competence are
characteristic of appropriate management
practice”
 : a large group of people who are involved in
running a organisation but who are not
elected
 : a system of government or business that has
many complicated rules and ways of doing
things
 : a system of administration marked by
officialism, red tape and proliferation

22. CHARACTERISTIC OF
BUREAUCRATIC MANAGEMENT
Specialization of labor
A formal set of rules and regulations
Well-defined hierarchy within the organization
Impersonality in the application of rules

23. .
 A formal hierarchical structure – In a bureaucratic organization,
each level controls the level below it. Also, the level above it controls
it. A formal hierarchy is the basis of central planning and centralized
decision-making.
 Rules-based Management – The organization uses rules to exert
control. Therefore, the lower levels seamlessly execute the decisions
made at higher levels.
 Functional Specialty organization – Specialists do the work. Also,
the organization divides employees into units based on the type of
work they do or the skills they possess.
 Up-focused or In-focused Mission – If the mission of the
organization is to serve the stockholders, board, or any other agency
that empowered it, then it is up-focused. On the other hand, if the
mission is to serve the organization itself and those within it (like
generating profits, etc.), then it is in-focused.

24. NEO CLASSICAL
THEORY OF
MANAGEMENT

25. INTRODUCTION
 The term classical refers to work done by a group of
economists in18th and 19th centuries.
 The word neo means “New”.
 Much of these work was developing theories about the
way markets and markets economists and the are
generally termed “Neo-classical economists”.
 The neo classical approach was set out by Alfred
Marshall in his principles of economics, published in
1890.

26. .
• It may be noted here that the theories stated by Taylor
and Fayol are called by writers as classical theories
• while the theories stated by writers as classical
theories the human relations movement and the
behavioural science movement are called new-classical
theories.

27. Elements of Neo-classical theories
 1.Individual
 2. Work Group
 3.Participative management
 4.Oreintation
 5. Motivation
 6. Leadership
 7. Employee Development

28. Individual
 Neo-classical theory recognized the individual
differences which were ignored by the classical theory.
 Every individual has emotions, feelings, attitudes,
hopes, aspirations, and expectations.
 The new-classical theory advocated a package deal of
motivation, including financial and non financial
incentives, to make the workers feel at ease at work
and increase their productivity.

29. Work Group
• An individual in a group develops Social wants.
• As he is a social being, he develops a desire to belong &
to be accepted by his work group.
Participative Management
• Neo-classical theory suggested workers
participation in management for improving their
productivity.

30. Orientation
 Classical theory was job oriented while neo-classical
theory is employee oriented.
 There is a shift in managerial style from product
oriented approach to employee and group centred
approach.
 classical theory was concerned with the basic needs of
organization and society whereas neo-classical
approach tried to satisfy the personal security and
social needs of workers.

31. Motivation
• No-classical writers considered business organization as a
social system,
• The employees could be motivated by social and
psychological wants and not solely by economic incentives.
Leadership
• Democratic style of leadership is essential to develop co-
operative attitude of employee towards management.

32. Employee Development
 As there is a close connection between moral and
production, neo-classical writers emphasized that
management that must take greater interest in
employee development workers satisfaction.

33. Neo Classical
theory of
management
Human relation
movement
Behavioral
system

34. Human relation theory of
management
 The human relation theory of
management began development in
the early 1920’s during the industrial
revolution
 At that time productivity was the focus
of business .
 Professor Elton mayo began his
experiment(the Hawthorne studies) ,
to prove the importance of people for
productivity not machine

35. Human relation theory of
management
 The human relations management theory is a
researched belief that people desire to be part of a
supportive team that facilitates development and
growth .
 Therefore , if employees receive special attention and
are encouraged to participate , they perceive their work
has significance , and they are motivated to be more
productive , resulting in high quality

36. Hawthorne Experiment
George Elton Mayo(1880-1949)
was an Australian born
psychologist , researcher and
organizational theorist.
Mayo is known as the founder of
the human relations movement.
The research he conducted under
the rubric of the Hawthorne
Studies in the late 1920s and early
1930s showed the importance of
groups in affecting the behaviour of
individuals at work.
He carried out a number of
investigations to look at ways of
improving productivity

37. Hawthorne Effect
The Hawthorne effect is the idea that “behaviour
during the course of an experiment can be altered by a
subject’s awareness of participating in an experiment”.
The initial Hawthorne effect took place in the
Hawthorne plant of western electric company in the
1920’s and 1930’s.
The studies were composed of many long
“investigations into the importance for work behaviour
and attitudes of a variety of physical , economic and
social variables”.

38. Hawthorne Experiment
The Hawthorne experiment were first conducted in November ,
1924 at western electric company’s Hawthorne plant in Chicago.
The initial tests were sponsored by the National research council
(NRC) of the national academy of sciences.
In 1927 , a research team from Harvard business school was
invented to join the studies after the illumination test drew
unanticipated results.
A team of researchers led by George Elton Mayo from the
Harvard business school carried out the studies.
(General Electric originally contributed funding , but they
withdrew after the first trial was completed).

39. Four Parts Of Hawthorne
Experiment
I. Part 1-Illumination Experiments (1924-27).
II. Part 2-Relay Assembly Test Room Study (1927-1929).
III. Part 3-Mass Interviewing Programme (1928-1930).
IV. Part 4-Bank Wiring Observation Room Experiment
(1932)

40. Part 1 – Illumination Experiments
(1924-1927)
These experiments were performed to find out the effect
of different levels of illumination (lighting) on
productivity.
The brightness of the light was increased and decreased
to find out the effect on the productivity of the test group.
Surprisingly , the productivity increased even when the
level of illumination was decreased.
It was concluded that factors other than light were also
important.

41. Part 2 – Relay assembly test room
study ( 1927-1929)
Under these test two small groups of six female telephone
relay assemblers were selected. Each group was kept in a
separate rooms. From time to time, changes were made in
working hours , rest periods, lunch breaks, etc. They were
allowed to choose their own rest periods and to give
suggestions. Output increased in both the control rooms.
It was concluded that social relationship among workers,
participation in decision-making, etc. had a greater effect
on productivity than working conditions.

42. Part 3 – Mass interviewing
programme (1928-1930)
21,000 employees were interviewed over a period of three
years to find out reasons for increased productivity. It was
concluded that productivity can be increased if workers
are allowed to talk freely about matters that are important
to them.

43. Part 4 – Bank wiring observation
room experiment (1932)
A group of 14 male workers in the bank wiring room
were placed under observation for six months. A
workers' pay depended on the performance of the
group as a whole . The researchers thought that the
efficient workers would put pressure on the less
efficient workers to complete the work. However, it
was found that the group established its own
standards of output , and social pressure was used to
achieve the standards of output.

44. Behavioural science approach

45. Behavioural science theory
It is redefined form of human relations approach.
This approach focuses on individual behaviour, group
behaviour, job design,motivation,leadership and
communication.
This approach emerged in the later years of 1940s.
This approach is the basis of management discipline-
organisational behaviour.
But this approach is not applicable universally to all the
organisations which operate in different social, religious
and cultural background.

46. Contributors to behavioural
science approach
ABRAHAM
MASLOW

47. Contributors to behavioural science approach
Fredrick
Herzberg

48. Contributors to behavioural
science approach
Douglas
McGregor

49. Contributors to behavioural science
approach
David
McClelland
Needs theory
 Need for power : desire to influence or
control others ,be responsible and have
authority over others.
 Need for achievement : desire to
accomplish something difficult , attain high
standards of success , master complex tasks ,
surpass others.
 Need for affiliation : desire to form close
personal relationships and friendships , avoid
conflicts.

50.  It believes that-
1. Organisational is a socio-economic and technical system.
2. A variety of factors influence the interpersonal and group
behaviour of people in organisations.
3. Individuals working in an organisation have goals which may
differ from organisational goals.
4. Conflict is inevitable.
5. Individuals differ in personality , attitude , beliefs , perception ,
etc.
6. Motivated workers are key to productivity.
7. High performance can be better be achieved by self direction and
control.
8. An open and trusting organisational climate improves
productivity.

51. Conclusion
Classical and neoclassical approaches made a crucial role in
the advancement of management theories and practices
Though classical theory is now outdated, it is still important
as it introduced the concept of management as a subject for
intellectual analysis . Neoclassical approach put
overemphasis on human variable and symbolic reward .
So it is clear that the field of management has some
remarkable theories which are underpinned by pragmatic
study evidence . The development holds a rather brighter
future for the study , research and practice of management .