The classical theory of management was formed in the early 20th century and based on a pyramid, formal structure. To be more precise, it puts an emphasis on technical requirements of the organisation, common principles as well as hierarchy of management. There are three well-established theories of classical management, such as Bureaucratic Organization of Weber, Administrative Management of Fayol and Scientific Management of Taylor. Weber features extensive and binding systems of rules, a strict hierarchical organizational structure. Fayol identified POCCC: plan organize command, coordination, control. Scientific management is a branch of the classical school of management and concentrates on the philosophies of economic rationality, efficiency, individualism as well as the scientific analysis of work. It arises in part from the need to expand productivity. This is due to the fact that the skilled labour was in short supply at the beginning of the twentieth century and augmenting the efficiency of workers was considered as the only way to increase productivity. As a consequence, Frederick W. Taylor, Henry L. Gantt, and the Gilbreths Frank and Lillian - devised the body of principles known as scientific management.
By contrast, as for the theory of human relations, it is to pay greater attention to social factors at work, leadership, the informal organisation and behaviour of people. The basic tenets of the human relations school emerged from a group of studies during the late 1920s and 1930s known as the... [continues]
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