1) Classical Theory : One of the first schools of management thought, the classical management theory, was developed during the age of Industrial Revolution during the period from 1900's to mid-1930. During this period the classical theories of organization began to emerge. This theory belief that employees have only economical and physical needs, and their social needs and job-satisfaction either don't exist or are unimportant. Accordingly, this school advocates high specialization of labor, centralized decision making, and profit maximization.
This school of thought is made up of two branches : a) classical scientific and b) classical administrative, described as follows :
a) Classical Scientific Theory : Frederick Taylor is called as the “father of scientific management.” It is focused on the main work force involved directly with the production. This method emphasized to ensure productivity of the individual workers by : • Select workers with appropriate abilities for each job • Train workers to carry out the given job efficiently • Support workers by proper planning
• Provide wage incentive to the workers for increased output With this theory, Time And Motion Studies and Differential Piece Rate Methods are also used to increase the productivity.
b) Classical Administrative Theory : Among all well-known contributors, Henry Fayol is called as the most notable contributor to this theory. Administrative theory focused on the total organization It is focused on the administrative aspects of management which directly or indirectly effect productivity of the organisation. He discussed 14 general principles of management.
1. Division of labor. Specialization of labour results in increased productivity. Both managerial and technical work are amenable to specialization. 2. Authority. Authority was defined by Fayol as the "right to give orders and the power to exact obedience". It is needed...