Management Theory

Topics: Management, Scientific management, Henri Fayol Pages: 8 (1862 words) Published: April 20, 2015
Classical management and its relevant
in a modern business climate

“Nothing is so Quite so Practical as a good Theory” (Van de Ven 1989).

In general a theory creates an image of reality or an aperture of reality. A theory contains a descriptive and explanatory (causal) say about this part of the reality. On this basis become deflect predict and recommended action. Theories are linked most of the time with the claim to be able to check through observations (e.g. by means of experiments).

Classical management theory was introduced in the late 19th century during the Industrial Revolution. At the time, managers were interested in findings ways to improve productivity, lower cost, increase quality of their products, improve employee/manager relationships and increase efficiency at their factories. (http://education-portal.com/academy/lesson/classical-management-theory-1900-1930- definition.html#lesson, 06.02.2014). The main idea of classical management theorists to find out the best possible way for workers to perform and manage their tasks. Classical management theory is contained of three separatebranches - bureaucratic management, classical scientific management and classical administrative management - each are approach towards to find out the best possible way. These three branches will be explained in more detail in the following main part.

Scientific Management

The scientific management dates back to Frederick Winslow Taylor (1856-1915). Taylor believed the work to be able to optimize business and corporate governance with a purely scientific approach, to solve such social problems and achieve "Prosperity for all".1 Starting point of deliberations of Taylor's was the power restraint of workers. He reflected how the workers to more power could be moved. Taylor assumed that workers obey similar laws like machines. From this mechanistic perspective, he tried to restructure its operations in a company. Taylor’s aims were to increase efficiency and to increase the productivity of workers. Furthermore he wants to standardise jobs by breaking them into small specified tasks. Through these aims, he wanted to raise productivity, increase wages, reduce costs and increase the profits of the company. Therefore he advocated principles. The first is about that you have to analyse the one best way to perform tasks. The one best way describes the execution of tasks and the optimization of division of work. Furthermore only the management can find the one best way not the worker. Thus there are a clear division of tasks and responsibilities between worker and management. The next principle is that the choice of staff is effected academic that means that the company takes only the best staff. Taylor said that you can only motivate the worker if you increase their wages, use instruction cards or introduce breaks. Another principle is that you have a scientific selection of training for workers. Furthermore you have to take a division between manual and mental labor. The criticisms of Taylors work are at first that the money is not the sole motivator. The second is that the people are not machines and that the social factors are not considered. Another criticism is that he only concentrates solely on efficiency. Most rigorous of scientific management was realized in the company Ford. In the Ford company was introduced the assembly line production in 1909. Administrative Management

Henri Fayol was the most contributor to administrative management. Administrative management attempts to find a rational way to design an organization as a whole. Besides administrative management is the result of the need for the development of a systematic structure of management. Fayol emphasized the role of administrative management and concluded that all activities that occur in business organizations could be divided into six main groups. These groups are Technical (production, manufacturing), Commercial (buying, selling,...
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