This document provides an overview of classical theories of organizations that emerged in the early 20th century, including scientific management, bureaucracy, and administrative principles. Scientific management as proposed by Taylor focused on maximizing worker efficiency through standardized tasks and measurements. Weber's theory of bureaucracy proposed a hierarchical structure with clear division of labor, rules, and impersonality. Fayol's administrative theory described the functions of management as planning, organizing, commanding, coordinating, and controlling. The classical theories emphasized strict control, chain of command, and predictability of worker behavior.

1. Theoretical Foundations
Classical Theories of
Organizations

2. Theory
An explanation for how or
why something occurs. . .
Question: What is the
most efficient and effective
means of running an
organization?

3. Functions of Theory
Describe
Explain
Predict
Control
Classical approaches to organizational
management and early organizational
theories were designed to predict and
control behavior in organizations.

4. Classical Theories of Organizations
Emerged in early part of the twentieth
century.
Models were military and the Catholic
Church.
Features
Strict CONTROL of workers
Absolute CHAINS of COMMAND
PREDICTABILITY of behavior
UNIDIRECTIONAL downward influence

5. MANAGEMENT LEARNING
Classical Management
MODULE GUIDE 3.1
 Taylor’s scientific management sought efficiency in
job performance.
 Weber’s bureaucratic organization is supposed to be
efficient and fair.
 Administrative principles describe managerial duties
and practices.

6. CLASSICAL MANAGEMENT
Scientific Management
Scientific Management
 Emphasizes careful selection and training of workers
and supervisory support
 Described by Frederick Taylor’s “Principals of
Management” in 1911.

7. Taylor’s Theory of Scientific Management
 Frederick Taylor (1856-1915)
 “The Father of Scientific Management”
 Maximize worker capacity and profits
 PROBLEM: Get employees to work at their maximum
capacity
 PRIMARY FOCUS: TASKS
 http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.html
 Systematic Soldiering
 Deliberately working slowly as to avoid expanding more
effort than deemed necessary
 Reasons
Reduction in workforce due to decreased need
Piecework system of remuneration - raise production
requirements without increasing pay

8. CLASSICAL MANAGEMENT
Scientific Management
Taylor’s Four Principles of Scientific Management
1. Develop a “science” for each job—rules of
motion, standard work tools, proper work
conditions.
2. Hire workers with the right abilities for the
job.
3. Train and motivate workers to do their jobs
according to the science.
4. Support workers by planning and assisting
their work by the job science.

9. Weber’s Theory of Bureaucracy
Max Weber (1864-1920)
German Sociologist
Theory of Social and Economic Organization
(1947)
Principles and Elements of Management -
describe an ideal or pure form of organizational
structure (general policy and specific commands
PRIMARY FOCUS: Organizational Structure
Worker should respect the “right” of managers to
direct activities dictated by organizational rules
and procedures
More DESCRIPTIVE
 http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML

10. CLASSICAL MANAGEMENT
Bureaucracy
Bureaucratic Organizations
Defined by Max Weber in late 19th century
Focused on definitions of authority, responsibility
and process
Intended to address the inefficiencies of
organizations at that time

11. CLASSICAL MANAGEMENT
Bureaucracy
Characteristics of an Ideal Bureaucracy
 Clear division of labor Jobs are well defined, and workers
become highly skilled at performing them.
 Clear hierarchy of authority and responsibility are well
defined, and each position reports to a higher-level one.
 Formal rules and procedures Written guidelines describe
expected behavior and decisions in jobs; written files are
kept for historical record.
 Impersonality Rules and procedures are impartially and
uniformly applied; no one gets preferential treatment.
 Careers based on merit Workers are selected and promoted
on ability and performance; managers are career employees
of the organization.

12. Fayol’s Administrative Theory
Henri Fayol (1841-1925)
General and Industrial Management
Principles and Elements of Management - how
managers should accomplish their managerial
duties
PRIMARY FOCUS: Management
(Functions of Administration)
More Respect for Worker than Taylor
Workers are motivated by more than money
Equity in worker treatment
More PRESCRIPTIVE
http://www.lib.uwo.ca/business/fayol.html

13. Fayol’s Administrative Theory
 Five Elements of Management -- Managerial
Objectives
Planning
Organizing
Command
Coordination
Control
 Keep machine functioning effectively and efficiently
 Replace quickly and efficiently any part or process
that did not contribute to the objectives

14. Fayol’s Administrative Theory
 Fourteen Principles of Management (Tools for Accomplishing
Objectives)
 Division of work - limited set of tasks
 Authority and Responsibility - right to give orders
 Discipline - agreements and sanctions
 Unity of Command - only one supervisor
 Unity of Direction - one manager per set of activities
 Subordination of Individual Interest to General Interest
 Remuneration of Personnel - fair price for services
 Centralization - reduce importance of subordinate’s role
 Scalar Chain - Fayol’s bridge
 Order - effective and efficient operations
 Equity - kindliness and justice
 Stability of Tenure of Personnel - sufficient time for familiarity
 Initiative - managers should rely on workers’ initiative
 Esprit de corps - “union is strength” “loyal members”

15. CLASSICAL MANAGEMENT
Administrative Principals
Administrative Principals
Attempts to document the experiences of
successful managers
Analyzes organizations in their social
context
Two key contributors
Henri Fayol
Mary Parker Follett

16. Fayol’s Administrative Theory
 Positioned communication as a necessary
ingredient to successful management
 Application in the Modern Workplace
Fayol’s elements of management are recognized
as the main objectives of modern managers
Planning - more participatory
Organizing - human relationships and
communication
IMPORTANT TABLE 2.1 Comparison of
Managerial Skills (p. 32)
Especially applicable for large organizations
(military)

17. CLASSICAL MANAGEMENT
Administrative Principals
Henri Fayol – Administration
Industrielle et Generale - 1916
Five Duties of Managers According to Henri Fayol
1. Foresight—complete a plan of action for the future.
2. Organization—provide and mobilize resources to
implement plan.
3. Command—lead, select, and evaluate workers.
4. Coordination—fit diverse efforts together, ensure
information is shared and problems solved.
5. Control—make sure things happen according to plan, take
necessary corrective action.

18. CLASSICAL MANAGEMENT
Administrative Principals
Mary Parker Follett – 1920’s
Foresighted approach
Advocated managers and workers work in
harmony and employees should own a
share of the business
Forerunner of “managerial ethics” and
“social responsibility”

19. MANAGEMENT LEARNING
Behavioral Management
MODULE GUIDE 3.2
 The Hawthorne studies focused attention on the
human
side of organizations.
 Maslow described a hierarchy of human needs with
self-actualization at the top.
 McGregor believed managerial assumptions create
self-
fulfilling prophesies.
 Argyris suggests that workers treated as adults will
be
more productive.

20. BEHAVORIAL MANAGEMENT
The Hawthorne Studies
“The Hawthorne Studies were
conducted from 1927-1932 at the
Western Electric Hawthorne Works in
Chicago, where Harvard Business
School Professor Elton Mayo examined
productivity and work conditions.”

21. Definition of Hawthorne Studies
Cont.
“Mayo wanted to find out what effect
fatigue and monotony had on job
productivity and how to control them
through such variables as rest breaks, work
hours, temperatures and humidity.”

22. Mayo’s Experiment
 Five women assembled telephone relays, one supplied the
parts.
 Made frequent changes in working conditions with their
consent.
 Records were kept of relays made, temperature and humidity
of rooms, medical and personal histories, eating and sleeping
habits, and bits of conversation on the job.
 No one supervised the girls.
 They were told to work as they felt and at a comfortable pace.

23. Mayo’s Experiment Cont.
 Productive capacity was measured by recording the girls’
output for two weeks before the study began.
 First five weeks, no changes were made.
 Third stage, a pay system was ensured allowing the girls’ to
earn in proportion to their efforts.
 Eight weeks later, two five-minute rest pauses were added.

24. Mayo’s Experiment Cont.
 Eighth phase, workday ended a half-day early.
 Ninth phase, the girls finished an hour earlier than usual.
 Five-day week introduced.
 Girls went back to no breaks, lunches and a full work week,
output declined for those twelve weeks.

25. Results
 Researchers found that output rates weren’t
directly related to the physical conditions of the
work.
 Output went up when:
 They were put on piece-work for eight weeks.
 Two five minute rest pauses were introduced for five weeks.
 Rest pauses were lengthened to ten minutes.
 A hot meal was supplied during first pause.
 They were dismissed at 4:30 p.m. instead of 5:00 p.m.

26. Results Cont.
 Output slightly fell when six five minute pauses were added.
 It remained the same when they were dismissed at 4:00 p.m.
instead of 4:30 p.m.
 Mayo believes “what actually happened was that six
individuals became a team and the team gave itself
wholeheartedly and spontaneously to cooperation in the
experiment. The consequence was that they felt themselves
to be participating freely and without afterthought, and were
happy in the knowledge that they were working without
coercion from above or limitations from below.”

27. Conclusions
 Work is a group activity.
 Social world for an adult is primarily patterned about work.
 Need for recognition, security and sense of belonging.
 Complaints, commonly a symptom manifesting disturbance
of an individual’s status position.

28. BEHAVORIAL MANAGEMENT
The Hawthorne Studies
Hawthorne Studies - 1924
Studies tried to determine how economic
incentives and physical environment
affected productivity
Involved 21,000 people over 6 years
Concluded that human needs were an
important factor in increasing productivity
Resulted in “The Hawthorne Effect”

29. BEHAVIORAL MANAGEMENT
Maslow’s “Hierarchy of Needs”

30. BEHAVORIAL MANAGEMENT
McGregor
 McGregor’s The Human Side of
Enterprize
 Separated managers into two beliefs / styles
1. Theory X Managers
• Believe employees generally dislike work, lack ambition,
act irresponsibly, resist change and prefer to follow.
• Use classical directive “command and control” style
2. Theory Y Managers
• Believe employees are willing to work, capable of self
control and self direction, responsible and creative
• Use behavioral “participative” style

31. Theory X versus Theory Y
Source: Figure 2.3

32. BEHAVORIAL MANAGEMENT
Argyris
Argyris’ Personality and Organization
Argues that employees:
want to be treated as adults
will perform better with less restrictive / defined
tasks
runs counter to Scientific & Administrative
theories that argue for close supervision

33. The Evolution of Management Theory