We see this trend to
continue in what is called as the classical era which covers
the period between 1900 to mid 1930s. the first general theories of management
began to evolve and the main contributors during this era was Frederick
Taylor, Henri Fayol, Max Weber, Mary parker Follet and Chester Barnard.
Frederick Taylor’s main emphasis was on finding one best way of doing each job. He stressed on selecting the right people for the job, train them to do it precisely in one best way. He favored wage plans to motivate the workers. His scientific principles of management stressed the following principles:
1. Shift all responsibility for the organization of work from the worker to the manager; managers should do all the thinking relating to the planning and design of work, leaving the workers with the task of implementation.
2. Use scientific methods to determine the most efficient way of doing work; assign the worker’s task accordingly, specifying the precise way in which the work is to be done.
3. Select the best person to perform the job thus designed.
4. Train the worker to do the work efficiently.
5. Monitor worker performances to ensure that appropriate work procedures are followed and that appropriate results are achieved.
Taylor was one of the first to attempt to systematically analyze human behavior at work. He insisted the use of time-and-motion study as a means of standardizing work activities. His scientific approach called for detailed observation and measurement of even the most routine work, to find the optimum mode of performance.
The results were dramatic, with productivity increasing significantly. With passing time, new organizational functions like personnel and quality control were created. Of course, in breaking down each task to its smallest unit to find what Taylor called „„the one best way‟‟ to do each job, the effect was to remove human variability. Hence he lay the ground for the mass production techniques that dominated management thinking in the first half of the twentieth century.
Henri Fayol, a mining engineer and manager by profession, defined the nature and working patterns of the twentieth-century organization in his book, General and Industrial Management, published in 1916. In it, he laid down what he called 14 principles of management. This theory is also called the Administrative Theory. The principles of the theory are:
1. Division of work: tasks should be divided up with employees specializing in a limited set of tasks so that expertise is developed and productivity increased.
2. Authority and responsibility: authority is the right to give orders and entails enforcing them with rewards and penalties; authority should be matched with corresponding responsibility.
3. Discipline: this is essential for the smooth running of business and is dependent on good leadership, clear and fair arguments, and the judicious application of penalties.
4. Unity of command: for any action whatsoever, an employee should receive orders from one superior only; otherwise authority, discipline, order, and stability are threatened.
5. Unity of direction: a group of activities concerned with a single objective should be co-coordinated by a single plan under one head.
6. Subordination of individual interest to general interest: individual or group goals must not be allowed to override those of the business.
7. Remuneration of personnel: this may be achieved by various methods but it should be fair, encourage effort, and not lead to over payment.
8. Centralization: the extent to which orders should be issued only from the top of the organization is a problem which should take into account its characteristics, such as size and the capabilities of the personnel.
9. Scalar chain (line of authority): communications should normally flow up and down the line of authority running from the top to the bottom of the organization, but sideways communication between those of equivalent rank in different departments can be desirable so long as superiors are kept informed.
10. Order: both materials and personnel must always be in their proper place; people must be suited to their posts so there must be careful organization of work and selection of personnel.
11. Equity: personnel must be treated with kindness and justice.
12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the time required for the development of expertise.
13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by the requirements of authority and discipline.
14. Esprit de corps: efforts must be made to promote harmony within the organization and prevent dissension and divisiveness.
The management functions, that Fayol stated, consisted of planning, organizing, commanding, co-coordinating and controlling. Many practicing managers, even today,
list these functions as the core of their activities. Fayol was also one of the first people to characterize a commercial organization‟s activities into its basic components.
Frederick Taylor’s main emphasis was on finding one best way of doing each job. He stressed on selecting the right people for the job, train them to do it precisely in one best way. He favored wage plans to motivate the workers. His scientific principles of management stressed the following principles:
1. Shift all responsibility for the organization of work from the worker to the manager; managers should do all the thinking relating to the planning and design of work, leaving the workers with the task of implementation.
2. Use scientific methods to determine the most efficient way of doing work; assign the worker’s task accordingly, specifying the precise way in which the work is to be done.
3. Select the best person to perform the job thus designed.
4. Train the worker to do the work efficiently.
5. Monitor worker performances to ensure that appropriate work procedures are followed and that appropriate results are achieved.
Taylor was one of the first to attempt to systematically analyze human behavior at work. He insisted the use of time-and-motion study as a means of standardizing work activities. His scientific approach called for detailed observation and measurement of even the most routine work, to find the optimum mode of performance.
The results were dramatic, with productivity increasing significantly. With passing time, new organizational functions like personnel and quality control were created. Of course, in breaking down each task to its smallest unit to find what Taylor called „„the one best way‟‟ to do each job, the effect was to remove human variability. Hence he lay the ground for the mass production techniques that dominated management thinking in the first half of the twentieth century.
Henri Fayol, a mining engineer and manager by profession, defined the nature and working patterns of the twentieth-century organization in his book, General and Industrial Management, published in 1916. In it, he laid down what he called 14 principles of management. This theory is also called the Administrative Theory. The principles of the theory are:
1. Division of work: tasks should be divided up with employees specializing in a limited set of tasks so that expertise is developed and productivity increased.
2. Authority and responsibility: authority is the right to give orders and entails enforcing them with rewards and penalties; authority should be matched with corresponding responsibility.
3. Discipline: this is essential for the smooth running of business and is dependent on good leadership, clear and fair arguments, and the judicious application of penalties.
4. Unity of command: for any action whatsoever, an employee should receive orders from one superior only; otherwise authority, discipline, order, and stability are threatened.
5. Unity of direction: a group of activities concerned with a single objective should be co-coordinated by a single plan under one head.
6. Subordination of individual interest to general interest: individual or group goals must not be allowed to override those of the business.
7. Remuneration of personnel: this may be achieved by various methods but it should be fair, encourage effort, and not lead to over payment.
8. Centralization: the extent to which orders should be issued only from the top of the organization is a problem which should take into account its characteristics, such as size and the capabilities of the personnel.
9. Scalar chain (line of authority): communications should normally flow up and down the line of authority running from the top to the bottom of the organization, but sideways communication between those of equivalent rank in different departments can be desirable so long as superiors are kept informed.
10. Order: both materials and personnel must always be in their proper place; people must be suited to their posts so there must be careful organization of work and selection of personnel.
11. Equity: personnel must be treated with kindness and justice.
12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the time required for the development of expertise.
13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by the requirements of authority and discipline.
14. Esprit de corps: efforts must be made to promote harmony within the organization and prevent dissension and divisiveness.
The management functions, that Fayol stated, consisted of planning, organizing, commanding, co-coordinating and controlling. Many practicing managers, even today,
list these functions as the core of their activities. Fayol was also one of the first people to characterize a commercial organization‟s activities into its basic components.
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