Theories of Management - Classical Management Theories

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Exploring the foundations of management through classical management theories

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Classical Management Thoeries

ThEORIES OF MANAGEMENT

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Prior knowledge

Previous Knowledge

Before we delve into the classical management theories, let's gauge your existing understanding. Please take a moment to reflect on your current knowledge of management principles, organisational structures, and the historical development of management theories.

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Prior Knowledge of Management Theories

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Prior Knowledge of Management Theories

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Prior Knowledge of Management Theories

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Prior Knowledge of Management Theories

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By the end of this lesson, students should be able to:

Develop an appreciation for the historical evolution of management theories and their contribution to the field of management.

Recognise the managerial functions outlined by Henri Fayol in administrative management.

Explain the principles of scientific management and their impact on work processes and employee motivation.

Identify the characteristics and elements of a bureaucratic organisation as proposed by Max Weber.

Differentiate between the bureaucratic theory of Max Weber, the scientific management theory of Frederick Taylor, and the administrative management theory of Henri Fayol.

Understand the key concepts and principles of classical management theories, specifically those proposed by Max Weber, Frederick Taylor, and Henri Fayol.

Learning Objectives

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Assumption

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Embark on a fascinating 2-minute and 40-second journey to uncover the evolution of management theories and discover their enduring impact in today’s world— a perfect blend of history and relevance that will enrich your understanding of modern management.

Theories of management: A historical perspective

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F. Taylor

M. Weber

H. Fayol

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What's a management theory?

A management theory refers to a set of principles, concepts, and frameworks that explain and guide the practice of management. It is a systematic and organized body of knowledge that aims to understand and improve the way organisations and individuals are managed. Management theories attempt to provide insights into various aspects of managing organizations, such as planning, organising, leading, controlling, decision-making, and more. These theories are developed through research, observation, and analysis of organisational behaviour, leadership styles, and the dynamics of work environments.

Welcome to today's lesson on the classical management theories

Criticisms and Limitations of Scientific Management

1. Oversimplification of work processes and human behaviour.
2. Neglect of worker's social and psychological needs.
3. Potential for exploitation and dehumanisation.
4. Short-term focus
5. Management Control vs. Worker Autonomy

Principles of Scientific Management

1. Time and motion studies to optimise work processes.
2. Scientific selection and training of workers.
3. Collaboration between management and workers.
4. Incentive systems to motivate and reward performance.
5. Standardisation of tools, methods, and procedures

Taylorism Ethical and Social concernsTaylorism has been critiqued for ethical reasons, including exploiting workers and prioritising profits over people. The intense focus on productivity and efficiency can lead to poor working conditions, unfair labour practices, and a disregard for the welfare of employees.

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Frederick Taylor and Scientific Management

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Criticisms and Limitations of Scientific Management

1. Oversimplification.
2. Rigidity and Inflexibility.
3. Excessive Formalisation.
4. Lack of Individuality and Creativity.
5. otential for Abuse of Power.
6. Slow Decision-Making
7. Inadequate Focus on Human Factors.

It is important to note that while Weber's bureaucratic theory has faced criticisms, it has also provided valuable insights into the nature of organisational structures and processes. It has influenced organisational design and management practices, and many modern organisations incorporate elements of bureaucratic principles alongside other management approaches.

Principles of Bureacratic Management Weber's work focused on understanding the social structures and processes that shape human behaviour and societies. He sought to develop a comprehensive understanding of social action and its underlying causes. Weber's ideas have had a profound influence on various areas of scholarship, including sociology, organisational theory, and the study of bureaucracy.

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Max Weber and Bureacratic Theory

Fayol’s 14 principles of management are widely taught, it's less commonly acknowledged that Fayol was one of the first to differentiate between the five functions of management and the principles of management.

Criticisms and Limitations of Administrative Management

1. Overemphasis on Structure
2. Lack of Human Element
3. Limited Cultural Perspective.
4. Static Approach
5. Lack of Empirical Evidence.
6. Insufficient Focus on Innovation

Principles of Administrative Management Fayol's administrative principles, including his functions of management and 14 principles, are considered foundational elements of classical management theory. They emphasise concepts such as organisational structure, hierarchy, division of labour, and the importance of clear lines of authority and communication.

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Henry Fayol and Administrative principles

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Check what you know so far

Unity of Command

Scalar Chain

Time and Motion Studies

Bureacratic Management

Question 1/5

Which principle is associated with Frederick Taylor's Scientific Management Theory?

Test

Test

Bureaucratic Management

Theory X and Theory Y

The 14 Principles of Management

The Hawthorne Effect

Question 2/5

Max Weber is best known for introducing which of the following concepts?

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The importance of the social needs of workers

Administrative principles applicable to all organisations

The division of labor and specialisation

The scientific study of work methods

Question 3/5

Henri Fayol's management theory focused on:

Test

Centralisation

Division of Work

Profit Maximisation

Esprit de corps

Question 4/5

Which of the following is NOT one of Henri Fayol's 14 principles of management?

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Flexibility and ad hoc teams

Rules, procedures, and a clear hierarchy

Personal relationships as the basis of organisational structure

Informal organisational structures

Question 5/5

What does Max Weber's theory of Bureaucratic Management emphasise?

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Progress

4/5 Correct Profit Maximization

2/5 Correct Bureaucratic Management

5/5 Correct Rules, procedures, and a clear hierarchy

3/5 Correct Administrative principles applicable to all organisations

1/5 Correct Time and Motion Studies

Group Analysis and Brainstorming

Enhance practical understanding and application skills through a case study scenario. Watch here

Aministrative Management - Fayol

Bureaucratic Management - Weber

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Scientific Management - Taylor

Three management theories and founders

Next step

Historical perspective of the classical management theories

Intro

Development

In-class activity (face-to-face)

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I hope you found the insights valuable and are now equipped to apply these timeless principles to modern challenges. Keep exploring, keep learning, and remember, the Zenith of your understanding is always expanding. Until our next face-to-face class, stay curious and empowered.

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Max Weber was a German sociologist, philosopher, and political economist who lived from 1864 to 1920. He is considered one of the most important figures in the development of modern social science and is known for his extensive contributions to the fields of sociology, economics, and political theory.

Ideal Type

Weber's bureaucratic theory is often referred to as an "ideal type." This means that his theory represents an abstract and conceptual model of an ideal bureaucracy rather than a description of real-world organisations. Weber used this ideal type as a tool for analysis and comparison to understand the characteristics and implications of bureaucracy.

Henri Fayol was a French mining engineer, management theorist, and the founder of classical management theory. He lived from 1841 to 1925 and is best known for his administrative principles and his contributions to the field of management.

Max Weber was a German sociologist, philosopher, and political economist who lived from 1864 to 1920. He is considered one of the most important figures in the development of modern social science and is known for his extensive contributions to the fields of sociology, economics, and political theory.

Environmental Adaptability

Classical management theorists largely assumed a stable and predictable environment. This assumption is less discussed but critically important because it highlights a significant limitation of the theory in today’s rapidly changing and uncertain global business environment.

Reviving Zenith Electronics: A Management Challenge This is your in-class, face-to-face activity focusing on "Transforming Zenith: Applying Classical Management Theories to Modern Challenges. Watch the video to understand the challenge and help Zenith Eelectronics overcome it.

Influence on Modern Practices

Classical management

Classical management theories, despite being developed over a century ago, continue to influence modern management practices. Elements such as specialisation, division of labour, and organisational hierarchy are still prevalent in many industries today.

Frederick Taylor, also known as Frederick Winslow Taylor, was an influential figure in the field of management and is often referred to as the "Father of Scientific Management." He was an American engineer and management consultant who lived from 1856 to 1915.

Bureaucracy or Red-tape has negative connotations in the modern age. It still does exist, and was a popular model adopted by major corporations in the 19th century. Max Weber was a strong proponent of bureaucracy and proposed 6 characteristics of an ideal bureaucracy. We simplify his characteristics of a bureaucracy and look at a tip to memorise it.

The class will be devided into small groups, each group will be assigned a specific challenge faced by Zenith Electronics (e.g., production inefficiency, organisational structure issues, or management practices). Each group will need to use one of the classical management theories (Taylor, Weber, Fayol) to analyse the problem and brainstorm potential solutions.

Group Analysis and Brainstorming

Universal applicability

Fayol assumed that his principles of management were applicable to all types of organisations, regardless of their size, industry, or geographical location. He believed that the fundamental principles of management could be universally applied and implemented. While this assumptions may have limitations in today's dynamic and complex business environment, it provides the foundation for understanding Fayol's management principles and theories.

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Henri Fayol's 14 Principles of Management