CLASSICAL MANAGEMENT THEORIES

presented by Group 1

TODAY'S AGENDA

1.Key concepts and Principles of the Theory

2.Historical context and the reason behind its Development
3.Major Contributors and their Contributions
4.Strenghts and Weaknesses
5.How this Theory influenced Modern Management Practices

CLASSICAL MANAGEMENT THEORY

Classical Management Theory is a theory that focuses on the rigid hierarchy of the
organizations, the specialization of tasks, and financial incentives for employees. this
management theory arose in 19th century and gained prominence through the first half of
the 20th century.

This type of theory focuses on increasing productivity and efficiency. There are clear
expectations for employees and communication flows from the top down. In addition it
advocates a specialization of labor, centralized leadership and decision-making and profit
maximization.

PRINCIPLES OF LASSICAL
MANAGEMENT THEORY

฀The skills and specializations of employees are used to determine who performs which
tasks.
฀The most efficient way to do each job should be determined using management theory.
฀As much as possible, operations should be
streamlined.
฀Priority is given in increasing
profit.
□The primary goal is productivity.
฀A single person or a select few figures make
decisions
HISTORICAL CONTEXT AND THE REASON BEHIND ITS DEVELOPMENT

Classical Management Theory emerged in the late 19th and early 20th centuries during a
period of significant industrialization and organizational change. It is where innovation
really began to change the way the products were produced and sold. The invention of
machines to produce goods were drastically improved productivity, which in turn
lowered the cost to the customer. The lower price resulted in a greater demand for
products and thus a greater need for more factories and workers.

As factories increased in number, managers continued to search for ways to improve

productivity, lower cost, increase quality of their products, improve employee/manager
relationships and increase efficiency. The focus shifted from using machines to increase
productivity to how they could increase employee productivity and efficiency. When they
did this, they began to notice some new problems inside their factory systems. Employes
were dissatisfied with their current working conditions and many lacked the necessary
training for how to do their work efficiently. Managers then began to formulate and test
possible solutions, one of which was to find the best possible way for workers to perform
and manage their tasks. The research resulted in the development of Classical
Management Theory

MAJOR CONTRIBUTORS AND THEIR CONTRIBUTIONS

Frederick W. Taylor the father of scientific management believed that business

inefficiency stemmed from worker autonomy.
Henry Fayol a french industrialist who was the Primary proponent of the classical
managementtheory. And proposed administrative management.
Max Weber recognized as one of the fathers of modern sociology who proposed
bureaucratic management.

SCIENTIFIC MANAGEMENT THEORY (FREDRICK W TAYLOR)

This is a well known management theory developed by Frederick Taylor in 1911. This
mainly focused on maximum productivity. It delivers proper solution for problems and
challenges of industrialists. Taylor believed that Scientific Management is the solution to
businesss problems. He stated that certain efforts change the management system in some
cases, so that interests of workers change into interests of management.

He worked on increasing efficiency using scientific methods eliminating additional

movements and transfers at workplace. He wanted to train workers for better jobs, divide
the task between management and workers, and implement scientific management style
with respect to different practices and workers in action. So he made several key
contributions to lmprove organizational efficiency through systematic analysis and
optimization at work processes.

EMPHASIS ON EFFICIENCY
Focus on improving operational efficiency through systematic analysis of work
processes that led for optimizing tasks, reducing waste, and increasing productivity
STANDARDATION OF WORK
it is for ensuring consistency and quality across different operations and employees.
TIME STUDIES AND WORK SPECIALIZATION
He used time studies to identify the most effecient ways o perform tasks and advocateed
for special roles, which helped streamline operations and enhanced wrokers productivity.
SELECTION AND TRAINING
Emphasized the importance of hiring workers with the right skills and providing them
with proper training, aligning their capabilities with job requirements. and Quantitative
analysis to guide decision making and process improvements.

ADMINISTRATIVE MANAGEMENT THEORIES (HENRY FAYOL)

He has developed this theory based on personal experience. The theory encompasses
business management and general management where his main focus is on management.
He emphasized the importance of setting goals , directing and leading employees
effectively, ensuring all activities are aligned and monitored. He identified six functions
namely predicting, planning, organizing, commanding, coordinating, and monitoring and
together with the fourteen principles.

FOURTEEN PRINCIPLES:

 Initiative  Authority
 Stability of tenure of personnel  Discipline
 Personnel rights  Focus on individual interests rather
 Order than public interests
 Esprit de corps  Unity of command
 Scalar chain  Unity of direction
 Division of labor  Centralization
 Remuneration

BUREAUCRATIC MANAGEMENT THEORY(MAX WEBER)

He called this work as a social and economic organization theory. He focused on
hierarchy and authority control strict lines in structuring the organization into hierarchy.
He also suggested that the organizations should develop precise and comprehensive
operating procedures to do predefined tasks. He believed in a clear hierarchy, with
defined roles and responsibilities for each position. Bureaucratic management theory has
also principles and these are as follows:
FORMAL RULES AND REGULATIONS
According to this theory, the best standard rules and regulations should govern the
organization. These rules should be properly defined and written in the forms.
WORKING RELATIONSHIP SYSTEM
This should be present in the organization to do the work and establish a realtionship
between the system and tasks in the organization.
SPECIALIZED TRAINING
The workers should be trained based on theiir designated tasks. Different training
programs should be designed for different systems in the organization. The managers
require relevant training programs based on their tasks. The workers also need training
programs based on their tasks.

CLASSICAL MANAGEMENT THEORY INFLUENCE MODERN

MANAGEMENT PRACTICES
Classical Management Theory has had a considerable impact on modern management
practices by offering core ideas that continue to support organisational structure and
efficacy. The emphasis on defined hierarchies, standardised procedures, and specialised
positions from classical ideas may still be seen in modern management frameworks,
where structured techniques promote responsibility and productivity. Concepts like
division of labour and formalised regulations are still used today, emphasising the
necessity of consistency and efficient work flow. Although modern management has
evolved to include more dynamic and collaborative approaches, the fundamental
principles of classical management remain essential for establishing efficient, well-
organised, and systematic organisational structures. Thus, classical management theory
continues to be a foundation for defining and guiding contemporary management
methods.

Group 2
HUMAN RELATION MOVEMENT

Human relations in organizations are essentially the interactions or relationships that exist
between people who work in a particular organization. These interactions and
relationships are vital for creating a win-win environment by first satisfying the
employees in order to achieve organizational goals and objectives
The human relations movement is when an organization decides to study the behavioral
characteristics of workers, particularly in groups in their workplace and focuses on what
motivates each employee to be more productive in the office setting.

CONCEPT AND PRINCIPLES OF HUMAN RELATIONS MOVEMENT

The Human Relations Movement focuses on understanding and improving the human
aspects of work, such as the needs, motivations, and behaviors of employees. Here’s a
breakdown of key concepts and principles from this movement, presented in a more
humanized way:

1.Hawthorne Studies:
Key Concept: The power of attention and care.
Principle: The Hawthorne Studies showed that when people feel observed, valued, and
cared for, their performance and satisfaction improve. It's not just about the physical
environment; it's about creating a sense of belonging and importance.

2.Maslow's Hierarchy of Needs:

Key Concept: Understanding what people need.
Principle: Maslow suggested that people have different levels of needs, starting with
basic needs like food and safety, and moving up to higher needs like love, self-esteem,
and personal growth. When these needs are met, people are happier and more motivated.
This reminds us to think about what our coworkers or employees might need beyond just
a paycheck.
3.McGregor's Theory X and Theory Y:
Key Concept: Two views of human nature.
Principle: McGregor introduced two different ways to view employees:
•Theory X assumes that people are naturally lazy and need to be controlled and directed.
•Theory Y believes that people are self-motivated and thrive when given the freedom to
take on responsibilities.
This tells us that how we see others can shape how we treat them, and in turn, how they
perform. Treating people with trust and respect usually brings out the best in them.
In essence, the Human Relations Movement teaches us that when we focus on the human
side of work—caring for people's needs, recognizing their potential, and treating them
with respect—we create a more positive and productive environment.

HISTORICAL CONTEXT
The Human Relations Movement (HRM) emerged in the early 20th century as a response
to the limitations of the classical management theories, such as Scientific Management
and Bureaucratic Management, which focused heavily on efficiency, productivity, and
the mechanistic aspects of work. The HRM sought to emphasize the human side of work,
recognizing the importance of social factors, employee well-being, and motivation in the
workplace.
HISTORICAL CONTEXT:
Industrial Revolution and Scientific Management:
The late 19th and early 20th centuries were marked by the Industrial Revolution, which
brought about significant changes in how work was organized and managed. Factories
and mass production became the norm, leading to the development of management
theories that emphasized efficiency and productivity.

Hawthorne Studies:
The Human Relations Movement is often traced back to the
Hawthorne Studies conducted at the Western Electric Hawthorne Works in Chicago from
1924 to 1932. Initially intended to study the effects of physical conditions (like lighting)
on worker productivity, these studies led to unexpected findings.

Shift from Mechanistic to Human-Centered Management: The results of the

Hawthorne Studies highlighted the importance of interpersonal relationships,
communication, and employee morale. This shifted the focus from the mechanistic view
of work to one that recognized the significance of human behavior, motivation, and the
social environment in the workplace.
Post-War Economic and Social Changes:
After World War II, there was a growing recognition of the need to balance productivity
with employee well-being, especially as economies grew and the labor market became
more competitive.

Legacy and Impact:

The Human Relations Movement laid the groundwork for modern human resource
management and organizational behavior studies. It led to the development of theories
such as Maslow's Hierarchy of Needs and McGregor's Theory X and Theory Y, which
further explored the psychological and social aspects of work.

CONTRIBUTORS AND THEIR CONTRIBUTIONS

Elton Mayo is known as the founder of human relations management (HRM). As a
renowned professor, He participated in the Hawthorne Studies, which produced the
knowledge used in HRM. He also wrote The Human Problems of an Industrialized
Civilization, which has helped manage workplace employees.
Elton Mayo's contribution to management was mainly in employee management. He
discovered that social forces and relational forces positively impact employee
productivity. He also noted that although finances play a role as motivators, positive
work relationships weigh more.

Follett, known as the “mother of modern management,” believed management was

“the art of getting things done through people.” Though she never managed a for-profit
enterprise, she offered valuable insight into the importance of managers and supervisors
“powering with” employees, rather than “powering over” them, and collaborating with
workers to solve conflicts.
Follett’s management theory, particularly its focus on coordination and
employee engagement, remains relevant to small and midsize businesses (SMBs) today.
Discover how to implement Follett’s principles in your company for organizational
success.
STRENGHT OF HUMAN RELATIONS MOVEMENT
Employee Well-being: It highlighted the importance of worker satisfaction, well-being,
and motivation, recognizing that employees are not just cogs in a machine but have social
and emotional needs.

Improved Communication: The movement promoted open communication between

management and workers, leading to better understanding, collaboration, and trust within
the organization.
Increased Productivity: By improving worker morale and addressing their needs, the
Human Relations Movement often led to increased productivity and job satisfaction.

Recognition of Informal Groups: It acknowledged the existence and importance of

informal groups and social dynamics within the workplace, which can significantly
influence employee behavior and performance.

Leadership Focus: It shifted focus to leadership styles and the importance of supportive
and empathetic leadership in managing employees effectively.

Overemphasis on Social Aspects: Sometimes, the movement placed too much emphasis
on social and emotional factors at the expense of efficiency, technical skills, and
organizational structure.

Limited Focus on Individual Differences: While the movement emphasized group

dynamics, it sometimes neglected individual differences and the specific needs of each
employee, which can vary widely.

Assumption of Harmony: The Human Relations Movement often assumed that

improved human relations would naturally lead to harmony and productivity, overlooking
potential conflicts and power dynamics within organizations.

Neglect of Broader Organizational Factors: It sometimes ignored broader

organizational issues, such as structural inefficiencies, market forces, or technological
changes, which also significantly impact productivity and employee satisfaction.

Idealistic Views: The movement's assumptions about the inherently positive nature of
human relations and the effectiveness of informal social structures could be seen as
idealistic and not always applicable in practice, especially in complex or large-scale
organizations.

HOW HUMAN RELATIONS MOVEMENT INFLUENCED MODEM

MANAGEMENT PRACTICES
In human relations management, major theories including **Maslow’s Need Hierarchy
Theory** and **Herzberg’s Motivation-Hygiene Theory** fundamentally affecting the
current management system.

1.**Maslow's Hierarchy of Needs**: This theory argues that employees have a series
of needs that begin with, the physiological and end with self-actualization requirements.
Current managerial strategies based on this theory are concerned with satisfying several
bipolar psychological needs of the employees. For example:
-**Physiological Needs**: Providing employment rates, and acceptable wages and safe
working conditions.
-**Safety Needs**: Offering employees the sense of job security and the stability of
working environment.
-**Social Needs**: Promoting the concept of team work and feeling of ownership to the
course.
-**Esteem Needs**: Rewarding and promoting employees and their excellence.
-**Self-Actualization**: Providing training and career opportunities so that people can
show their best performance for the organization.

HOW HUMAN RELATIONS MOVEMENT INFLUENCED MODEM

MANAGEMENT PRACTICES
2.**Herzberg's Two-Factor Theory**: Based on this theory, it is possible to
distinguish between **extrinsic rewards** such as pay, benefits and working
environment (**hygiene factor**) and ** intrinsic rewards such as recognition,
achievement, and posting (motivators). Modern management practices shaped by this
theory focus on:Modern management practices shaped by this theory focus on:
-**Hygiene Factors**: Basic employment needs being met to eliminate dissatisfaction
(for example paying the employees market rate wages, providing safe working
conditions).
-**Motivators**: Improving the status of employment and employee engagement
through meaningful tasks, development chances, and rewards.

GROUP #3
 BEHAVIORAL MANAGEMENT THEORY

Behavioral Management Theory - is a management concept that studies how

productivity in an organization can be improved by concentrating on the things that
motivate the workforce.

KEY CONCEPT OF BEHAVIORAL MANAGEMENT THEORY

Behavioral Management Theory - is a management concept that studies how productivity
in an organization can be improved by concentrating on the things that motivate the
workforce.

KEY CONCEPT OF BEHAVIORAL MANAGEMENT THEORY

Behavioral management theories include expectancy theory, behavior modification,

social learning theory, and leadership and management style.

Expectancy theory - suggests employees are motivated by expectations of performance,

instrumentality, and valence.

Behavior modification - involves using reinforcement and punishment strategies to

enhance performance.

Social learning theory - emphasizes the role of role models and social context in shaping
behavior.
These principles aim to create a productive work environment.

HISTORICAL CONTEXT AND THE REASONS BEHIND ITS DEVELOPMENT

Historical context of mary parker theory

Mary parker follett's behavioral management theory emerged in the early 20th century, a
period marked by rapid industrialization and organizational change. This was a time
when the traditional scientific management approach, pioneered by frederick taylor, was
dominant. Taylor's focus was on efficiency and productivity through task specialization
and strict control.
Follett's development of ideas such as collaboration, participation, conflict resolution,
empowerment, and leadership paved the way for modern organizational behavior and
management practices. By recognizing the importance of interpersonal dynamics,
employee engagement, and collaborative problem- solving, follett's work continues to
influence management theory and practices today.

HISTORICAL CONTEXT OF CHESTER BARNARD THEORY

Behavioral management theory, originating in the early 20th century, focuses on

improving organizational productivity by understanding workforce motivations. Also
known as the human relations movement, it examines behaviors like conflict resolution,
group dynamics, and teamwork.

Barnard developed his ideas in response to the complexities and challenges faced by
organizations as they grew larger and more complex. His theory emphasized the
importance of leadership, communication, and the role of organizations in coordinating
and integrating individual efforts to achieve common goals. Barnard's work was
influenced by the shifting dynamics of the workplace and the need for effective
management practices to navigate these changes, making his theory relevant in
understanding organizational behavior and leadership in a rapidly evolving industrial
landscape.

MAJOR CONTRIBUTORS AND

THEIR CONTRIBUTIONS

What are the contributions of mary parker follet?

Mary parker follett contributed with her theory of administration that establishes people
as the most important pieces of an organization above tasks or material goods. Therefore,
miss follett's theory promotes group interactions and participatory leadership in
organizations.

What is the major contribution of chester barnard?

Contribution of chester barnard is a collection of business management theories. These

are discussed in one of his most important works, functions of the executive.
Strength of mary parker follet's theory

Mary parker follett's ideas are notable for their pioneering emphasis on collaboration and
integration within organizations. She championed the concept of "Power with" Rather
than "Power over," Advocating for a more democratic approach to management where
influence is achieved through cooperation and mutual respect rather than coercion.
Follett's focus on the importance of group dynamics and her belief in the value of
collective problem-solving were ahead of her time, offering a framework for
understanding organizational behavior that is still relevant today.

Weaknesses of mary parker follet's theory

Mary parker follett's ideas, while innovative, have been criticized for their lack of
concrete implementation strategies. Her emphasis on collaboration and democratic
management can be challenging to apply in hierarchical or highly structured
organizations where traditional power dynamics prevail. Additionally, follett's concepts,
though insightful, may not always address the complexities of modern organizational
issues, such as the need for more rigid control mechanisms in certain environments.

Strength of chester bernard's theory

Chester barnard's theory, particularly his work on the "Functions of the executive,"
Provides a robust framework for understanding organizational management. His concept
of the organization as a system of consciously coordinated activities emphasizes the
importance of leadership, communication, and the establishment of a common purpose.
Barnard's ideas about the executive’s role in maintaining organizational equilibrium
through effective communication and decision-making processes underscore the
necessity of managerial skills in achieving organizational goals

Weaknesses of chester barnard's theory

Chester barnard's theory, although influential, has faced criticism for being somewhat
idealistic and abstract. His focus on the cooperative nature of organizations may overlook
the practical challenges and conflicts that arise in real-world settings. Additionally,
barnard's theory does not fully address the impact of individual differences and external
environmental factors on organizational effectiveness, potentially limiting its
applicability in diverse or rapidly changing contexts.
 HOW THIS THEORY
MODERN MANAGEMENT PRACTICES

Mary parker follet's

Her groundbreaking ideas on constructive conflict, depersonalizing orders, and

transformational leadership laid the foundation for modern management practices.it
emphasized the importance of resolving conflicts by embracing differences and
promoting cooperation, rather than coercion or dominance.

Chester barnard

-chester barnard's theory significantly influenced modern management practices by

emphasizing the importance of informal organizations, communication, and the role of
executives in fostering cooperation. His ideas laid the groundwork for understanding
organizational behavior and leadership, focusing on the human aspects of management.
Chester barnard's theory also contributes informal organization, communication,
authority and responsibility.

ORGANIZATION MANAGEMENT

QUANTITATIVE MANAGEMENT THEORY

Prepared by: Group 4
Introduction to Quantitative Management Theory

•Definition: Quantitative Management Theory applies mathematical models, statistics,

and algorithms to solve management and decision- making problems.

•Purpose: It aims to enhance decision-making efficiency by analyzing numerical data and

using quantitative tools.

•History: This theory gained prominence after World War II, particularly with the rise of
operations research and decision science.
KEY CONCEPT AND PRINCIPLES OF THE THEORY
Key Concepts in Quantitative Management

1.Operations Research: Uses mathematical models to optimize resource allocation and

problem-solving in complex systems.

2.Decision Theory: Focuses on evaluating different decision alternatives under

uncertainty, using tools like probability analysis and decision trees.

3.Mathematical Modeling: Involves representing business processes and problems

through equations and algorithms to forecast outcomes.

4.Simulation: Uses computer-based models to replicate real-world

scenarios and test the impact of various strategies.

KEY CONCEPT AND PRINCIPLES OF THE THEORY

Core Principles of Quantitative Management

1.Data-Driven Decision-Making: Management decisions should be based on empirical

data rather than intuition.

2.Optimization: The goal is to find the most efficient and effective solution by
maximizing or minimizing certain factors, like cost or time.

3.Predictive Analysis: Uses statistical models to predict future outcomes based on

historical data.

4.Systematic Approach: Problems are broken down into smaller, manageable parts, each
analyzed quantitatively.

HISTORICAL CONTEXT
The history of quantitativemanagement theory: World War II

•World War II sparked the development of quantitative management (QMT).

•British militaries needed to optimize resources and make strategic decisions quickly.
•Mathematicians and scientists developed mathematical models for combat analysis and
strategy improvement.
HISTORICAL CONTEXT
Post-War Expansions: From Battlefield to Boardroom

•QMT’s success in wartime led to its adoption in industries like manufacturing.

•The rise of computers made QMT more powerful and accessible.

REASONS BEHIND IT’S DEVELOPMENT

•Wartime Urgency
•Success of Wartime Applications
•Post-war Need for Efficiency
•Advancement in Computing

MAJOR CONTRIBUTORS AND CONTRIBUTIONS

Quantitative management theory also known as operations research or management
science, involves applying mathematical and statistical methods to managerial decision-
making and problem-solving. Several key contributors have significantly shaped this area
and their contributions include:
1.William Edwards Deming
2.Jules Henri Fayol

MAJOR CONTRIBUTORS AND CONTRIBUTIONS

1.William Edwards Deming
Contributions:
Statistical Process Control (SPC)
-Deming was a strong advocate for using statistical methods to monitor and control
processes. He believed that understanding variation within processes was critical to
improving quality. SPC techniques, such as control charts, help organizations reduce
variability and improve consistency.

MAJOR CONTRIBUTORS AND CONTRIBUTIONS

2.Jules Henri Fayol
Contributions:
Administrative Management Theory
-Fayol’s work is often categorized under administrative management theory, which
focuses on the management process and the organization’s structure. Fayol concentrated
on the broader principles of management that could be applied at any level of the
organization.

STRENGTHS AND WEAKNESSES OF THE THEORY

STRENGTHS
•Data-Driven Decisions
•Optimization
•Predictable Power
•Consistency
•Objective and Accuracy
•Precise and Accurate Result

STRENGTHS AND WEAKNESSES OF THE THEORY

WEAKNESSES
•Modelling Errors
•Underestimation of the Human Elements
•Lack of Realistic Perspective
•Unrealistic Assumption
•Challenges with Data Accuracy and Timeliness
•Data Dependency

Influences of Quantitative Management Theory on Modern Management

Quantitative management theory, which emerged in the mid-20th century, emphasizes
using quantitative techniques and mathematical models to make management decisions.
This approach has profoundly influenced modern management practices in several ways:

1.Data-Driven Decision Making

⦁ Influence: Quantitative management promotes the use of data and metrics to guide
decisions rather than relying solely on intuition or experience.

2.Operations Research and Optimization

⦁ Influence: Techniques such as linear programming and simulation modeling are
employed to solve complex operational issues.

Influences of Quantitative Management Theory on Modern Management

3.Forecasting and Statistical Analysis
⦁ Influence: Forecasting techniques help organizations predict future trends based on
historical data.

4.Performance Measurement and Management

⦁ Influence: Key Performance Indicators (KPIs) and other metrics help organizations
assess their performance and improve productivity.

5.Quality Management and Control

⦁ Influence: Adopting statistical quality control (SQC) techniques allows firms to
monitor production processes and improve product quality.

Influences of Quantitative Management Theory on Modern Management

6.Project Management
⦁ Influence: Quantitative management has shaped modern project management
methodologies, including the use of techniques like PERT (Program Evaluation Review
Technique) and CPM (Critical Path Method).

7.Financial Analysis and Risk Management

⦁ Influence: Quantitative techniques allow managers to conduct financial forecasting and
risk assessment, enabling better investment and resource allocation decisions.

GROUP #5
CONTEMPORARY MANAGEMENT THEORIES
HISTORICAL CONTEXT AND THE REASONS BEHIND ITS
DEVELOPMENT