Classical Management And Theory Assignment

RUNNING HEAD: INTRODUCTION TO MANAGEMENT
0
Introduction to Management

Introduction to Management
1
Introduction
Management theories are considered as the set of general rules that guide the managers to
manage an organization. Classical management theory is taken as the body of management
thought that is based on the idea that employees or workers have only physical needs and
economical needs and states that social needs and other needs are not important or does not exist
(McLean,2011). Classical theory is a part of management theory which evolved around the 19th
century. The theory was developed at the time of industrial revolution, at that time the factory
systems faced many problems, to identify the role that management plays in the firm particularly
focus on the efficiency of the work process.
The theory was originated in the beginning of the twentieth century; the classical theory
dominated the field of management in the 1920s and 1930s by focusing on the efficiency of the
work process (Yacoub,2016). Classical management theory “has three schools of thought
scientific management theory, Bureaucratic management theory and administrative management
theory”. Scientific management define the best possible way to do a job, bureaucratic
management focuses on procedure and rule , clear division of labor and hierarchy and
administrative management highlight the concept of information flow within the organization
(Yacoub,2016). The purpose of this essay is to know the three schools of thought of classical
management theory and to identify whether these theories are relevant in this contemporary
world or outdated and have no relevance to the organization in today’s world.
Analysis
Scientific Management Theory
According to Taylor, organization productiveness increase by increasing the level of efficiency
of process of production. He believed that by examining workers work in a scientific manner,
the best possible way of doing a task was identified. Taylor felt that by focusing on the efficiency
in work, the overall productivity of organization would improve which resultant in to reward
efficient workers with additional pay (Brunsson,2008). He argued and focused on the concept
that motivation of employees would be additional pay. This theory is founded upon a
fundamental belief that “managers not only are intellectually better than an average employee,

Introduction to Management
2
but they have a positive duty as well to oversee staff and to organize their work activities”.
Scientific management theory based on four principles, first principle is scientifically
development of the best way to do a task. Second principle is to make sure that efficient workers
are picked to do a task. Third principle focuses on that a task is performed by worker using best
possible method and lastly that centralization of work (Brunsson,2008).
This theory was adopted by McDonald restaurant, as the company has strong division of labor
and focused on the one best way to complete a task. Further, the only source of motivation for
human was economic reward (UKEssays., 2018). However, this theory failed in this changing
environment, workers becomes inefficient and dissatisfied. They are not satisfied with economic
reward as the only source of motivation. However, there are some advantages of this theory such
as high degree of excellence, specialization in work, and low cost of production. But on the other
side, this theory has limited scope and takes humans as the only way to improve efficiency.
Hence, in current business situation, this theory is not applicable as at present success and
productivity in the organization is not obtained by controlling workforce and with money rather
success is achieved by development of employees and social wellbeing (McLean,2011).
Bureaucratic Management Theory
Bureaucratic management theory was developed by political economist and a German
sociologist Max Weber. According to Max Weber, bureaucracy in the organization is the most
efficient way to make things work. The well-defined line of authority in the organization and
clear regulation and rules leads to efficiency in the organization and ensures productivity. He
believed that an ideal organization has chain of command, division of labor, and a well-defined
hierarchy (Assiamah et.al,2016). The concept of bureaucracy is followed by many organizations
and they are successful in their fields, as this theory emphasize on hierarchy and flow of
information in one direction. This is because it reduces the chances of conflict, bring
transparency and accountability and reduce unnecessary movements (Edwards, 2018).
The framework provided by Max Weber proved to be beneficial for many companies such as
Ford. Ford Company followed bureaucratic framework as the company had proper chain of
command, centralization, formal structure, and hierarchy. The productivity and efficiency of
Ford Motors depend on its bureaucratic structure as each worker has to report its immediate