Classical Management Theory

Context of Emergence

• Industrial Revolution: Late 1700s to late 1800s
  • Shift from farms to factories, small shops to large companies
  • Key ingredients:
    • Power: Steam and hydro power
    • Machinery: Innovations like the cotton gin
    • Transportation: Railroads, steamboats, improved roads
• Resulted in rapid industry growth, creating the need for new management strategies

Key Figures and Theories

Max Weber

• Bureaucracy
  • Organizations as extensions of government and legal systems
  • Legal-rational approach to organizing
  • Authority tied to official position in organizational hierarchy
  • Emphasis on clear rules, standardization, and hiring best talent

Frederick Taylor

• Scientific Management
  • Micro-level focus, applying science to work
  • Time and motion studies to find "one right way" to do tasks
  • Standardization to increase efficiency (e.g., bricklaying)

Henry Fayol

• Administrative Science / Classical Management
  • Mid-level management focus
  • Systematic training of managers
  • Key management activities:
    • Planning
    • Organization
    • Command
    • Coordination
    • Control

Common Elements

• Clear organizational hierarchy
• Division of labor
• Standardized approach to work
• Centralization of authority
• Separation of personal life and organizational roles
• Hiring based on qualifications and performance
• Fair pay and profit-sharing ideas

Relevance Today

• Still prevalent in manufacturing, warehouses, delivery services, foodservice, and more
• Influences modern organizational behaviors, even if indirectly
• Many contemporary approaches (e.g., HR, systems theory) are reactions to it
• Less relevant in new, knowledge-based companies like Google, Facebook, but still acknowledged

Conclusion

• Classical management theory remains a fundamental component of organizational studies, influencing practices in various industries even today.