Classical Theory of Management



1. Scientific Management


1. Development of Science for Each Part of Men’s Job

(Replacement of Rule of Thumb)

a. This principle suggests that work assigned to any employee should be observed and analyzed with respect to each and every element, part, and time involved in it.

b. This means replacement of odd rule of thumb by the use of methods of enquiry, investigation, data collection, analysis, and framing of rules.

c. Under scientific management, decisions are made on the basis of facts and by the application of scientific decisions.


2. Scientific Selection, Training & Development of Workers

a. There should be scientifically designed procedures for the selection of workers.

b. Physical, mental, and other requirements should be specified for each and every job.

c. Workers should be selected and trained to make them fit for the job.

d. The management has to provide opportunities for development of workers having better capabilities.

e. According to Taylor, efforts should be made to develop each employee to his greatest level of efficiency and prosperity.


3. Co-operation Between Management and Workers

(Harmony, Not Discord)

a. Taylor believed in co-operation and not individualism.

b. It is only through co-operation that the goals of the enterprise can be achieved efficiently.

c. There should be no conflict between managers and workers.

d. Taylor believed that the interests of employers and employees should be fully harmonized so as to secure mutual understanding relations between them.


4. Division of Responsibility

a. This principle determines the concrete nature of roles to be played by different levels of managers and workers.

b. The management should assume the responsibility of planning the work, whereas workers should be concerned with execution of tasks.

c. Thus, planning is to be separated from execution.


5. Mental Revolution

a. The workers and managers should have a complete change of outlook towards their mutual relations and work efforts.

b. It requires that management should create suitable working conditions and solve all problems scientifically.

c. Similarly, workers should attend their jobs with utmost attention, devotion, and carefulness. They should not waste the resources of the enterprise.

d. Handsome remuneration should be provided to workers to boost up their morale.

e. It will create a sense of belongingness among workers.

f. They will be disciplined, loyal, and sincere in fulfilling the tasks assigned to them.

g. There will be more production and economic growth at a faster rate.


6. Maximum Prosperity for Employer and Employees

a. The aim of scientific management is to ensure maximum prosperity for both employers and employees.

b. It is possible only when there is an opportunity for each worker to attain his highest efficiency.

c. Maximum output and optimum utilization of resources will bring higher profits for employers and better wages for workers.

d. There should be maximum output in place of restricted output.

e. Both managers and workers should be paid handsomely.


Administrative Theory

In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed as well. At that time, there were only a few (external) tools, models, and methods available.

Thanks to scientists like Henri Fayol (1841–1925), the first foundations were laid for modern management.

These first concepts, also called principles, are the underlying factors for successful management. Henri Fayol explored this comprehensively and, as a result, synthesized the 14 principles of management.

Henri Fayol’s principles of management and research were published in the book “General and Industrial Management” (1916).