4 Classical Business Practices That Are Still Evident in Today's Business

1647 WordsJun 5, 20117 Pages
The classical management approach to control is still evident in management and accounting thinking today. Administrative managerial tactics and bureaucratic theory are branches of classical management and this essay focuses on how these theories are still used in contemporary business practices. Control is defined as “the power to influence or direct people 's behaviour” (Oxford Dictionaries, 2011) and is the driving force for which the administrative principles were procured. There are fourteen administrative principles that were derived from the work and writings of Henri Fayol, this essay will focus on division of labour, scalar chain and esprit de corps principles. I will also be talking about the bureaucratic principle of management…show more content…
But in some cases it can also discourage over-performers, since the ranking system is based on a workers loyalty and time spent at a firm, rather than their skills and work ethic. This may mean that workers who can pick up more work and do the work more efficiently than others may not be rewarded with higher ranks. Deloitte supports a hierarchy where the manager’s of each service line oversees the sectors engagements and clients. This is so the more experienced managers can see whether a job is being achieved correctly and efficiently. Another one of Henri Fayol’s administrative principles was the principle of esprit de corps, which stated that the maintenance of high morale and unity among employees is imperative (Rodrigues, 2001). Fayol believed that conferences bringing the heads of separate departments together at regular intervals, orchestrated the progress of the whole operation. One hour in conference per week can well avoid misunderstandings and particularly facilitate harmony amongst all. A good example of a business that values it’s team moral highly is Navman. Navman is a name synonymous with GPS navigation across the globe and continues to pioneer new navigation technology (Navman, 2011). Once a month the entire Navman team would get together in the staff canteen for a rundown on company activities and goals. In recent times it has to
Open Document