Classical Viewpoint of Management

1088 Words Jul 15th, 2013 5 Pages
Classical management theory
Classical management theory was introduced in the late 19th century. It became widespread in the first half of the 20th century, as organizations tried to address issues of industrial management, including specialization, efficiency, higher quality, cost reduction and management-worker relationships. While other management theories have evolved since then, classical management approaches are still used today by many small-business owners to build their companies and to succeed.
There are three well-established theories of classical management: Taylor’s Theory of Scientific Management, Fayal’s Administrative Theory, and Weber’s Theory of Bureaucracy. Although these schools, or theories, developed historical
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The classical approach also recognized the importance of economic efficiency and formal organizational structure as guiding pillars of management effectiveness.
6. Business activity is based on economic benefit. Organizations should therefore control economic incentives

Advantages and Benefits of the Classical Management Theory

Hierarchical Structure
One of the advantages of the classical management structure is a clear organizational hierarchy with three distinct management levels. Each management group has its own objectives and responsibilities. The top management is usually the board of directors or the chief executives who are responsible for the long-term goals of the organization. Middle management oversees the supervisors, setting department goals according to the approved budget. At the lowest level are the supervisors who oversee day-to-day activities, address employee issues and provide employee training. The levels of leadership and responsibilities are clear and well defined. While the three-level structure may not be suitable for all small businesses, it can benefit those that are expanding.

Division of Labor
One of the advantages of classical management approach is the division of labor. Projects are broken down into smaller tasks that are easy to complete. Employees ' responsibilities and expectations are clearly defined. This approach allows workers to narrow their field of expertise
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