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Relevance of Classical Management Theories in Modern Business Environment

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The Classical Management Theory is thought to have originated around the year 1900 and dominated management thinking into the 1920s, focusing on the efficiency of the work process. It has three schools of thinking: Scientific management, which looks at ‘the best way’ to do a job; Bureaucratic management, which focuses on rules and procedures, hierarchy and clear division of labour; and Administrative management, which emphasises the flow of information within the organisation.

Scientific Management

Frederick Winslow Taylor (1856-1915) is known as the father of scientific management. His approach emphasised empirical research to increase organisational productivity by increasing the efficiency of the production process. In the United …show more content…

II. 2. Division of labour and specialisation of skills, where each employee will have the necessary expertise and authority to complete a particular task.
III. 3. Complete and accurate rules and regulations, in writing, to govern all activities, decisions and situations.
IV. 4. Impersonal relationships between managers and employees, with clear statements of the rights and duties of personnel.
V. 5. Technical competence is the basis for all decisions regarding recruitment, selection and promotion.

Weber’s model of bureaucratic management advanced the formation of huge corporations such as ford.

Bureaucratic Management – Contributions • Ensured that the organisation would be operated and managed by qualified/high calibre personnel only. • Allowed many organisations to efficiently perform routine organisational tasks through job specialisation. • Allowed management and employees to be more objective in their judgement and approach due to rules and procedures for doing specific tasks being clearly set. • Placed emphasis on job position, specialised employees and job continuity thus providing the organisation with long-term perspectives and quality employees. • Surpassed the loss of any employee or even of any manager due to the nature of job specialisation. Hence in such a bureaucracy, anyone can be replaced.

Bureaucratic Management - Limitations

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