CLASSICAL SCHOOL OF THOUGHTS – I:Theory of Bureaucracy, Human Relation Approach

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LESSON 03

CLASSICAL SCHOOL OF THOUGHTS I

At the end of the lecture the students will be able to understand:-

The work of Classical school

Scientific management concepts like efficiency

The concept of Weber's bureaucracy

Henri Fayol's General Principles of Management

The concepts in Human Relation Approach

As mentioned early the main contributors to the classical thought are:-

Woodrow Wilson

Leonard D. White

W. F. Willoughby

Fredrick Winslow Taylor

Henry L. Gantt

Frank and Lillian Gilbreth

Max Weber

Henri Fayol

The work of Max Weber, Henry L. Gantt, Frank and Lillian Gilbreth and Henry Fayol will be

discussed.

In the last lecture we made effort to understand Taylor's scientific management and the underlying

assumptions. We also tried to see the Results of his experiment.

Henry L GANTT

Gantt also belongs to the classical school, because he was also trying to focus on efficiency and

maximization of output. He emphasized the need for developing mutuality of interests between

management and labour, which mean a "harmonious cooperation," between both. He asserted:

That in all problems of management the human element is the most important."

The importance of time, as well as cost, in planning and controlling work

This led eventually to the famous Gantt chart, (Figure below) which is basis of such modern

techniques as the Program Evaluation and Review Technique (PERT).

This chart enables managers to break work in task and then determine to how much time and

resources will be required to complete each task.

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Gantt chart

GANTT CHART - 3 MONTH TIME LINE

January

Fe bruary

March

Tas ks

Week

Week 1 Week 2 Week 3 Week 4 Week 1

Week 2 We ek 3 Week 4

Week 2 Wee k 3 Week 4

Form BPM team

Identify problem

Map process

Identify causes

Analyze causes

Develop improvement plan

Set budget

Get approval

Collect data

Analyze data

Develop improved process

Get approval

Implement process

Document improved process

Train staff

Key Dates

KE Y

1/7 Form team

2/14

All data collected

1/9 Identify problem

2/21

All data analyzed

Milestone marker - start

1/14 Map process

3/7

Mapped improved process

1/20 Identify causes

3/12

New process map approved

Milestone marker - end

1/27 Develop improvement plant

3/21

New process implemented

1/29 Set budget

3/28

Staff trained

Gantt bar

1/30 Budget and plan approved

Frank and Lillian Gilbreth

Frank and Lillian Gilbreth strongly supported the ideas of Taylor. (Frank and Lillian were husband

and wife). Gilbreth became interested in wasted motions in work. He observed the work of bricklayers and

said that it can be reduced from 18 to 5 movements. He met Taylor in 1907 and combined his ideas with

Taylor to improve productivity of workers. Frank and Lillian Gilberth emphasized the following:-

Application of scientific-management principles (time and motion study)

The need to understand workers personalities and needs

Theory of Bureaucracy

Max Weber (1864-1920)

Max Weber was a lawyer who got interested in the social aspects of organizations. During his time

markets were booming and his life long work on the study of organizations led to believe that specific kind

of organizations called "bureau" (desk), will help in the growth of markets. He gave following main

characteristics of the bureaucracy.

General Characteristics

· Hierarchy of authority

· Impersonality

· Written rules and documents

Middle

· Promotion based on achievement

· Specialized division of labor

Bottom

· Efficiency

Figure

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Hierarchy of Authority

· Hierarchy is the various levels in the Organization.

Authority

Authority is the ability to exercise influence over a group of people. As shown in the figure a

hierarchical organization looks like Pyramid.

Weber distinguished three main types of authority:

1. Traditional Authority: The authority that one inherits, e.g. the son of king will be the future king. In

traditional societies the authority is transmitted.

2. Charismatic: It is the authority that one possesses because of one's personal traits and abilities. E.g.

TV artist, sports stars.

3. Rational-legal Authority: It is the authority that is acquired as a result of a position. E.g. Policeman

has authority because of the position.

One may posses a mix of these above authorities.

Impersonality

The official is provided all equipment to carry out his duties; he does not own the "means of

administration." Activities are completed impersonally, which means that the `self' of individual is not

involved in the work.

Written Rules and Documents

Bureaucracy demands that the written rules of the organization be strictly followed and that the

officials remain loyal. All the work in organization is written. Compliance is to the written instructions.

Promotion Based on Achievement

Bureaucracy requires the tasks assigned to an official performed and completed in an efficient and

effective manner, and promotion is based on the level of skill and ability of the official.

Specialization/ Division of Labour

Each person should perform a given and assigned task

Example:

1. A person assigned the task of typing should only perform that task. He should not be asked to do

other task. If he/she continues to perform the task he/she will develop competence in that area.

2. Pin making: Another example is of pin making given by Adam Smith. If the pin is made by one

person he will take longer. But if the wire is straightened by one person, the other person cuts the

wire and the third person rounds the head of the pin, then the output can be increased due to

specialization.

Henri Fayol

Henri Fayol is called the father of modern management theory. He was a French Industrialist. His

book on `General Administration' appeared in 1916. It was written in French. Fayol found that activities of

industrial undertaking could be grouped in 6 parts

1. Production

2. Commercial

3. Financial

4. Security (protection of property)

5. Accounting

6. Managerial

General Principles of Management

He gave following 14 general principles of management:

1. Division of work

2. Authority & Responsibility

3. Discipline: respect for agreement

4. Unity of command: receive order from one superior only

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The figure below shows senior manager supervising the work of 3 Assistants. All 3 receive order

from one superior.

Senior Manager

Assistant

Unity of direction: each group of activities with same objectives must have one head and one plan.

Subordination of individual interests to the general interest: The mangers should work in the

interests of organization.

Remuneration: methods of payment should be fair and give maximum satisfaction to employee and

employer

Centralization: The extent to which the authority is concentrated in one person or dispersed in the

organization

Scalar chain (line of authority) or chain of command

Order: a place for everything and every thing in its place

10.

Equity: justice and fairness on the part of managers

11.

Stability of tenure of personnel

12.

Initiative: keenness to work

13.

Esprit de corps: union is strength (teamwork)

Main Feature of Classical School

The main focus of the classical school was as follows:-

1. The task of administration is not political but technical, i.e. only carry out the will of the political

authority.

2. Its emphasizes is on material and methods instead of human element in the organization

3. It treated people as `cogs in the machines' people in the organization were like other machines and

tools.

4. Focus was to increase productivity.

It improves organizational efficiency and ensures high productivity due to economic incentives to

workers.

Human Relation Approach

This approach started as a reaction to the classical approach.

It was initiated in 1930's with the "Human Relation Movement".

Research and Theory development in the 1950s and 1960s provided further conceptual grounding

to this school of thought.

Research and Theory development in the 1950s and 1960s provided further conceptual grounding

to this school of thought.

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Concepts

Productivity:

increasing output per worker

Division of work/specialization: assign work clearly to one person so that he improves the skills

Authority:

ability to influence others

Impersonality:

"self" on individual is not involved in the work.

Hierarchy:

various levels or tiers in the organization

Time & motion study:

to study the movements of workers and eliminate unnecessary

and inefficient movements

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