This school of thought is actually divided into two different approaches—scientific school and administrative school. These theorists laid down the foundations of managing an organization following certain principles.
In the table below, we have explained the essence of their principles, highlighting the contributions in a nutshell.
| Scientific Management | |
| Frederick W. Taylor (1856-1915) | Development of Scientific Management |
| Frank B. Gilbreth (1868-1924) and Lillian M. Gilbreth (1878-1972) | Time and Motion Studies |
| Henry L. Gantt (1861-1919) | The Gantt Chart |
| Administrative Theory | |
| Henri Fayol (1841-1925) | General Theory of Management |
| Max Weber (1864-1920) | Rules |
1. Scientific Management Approach:
This is the most pioneering classical approach, which lays emphasis on the scientific study of work methods to improve efficiency of the workers. Among all the contributors to this school of thought, the contribution of F.W. Taylor is considered the most important one. F.W. Taylor, by developing specific principles of scientific management, in 1911 became the father of scientific management.
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He had started his experiments with the concept in 1878 at Midvale Steel Co. During his days at Midvale he saw that employees were ‘soldiering’, which means deliberately working at a pace slower than their capabilities. He identified that workers indulged in ‘soldiering’ primarily for three reasons as under:
(a) Fear of losing jobs if they increase their output.
(b) Faulty wage systems
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(c) Outdated methods of working
For eliminating this problem, Taylor developed the principles of scientific management, emphasizing mainly on five important issues:
| 1. | Attain organized knowledge rather than relying on rule of thumb |
| 2. | Obtain harmony in group action |
| 3. | Achieve cooperation |
| 4. | Work for maximum output rather than restricted output |
| 5. | Develop all workers both for their self-development and organizational prosperity |
In essence, Taylor emphasized the following points to achieve organizational efficiency:
(a) Develop scientific way of performing jobs
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(b) Train and develop workers to perform the job
(c) Establish harmonious relations between management and workers
In order to ensure that such objectives are achieved, Taylor suggested two important managerial practices like, piece-rate incentive system and time and motion study. Piece rate incentive system rewards the worker who produces the maximum output. Existence of such incentive system obviously will motivate workers to work more to maximize their earnings.
This system requires workers to perform at some pre decided standard rate to earn their base wages. Standards are decided using time and motion study. If workers are able to produce more, then in addition to their base rate, they get incentives on the number of excess units produced over and above the standard units. This serves both the interest of workers and management, as workers feel motivated to maximize their earnings, while management gets the benefit of increased productivity.
Time and motion study, as already pointed out, facilitates determination of standard time for performing a job. Time study helps in the determination of time required, duly defining the art of recording, analysing and synthesizing the time elements of each operation.
Motion study, on other hand, involves study of movements in doing a job, in parts and eliminates wasteful movements and retains only necessary movements. In other way, it makes a job simple, easier and better.
In fact, time and motion study concepts were developed by F.W. Taylor in association with Frank and Lillian Gilberth. Like Taylor, Frank Gilberth is known as the father of motion study. Lillian Gilberth, on the other hand, conducted research on motion studies. Both of them explored the ways of reducing the fatigue.
They had classified seventeen basic hand motions like search, select, position, hold, etc., which they called therbligs (spelling backward with ‘t’ and ‘h’ transposed). Their approach helps us to analyse the exact elements of a worker’s hand movements. A simple modification of brick laying approach, following Gilberth’s approach, helped to increase hourly output from 120 to 350 bricks.
Henry Laurence Gantt also worked as a close associate of F.W. Taylor at Midvale and subsequently at Bethlehem Steel. His contributions to the scientific management school of thought are introduction of task and bonus system and a chart commonly known as Gantt chart.
As per his incentive plan, workers receive their day wages even when they do not perform their complete job. But they get bonus, when they complete the work in better than the normal standard time. They also recommended payment of bonus to foremen, based on the incremental performance of workers.
Gantt chart, on the other hand, is used for production planning to compare the actual and planned performances. It is a visual device for production control, indicating progress of production in terms of time rather than quantity. In fact, Programme Evaluation and Review Technique (PERT) concept subsequently was developed based on the Gantt chart. In our chapter on Control, Gantt chart has been illustrated.
Drawbacks of Scientific Management School of Thought:
(a) Basic scientific management principles revolve around the operational level problems and do not focus on managerial issues essential for managing an organization. That is why it is often said that scientific management approach is more about engineering than management.
(b) While framing the principles, assumptions about workers only consider that they are rational and primarily driven for their desire to fulfil material gains. Therefore, economic and physical needs of the people were only emphasized and not their social needs.
(c) This theory also ignores the human desire for job satisfaction.
2. Administrative Theory:
Administrative theory, another part of classical school of thought, focuses on principles to coordinate the internal activities of the organization. Henri Fayol, the French industrialist, through his pioneering work on ‘General and Industrial Management’ explained that satisfactory results can be achieved with scientific forecasting and proper methods of management. Fayol at the outset, classified business operation of an organization into six activities and then outlined fourteen principles of management. Six activities are as follows:
(a) Technical — Activities concerned with production and manufacturing
(b) Commercial — Activities related to buying, selling and exchange
(c) Financial — Activities ensuring that ensure optimal use of capital
(d) Security — Activities that ensure protection employees and property
(e) Accounting — Activities concerned with costs, profits and liabilities, maintaining balance sheets and compiling statistics
(f) Managerial — It is a functional approach to management, i.e., concerned with planning, organizing, commanding, coordinating and controlling
After detailing out all these activities, Fayol primarily focused on the managerial activities and outlined fourteen principles to achieve efficiency in managerial activities. His fourteen principles are as under:
| (i) Division of Labour | If people are specialized, they can perform their tasks better. It recommends grouping of people as per their area of specialization. Modern assembly line concept is an outcome of division of labour. |
| (ii) Authority | Managers must have authority to get things done. However, formal authority alone may not help to compel obedience from the subordinates; managers must have expertise to exert personal authority. |
| (iii) Discipline | People working in an organization need to comply with rules and agreements that govern the organization. Without discipline, results cannot be achieved. Good discipline results to good leadership, and these together can create an environment of good work culture. |
| (iv) Unity of Command | Members in an organization must receive instructions from only one person. Conflict will arise when one receives orders and instructions from multiple bosses. Therefore, ideally reporting relationship of one subordinate should be with one superior. This type of command is known as scalar chain. Its literal meaning is a straight chain of command that extends unbroken from the ultimate officer to the lowest ranks. |
| (v) Unity of Direction | All operations of an organization need to be directed to one objective. Without this, achievement of goals cannot be ensured. |
| (vi) Subordination of Individual Interest to the Common Good | Interest of an individual employee should not take precedence over the interests of the organization as a whole. |
| (vii) Remuneration | It should be fair to both employees and employers. |
| (viii) Centralization | Centralization reduces the role of the subordinates in decision making, decentralization enhances it. Managers should retain responsibility by centralization but at the same time give their subordinates enough authority to do their jobs properly. |
| (ix) The Hierarchy | There should be a line of authority, illustrated in the form of an organization chart, showing clearly from the top management to down the line. |
| (x) Order | People and materials should be in the right place at the right time. Job allocation to people should be made in a way that suits them. |
| (xi) Equity | Managers should be fair to their subordinates. |
| (xii) Stability of Staff | Employee turnover should be less to ensure efficiency of an organization. |
| (xiii) Initiative | Subordinates should have the freedom to conceive and do their task, even though they may commit mistakes. |
| (xiv) Esprit de Corps | Team spirit should be promoted to develop a culture of unity in an organization. Use of verbal communication instead of formal written communication wherever possible may help in developing team spirit in organization. |