Classical Theory of Management

 

The Classical Theory of management claims that workers have only physical and economic

needs. It does not bother about worker's social needs or job satisfaction but instead

promotes specialization of labor. It wants centralized power so that It can implement its

policies and thus decision-making will become easy. This theory helps in maximizing

profit.

This theory designed operations to increase productivity and develop the bottom line. This

belief and thought developed in the late 19th century and captivated support through the

first half of the 20th century. This theory is not prevalent widely in modern times but this

theory recommends some principles that are still valid in small organization settings with

respect to industries.

Concepts of the Ideal Organization in Classical Theory

This theory depicts an ideal workplace based on three main concepts:

Hierarchical structure

According to classical management theory, workplaces are divided into three different

layers of management. At the top are the owners, and board of management comprising of

directors that make the policy for the organization. Middle management has the

responsibility of supervising and implementing policies at the department level. At the

lowest level are supervisors, whose duty is to manage daily activities provide

solutions to employees' problems, and also provide the required training.

Specialization

The classical management theory advocates the principles at the workplace where large

tasks are broken down into smaller ones so that they become easy to accomplish and

complete on time. Individually all the workers are given roles which they are comfortable

in doing it. The work is based on the worker's specialization in that field. This definitely

helps in increasing productivity and efficiency.

Incentives

This Classical Theory supports and recommends that employees get motivated by

financial rewards. It advocates that employees will definitely work harder and ultimately

get more productive when workers are awarded incentives based on their work. In any

organization, Employers should motivate their employees by using this tactic to achieve

their target. This target is achieved by increased production. This production was

increased due to the efficiency of workers and ultimately the organization gets huge

profit.

Advantages of Classical Theory

It has formulated a clear structure for management, and what functions and operations it will provide.

There is a division of labor based on the specialization that makes tasks easier and more

efficient to accomplish, thus it enhances productivity

There is a specified nature of tasks given to each employee and this brings an end to guesswork.

Here in this system, a one-man show is there, he will make the final decision and later on,

convey it to all workers and they have to follow it. In this system, this leadership

approach is very beneficial as the decisions are to be taken quickly in a short time by one

leader, rather than taking everybody's opinion and ultimately wasting time and can't get

to a conclusion quickly.

Disadvantages of Classical Theory

By implementing the Classical Theory, Organization productions get increased and have

huge profit but it has some disadvantages also.

This theory principle tries to control human behavior and overlooks the importance of

human relations and values.

This theory has no compassion for workers and just sees their workers as machines.

Management attitude is very indifferent. They have no emotions for their workers. They

are not bothered by the worker's job satisfaction. They don't think about the moral values

of workers.

This theory supports the view that previous experience and specialized ability should

be applied to manufacturing settings without judging the present requirements.

Decisions are taken by one man in the company or so-called management. The workers of the

Organizations are neglected and have no role in decision-making. There is no voting right for

workers.

Conclusion

The Classical Management Theory should be implemented in companies or industries

where there are manufacturing operations going on and some productivity problems have

arisen. Productivity is a must in these industries and this Classical theory helps in

increasing production.

But as the different organizations of different countries emphasized human relations

and labor laws were implemented. This Classical theory became weak and people gave

value to human relations and motivations. Today new laws have been made keeping in

mind, the welfare of workers.

So this theory also had some positive and negative aspects. Understanding people's

values is very important rather than always thinking of increasing production in an inhuman

way.