Schools of Management

Management Theory: Classical, Neo-Classical & Modern Approaches

Dr. Dhaval Patel • 2025

2.1 Schools of Management

Management practice has existed for several thousand years. The great pyramids of Egypt were the result of efforts by numerous architects, engineers, and tens of thousands of laborers working together for fifteen years.

                    Historical Example: Egyptian pyramids were built from thousands of stone blocks, each weighing 2-3 tons, carried from miles away and cut to size within fractions of an inch.
                

Development of management as a field of knowledge emerged in recent decades with the widespread need to coordinate efforts of large numbers of people.

Management Theory Approaches

Historical Approaches

Classical viewpoint - emphasizes finding ways to manage work and organizations more efficiently
Behavioral viewpoint - focuses on human elements
Quantitative viewpoint - mathematical and statistical methods

Four Milestone Responses

Scientific management theory by Frederick Taylor
Administrative theory by Henry Fayol
Human Relations Theory by Elton Mayo
Motion study by Frank Gilbreth

📚 Three Distinct Phases of Management Development

1

Classical School of Thought

F.W. Taylor: Scientific management • F.B. Gilbreth: Time and motion studies • Henry L. Gantt: The Gantt chart

2

Neo-Classical Thought

Mayo: Human motivation effects • Maslow: Hierarchy of needs • McGregor: Theory X and Y

3

Modern Approaches

Quantitative school • System theory approach • Contingency theory

Scientific Management

Frederick Taylor's Revolutionary Approach

2.2 Scientific Management

Scientific management is an attempt to determine and apply facts and laws of gaining efficiency without leaving anything to chance.

"Scientific Management is knowing exactly what you want people to do and knowing that they do in the best and the cheapest way possible." - F.W. Taylor

An approach within classical management theory that emphasizes the scientific method of work to improve worker productivity through precise objective measurement.

🔬 Basic Elements of Scientific Management

1

Determine the One Best Way

Through precise objective measurement, study and measure each task to determine the single best way to perform procedures.

2

Select the Best Persons

For manual jobs: strongest person with desire to do good work. For other jobs: person with most aptitude for specific tasks.

3

Train in Efficient Methods

Management's responsibility to study tasks scientifically and train workers in optimal methods.

4

Provide Monetary Incentives

Workers should share in rewards through higher wages for meeting or exceeding performance standards.

2.3 Frederick Winslow Taylor (1856-1915)

Key Contributions

Identified worker "soldiering" - deliberately working below capacity
Experimented with improving worker performance
Published "Principles of Scientific Management" (1911)
Created professional management concept

Revolutionary insight: Separate planning from doing to create professional management roles.

Taylor's Four Principles of Scientific Management

Principle	Description
1. Scientific Study	Scientifically study each part of worker's task and develop the best method, replacing old rule of thumb
2. Scientific Selection	Scientifically select workers and train them to perform tasks using the scientifically developed method
3. Full Cooperation	Cooperate fully with workers to ensure they use the proper method
4. Work Division	Divide work and responsibility - management plans using scientific principles, workers execute accordingly

Impact: These principles revolutionized management by introducing scientific methodology to workplace efficiency and establishing management as a professional discipline.

Objectives of Scientific Management

Efficiency Goals

Find and eliminate causes of waste
Increase production without capital investment
Reduce cost of production
Ensure timely delivery of goods
Improve product quality

Worker & Social Goals

Protect interests of owners and labor
Ensure higher wages with reduced labor cost
Provide incentives to efficient workers
Improve working conditions
Increase worker standard of living
Minimize labor problems

🧠 Knowledge Check: Scientific Management

Question: What was Taylor's main observation about worker behavior that led to scientific management?

A) Workers needed better tools

B) Workers were "soldiering" - working below capacity

C) Workers needed higher wages

D) Workers lacked proper training

Answer: B) Workers were "soldiering" - working below capacity
Taylor observed that workers deliberately worked at less than full capacity, which led him to develop scientific methods to optimize performance and create proper incentive systems.

Features & Elements of Scientific Management

Key Features

Combination of varied elements, not a single approach
Group effort within organization towards common objective
Based on scientific laws and principles, not casual observation
Dynamic system that adapts and evolves

Essential Elements: Scientific task determination • Time and motion studies • Standardization • Scientific selection and training • Organizational modification • Mental revolution

Followers and Extensions of Taylor's Work

Henry L. Gantt (1861-1919)

Pioneered statistical production control
Developed performance charts for operatives, machines, and processes
Public recognition system for good/bad work
Supervisor bonuses based on subordinate output

Frank & Lillian Gilbreth

Investigated principles of human body movement
Complete system for measuring and classifying basic body motions
Identified sources of fatigue to eliminate tiring movements
Developed three-tier employee development approach

2.3.9 Problems with Scientific Management

Criticism Source	Main Concerns
By Employers	Expensive to implement • Loss due to reorganization • Not suitable for small enterprises • Difficulty finding trained personnel
By Workers	Separation of planning from doing • Loss of worker initiative • Speed-up of work • Weakens trade unions • Employee exploitation
By Psychologists	Mechanical nature • Creates monotony • Abuse of wage incentives • Ignores social and psychological factors

Key Issues: Work dehumanization, loss of craft skills, assumption that managers know jobs better than workers, and potential loss of employee loyalty due to over-emphasis on efficiency.

🏭 Scientific Management: Building Efficiency Like a Machine

The Machine Metaphor

Taylor viewed the workplace like an engineer views a machine - every part must work efficiently together:

Gears - Individual workers performing specific tasks
Blueprint - Scientific methods and procedures
Maintenance - Training and supervision
Fuel - Monetary incentives and motivation

Connection: Just as engineers optimize machines for maximum output with minimum waste, scientific management optimizes human work through systematic study and standardization.

Looking Forward

From Scientific Management to Modern Leadership