Compare Management's classical

and behavioral theory

Jan 2021
Introduction
The evolution of management theory has vastly impacted organizational success globally by providing
structure and guidance for nearly three centuries. Management practices were being developed by the
Sumerians and Egyptians as early as 3000 B.C., but the formal study of management is relatively recent.1
Modern management is defined as the attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading, and controlling organizational resources. The
development of management throughout time accumulates eight essential perspectives: classical,
humanistic, management science, systems thinking, contingency view, total quality management (TQM),
the technology-driven workplace and open innovation, each of which build upon the basis and
structures provided by the antecedent studies and follow the four key functions of management. “In
order to develop the skills necessary to be a good manager, one should be aware of the past and should
also be aware of the different methods that have been tested and found suitable for use in today's
workplace” (Boe, the development of management theory: how it all got started). Before the formal
study of management, individuals and organizations alike burgeoned through the antediluvian practices
of the agrarian era. This attributed the success of the organization to its ability to acquire the man and
muscle required to do the job because there were no procedures to ameliorate the efficiency and
effectiveness necessary to lower worker hours, heighten wages, expedite production, and diversify the
workforce. As industry and technology flourished in the late 19th century into the early 20th century,
organizations quickly discovered they were not well attuned to address the new and complex
challenges, such as equipping the plants, creating a comprehensible managerial structure, and selecting
and training new employees—many of which were immigrants. This accretion of industry and the
growing labor force exposed organizations, and in order to thrive, an influx of managers,

reference

https://www2.slideshare.net/BrysonMcCarter/classical-management-58069170?from_action=save

Define classical management

Classical management is the original "school" of management to develop during the Industrial
Revolution.  As businesses were expanding, company owners and managers were looking at
hiring in large numbers of employees, many of them unskilled in the trade and even a large
number who could not speak English.  Some method had to be developed to train all these
workers - hence, classical managment.

This system of management deals with the task itself.  Classical managers seek to outline
exactly how work is done in step-by-step increments.  They then provide employees with the
procedure and expect the procedure to mimicked exactly.  This is very much a "micro-

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managerial" style, with the head of the organization (company, branch, etc.) telling workers
exactly what to do and how to do it.

Many argue that classical management de humanized the workplace.  Rather than treating
workers as individuals, the theory treats them more like machines designed to complete a
particular function.  Other theories that developed included behavioral management, which
sought to leave the procedure to the worker.  Managers in this area ask for a particular
product, but allow for individuality in the completion of the project.

Here is the broader definition of "classical management":

"Classical management emphasized the identification of universal principles of management
which, if adhered to, would lead to organizational success. Universal principles encompassed
two broad areas. The first was identifying business functions and the second was structuring
organizations and managing workers.
In essence, classical theory holds that management is a process consisting of several related
functions, such as planning and organizing. Thus, by identifying specific business functions—
including marketing, finance, production, and subfunctions within those and other major
categories—companies can efficiently divide an organization into departments that work as a
process. Furthermore, by carefully structuring chains of authority and responsibility, an entity
can successfully facilitate the performance of individuals within departments to achieve
company goals."

references

https://www.enotes.com/homework-help/define-classical-management-63689

The Classical Perspective

As numerous challenges mounted and organizational structure became seemingly intractable,
organizations began to develop a “new sub-species of economic man—the salaried manager,” as stated
by Alfred D. Chandler, Jr (Daft, Classical Management). 2 These new managers lead with a command and
control credence that allowed for very little deviation from stated rules, procedures, and goals. The
original ideology was that, through consistency and efficiency, success could be replicated indefinitely
and a universal approach to decision making could be implemented. The classical perspective to
management encompasses three subfields, each of which cover unique aspects of the study and
application of management. These three subfields are scientific management, bureaucratic
organizations, and administrative principles.

The 3 Subfields of Classical Management

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Scientific Management
The earliest form of management study was primarily focused on production efficiency and
organizational administration. As the industrial revolution changed the landscape of production,
innovative machinery challenged the relatively unskilled work force. This created a dissonance between
what was actually being produced and what the intended possibility of production was. The first
proponent of scientific management was Charles Babbage.3 His works began in the early 1800’s, but he
was unable to complete his studies, which focused on two main contributions-theimportance of dividing
and assigning labor on the basis of skill and developing the resources to determine the feasibility of
replacing manual operations with automatic machinery (Boe, The development of management theory:
how it all got started). Frederick Winslow Taylor continued Babbage’s early studies into the early 1900’s
and became a prominent and influential figure in the study of management.4 He proposed an
organizational change in thinking between labor and management in two phases, which he describes as
a mental revolution, that would abate conflicts and have them agree that the basis of skill is an
economic necessity. He used workers at Bethlehem Steel to further his studies and prove his process
could work. The first phase was the division of skilled labor. Workers at the time were factotums and
were not expertly skilled in any specific duty, but Taylor’s ideas of production efficiency revolved around
the minutia of each job in the line of production. Division of labor was imperative for an organization to
increase skilled labor, reduce training time, and enhance the overall efficiency to achieve its goals. The
second phase of Taylor’s mental revolution stated that scientific method must be the sole basis of
obtaining information within an organization. As noted earlier, production was a crucial component to
the study, and Taylor believed that the basis of the workers’ tendency to restrict output was a fear of
displacement—innovations in machinery and automation put the labor force on edge and ultimately
hindered production (Freeman, Don't Throw Scientific Management Out with the Bathwater). 5 He
offered two methods for an organization to assuage their labor force. The first was to educate workers
on their economic worth to the company and reinforce the need for them. The second method was to
place workers on a piecework system that would pay commissions based on overall production, and by
doing this, workers would be able to recognize that increased production would yield higher salaries,

Bureaucratic Organizations
The next subfield within the classical perspective is the bureaucratic organization approach. This is a
systematic approach that was developed in Europe in the late 19th, early 20th century to create a more
efficient and adaptable organization (Sager, Weber, Wilson, and Hegel: Theories of Modern
Bureaucracy). During the late 1800’s, European workers’ loyalty resided in individuals rather than their
organization or its mission.8 These individuals fulfilled their desires instead of the organization’s goals
and utilized organizational resources for their own gain. This dissonance between the organization and
its employees sparked the creation of bureaucracy. Max Weber, a German theorist, was the pioneer
who formulated the characteristics of the ideal bureaucracy. According to Weber’s writings, rational
public administration is based on written rules, an impersonal order, and a clear division of labor. Along
with this base, Weber created the six distinct characteristics of bureaucracy, which are: 1) Division of
labor, 2) Hierarchy of authority, 3) Managers are subject to rules and procedures and are responsible for
reliable, predictable behavior, 4) Management is separate from the ownership of the organization, 5)

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Administrative acts and decisions are recorded in writing, and 6) Personnel is selected and promoted
based on technical qualifications (Weber, The Theory of Social and Economic Organization). From these
six characteristics, Weber believed a rational organization would be created. While it is not shown first
on the list, the dichotomy of management and ownership is likely the most important component
because it allows for organizations to be run on an impartial basis rather than by emotion. The division
of labor provides workers with clear definitions of authority and responsibility, which in turn produces
higher levels of efficiency. With an organizational hierarchy, each position is understood to be under the
authority of a higher one, so confusion is assuaged by having an assigned direct contact. Because the
hierarchy is imperative, managers from the top level to the front-line must abide by a strict set of rules
and procedures that serve as a guideline to run their respective departments. While completing their
tasks, managers at each level must document any tasks or decisions that were completed or
disseminated throughout the organization to ensure information is known and recorded. Once
management has outlined procedures and duties, employee selection must be based on competence
and technical qualification. Without separating management from ownership, workforce may be limited
to who is known instead of who is qualified. These principles were further adjusted to become what is
known today as the administrative principles.

Administrative Principles
While Frederick Winslow Taylor and Max Weber were conducting their studies of management, Henri
Fayol, a French miner, published his works that stated all organizational activities can be placed in six
groups and introduced what is known today as Fayol’s 14 principles of management (LexisNexis
Academic). The six groups of organizational activities are technical, commercial, financial, security,
accounting, and managerial. Each one deals with the completion of tasks, such as producing and
manufacturing products, buying raw materials, allocating funds efficiently, protecting the organization
as a whole, keeping balance sheets, and using the five managerial functions provided by Fayol Fayol’s
five managerial functions include planning, organizing, commanding, coordinating, and controlling.
Organizational planning assesses the future, while the organizing function assembles the resources
necessary to carry out the plan. Managers use commanding to provide direction and coordinating to
ensure all departments within the organization are working to achieve the same goal. Controlling comes
last and checks to make sure the organization is following procedures and is on the path to success.
While developing his 14 general principles of management, Fayol focused on the entire organization as a
whole rather than the individual productivity of each employee. The first principle is the division of
labor. This allows workers to build expertise and become effective and efficient.9 The second principle is
authority. The hierarchy structure, which is the eighth principle, calls for authoritative figures, and
responsibility is placed on the one issuing orders. The third principle is discipline. It states all employees
need to respect upper management’s rules and procedures. Good discipline can lead to better
leadership and fair treatment throughout the organization. Unity of command is the fourth principle,
and it reinforces the hierarchy structure. Each employee should only receive instruction from one
person. Next, the unity of direction, where planning and organizing allows all departments to go towards
the same goal. The sixth principle is remuneration, or financial compensation for work that is fair to both
the organization and the employee. The seventh principle is centralization, which refers to managers
giving employees enough authority to do their jobs effectively while they take the responsibility. Order

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is the ninth principle, and it concludes that the correct materials and employees should be in the right
place at the right time. Equity and initiative make up the tenth and eleventh principles, and they
complement each other by providing that however much initiative you show, you will get out of the
organization what you put in. the twelfth and thirteenth principles, employee tenure and esprit de
corps, come together in respects to how an employee is treated by the organization will determine the
length of work history and loyalty with the organization. The final principle is the scalar chain, in which
each level of managers has a certain amount of authority and the power to use it. Modern management
has taken Fayol’s principles and functions to solidify the four management functions of today’s use,
planning, organizing, leading and controlling.

Conclusion
To effectively understand and appreciate management, you must study its history and all of the theories
and perspectives it comprises. The classical perspective, the first major perspective of eight, began what
has now become over two centuries of management studies. Included in the classical perspective are its
three subfields, which are scientific management, bureaucratic organizations, and administrative
principles, where contributors such as Charles Babbage, Frederick Taylor Winslow, Max Weber, and
Henri Fayol proved to be important proponents to old and new management. Without these pioneers,
innovation and applied knowledge may not have come so quickly, and industry could very well have
imploded due to the lack of organizational structure and employee efficiency. Peter Drucker has written
various books expanding on the models and perspectives presented before him and is commonly
referred to as “The father of management theory.”10 His declaration of “what gets measured gets
managed” is apropos to the foundation of classical management in the sense of the increased
importance to meticulously measure each task and manage it to be as effective and efficient as possible.

References

https://www2.slideshare.net/BrysonMcCarter/classical-management-58069170?from_action=save

Advantages and Benefits of the Classical Management

Theory
Clearly Defined Division of Labor
One of the advantages of classical management approach is the division of labor. Projects are
broken down into smaller tasks that are easy to complete. Employees' responsibilities and
expectations are clearly defined. This approach allows workers to narrow their field of
expertise and to specialize in one area. The division of labor approach leads to increased
productivity and higher efficiency, as workers are not expected to multitask. Small-businesses

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owners can benefit from taking this approach if they are looking to increase production with
minimal expense.

Motivated by Money
According to classical management theory, employees should be motivated by monetary
rewards. In other words, they will work harder and become more productive if they have an
incentive to look forward to. This gives management easier control over the workforce.
Employees feel appreciated when being rewarded for hard work. A small-business owner can
take this approach to motivate the employees to achieve production goals.

Single Leader Makes Decisions

The autocratic leadership approach is the central part of classical management theory. It
states that an organization should have a single leader to make decisions, to organize and
direct the employees. All decisions are made at the top level and communicated down. The
autocratic leadership approach is beneficial in instances when small-business decisions need
to be made quickly by a leader, without having to consult with a large group of people, such a
board of directors. Small businesses, especially sole proprietorships, can have an advantage in
taking this approach, as they need a strong leader to grow.

REFERENCES

https://smallbusiness.chron.com/advantages-benefits-classical-management-theory-37990.html

Behavioral Management Theory

In the mid-twentieth-century, one theory was presented that has worked to completely remove
itself from scientific theory. Behavioral management theory, also known as the social science
movement, uses the concept that all approaches to the workplace should be in the best
interest of both company and workers[3]. This theory was developed by Chester Barnhard, in
the 1940’s, as a way for workers to be viewed as psychological and social beings[3]. Essentially,
there is no separation between ‘human being’ and ‘worker’ as they are one in the same, and
that, by following this concept, it would lead to success within a workplace.

The idea of behavioral management is about understanding the idea that managers should
comprehend human or worker needs within an organization. Many theorists wanted to find out
how the use of behavioral management theory would function within workplaces. One of the
main theorists being Elton Mayo, and his groundbreaking experiment: The Hawthorne Studies,
which will be discussed further in chapter ten about communication. The Hawthorne

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 experiment essentially used special privileges, pay rewards, even company provided lunches in
ways to increase employee psychological well-being, and eventually employee productivity[3].

Figure 3: The Hawthorne Study by Elton Mayo  (Source: Gerald Kimani,  Educational
Management)

Behavioral management theory had a great impact on learning organizations, as it provided a

new view on how administrators come into learning organizations. There are two factors which
are integral to the introduction of behavioral management within learning organizations, such
as administrators at colleges and universities[3]:

1. Administrators can emerge from different disciplines (i.e. business, social sciences, and
the arts), not specifically from education.
2. Along with specialized knowledge of education, administrators must have
an interdisciplinary grasp of social sciences, such as economics and government.

In most education faculties, both undergraduate and graduate students develop content that is
considered interdisciplinary (i.e. covering multiple branches of knowledge and understanding).

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 This allows educational administrators the ability to take on a more holistic approach, which
will lead to a better understanding of the ‘human-worker’. Even when administrators and
professors develop courses, interdisciplinary theory is used in development (Figure 4).

Figure

Human Relations Theory

Now that the worker has become less of a product with no needs, to a human worker with
needs and desires, it surprising that it took until the twentieth-century to realize that the
people who work in a factory do not become less of a psychological being inside or outside the
factory. Mary Parker Follet developed the human relations theory with regard to employees
having a more satisfying life, and they can solve conflicts through a process of democracy and
conversation. There are six points in which democratic problem solving happen in human
relations theory[3]:

1. Listening to each other’s views

2. Accepting other view points
3. Integrating viewpoints in pursuit of a common goal
4. Coordinating must be achieved in the early stages
5. Coordinating must have reciprocal understanding
6. Coordinating is a continual process.

Within learning organizations, we have seen the advancement of programs to help with human
relations inside the walls of the establishments. From seminars discussing productivity,
improving morale, and good ethical actions, to open meetings where brainstorming happens,
the impact has given employees a chance to offer a holistic influence on organizations.

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The idea of human relations draws comparisons to Abraham Maslow, and his theory on self-
actualization (Figure 5), which was discussed in chapter one. Human relations theory allows
employees to develop a sense of self-awareness to understand their places within a company
and their influence.

Figure 5:
Abraham Maslow Theory of Needs (Source: Gerald Kimani, Educational Management)

references:

https://ecampusontario.pressbooks.pub/educationleadershipmanagement/chapter/2-1-classical-
management-theories/

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