The Foundations and Flaws of Classical Management

Experienced managers in the factory industry will attest to the indispensable nature of the management principles outlined by Taylor and Fayol. The classical management theory, which emerged during this period, remained relevant for several decades. During the Renaissance, Western civilizations experienced a surge of interest in science and technology, leading to significant advancements such as the invention of electricity, the light bulb, and wireless communication. Conversely, Eastern civilizations remained in the dark ages due to superstitions surrounding foreign travel and questioning the laws of nature.

How the stage was set for management theories to grow!!!

These groundbreaking inventions sparked a surge in productivity and set the stage for the industrial revolution. Factories sprang up rapidly to transform raw materials into finished goods, which could be manufactured at a fraction of the cost of handmade goods. These factory-made products boasted an exceptional quality-price ratio that proved irresistible to overseas markets. However, as competition intensified and profits became the driving force, factory owners sought cheaper sources of raw materials. This quest for profits ultimately led to Western powers colonizing less developed territories, ultimately culminating in the two World Wars. In the aftermath, a need for a codified set of principles to manage factory workers became apparent. However, business owners were initially at a loss when it came to organizational design, until management experts familiar with shop-floor operations stepped in to provide guidance.

Prior to the development of classical management theory, organizations often operated with an informal structure that resulted in inefficiencies and frequent conflicts. These conflicts often arose from issues related to ego and the lack of a clear hierarchy or structure. The classical management theory aimed to address these issues by implementing a structured approach to human resource management, with the goal of achieving greater profitability and efficiency within the organization. By establishing a set of principles for managers to follow, the theory provided a framework for top-down decision-making and the establishment of a clear chain of command.

 Criticism of the classic management theory

This approach operates like an assembly line, disregarding the social and self-actualization needs of employees. Unfortunately, managers often show favoritism and play mind games to benefit a select few while neglecting the rest. In addition, incentives and rewards are typically reserved for the chosen few, leaving others feeling frustrated and undervalued. When decision-making is not democratized, authoritarian structures can lead to destruction, fostering a culture of blind obedience and compliance.

In such a setup, there is a lack of encouragement for creative thinking and innovation, particularly in the form of unconventional ideas. Additionally, the flow of information is primarily one-way, with little to no room for feedback from frontline staff. This approach is often observed in organizations that prioritize secrecy, patent protection, and high volume production, with a narrow focus on worker productivity.

The theory suggests conducting a systematic analysis of the tasks assigned to employees and creating clear job descriptions for each individual. Performance evaluations are then based on the predetermined goals and criteria. This approach is commonly adopted by organizations that employ blue-collar and pink-collar workers for menial or low-skilled routine tasks. By following the classical management principles, these organizations can effectively monitor and control their employees.

Four building blocks of the classical management theory

While many institutions have moved away from the classical management theory, factories continue to utilize it to effectively achieve their organizational goals and objectives, particularly in areas where routine work is common.

Using a scientific management approach, it is essential to develop a standard operating procedure for every job. The duration required for each task must be defined to ensure that workers with varying skills and abilities can complete the job within the allocated time frame. Once this standardization is accomplished, quality processes and improvements can be implemented to further enhance the output's quality.

The selection process should prioritize workers with the appropriate skillset and abilities to ensure successful outcomes. Furthermore, measures should be put in place to minimize idle-time wages and avoid work interruptions through thoughtful infrastructure design.

Examine your current management style

Regular worker incentives and verbal appreciation are crucial components of a successful company culture. By consistently recognizing and rewarding hard work, companies can experience rapid growth similar to that of young entrepreneurs in America's past century who built large corporations in a short amount of time.

Assessing your existing management style is crucial before applying the classical management theory. If your organization already practices participative decision making, the transition to the classical approach may pose challenges, especially if your industry does not have highly authoritarian structures. Participative decision making allows for more tolerance for mistakes, whereas authoritarian decision making has little to no tolerance for failure. Additionally, companies with diverse and equal gender ratios may face difficulties in implementing the principles of classical management theory.

Such principles are best implemented in male-dominated setups in industries like automobile, cement, utilities, manufacturing cum production capacities.

Conclusion

However, it is important to note that the classical management theory may still have relevance in certain industries and situations where efficiency and productivity are the top priorities.