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Classical theories of Management

         Productivity improvement is the reason behind the evolution of management theories.In the initial years the management expected that the workers should do their work and give the output because at that time, the resources were  abundant and the output was the requirement .soon when the natural resources started reducing and competition appeared the 'law of scarcity' came into picture and the focus of industries shifted from desired output to best output from the resources.This change of mind is the basic reason behind the evolution of management theories which were focused on getting  productivity improvement and hence getting the best output from the resources.

Classical theories of management

Scientific management by Taylor

                   Taylor started the Scientific Management movement, and he and his associates were the first people to study the work process scientifically. They studied how work was performed, and they looked at how this affected worker productivity.

                   In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed to cooperate with one another. This was very different from the way work was typically done in businesses beforehand. A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible.
                    Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he didn't deserve to be paid as much as another worker who was highly productive.

                  "Time and motion" studies also led Taylor to conclude that certain people could work more efficiently than others. These were the people whom managers should seek to hire where possible. Therefore, selecting the right people for the job was another important part of workplace efficiency.The works of  Taylor is also known as 'Taylorism'.

Fayol's  teachings on Administration

Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains one of the most comprehensive. He's considered to be among the most influential contributors to the modern concept of management, even though people don't refer to "The 14 Principles" often today.

The theory falls under the Administrative Management school of thought (as opposed to the Scientific Management school, led by Fredrick Taylor).

Fayol fourteen prniciple of management

Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.
Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
Discipline – Discipline must be upheld in organizations, but methods for doing so can vary.
Unity  of Command– Employees should have only one direct supervisor.

Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.
Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers.
Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.
Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command.
Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.
Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority.
Initiative – Employees should be given the necessary level of freedom to create and carry out plans.
Esprit de Corps – Organizations should strive to promote team spirit and unity

Weber's  thoughts on Bureaucracy

Bureaucracy refers to the management of large organizations characterized by hierarchy, fixed rules, impersonal relationships, rigid adherence to procedures, and a highly specialized division of labor.

Weber suggests the characteristics of bureaucracy as following :

1. There is the principle of fixed official jurisdictional areas, which are generally ordered by rules, that is, by laws or administrative regulations.
2. The principles of office hieararchy and of levels of grade authority mean a firmly ordered system of super and subordination in which there is a supervision of the lower offices by the higher ones.
3. The management of modern offices is based upon written documents (“the files”), which are preserved in their original or draught form.
4. Office management, at least all specialized office management – and such management is distinctly modern – usually presupposes thorough and expert training.
5. When the office is fully developed, official activity demands the full working capacity of the official, irrespective of the fact that his obligatory time in the bureau may be firmly delimited.
6- The management of the office follows general rules which are more or less stable, more or less exhaustive, and which can be learned.

Hawthorne Effect

Hawthorne effect.

               According to Hawthorne effect, Individuals may change their behaviour due to the attention they are receiving from researchers rather than because of any manipulation of independent variables.

              This effect was first discovered and named by researchers at Harvard University who were studying the relationship between productivity and work environment. Researchers conducted these experiments at the Hawthorne Works plant of Western Electric. The study was originally commissioned to determine if increasing or decreasing the amount of light workers received increased or decreased worker productivity. The researchers found that productivity increased due to attention from the research team and not because of changes to the experimental variable. The four conclusions they come up with were-

1) Individual aptitude is a poor predictor of job performance. Instead, productivity is strongly affected by relationships and social structure within an organization.

2) Workplaces establish their own cultures and social systems.

3)Organizations establish norms about expected daily productivity. Theses norms strongly affect and predict the productivity of individuals within the group.

4)Relationships between supervisors and workers influence worker productivity and the ways in which workers complete daily tasks. The Hawthorne researchers referred to this as the informal organization and structure within an organization.

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Hawthorne effect in modern world

                While the Hawthorne Effect can be a great way to increase production in the short term, it may be difficult to realize long term benefits. Over time, workers get use to the constant supervision. Their work eventually slows until production returns to normal levels. I experienced this first hand in my previous job working for construction equipment manufacturing unit. Our department had just gotten message that we will be observed by our japenese counterparts for global quality diagnosis.During GQD period each and every worker was working proactively to increase the production to maintain good working environment. After GQD, management soon became frustrated and accused us of not working as hard as we did during GQD.

             Another aspect of the Hawthorne Effect in modern business is the ability to improve worker morale. Many people take great pride in their work. There is a sense of accomplishment to achieve great milestones during the work day. By utilizing Hawthorne Effect methodology, managers can improve their employees sense of being and importance to the company. The key is for managers to be aware of the progress employees make each day and offer praise and gratitude for their hard work and accomplishment.