It focuses to increase production by improving organizational efficiency. It was developed during the 1880-1920s. Three theories come under this
(a) Scientific management theory
(b) Bureaucratic management theory
(c) Administrative management theory
(a) Scientific management theory:
Given by FW Taylor (Father of Scientific management)
- Emphasized the need for the development of mutual trust between management & workers to increase productivity for the management of business organizations.
(b) Bureaucratic management theory:
Promoted by Max Webber (German sociologist). The basis for formal organizations based on the following principals
- Structure: Arrangement of positions within an organization should be based on a hierarchy, with each position having predetermined authority & responsibility.
- Specialization: Division of labor & tasks should be based on functions & specializations having its own chains of command.
- Predictability & stability: Formal rules & regulations which form the basis of the system that operates the organization.
- Rationality: Recruitment of the personnel should be impartial & rational.
(c) Administrative management theory:
Henri Fayol (Founder of classical management theory) focused on management as a skill that could be taught, learned & mastered. He laid down the following "principles of management"
- Division of work: Should be based on the capabilities & aptitudes among the members of the team to ensure productivity.
- Authority: Managers should have formal authority so that they can ask the subordinates to complete the task.
- Discipline: Fair codes of conduct & periodic supervision should be there along with judicious use of rewards or punishments to help to develop a positive attitude towards discipline.
- Unity of Command: It is ideal that a junior employee should receive orders from their superior only.
- Unity of direction: All functionaries of the organization should work towards the same objective in one direction.
- Subordination of individual interest to the group interest: The interests & goals of the organization comes first & receives emphasis over the of the individual.
- Remuneration: A satisfactory & predetermined remuneration to different personnel should be there. It ensures productivity & avoids uncertainty.
- Centralization of authority: The important policy decisions and decisions regarding key matters should be centralized. Managers should be able to make decisions about how much authority has to be retained & can be given to the subordinates for decision making.
- Scalar chain: Line of authority should be a well defined and functional chain of senior-subordinate relationship from the top management to the lower levels.
- Order: Personnel and material should be in an appropriate position to ensure efficiency.
- Equity: The absence of bias & just treatment of all individuals removes conflicts while ensuring cooperation & compliance among all.
- Stability of tenure of the personnel: Due to this members find a sense of security, certainty & attachment to the job.
- Initiative: Personnel should be encouraged when they take initiative as it gives them a chance to build their confidence & hone skills.
- Esprit de corps (Teamwork): There is strength in unity. Team spirit, a feeling of kinship is essential for any organization to develop.
Although all these principles are not mandatory & relevant to the current management practices, these are good for guiding in many situations.
References:
- Park, K., 2019. Park's Textbook Of Preventive And Social Medicine. 25th ed. Jabalpur: M/s Banarsidas Bhanot Publishers, p.1000.
- Kadri, A., 2019. IAPSM's Textbook Of Community Medicine. 1st ed. New Delhi: Jaypee Brothers Medical Publishers (P) Ltd, p.1221.
- Sathe, P., 2018. Epidemiology And Management For Health Care. 5th ed. Mumbai: Vora Medical Publications, p.508.
- Bhalwar, R., 2009. Textbook Of Public Health And Community Medicine. 1st ed. New Delhi: Department of Community Medicine, AFMC, Pune in collaboration with WHO, India office, p.1302.
- https://www.who.int/management/en/
- https://www.mindtools.com/pages/article/henri-fayol.htm
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