Classical Management Theory refers to a set of theories that focus on studying the managerial approaches to organizations. The theory mainly focuses on describing how the application of the effective and scientific method to organizations could improve the productivity of organizational employees. It establishes by several theorists from early 1800's till 1900's. Frederick W. Taylor and Henri Fayol, the two chiefs of these theorists, conceptualize the core principles of classical management theory. This paper mainly focuses on Taylor and Fayol's works. In the late 1800's, Taylor develops Scientific Management Theory which searches to increase productivity by studying work methods scientifically and establishing standards.(Stanley, 2006) Later, in the early 1900's, Fayol researches and categorizes manager's functions, and establishes Administrative Management Theory. (Stanley, 2006).
Taylor and Scientific Management.
Taylor's Scientific Management Theory is primary aiming at improving management practice in the pursuit of profit or ˜surplus'. (Testimony, 1964) As Taylor says in his published book, The Principle of Scientific Management, to improve productivity is the most direct way of increasing organizational profit, and the biggest problem that organizations encounter at the time is the problem of soldiering.
Taylor believes that soldiering, a phenomenon of employees purposely operating largely below their capability while working on their tasks, need most of the managers' attention. (Taylor, 1967) Soldiering, according to Taylor, is having three main causes. First of all, employees among the world are holding the same belief that the more they are productive, the fewer of them would be needed, so the jobs would probably be eliminated. In addition, non-incentive wage systems among the employees will largely decrease their motivation to reach higher productivity. Finally, employees are wasting most of their time and effort by relying on rule-of-thumb methods rather than change to work on optimal methods.