Interrelationship Between Management Functions

CLASSICAL APPROACH

The classical approach is one of the oldest approaches to management and is also known by various names such as, Functional approach, Management Process approach and Administrative Management approach. The classical theory concentrates on organization structure and their management. The classical writers include. Taylor, Fayol, Weber, Gullick, Urwick, Mooney and Reiley and others. They placed emphasis on work planning, the technical requirements, principles of management, formal structure, and the assumption of rational and logical behaviour. This theory incorporates three viewpoints.

a). Taylor's Scientific Management,

b). Fayol Administrative Theory,

c). Weber’s Bureaucracy.

These writers concentrated on structure and that is why their approach sometimes is characterized as ‘structural framework of organization.’ F. W. Taylor insisted on application of scientific methods to the problems of management. Henri Fayol suggested 14 principles of management and their universal application. Max Weber introduced rational structure called bureaucracy. It is characterized by division of labour, specialization, rationality, personnel competency, etc.

Contributions of Classical Approach

The main features of classical theory are as follows:

1. The classical theory concentrated on the study of formal organizations. It laid emphasis on division of Labour, specialization, structure, scalar chain, functional processes, and span of control.
2. Management is the study of managerial experiences. If the experiences are studied and certain generalization are derived therefrom, these will help the practicing managers.
3. The classical theorists emphasized organizations structure for coordination of various activities. They ignored the role of human element.
4. The relationship between workers and management is established through formal communications, defined tasks and accountability and formalized procedures and practices to minimize conflict between them.
5. The workers is essentially an ‘economic man' who can be motivated basically by economic rewards. Money is considered the main motivator under this theory.
6. The efficiency of the organization can be increased by making each individual efficient.
7. The integration of the organization is achieved through the authority and control of the central mechanism. Thus, it is based on centralization of authority.
8. There is no conflict between the individuals and the organization. In case of any conflict, the interests of the organization should prevail.
9. The Classical school is based on the study of past managerial experiences and cases of various organizations. It implies that formal education and training is required for developing managers.

Criticism of Classical Approach

The classical theory has been criticized on the following grounds:

1. The classical approach ignored the human relations aspect and undermined the role of human factor. Its main emphasis was on formal structure, centralization of authority, unity of command and narrow span of control.
2. It viewed organization as a closed system, i.e., having no interaction with the external environment.
3. Economic rewards were assumed as the main motivator of workforce. The role of non monetary factors was ignored.
4. The classical principles are based on managerial experiences and their limited observations.
5. The classical approach is based on over-simplified assumptions. Its principles are ambiguous and contradictory.
6. This school emphasized on strict adherence to rules and regulations. The scope for individual Initiative is thus limited.
7. Classical writers laid emphasis on the universality of management principles. But in practice, management principles can’t be applied blindly, they may need modifications, to suit the situation.