How classical management theory influenced organising and managing organisations

Posted on Aug 03, 2023 at 09:08 PM

How classical management theory influenced organising and managing organisations

The management and leadership methods used in companies and organisations are different. Each company is running in a particular manner according to several factors. So, classical management theory is one of the most prominent successful management theories or methods; even though this theory is not widespread, it is functional. This management theory focuses on critical foundations. 

Let us address the topic of classical management theory and the fundamental principles based on it.

What is the definition of classical management theory?

It is a leadership and management method that relies on a set of foundations. It focuses on the distribution of roles to individuals and the assignment of responsibility for the administrative tasks entrusted to each leading individual without the involvement of one with him.

In other words, organising the management roles according to the hierarchy method, emphasising individual leadership, and the presence of one department leader.

The first appearance of classical theory was in the late nineteenth century, when the industrial revolution was at its height, and the idea emerged due to many problems in organising work in factories. A system based on administrative principles is a reaction to defining different roles for employees and administrators. Despite their old history of emergence, they are still effective for many companies, so some are still searching and discovering more about theory and increasing their leadership skills within leadership training courses in Dubai.

The theory emphasises that the development of efficiency and productivity in the business is through a hierarchy-based organisational system, one leader, and the distribution of roles to specialised staff in their skills.

Classical management theory also includes several key principles, the most important of which are:

• Increasing production is the first goal.

• Streamlining any operation as much as possible.

• Profit is a key priority.

• Making decisions is for one person or a few administrative personnel.

• Executing projects theory is to determine the most effective functions.
  
  

How is the classical theory model implemented in management?

The theory focused on three concepts, through which the appropriate approach to achieve within organisations, ensuring stable productivity and achieving success. Concepts include:

• Hierarchical Structure:

The hierarchical structure is one of the most essential principles presented by classical management theory. This structure is about 3 sections, all within the administrative field.

Entrepreneurs and CEOs exist at the top of the structure, setting project objectives, and managing management relationships, because they have leadership and authority.

While the second section is for managers responsible for setting lower targets, i.e., setting goals at the section level, they are responsible for managing the third section of the hierarchy.

The least influential managers run traditional and routine businesses at the structure's base.

Through hierarchical structure, classical management theory focuses on diversity in leadership capabilities within companies to ensure perfect management of all their operations.

• Specialisation:

Companies applying classical management theory rely on a particular principle when executing projects, and this principle depends on dividing the tasks of projects and distributing them to workers and employees.

This division serves to streamline processes, charting the way of implementation and plans for employees, rather than grouping tasks without a clear plan.

• Incentives

The classical theory aims at providing material incentives to employees. Although it is not intended for job satisfaction or does so in response to employees' social needs, it knows that incentives help develop and increase productivity and work efficiency because it is aware that this is one of the most important drivers that makes employees more motivated to work.

In conclusion, 

Practices presented by classical management theory have addressed essential points for developing the management field, intending to optimise the efficiency and organisation of work within organisations. Although they are one of the oldest management theories, they are still helpful for many companies.