Classical Perspective of Management

The classical perspective of management emerged from the Industrial Revolution and focuses on
improving the efficiency, productivity, and output of employees, as well as the business as a
whole. However, it generally does not focus on human or behavioral attributes or variances
among employees, such as how job satisfaction improves employee efficiency.
Scientific management theory was first introduced by Frederick Winslow Taylor and focused
on production efficiency and productivity of employees. By managing production efficiency as a
science, Taylor thought that worker productivity could be completely controlled. He used the
scientific method of measurement to create guidelines and rules of thumb for training and
management of employees.
Similarly, another leader in the classical perspective of management, Max Weber, created the
bureaucracy theory of management, which focuses on the theme of rationalization, rules, and
expertise for an organization as a whole. Weber's theory also focuses on efficiency and clear
roles in an organization, meaning that management in organizations can run as effectively as
possible with as little bureaucracy as possible. One example of Weber's management theory is
the modern "flat" organization, which promotes as few managerial levels as possible between
management and employees.
Now lets see the administration principle. Henri Fayol was another leader in classical
management theory who focused on the efficiency of workers but looked at it from a managerial
perspective and on improving management efficiency, rather than focusing on the individual
employee. Fayol created six functions of management which are now taught as the four essential
functions of management, including planning, organizing, leading, and controlling.
The classical perspective of management theory pulls largely from these three theorists and
focuses on efficiency of employees, as well as improving the productivity of the organization
through quantitative and measurable methods. The classical perspective is often criticized for
ignoring human desires and needs in the workplace and typically not take into consideration
human error in work performance. The classical perspective has strong influences on modern
operations and process improvement, which uses quantitative metrics to determine how
effectively a process is running.
Human Relations Perspective:
The behavioral perspective of management (sometimes called the "human relations perspective")
takes a much different approach from the classical perspective and began in the 1920s with
theorists, such as Elton Mayo, Abraham Maslow, and Mary Parker Follett. An important
beginning of the behavioral perspective of management was started with the Hawthorne Studies.
These studies were a series of research studies with the workers at the Hawthorne plant of the
Western Electric Company that found that workers were more strongly motivated by psycho-
social factors, rather than economic or financial incentives.
In addition, Abraham Maslow created his Hierarchy of Needs, which showed that workers were
motivated through a series of lower-level to higher- level of needs. This theory has been applied
in the workplace to better understand "soft" factors of employee motivation, such as goal setting
and team involvement, in order to better manage employees.
Generally, the behavioral perspective is much more concerned with the well-being of the
employee and encourages management approaches that consider the employee as a motivated
worker that wants to work and produce quality work. This theory encourages a management
approach that is less focused on micro-managing and more on building relationships with
employees in order to help them achieve their goals in the workplace and work as effectively and
efficiently as possible.
Additional theories in the behavioral perspective include Douglas McGregor's Theory X and Y
which have to do with the perceptions managers have about their employees and, therefore, how
employees react to these perceptions. In Theory X, managers assume employees are inherently
lazy and, therefore, these managers will micromanage. Theory Y managers are more laissez-
faire and allow employees more freedom in their work. This theory of management is an
example of how behavioral management theory looks more into the "human" factors of
management and encourages managers to understand how psychological characteristics can
improve or hinder an employee's performance.

Management Science Perspective:
World War II caused many management changes. The massive and complicated problems
associated with modern global warfare presented managerial decision makers with the need for
more sophisticated tools than ever before. The management science perspective emerged to
address those problems. This view is distinguished for its application of mathematics, statistics
and other quantitative techniques to management decision making and problem solving. During
World War II groups of mathematicians, physicists, and other scientists were formed to solve
military problems. Because those problems frequently involved moving massive amounts of
materials and large numbers of people quickly and efficiently the techniques had obvious
applications to large scale business firms.
Operations research grew directly out of the World War II groups (called operational research
teams in Great Britain and operations research teams in the United States). It consists of
mathematical model building and other applications of quantitative techniques to managerial
problems.
Operations management refers to the field of management that specializes in the physical
production of goods or services. Operations management specialists use quantitative techniques
to solve manufacturing problems. Some of the commonly used methods are forecasting,
inventory, modeling, linear and nonlinear programming, queuing theory, scheduling, simulation
and break even analysis.
Information technology (IT) is the most recent subfield of the management science perspective
which is often reflected in management information systems. These systems are designed to
provide relevant information to managers in a timely and cost efficient manner. More recently
information technology within organizations has evolved to include intranets and extranets as
well as various software programs that help managers estimate costs, plan and track production,
mange projects, allocate resources, or schedule employees. When Weyerhaeuser Companys
door factory implemented an intranet combined with software to track inventory, calculate
estimates, schedule production and automate overtaking., it was applying management science to
cut both manufacturing costs and production time. Most of todays organizations have
departments of information technology specialists to help them apply management science
techniques to complex organizational problems.
Recent Historical Trends
Management is by nature complex and dynamic. Elements of each of the perspective we have
discussed are still in use today. The most prevalent is the humanistic perspective but even it has
been undergoing change in recent years. Three recent trends that grew out of the humanistic
perspective are systems theory, the contingency view, and total quality management.

Systems Theory:
An extension of the humanistic perspective that describes organizations as open systems that are
characterized by entropy, synergy, and subsystem interdependence.
A system is a set of interrelated parts that function as a whole to achieve a common purpose. A
system functions by acquiring inputs from the external environment transforming them in some
ways and discharging outputs back of the environment.