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Classical Management Theory - YouTube
Channel: Organizational Communication Channel
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classical management theory is like the
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great grandparent of organizational
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studies we're gonna look at the context
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at the time it emerged the three primary
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theories that generally make it up and
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talk about whether or not it's still
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relevant today so first let's look at
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the context at the time this came about
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as a reaction to the Industrial
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Revolution which is the late 1700s to
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late 1800s industry equals work
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revolution equals rapid change big
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changes in the way people worked the
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rapid explosion of big factories that's
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what was happening at the time people
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were moving from farms to factories from
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small shops to large companies one of
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the main sparks or ingredients of the
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Industrial Revolution was power steam
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power and hydro power specifically the
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machines used to manufacture in these
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new large factories were run powered not
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by hand it's like the difference between
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a bicycle and a motorcycle this sped up
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worked dramatically and helped factories
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grow very quickly
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there are also some machinery
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innovations inside of these factories
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for example in 1873 Eli Whitney invented
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the cotton gin gin is just short for
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engine it was a little apparatus that
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separated the seed from the cotton much
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more quickly than could be done by hand
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and inventions and innovations like the
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cotton gin another machine sped up work
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even further transportation was also
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booming at the time that's another key
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ingredient of the Industrial Revolution
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like the railroads they connected most
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cities in the u.s. by the mid-1800s
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steamboats started to catch on around
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1800 as well and the roads were
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improving in general this rapidly
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changing context created a great in need
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the three ingredients power machinery
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and transportation came together to
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spark the Industrial Revolution there
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were a lot of emerging issues at the
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time that people needed to grapple with
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they were new large groups of people
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working together people working
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alongside machinery the pace of industry
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was speeding up very quickly and
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companies were looking for more
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effective ways to handle their new
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challenges these issues prompted
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a lot of new questions for example how
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are we going to organize all this how
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are we going to maximize productivity
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with all these changes and how are we
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going to manage all of these people
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working together and we're going to look
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at three people that answered these
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questions pretty effectively at the time
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Max Weber
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Frederick Taylor and Henry fail in
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general when we talk about these three
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guys we're talking about the founding
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fathers of the classical management
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theory and these are the three names
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you're going to see in most textbooks on
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the topic so let's start with Max Weber
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he's most known for the term bureaucracy
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which to him meant the organization's
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should look like an extension of
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government and the legal system he
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wanted a legal rational approach to
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organizing that meant that he didn't
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want to follow the traditional family
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type system where the head of the family
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was in charge or perhaps you had a
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charismatic type of leader he thought
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these were not the right way to run
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large organizations and he wanted a
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legal rational approach where he saw
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each person's authority and should be
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tied to his or her official position in
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the organizational hierarchy in other
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words if you're in a job your
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responsibilities are tied to that
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position and if you leave that job you
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don't keep all that influence and power
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whoever the new person is is responsible
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so this was his way of balancing power
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and keeping things rational and
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organized he wanted clear rules that
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governed performance and standardized
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guidelines for hiring and firing so he
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was really concerned about issues of
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favoritism or what he called particular
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ism and he wanted to hire the best
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people to work in organizations and
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organize them in a logical sensible way
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Max Weber was a big-picture type of
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thinker compared to the two others we'll
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look at today and that big-picture term
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is bureaucracy Frederick Taylor also
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entered the discussion and unlike Max
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Weber who was very big picture Frederick
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Taylor is much more micro in his focus
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he used the term scientific management
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for his approach to him this meant
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applying science to work specifically he
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thought that the customized approach was
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very inefficient he saw a lot of
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factories and people basically all doing
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things their own way however they wanted
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to do their particular job in that
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organization they could and he thought
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this was not efficient this was not the
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best way
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to do jobs so he said let's do time in
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motion studies to study how much time
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every single little task should take and
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how many motions every single little
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task should take and we can speed things
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up and come up with the one right way so
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each task is broken down into very small
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steps and standardized to the one right
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way and so he would go into an
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organization look at all the
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inefficiencies and figure out the one
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right way to do every single job and as
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the results were actually pretty
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impressive for example when he went into
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a Bricklin organization they were laying
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brick down and they were bending over to
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pick them up and he thought it was all
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very inefficient so he came up with a
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system where the bricks were all right
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at hand level and they were up on a
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shelf and people didn't have to bend
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over to pick them up and he made some
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other changes to their time and the way
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they used their motions then he sped it
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up about three hundred percent so now
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one brick layer could put down as many
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bricks as it took three to do in the
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past so his work was pretty dramatic and
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successful in some ways so Max Weber
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took a big-picture bureaucratic approach
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Frederick Taylor took a micro-level
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approach to looking at the specific
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tasks and Henry fail or honoree and the
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French fail took a mid level approach he
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was looking at the management side of
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things how shall we manage people that
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was the big question that he wondered
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about he put forward a theory of
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management called administrative science
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or sometimes just called classical
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management and he believed that managers
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needed to be trained in a much more
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systematic approach he didn't really see
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any good theories out there for how we
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should train managers and so he wanted
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to contribute to that discussion in fact
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he wrote it is a case of setting it
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going
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starting general discussion that is what
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I am trying to do by publishing this
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survey and I hope a management theory
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will emanate from it so he wrote a book
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that then became popular in the late
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1940s in a section of that book he
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talked about the management activities
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that managers should be pretty competent
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at and this is a list that you'll see in
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many textbooks on the topic he thought
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we needed good planning that managers
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should look ahead and
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a course for the organization he also
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thought that organization was a key
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management activity they need to select
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and arrange people in an orderly and
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efficient fashion he wanted the manager
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to be in command in other words to
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oversee to lead and to drive the process
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but to stay out of the details that was
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up for the regular workers manager
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should also be good at coordination
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needed to harmonize and facilitate the
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general activities of different
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departments and groups in the overall
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organization and lastly control the
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manager needed to ensure compliance on
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everything from accounting finance the
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technical side quality control and other
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areas like I said this is a list you're
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going to see in a lot of classical
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management sections of books when they
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talk about henry fail in addition to the
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details we talked about for a weber
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taylor and fail they're also some common
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elements that they really all wrote
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about in one way or another that bring
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them together they all wanted a clear
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hierarchy in an organization that chain
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of command they all wanted some form of
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division of labor they wanted a
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standardized approach to work they
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wanted the centralization of authority
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largely in the managers hands they
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wanted the separation of personal life
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from organizational they all really
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wanted the best people in the right jobs
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and that was one of the reasons why they
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wanted to separate personal life from
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organizational so people didn't pay
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favorites in other words they wanted to
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select the best employees based upon
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qualifications and performance and they
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also by the way wanted people paid
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fairly at least in theory frederick
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taylor and henry fayol talked
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specifically about paying good employees
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your best people more so you can attract
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and keep your best and most talented
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people and rafail even talked about
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profit sharing which was pretty
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innovative at the time and i say at
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least in theory because not a lot of
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organizations necessarily took this
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advice but these researchers did write
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about that
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so weber taylor and fail all come
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together to form a foundation of what we
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call classical management theory and
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this is an approach you're going to see
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in a lot of textbooks because it really
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has become the great-grandparent of
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organizational studies almost everything
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that comes after the classical
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management era
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is a reaction against it so if you see
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human resources or human relations or
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Systems Theory or a team approach these
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are all responses to or reaction against
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classical management and it's difficult
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to imagine an organization that's not
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influenced by this approach in one way
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or another even today so is it still
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relevant today well absolutely you see
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it in a lot of places especially in
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manufacturing and even though we might
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not think that manufacturing is still
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happening as much in the United States
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it's absolutely still having the United
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States and all over the world we have
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more than 7 billion people on the planet
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we're still making a lot of things and
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you still see this approach and a lot of
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manufacturing companies you see in
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warehouses and delivery services like
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Amazon you see it certainly in
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foodservice if you've ever worked in
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foodservice like fast food then
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everything is really like a production
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line same thing with farming and food
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production it's really gone almost to
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look just like a manufacturing process
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and so a lot of ways not only is it's
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still relevant it's still more common
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than ever now of course it is still only
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one way to do things and some of the new
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knowledge-based expertise based
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information based companies don't
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necessarily take this approach so Google
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Facebook and other kinds of companies
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like that are not generally
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manufacturing tangible goods and so they
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do not take this classical management
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approach as much although they are still
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very aware of it and just like the
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theories we mentioned like Systems
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Theory human relations human resources
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they are in many ways reacting against
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the classical management way of doing
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things so it's absolutely still
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irrelevant in many of our workplaces and
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when it's not directly touching us we
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are certainly indirectly influenced by
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it so that's a little bit about the
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context at the time we've three primary
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theories that generally make up
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classical management theory and we
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looked a little bit and whether or not
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it's still relevant today and I believe
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it certainly is
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