THE CLASSICAL THEORY

The Industrial Revolution led to the emergence of industrialization in Western Countries.Big factories were established in Europe and the USA with great potential for mass production of goods.However. very little was understood about these factories and their functioning.There was very little idea about how such organizations should be managed.Hence, the need for knowledge about the management of such organizations soon became apparent.The early approaches to the study of management,thus,concerned themselves with the production systems.These early theorists and practitioners explained the essential nature of management and its relationship to the production processes.

The early theorists are also called "traditionalists".They believed that managers should con centre their attention and energies on increasing the efficiency of the production process.The Classical management theory represents two views toward the management of the work and of organization:
a.Scientific Management
b.Administrative Management
Scientific management concentrated on the problems of shop-floor management and efficiency of production.The administrative management theory,on the other hand, focused on the problem of top management faced in managing the entire organization.