Classical School of Business Administration: Principles and Practices

Basic Characteristics of Business Administration Schools of Thought

The three main administrative schools of thought are: The Classical School (Traditional or Customary), the Psycho-Sociological School (Human Relations and Human Behavior), and the Systems School.

School: Classic or Custom

This school is also called the classical or traditional school. It suggests that administrative tasks should be considered and implemented as they were in the recent past, guided by custom or tradition. Many current managers practice this, and often the results are favorable.

Its primary use is to maintain the status quo, meaning things continue in the same way as always within the company's management. Managers who follow this school believe it's the safest path to success and administrative stability.

There have been few efforts to explore new paths or investigate social responsibilities that could lead to better outcomes; the results obtained are often mediocre. This approach also doesn't always uphold the best traditions of safety. Comparing past administrative events with the future raises doubts about this approach.

This is often called the empirical school because its contributions are based on general administrative practices and information.

1.1 Advantages of the Traditional School

• It is very simple.
• It provides a sense of security.
• It keeps managers informed of activities outside the company.

1.2 Conceptions of the Classical School

The concepts that define this school are:

• Formalist: The company is viewed as a set of positions with a clear hierarchy and defined work. There is an omnipotent authority that directs individuals to perform their tasks without deviation.
  • Mechanistic Operator: People are considered articles that must meet mechanical requirements; otherwise, they would be rejected.
  • Naturalistic Work (Mental-Physical): Divides work based on mental and physical capabilities.
  • Ego of Motivation: This refers to people's interest in joining a business solely for wages.

1.3 Classical School Characteristics

The characteristics of this school can be summarized as follows:

• Increases efficiency and profitability in a very short time.
• Is guided by custom or tradition, meaning the company continues to be managed the same way as in the past.
• There is no effort to explore new paths.
• Often relies solely on practice, hence the name empirical school.

1.4 Disadvantages of the Custom School

• The results can be considered mediocre because research or exploration for better outcomes is not undertaken.
• It views man as a machine with no right to think or express opinions.

1.5 Main Representatives

Among the leading representatives of the classical school are Frederick Taylor and Henry Fayol.