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Classical organizational theory refers to the body of work that sought to understand and explain how organizations function. This theory emerged in the late 19th and early 20th centuries and was influential in shaping the way organizations are designed and managed. There are several key ideas that make up classical organizational theory, which include bureaucracy, division of labor, and hierarchy.
Bureaucracy is a form of organizational structure characterized by a clear hierarchy of authority, strict rules and procedures, and a division of labor. The idea behind bureaucracy is that it allows organizations to run smoothly and efficiently by creating clear lines of authority and a system for making decisions. It also helps to ensure that tasks are completed in a timely and consistent manner.
Division of labor is another important concept in classical organizational theory. It refers to the practice of breaking down tasks into smaller, specialized components that can be performed by different individuals or groups. This allows organizations to become more efficient because it allows people to focus on specific tasks rather than trying to do everything themselves. It also helps to create a sense of specialization within the organization, which can lead to higher levels of expertise and productivity.
Hierarchy is another key component of classical organizational theory. It refers to the way that organizations are structured in terms of levels of authority and responsibility. At the top of the hierarchy are top-level managers, who are responsible for making strategic decisions and setting goals for the organization. Below them are middle managers, who are responsible for implementing the decisions made by top-level managers and overseeing the work of lower-level employees. Finally, at the bottom of the hierarchy are lower-level employees, who are responsible for carrying out the tasks that have been assigned to them.
Overall, classical organizational theory has had a significant impact on the way that organizations are designed and managed. Its emphasis on bureaucracy, division of labor, and hierarchy has helped to create efficient and effective organizations that are able to operate smoothly and achieve their goals. While there have been some criticisms of this theory, it continues to be an important foundation for understanding organizational behavior and management.
Classical Management Theory Explained
Communication is viewed as the method by which action is evoked from the parts of the system. However, aside from commanding and giving orders, coordinating their actions is also essential. According to Fayol, the principle of unity of command, if violated, will lead to jeopardize of discipline, undermining of authority, and may also result in instability. The management process path was split into the behavioural and quantitative paths. But it has many limitations. That is why in every organization, each higher administrator is entrusted with the responsibility of supervising the work of a limited number, mostly five or six subordinates. Whatever may be the kind of decision, decisions are internal variables in an organisation depending upon jobs, individual expectations and motivations and organizational structure.
What Is Organizational Theory? Definition and 6 Types
Leadership is vested in one man. However, the Classical Theory fails to give any clue as to which basis is preferable in any particular case. There is doubt, however, that this theory is effective in a business environment since it discourages teamwork, creativity, and encourages routinely completing tasks. Systems are such organisation which provide a medium for association of members with others. The decision taken on the top affects all in the enterprise.
In addition the rules, regulations, and procedures generally encourage managers to act mechanically rather than exercising discretion, initiative in making decisions. This helps increase productivity and efficiency while eliminating the need for employees to multi-task. Rationality helps contribute to greater efficiency through its cool-headed analysis of organizational processes as causal phenomena; though, in often ruthlessly parting with tradition, rationality can contribute to a sense of ruthlessness in employees, employers, and bureaucrats alike. . This enables expenditures to be reduced and administrative control facilitated as well. The traditional bureaucratic organization with its hierarchical system of management and an over concerned manager who tries to force performance out of his employees is no longer needed.
These theories do not represent a unified body of thought, rather a combination of several aspects. It focuses on the horizontal evolution of the line and staff in a formal organisation. Its disadvantages are being realized these days in public administration also. Biological theory, or the biological approach. The neo-classical movement introduced two new concepts in organisation, viz. Building the relationships can be done based on different approaches.
The principles of the classical theory of organization are institutionally power-centered which provides no scope for individual initiative. Instead, classical management theory advocates a specialization of labor, centralized leadership and decision-making, and profit maximization. Organizational Theory — List of Organizational Theories: Classical Theory, Neo-Classical Theory, General System Theory and More… 1. Workers who serve similar goals or sub-goals in the organisation should be attached to the same organizational unit or department. Merits and Demerits of Human Relations Approach: Merits: i.
Classical Perspective Organizational Theory Essay Sample Singapore
These approaches are also termed as neoclassical theory of organisation. Employers who can motivate their employees with incentives may be able to achieve increased production, efficiency and profit. This means that the success of a business is contingent on the decisions made by the organization's leaders. Related: Modern Theory of Management: Definition, Benefits and Types 4. Interactions among individuals and group and interactions with the environment. Organizational 62 International Research Journal of Finance and Economics — Issue 41 2010 interests are more important than those of the individuals.
Classical Organizational Theory: Pillars of Classical Theory, Questions
It does not supplant but supplement the classical approach to organisation. Hence, the researchers tried to specify the reasons for human behaviour at a job. In an Organization, the logical relationships of functions constitute the structure of the Organization. Also, it offers an incomplete explanation of human behavior in organizations. With an increase in number of sub-ordinates attached to an executive the number of direct and group relationship increase. That is why streams have been created by this theory; scientific leadership and administrative leadership.
Classical Theory of Organization or Administrative Theory
In fact, there is no single structure applicable to all companies. The crucial problems faced by the organizations can be enumerated thus: 1. Herbert Simon also lashes out at some of the principles of this theory, particularly its principles of division of function, unity of command and span of control. So any discussion of the effect of organizational design on employee behavior has to address individual differences. Workers are considered economic beings.
Different researchers attempted to create an effective system regarding three different aspects of management that can increase work efficiency. Scientific management theory, also referred to as Taylorism, is more concerned with individual workers within an organization. It proposes that employees will work harder and be more productive if they are awarded incentives based on their work. It is different from the behavioral perspective their and the essay covers the clear distinction between the two. Robbins points pout that specialization, as visualized by Max Weber, creates sub unit conflicts. Initiative is concerned with creative thinking and capacity to take initiative that can give sound managerial planning and execution of pre determined objectives and goals. Multiple bosses will lead to divided responsibility.
Classics of organization theory : Shafritz,Jay M., author : Free Download, Borrow, and Streaming : Internet Archive
However, this theory takes a rigid and static view of organizations. Jain, Bureaucracy and Motivation, New Delhi: Jainsons , 1986, p. He conceptualized an organization in terms of designing the administrative structure. Urwick, Mooney and Reiley, Beach and Louis A. Moreover, a manager is held to a high standard of skills and knowledge, while the personality of a potential administrator is not considered. The Neoclassical approach was developed many years ago because it was believed that the classical theory did not achieve complete production efficiency and workplace harmony. The formal organization indicates the motive of top management for interactions among the people.
