CLASSICAL THEORY

• There is a "right" structure for an organization.

  CLASSICAL THEORY/CLASSICAL ORGANIZATIONAL THEORY
• Who will identify the ONE best way to organize for production according to the Classical Organizational Theory?

  SCIENTIFIC ANALYSIS
• How to increase management efficiency according to classical organizational theory?

  Deal with the formal organization and concepts
• Principles under the Classical Organizational Thoery:

  1. Functional Principle
  2. Scalar Principle
  3. Line/Staff Principle
  4. Span of Control Principle
• Division of Labor. Organizations should be divided into units that perform similar functions into areas of specialization.

  FUNCTIONAL PRINCIPLE
• Deals with organization's vertical growth. Subordinate should be accountable only to ONE superior.

  SCALAR PRINCIPLE
• Have primary responsibilities for meeting the major goals of the organization.

  LINE FUNCTIONS
• Support the line's activities but are regarded as subsidiary in overall importance to line function

  STAFF FUNCTION
• Refers to the number of subordinates a manager is responsible for supervising

  SPAN OF CONTROL PRINCIPLE
• 2 KINDS OF SPAN OF CONTROL:

  1. Large Span of Control - Flat Organization
  2. Small Span of Control - Tall Organization
• APPROACHES UNDER CLASSICAL THEORY:

  1. Scientific Management - Frederick Taylor
  2. Bureaucracy - Max Weber
  3. Administrative Management - Henri Fayol
• The organization is a machine, a pragmatic machine whose focus is to simply run more effectively.

  SCIENTIFIC MANAGEMENT
• He believed that scientific principles could be applied to the study of work behavior to help increase worker efficiency and productivity.

  FREDERICK TAYLOR
• There is a ONE BEST WAY to get the job done

  TAYLORISM
• Who implemented the Principles of Scientific Management?

  FREDERICK TAYLOR along with FRANK and LILLIAN GILBRETH
• It is a well-defined authority hierarchy with strict rules for governing behavior, with few members with highest status on the top

  BUREAUCRACY
• Who created the principles of Bureaucracy?

  MAX WEBER
• Principles of Bureaucracy:

  1. Division of Labor
  2. Delegation of Authority
  3. Structure
  4. Span of Control
• Each job is a specialized position with its own set of responsibilities and duties; division of tasks performed in an organization

  DIVISION OF LABOR
• Supervisors assign tasks to separate employees and hold them responsible for completing this tasks

  DELEGATION OF AUTHORITY
• Doing the work of others rather than trusting employees to complete tasks themselves. They often take work upon themselves because they are typically worried that the work will not be completed correctly if they delegate it to someone else.


  MICROMANAGER
• Formal way an organization is designed.

  STRUCTURE
• Number of subordinates who report to a given supervisor

  SPAN OF CONTROL
• PRINCIPLES OF SCIENTIFIC APPROACH:

  1. STRUCTURE - hierarchy
  2. SPECIALIZATION - functional basis
  3. PREDICTABILITY AND STABILITY - rules and regulations
  4. RATIONALITY - equal treatment
  5. DEMOCRACY - ability to vote
• Aims to improve organizational productivity by focusing on methods that managers can use to synchronize internal processes.

  ADMINISTRATIVE MANAGEMENT
• PRINCIPLES OF ADMINISTRATIVE THEORY:

  • Division of specialization
  • Authority and responsibility
  • Discipline
  • Unity of command
  • Unity of direction
  • Subordination of Individual interest
  • Remuneration of Personnel
  • Centralization
  • Scalar chain
  • Order
  • Equity
  • Stability of tenure of personnel
  • Initiative
  • Esprit de corps
• Being more proficient in the accomplishment of a limited set of activities

  DIVISION OF SPECIALIZATION
• Working in the person's chosen field of specialization

  EMPLOYED
• Employed in the field that is not under a person's specialization

  UNDEREMPLOYED
• No work

  UNEMPLOYED
• Managers should have the authority of issues of command, but it comes with responsibilities to ensure the work gets done

  AUTHORITY AND RESPONSIBILITY
• Subordinate must fully obey instructions from superiors

  DISCIPLINE
• Only one executive wherein the employees gets instructions

  UNITY OF COMMAND
• Each workgroup or department is working under a singular plan that coordinates effort

  UNITY OF DIRECTION
• Interests of individuals are subordinate to the general interests of the group or department of the company

  SUBORDINATION OF INDIVIDUAL INTEREST
• Compensation is used to incentivize worker's performance

  REMUNERATION OF PERSONNEL
• Decision-making should be either centralized or decentralized, depending upon the characteristics of the organization and work competency

  CENTRALIZATION
• TYPES OF DECISION MAKING:

  1. Centralized - only one (1) can decide
  2. Decentralized - many can decide
• Decision is made by the upper position

  CENTRALIZED
• Decision is made by the whole group or team

  DECENTRALIZED