classical theory

• Organizational Theory


  Set of propositions that explains or predicts how group and individuals behave in varying organizational structures and circumstances
• Classical Organizational Theory


  • Organizations exist for economic reasons and to accomplish productivity goals
  • The basic ingredient of any organization and then addresses how organizations should best structured to accomplish its objectives
• Key elements of organizations


  • System of differentiated activities
  • People - perform tasks and exercise authority
  • Cooperation toward a goal - unity of purpose in pursuit of their common goals
  • Authority - ensures cooperation among people pursuing their goals
• There is a "right" structure for an organization
• Assumes there is one best configuration to accomplish goals
• Scientific Analysis will identify the one best way to organize for production
• Deal with the formal organization and concepts to increase management efficiency
• Both people and organizations act in accordance with rational economic principles
• To be successful in this new economy, industrial and mechanical engineers are needed to organize production systems to keep the machines busy and work flowing
• Functional Principle


  Concept behind division of labor, that is, organizations should be divided into units that perform similar functions into areas of specialization
• Scalar Principle


  • Deals with the organization's vertical growth and refers to the chain of command that grows with levels added to the organization
  • Each subordinate should be accountable to only one superior (unity of command)
• Line/Staff Principle


  • Line Functions: have primary responsibilities for meeting the major goals of the organization, like the production department
  • Staff Function: support the line's activities but are regarded as subsidiary in overall importance to line functions
• Span-Of-Control Principle


  • Refers to the number of subordinates a manager is responsible for supervising
  • Large Span-of-Control produce flat organizations, whilst, smaller Span-of-Control produce taller organizations
• Scientific Management by Frederick Taylor


  • The organization is a machine, a pragmatic machine whose focus is to simply run more effectively
  • Taylor believed that scientific principles could be applied to the study of work behavior to help increase worker efficiency and productivity
  • Based on the concept of planning of work to achieve efficiency, standardization, specialization, and simplification
  • The advantages of productivity improvement should go to workers
  • Physical stress and anxiety should be eliminated
  • Capabilities of workers should be developed through training
  • Traditional boss concept should be eliminated
  • Mainly associated with high levels of job specialization and standardization
  • Conducted time and motion studies and analyzed temperature, illumination, and other conditions of work, all while looking at the effects of these conditions on productivity and efficiency
  • Taylorism: has a premise that there is one best way to get the job done
  • Management gathers data from the workers, who are in the best position to understand the job duties and tasks
  • Workers are selected carefully or scientifically and trained so that they become more efficient than ever
  • Scientific selection, data collection, and training are combined to enhance efficiency
  • The work itself is redistributed, with management taking over tasks previously left to subordinated
  • The most effective companies have detailed procedures and work practices developed by engineers, enforced by supervisors, and executed by employees
  • Taylor, along with Frank and Lillian Gilbreth implemented the principles of scientific management
  • Worker efficiency would lead to greater managerial efficiency
• Bureaucracy by Max Weber


  • Described the structure, organization, and operation of many efficient organization
  • Ideal form of organization
  • Includes formal hierarchy, division of labor, and a clear set of operating procedures
  • Well-defined authority hierarchy with strict rules for governing behavior, with few members with highest status on the top
  • Increase productivity by reducing inefficiencies in organizational operations
• Characteristics of a Bureaucratic Organization

  • Specialization of labor
  • Well-defined Authority Hierarchy
  • Formal Rules and Procedures
  • Impersonality - behavior is based on logical reasoning rather than emotional thinking
  • Employment decisions based on merit
  • Emphasis on written records
• Division of Labor


  Each job is a specialized position with its own set of responsibilities and duties; division of tasks performed in an organization
• One potential difficulty involves the coordination of various tasks handled by various employees
• Tend to be top-down pyramidal organization
• Delegation of Authority


  Approach whereby supervisors assign particular tasks to separate employees and hold them responsible for completing these tasks (Micromanagers); information about which lower-level employees report to higher-level employees
• Structure


  Formal way an org is designed in terms of division of labor, delegation of authority, and span of control
• Span of Control


  Number of subordinates who report to a given supervisor
• Administrative Management by Henri Fayol


  • Aims to improve organizational productivity by focusing on methods that managers can use to synchronize internal processes
  • Managerial practices are the key to driving efficiency in organizations
  • Seeks to heighten managerial performance instead on individual worker efficiency
  • Proposed the creation of work groups and functional departments wherein distinct activities are performed which contribute to the accomplishment of greater tasks
• Five functions of Managers


  Planning, Organizing, Commanding, Coordinating, and Controlling
• Structural Theory by Harry Mintzberg


  • Proposed how organizations evolve to reach a certain form and shape (structure) which permits the organization to function in its surroundings
  • The structure of an organization is an adaptive mechanism that permits the organization to function in its surroundings
• Seven Basic Parts of an Organization

  • Operating Core - responsible for conducting basic work duties that give the organization its defining purpose; transform raw goods into a sellable products
  • Strategic Apex - responsible for the overall success of the entire organization; associated with executive leadership
  • Middle Line - ensures that overall goals set by strategic apex are being carried out by the operating core
  • Technostructure - possess specific technical expertise that facilitates overall operation of the organization; accounting, HR, IT, law departments
  • Support Staff - aid the basic mission of the organization and typically includes the mailroom, security, and janitorial services
  • Ideology - belief system that compels commitment to a particular value; organizations should have singularly devoted to a particular mission, and all its actions are in pursuit if that mission; employees behave in accordance with their sincere conviction in the ideology of the organization, and can perform their work relatively independent of each other
  • Politics - side effect of ideology, causes divisiveness and conflict; the basis is the use of power that is neither formally authorized or widely accepted in the organization