Classical Organizational Theory PDF

Classical Organizational Theory IV S OF L R  IV S OF L R DIVISION OF LABOR BU AU RAT C APPROACH  BU AU RAT C APPROACH BUREAUCRATIC APPROACH DE TME ALI ATION DE TME ALI ATION DEPARTMENTALIZATION ...

Classical Organizational Theory IV S OF L R  IV S OF L R DIVISION OF LABOR BU AU RAT C APPROACH  BU AU RAT C APPROACH BUREAUCRATIC APPROACH DE TME ALI ATION DE TME ALI ATION DEPARTMENTALIZATION  Content Disclaimer: All content and information used in this material are sourced from different articles and websites solely for educational purposes. We do not claim ownership of the original content and give full credit to the respective authors and sources. This material is intended for academic use only. INTRODUCTION Classical Organizational Theory is one of the earliest and most influential theories of organizational management. It emerged during the early 20th century and was developed by scholars such as Henri Fayol, Max Weber, and Frederick Winslow Taylor. Historically, the term “classical” organizational theory has been used to denote models of organizing that were developed from approximately the early twentieth century until the mid-1940s. INTRODUCTION Classical Organizational Theory is a framework that focuses on the structure and management of formal organizations. It emerged during the industrial revolution and is rooted in the idea that organizations function like machines, where each part (or employee) has a specific role to play. The theory suggests that by clearly defining roles, responsibilities, and a hierarchical structure, organizations can operate more effectively. The emphasis is on creating a well-organized and controlled environment where every employee contributes to the overall productivity of the organization. Core Principles Division of Labor Work must be divided in an Organization for the improvement in the performance of individual workers and in order to obtain a clear specialization. The company must divide work in order to achieve a specific specialization in order to enhance the efficiency of individual employees. Core Principles Departmentalization Different departments must be created for different tasks and jobs which would allow the organization to minimize its costs and facilitate administrative control. Core Principles Scalar and Functional Processes The scalar and functional processes deal with the vertical and horizontal growth of the organization, respectively. The scalar process means the growth of the chain of command, the delegation of authority and responsibility, unity of command, and the obligation to report. The division of the organization into specialized parts and the regrouping of the arts into compatible units are elements pertaining to the functional process. This process concentrates on the horizontal evolution of the line and staff in a formal organization Core Principles Structure Structure is the logical relationships of functions in an organization, arranged to implement the objectives of the company efficiently. It accomplishes system and pattern. Classical organization theory mostly works with two basic structures, the line and the staff. However, such activities as committee and liaison functions fall quite readily into the purview of structural considerations. Structure is the intermediary for introducing logical and consistent relationships among the diverse functions which comprise the organization. Core Principles Span of Control The span of control concept relates to the number of subordinates a manager can effectively supervise. Regardless of interpretation, span of control has importance, in part, for the form of the organization which evolves via growth. Wide span yields a flat structure; short span results in a tall structure. Further, the span concept directs attention to the complexity of human and functional interrelationships in an organization. Methodology SCIENTIFIC MANAGEMENT APPROACH Frederick Taylor’s scientific management approach revolves around meticulously planning work to enhance efficiency, standardization, specialization, and simplification. Central to Taylor’s philosophy is the belief that increased productivity stems from building trust between management and workers. To foster this trust, he advocated for: Ensuring that the benefits of improved productivity directly benefit the workers. Minimizing physical stress and anxiety in the workplace. Developing the capabilities of workers through training. Abandoning the traditional hierarchical ‘boss’ concept. Methodology Taylor formulated four key principles to drive productivity improvement: Replace old rules of thumb with a scientific approach for each aspect of a person’s work. Select organizational members based on thorough analysis and subsequently provide training and development. Promote collaboration between management and labor, avoiding conflict, and ensuring work aligns with scientific principles. Implement scientific training for workers conducted by experts using systematic methods. Methodology BUREAUCRATIC APPROACH Max Weber’s bureaucratic approach, rooted in the organization’s role within society, is built on several key principles: Hierarchy: Positions within the organization should be structured in a clear hierarchy, each endowed with specific responsibilities and authority. Specialization: Tasks should be categorized functionally and then separated based on specialization, each with its own distinct chain of command. Methodology Predictability and Stability: The organization should function according to a set of formal rules and regulations, ensuring predictability and stability. Rationality: Impartiality should govern the recruitment and selection of personnel. Democracy: Responsibility and authority should be designated by roles rather than individuals. Methodology ADMINISTRATIVE APPROACH Administrative theory, as outlined by Henri Fayol (1949), encompasses key elements focused on task accomplishment. These include management principles, the line and staff concept, committees, and various management functions. Division of Work or Specialization Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of Individual Interest to General Interest Methodology Remuneration of Personnel Stability of Tenure of Personnel Centralization Initiative Scalar Chain Concept of Line and Staff Order Committees Equity Functions of Management  Applications Hierarchical Structure: Organizations implement a clear hierarchy where roles and responsibilities are well-defined. This structure includes levels of management and reporting relationships, ensuring that employees know who they report to and who reports to them. Standard Operating Procedures (SOPs): Scientific management principles are applied by creating detailed SOPs that standardize tasks and processes. This ensures consistency and efficiency in how work is performed. Job Specialization: Tasks are divided among employees based on their skills and expertise.  Applications Management Principles: Fayol’s principles guide managerial practices. Managers are trained to follow principles like unity of command (each employee should receive orders from only one superior) and scalar chain (a clear chain of command). Performance Monitoring and Optimization: Scientific management also involves monitoring and optimizing employee performance. This might include setting performance benchmarks, conducting time-motion studies to improve efficiency, through trainings, etc. Strengths Emphasis on Classical Organizational Theory put more emphasis on efficiency, division of Efficiency work or specialization. Clear Hierarchical This theory advocates for a well-defined hierarchy within organizations, Structure which clarifies roles, responsibilities, and authority. This standardization helps maintain consistency in operations and Standardization of ensures that all employees are aligned with organizational goals and Procedures practices Focus on Management These principles help create a cohesive work environment and Principles foster accountability among employees Weaknesses Overemphasis of This emphasis can bring bureaucratic issues and hinder creativity Structure since people won’t be able to go beyond hierarchy or protocols. This reductionist approach fails to consider the emotional, social, and Neglect of Employee’s psychological factors that motivate individuals, which can lead to Needs dissatisfaction and disengagement in the workforce Such rigidity can therefore be a major factor that reduces the Rigidity competencies of organizations and their ability to cope with emerging circumstances within environments or markets. This can lead to inefficiencies and a lack of responsiveness, as Lack of Emphasis on decisions may be made without considering the insights and Decision-Making contributions of lower-level employees Conclusion Classical Organizational Theory promotes efficiency, order, and a methodical approach to management, believing that if every person performs their assigned function efficiently, the business or organization as a whole would thrive. While the theory's emphasis on order and productivity remains relevant, its limitations in addressing the complexities of modern organizations and the needs of individuals suggest that it should be complemented with more flexible, humanistic approaches.  REFERENCES Ahmad, I. (2023, November 28). Classical Organization Theory. PHYSICS WALLAH. https://www.pw.live/exams/commerce/classical-organization-theory/ Vedantu. (n.d.). Classical Organization Theory. VEDANTU. https://www.vedantu.com/commerce/classical- organization-theory Classical Organizational Theory: Pillars of Classical Theory, questions. (2019, December 10). Toppr- guides. https://www.toppr.com/guides/fundamentals-of-economics-and-management/evolution-of- management-thought/classic-organization-theory/ CLASSICAL ORGANIZATION THEORY: FROM GENERIC MANAGEMENT OF SOCRATES TO BUREAUCRACY OF WEBER. (2016). International Journal of Business and Management Review, Vol. 4, No. 1(ISSN: 2052-6407), 87–105. Jex, S. M. (2002). Organizational Psychology: A Scientist-Practitioner Approach. John Wiley & Sons. Group Members: Beredo, Ilyssa Chaves, Ashley Maquirang, Mary John Haylie Pebbles Natividad, Terrence Joshua Villamarin, Leigh Alwin THANK YOU!