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Organization Theory

The document discusses three classical organizational theories: scientific management by Frederick Taylor, administrative management by Henri Fayol, and bureaucratic management by Max Weber. It provides an overview of each theory, summarizing Taylor's focus on optimizing work processes, Fayol's 14 principles of management, and Weber's emphasis on hierarchy and standardized rules. While the classical theories influenced modern management, the document notes they may overlook human needs and are still subject to human errors and inflexibility. Overall, it analyzes the contributions and shortcomings of each classical perspective on organizational management.

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Bryl Dolor
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57 views

Organization Theory

The document discusses three classical organizational theories: scientific management by Frederick Taylor, administrative management by Henri Fayol, and bureaucratic management by Max Weber. It provides an overview of each theory, summarizing Taylor's focus on optimizing work processes, Fayol's 14 principles of management, and Weber's emphasis on hierarchy and standardized rules. While the classical theories influenced modern management, the document notes they may overlook human needs and are still subject to human errors and inflexibility. Overall, it analyzes the contributions and shortcomings of each classical perspective on organizational management.

Uploaded by

Bryl Dolor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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DOLOR, BRYL P.

BA 201 – Organizational Theory

ORGANIZATION THEORY – FROM CLASSICAL PERSPECTIVE

Introduction

Societies today comprise of interconnected concepts and definitions that explain the
behaviour of individuals or groups who interacts with each other to perform the activities
intended towards the accomplishment of a common goal.

In order to study the relationships between the individuals working together and their
overall effect on the performance of the organization, it is well explained through
organizational theories. Organizational theory studies how organizations work in order to
increase the capability to plan more operative and competent organizations in terms
organizational goals.

An organizational structure embraces a vital role in the success of any enterprise.


Thus, there were organizational theories expounded to help organizations be efficient enough
to deal with specific problems and identify the suitable structure for a certain management.

Statement of the Problem

In this study, historical development course of classical organization theory has been
analysed carefully. Three well known classical management theories named Scientific,
Administrative and Bureaucratic were reviewed in this paper. For these theories, Taylor,
Fayol and Weber are famous all over the world. Through them, we can see few experiments
and administrative observation for trying the viability of the philosophies and propositions
projected. These old theories are being practiced in some form in most part of the world until
now.

Review of Related Literature

Organization
Organizations are social units of people and their affiliations with each other that are
structured and managed to meet a need. It exists when people interrelate to carry out vital
roles that support to achieve objectives.

Theory

The prime objective of a theory is to respond the queries about when, why, and how
contrasting the objective of explanation, which is to response to the query of what.

Organizational Theory

Organizational theories consist of approaches to organizational analysis. It engages


with the formation of overall ideas and approaches that are appropriate to any organization,
regardless of its societal activities and geographical surroundings.

Methodology

Organization specialists studies ideologies and recommend the explanations involved


in a certain issue with the management to achieve an effective administration.

Scientific Management

Frederick Taylor started the Scientific Management movement. His philosophy


focused on the belief that making people work as hard as they could was not as efficient as
optimizing the way the work was done. He proposed that by optimizing and simplifying jobs,
productivity would increase. He also advanced the idea that workers and managers needed to
cooperate with one another.

Taylor’s theories for Scientific Management comprises of four fundamental principles


which includes replace working by “rule of thumb”, match workers to their jobs based on
capability and motivation, monitor worker’s efficient performance and allocation of works
between managers and workers.

Administrative Management
Administrative Management was Henri Fayol’s principles and ideologies which
explained how managers should organize and interact with staff.

Fayol’s 14 principles of management was one of the earliest theories and remains one
of the most comprehensive. It includes division of work, authority, discipline, unity of
command, unity of direction, subordination of individual interests to the general interest,
remuneration, centralization, scalar chain, equity, stability of tenure of personnel, initiative,
and esprit de corps.

Bureaucratic Management

Bureaucratic management was developed by Max Weber that includes structuring an


organization into hierarchy and having clearly defined rules to help govern an organization
and its members. He believed it was the most efficient way to set up and organization since
everyone is treated equal and the division of labour is clearly described for each employee.

According to the theory, bureaucracy is the basis for the systematic formation of any
organization and is designed to ensure efficiency and economic effectiveness. With Weber’s
observation, the basic management principles of bureaucracy includes proper division of
labor, effective flow of chain of command, separation of personal and official property,
application of proper rules and regulations, selection and promotion based on qualifications,
and many more.

Recommendation

In our society, organizations must cope up with the origin of management


theories and principles in order to understand the concepts of real management skills and
ideologies in order to have a successful organization. Learning and applying organizational
theory can have several benefits for both the organization and society at large. Developments
in organizations help boost economic potential in a society and help generate the tools
necessary to fuel its management system.

Conclusion

The classical perspective management pulls largely from these three theorists –
Taylor, Fayol and Weber. It focuses on the efficiency of employees and improving an
organization’s productivity through a variation of methods. The classical perspective can be
criticized since some of the principles ignores human desires and needs in the workplace and
sometimes does not take into consideration the errors done by human in their work
performance. Classical perspective has strong influences on modern organizations and
process improvement which uses improved methodologies to determine how effective a
process is running.

Overall Critics

The classical approach to management tends to focus on treating workers as a tool to


improve efficiency and productivity rather than the workers’ human needs.

In scientific management, the effort of workers can be increased but they may be
dissatisfied with the environment which can affect their overall work ethic. This can lose the
value taken from increased efficiency. It promotes the idea that there is always a simple way
to do something. The idea here is that workers are given as much independence as practically
possible, so that they can use the most appropriate approaches for the situation at hand.

Scientific management also led to other pressures tending towards worker’s


unhappiness. Offshoring and automation are two such pressures that have led to the
elimination of employment. Both were made possible by reducing the requirement of skills
for a certain job, which happened because of the knowledge transfer that scientific
management achieved, whereby knowledge was transferred to cheaper workers, as well as
from workers into tools.

Administrative management is the most comprehensive management theory as a way


to deal with management techniques. It is also the most used because it has been proven to
work. It’s being comprehensive as it covers just about anything one might need to do in a
management position to ensure success.

Nonetheless, it is still based on human application which makes it its weakness. As


humans we are naturally going to make mistakes. The theory works on the basis of having
harmony among people in which unity forms to create a strong management team. However,
when mistakes are made it can undermine the entire strength of the team. Furthermore, if a
person is found to be false and will not admit it, more problems can follow. This is the same
weaknesses of any system that relies on humans to be in control given various factors like
personality and that mistakes can be made.
In bureaucratic management, it emphasizes only on rules and regulations. There will
be unnecessary delay in decision-making due to formalities and rules of bureaucratic
organization. Coordination and communication were hindered because of too much formality
and rules. Bureaucracy involves a lot of paperwork and has just too much level of authority
which results in a lot of wastage of time, effort and money. Not ideal for efficiency.

Max Weber’s bureaucratic approach worked as a solution to problems of traditional


administrative systems. But it was not the perfect solution. The bureaucratic structure gives
all the importance and power to the top level management. And the rules and levels of
authority are just too much. It gives a greater sense of security to the employees.

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