Classical Organization Theory
The classical organizational theory is identified as the oldest school of management pre-dated in the early twentieth century (Shafritz, Ott, and Jang, 2012). This theory is premised on efficiency of bureaucratic systems that operate in an organization. This school of management is based on ensuring maximum productivity of an organization’s systems. In this regard, this theory involves centralized decision-making, specialization of labor, and maximization of profit. For this reason, the theory encompasses a combination of three distinct concepts, bureaucratic, scientific, and administrative theories (Daft, Murphy, and Willmott, 2013). The classical organizational theory was advanced by the first scholars, Max Weber, Frederick Taylor, and Henry Fayol. This paper will expound on the contributions of each scholar with regards to the advancement of classical organizational theory.
Frederick Taylor
Frederick Winslow Taylor was responsible for the development of the scientific management theory, a concept which later came to be referred to as Taylorism. This theory is based on the general concept of classical management as it is premised on promotion of efficiency and productivity of organizational systems. According to Taylor, the scientific theory of management is based on the determination of the tasks required to be undertaken and management of the same to ensure they are accomplished in the best possible way at the cheapest cost.
The scientific management theory is based on four principles as indicated below:
The creation of the most efficient approach to accomplish a task as opposed to applying a rule-of-thumb method.
Staff training by management as well as the designation of tasks to workers in accordance with their level of skill and experience.
Management and employees are required to work together to ensure the objectives and principles are met.
The organization’s management is responsible for tasks involving planning and controlling.
The implementation of this theory in organizations in the past proved successful following improved productivity. In this case, organizations focused on the determination of the most efficient equipment and individuals to undertake a task in comparison to other employees for the purpose of analyzing the most fitted individual to perform the task in question (Ghuman and Aswathappa, 2011).
However, the improved performance in organizations was not sustained as the focus was on productivity instead of employees’ welfare. As a result, productivity deteriorated as a result of the lack of employee motivation. This model is not sustainable in the current environment as organizations are opting to put their employees first rather than productivity in place of employee welfare. This is premised on the fact that a happy workforce is a productive workforce. Companies such as Google, PwC, Facebook, amongst others are keen on providing a friendly working environment to boost productivity.
Max Weber
Weber improved the premises of Taylorism by indicating for the need for clear lines of authority within the organization in order to facilitate control. This concept became known as the bureaucratic theory. This theory explains the need for organizations to have hierarchical structures in order to establish the auspices of power that allows individuals to identify the levels of management. This approach is meant to determine the individuals in charge of their departments and who are vested with the task of making decisions in regards to the tasks they undertake in the organization. In this regard, the bureaucratic theory is premised on the aspect of exercising control based on knowledge accumulation. According to Weber, power is exemplified through control in organizational setups.
Weber agreed with the Taylorism concept that calls for the need to have divisions between employees and management as well as the call for specialization of tasks. In this regard, tasks within an organization are required to be divided into functions which are in turn given to respective departments. At this point, an employee who is in the best position to undertake this function is vested with this responsibility, in order to carry out the required task. In this instance, employees clearly understand their role within the organization.
According to Miles (2012), Weber also believed in the concept of property rights in which case all equipment is identified as belonging to the organization as opposed to the owner of the company. This approach was meant to separate an individual’s property rights from that of the organization.
The bureaucratic theory is still practiced in the current space, especially in government organizations. In this case, the levels of an organization are clearly identified with each headed by an individual with the greatest experience. In addition, employees have clearly defined job descriptions that facilitate comprehension of their roles in the organization.
Henry Fayol
As in the case of Weber and Taylor, Fayol advanced the administrative theory in relation to classical organizational theory. In this regard, Fayol established principles of management that were meant to improve efficiency in the organization as indicated below (Adetule, 2011):
Unity of command- Fayol indicated the need for organizations to have an individual lead the organization to achieve its vision.
Hierarchy- As in Weber’s and Taylor’s case, Fayol indicated the need to have well-organized chain of command.
Functional Specialization- In this case, Fayol believed organizations needed to assign tasks to individuals according to their qualifications.
Narrow Span of Control- Fayol believed efficiency would be achieved in instances where a manager leads a small group of employees.
Authority Parallel with Responsibilities- In this instance, Fayol indicated for the need for those with similar leadership positions in an organization to have equal responsibilities.
Rational Organizational Arrangement- This concept calls for the need for organizations to undertake proper planning in relation to the nature of the task.
The above principles of management were a further refinement to those proposed by Weber and Taylor, all within the context of classical organizational theory.
Conclusion
The classical organizational management has been refined in accordance with changes in the business environment. This concept is clearly demonstrated in Taylor’s, Weber’s, and finally, Fayol’s schools of thoughts. However, the one aspect that has been constant has been the emphasis on organizational efficiency.
References
Adetule, J. (2011). Handbook on management theories. Bloomington: Author House.
Daft, R. L., Murphy, J., & Willmott, H. (2013). Organization theory and design. Andover: South-Western Cengage Learning.
Ghuman, K., & Aswathappa, K. (2011). Management: Concept, practice and cases. New Delhi: Tata McGraw Hill.
Miles, J. A. (2012). Management and Organization Theory. Hoboken: John Wiley & Sons.
Shafritz, J., Ott, J., & Jang, Y. (2012). Classics of organizational theory. London: CengageBrain Publishers.
