This document summarizes several classic organization theories: Classical Theory including Scientific Management, Administrative Management Theory, and Bureaucracy Theory; the Human Relations approach from the Hawthorne experiments; Systems Theory; and Contingency Theory. It provides details on key aspects of each theory such as Frederick Taylor's principles of scientific management, Henri Fayol's 14 principles of administration, Max Weber's elements of bureaucracy, and findings from Hawthorne experiments. The Systems Approach views organizations as open systems that interact with their environments. Contingency Theory proposes that the best organization structure depends on various contingency variables.
2. Organization theories
Classical Theory
- Scientific Management theory
- Administrative Management Theory
- Theory of Bureaucracy
Human Relation approach ( Hawthorne
experiments)
System theory
Contingency Theory
3. Scientific Management theory
Given by Frederick W. Taylor
Principles of scientific management :
Substituting research science rules for
rules of thumb
Harmony in Group action
Cooperation
Maximum output in place of restricted
output
Scientifically select, train, teach and
develop employees
4. Scientific Management theory
Main features:
Separation of planning from doing function
Functional foremanship
Standardize fair day’s work
Work study
-Method study
- Motion study
-Time study
- Fatigue study
5. Scientific Management theory
Rate setting
Standardization
Scientific selection & training
Financial incentives
Mental Revolution
6. Administrative theory
Given By Henry Fayol
1. Division of work
2. Authority & Responsibility
3. Discipline
4. Unity of Command
5. Unity Of direction
6. Subordination of individual interest to Group
interest
7. Administrative theory contd…
7. Remuneration of personnel
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Esprit de Corps
8. Bureaucracy theory
Given by Max Weber
Division of Labor with highly skilled employees
in each position
Consistent organization rules and procedures
Hierarchy of authority/chain of command
Impersonality of interpersonal relationships
Employment/Advancement based on
competence
9.
10. Human relation approach
Hawthorne experiments conducted by Elton
Mayo
Illumination experiment
Relay assembly test room experience
Mass interviewing programme
Bank wiring observation room experiment
11. Findings of Hawthorne
experiments
Organizations are social organizations
Informal group exists with formal groups
Production norms decided by social norms
not by physical capacity
Money not a sole motivator
Informal leader exists
Friendly supervision
Workers prefer cordial relationships
12. The Systems Approach
System Defined
◦ A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.
Basic Types of Systems
◦ Closed systems
Are not influenced by and do not interact with their
environment (all system input and output is internal).
◦ Open systems
Dynamically interact to their environments by taking in inputs
and transforming them into outputs that are distributed into
their environments.
14. Characteristics of open system:
Composed of subsystems
Components are interrelated
Environment awareness
Feedback
Cyclical character
Balance of maintenance & adaptation
activities
Self regulatory mechanism
15. Implications of the Systems
Approach
Coordination of the organization’s parts is
essential for proper functioning of the
entire organization.
Decisions and actions taken in one area of
the organization will have an effect in
other areas of the organization.
Organizations are not self-contained and,
therefore, must adapt to changes in their
external environment.
16. The Contingency Approach
Contingency Approach Defined
◦ Also sometimes called the situational approach.
◦ There is no one universally applicable set of
management principles (rules) by which to manage
organizations.
◦ Organizations are individually different, face
different situations (contingency variables), and
require different ways of managing.
