Classical theory

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NARLYN G. MENDOZA
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F I c s c I e n t I
S c I e n t I f
I c

T I v e m I n I s a d t
r a
administrati
ve

L o r t a y
d e r f r e I c
k
Frederick
taylor

R I n e h
o l f a y
Henri fayol

T h e r l u s e y h
a l
L I c k g u
Luther
halsey
gulick

L a c s I s a l c
R y o e t h
Classical
theory

New Message
CLASSICAL
ORGANIZATIONAL
THEORY

CLASSICAL THEORY
It was introduced in the late 19th
century dates back to the Industrial
Revolution
It became widespread in the first
half of the 20th century, as
organizations tried to address issues
of industrial management, including
specialization, efficiency, higher
quality, cost reduction and
management-worker relationships

CLASSICAL THEORY
Models were military and the
Catholic Church
Features:
Strict CONTROL of workers
Absolute CHAINS of COMMAND
PREDICTABILITY of behavior
UNDIRECTIONAL downward
influence

Classical organizational theory
espouses two perspectives
Scientific management – focusing
on the management of work and
workers
Administrative management -
addressing issues concerning how
overall organization should be
structured

Major contributors to the
Classical Organizational Theory:
Scientific Management:
Frederick Taylor
Administrative Management:
Henri Fayol
Luther Halsey Gulick
Max Weber

FREDERICK TAYLOR
(1815-1915)
dubbed as the “Father of Scientific
Management,” is best known for his
“one best way approach” in
accomplishing task
PROBLEM: Get employees to work at
their maximum capacity
PRIMARY FOCUS: TASKS

FREDERICK TAYLOR
(1815-1915)
 Elements of Scientific Management
 Scientific design of every aspect of
every task
 Time and Motion Studies
 Careful selection and training of every
task
 Proper remuneration for fast and
high-quality work
 Maximize output - increase pay
 Equal division of work and
responsibility between worker and
manager

“One Best Way”
Taylor's scientific management
consisted of four principles:
1. Replace rule-of-thumb work
methods with methods based on a
scientific study of the tasks
2. Scientifically select, train, and
develop each employee rather
than passively leaving them to
train themselves

“One Best Way”
Taylor's scientific management
consisted of four principles:
3. Provide "Detailed instruction and
supervision of each worker in the
performance of that worker's discrete
task" (Montgomery 1997: 250)
4. Divide work nearly equally between
managers and workers, so that the
managers apply scientific management
principles to planning the work and the
workers actually perform the tasks

Henri Fayol (1841-1925)
Engineer and French industrialist
In France works as a managing
director in coal-mining organization
PRIMARY FOCUS: Management
(Functions of Administration)
More Respect for Worker than Taylor
Workers are motivated by more than
money
Equity in worker treatment
More PRESCRIPTIVE

 Fayol’s 5 Management Functions
Fundamental roles performed by all managers:
 Planning
 Organizing
 Commanding
 Coordinating
 Controlling
 Additionally Fayol recognizes fourteen
principles that should guide the
management of organizations

Fayol’s 14 Principles:
1. Division of Work
2. Authority and
Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction

6. Subordination of
Individual Interests to the
General Interest
7. Remuneration of
Personnel
8. Centralization
9. Scalar Chain (Line of
Authority)

11. Equity
12. Stability of Tenure of
Personnel
13. Initiative
14. Esprit de Corps

Luther Halsey Gulick
(1892-1992)
A specialist in municipal finance and
administration
Gulick works with the Institute of
Public Administration, professor of
municipal science and administration
at Columbia, and serves on Franklin D.
Roosevelt’s Committee of
Government Administration
Expands Fayol’s five management
functions into seven functions

Luther Halsey Gulick
(1892-1992)
Seven Functions of
Management:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Coordinating
6. Reporting
7. Budgeting

Max Weber (1864-1920)
German Sociologist
Theory of Social and Economic Organization
(1947)
Principles and Elements of Management -
describe an ideal or pure form of organizational
structure (general policy and specific
commands
PRIMARY FOCUS: Organizational Structure
Worker should respect the “right” of
managers to direct activities dictated by
organizational rules and procedures
More DESCRIPTIVE

Weber uses and defines the
terms authority and power as:
Power: any relationship within
which one person could impose his will,
regardless of any resistance from the
other
Authority: existed when there
was a belief in the legitimacy of that
power

Weber classifies organizations
according to the legitimacy of their
power and uses three basic
classifications:
1. Charismatic Authority: based
on the sacred or outstanding
characteristic of the individual
2. Traditional Authority:
essentially a respect for customs
3. Rational Legal Authority: based on a
code or set of rules

Weber recognizes that rational
legal authority is used in the
most efficient form of
organization because:
A legal code can be established which
can claim
The law is a system of abstract rules
which are applied to particular cases;
and administration looks after the
interests of the organization within the
limits of that law

Weber recognizes that rational
legal authority is used in the
most efficient form of
organization because:
The manager or the authority
additionally follows the impersonal
order
Membership is key to law obedience
Obedience is derived not from the
person administering the law, but rather
to the impersonal order that installed
the person’s authority

Weber outlined his ideal
bureaucracy as defined by the
following parameters:
A continuous system of authorized
jobs maintained by regulations
Specialization: encompasses a defined
“sphere of competence,” based on its
divisions of labor
A stated chain of command of offices:
a consistent organization of supervision
based on distinctive levels of authority

Rules: an all encompassing system of
directives which govern behavior: rules
may require training to comprehend and
manage
Impersonality: no partiality, either for
or against, clients, workers, or
administrators
Free selection of appointed officials:
equal opportunity based on education
and professional qualification

Full-time paid officials: only or major
employment; paid on the basis of
position
Career officials: promotion based on
seniority and merit; designated by
supervisors
Private/Public split: separates business
and private life

The finances and interests of the two
should be kept firmly apart: the
resources of the organization are quite
distinct from those of the members as
private individuals
(A) tendency to a leveling of social
classes by allowing a wide range of
recruits with technical competence to be
taken by any organization

(b) Elite status because of the
time required to achieve the
necessary technical training
(c) Greater degree of social
equality due to the dominance of
the spirit of impersonality or
objectivity

DHANG:)
BENEFITS OF CLASSICAL THEORY
 Hierarchical Structure
 Division of Labor
 Monetary Incentive
 Autocratic Leadership

DHANG:)
Common Criticisms of Classical Organizational Theory
 Employees have minimal
power over their jobs and
working conditions
 Subordination, passivity and
dependence are expected
 Work to a short term
perspective

DHANG:)
Common Criticisms of Classical Organizational Theory
 Employees are lead to
mediocrity
 Working conditions produce to
psychological failure as a
result of the belief that they
are lower class employees
performing menial tasks

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Classical theory

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