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  1. 1. Classical Organizational Theory Vincent Myers And Nina Presuto
  2. 2. Main idea of classical organizational theory <ul><li>There is “one best way” to perform a task </li></ul>
  3. 3. Classical organizational theory espouses two perspectives: <ul><li>Scientific management – focusing on the management of work and workers </li></ul><ul><li>Administrative management - addressing issues concerning how overall organization should be structured </li></ul>
  4. 4. Major contributors to the Classical Organizational Theory: <ul><li>Scientific Management: </li></ul><ul><ul><ul><ul><ul><li>Frederick Taylor </li></ul></ul></ul></ul></ul><ul><li>Administrative Management: </li></ul><ul><ul><ul><ul><ul><li>Henri Fayol </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Luther Halsey Gulick </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Max Weber </li></ul></ul></ul></ul></ul>
  5. 5. Frederick Taylor <ul><li>Taylor is born in Pennsylvania on March 20, 1856 </li></ul><ul><li>After studying in Europe, he plans to go to Harvard, but does not pass the entrance exams </li></ul><ul><li>Instead Taylor works as a pattern maker at a pump manufacturing company in Philadelphia </li></ul><ul><li>Later, he studies mechanical engineering at Stevens, finishing in just three years. </li></ul>
  6. 6. Taylor identifies two people as having influenced him: <ul><li>John Griffith teaches Taylor how to be an appreciative, respectful, and admirable working mechanic </li></ul><ul><li>Lucian Sharpe impresses Taylor with his focus, concentration, and task commitment </li></ul>
  7. 7. Midvale Steel Company <ul><li>Taylor begins working for the Midvale steel Company in 1878. </li></ul><ul><li>While there he succeeds in doubling the work of his men, is soon promoted to foreman </li></ul><ul><li>As foreman, he begins studying productivity as a means of measuring of manufacturing. </li></ul><ul><li>Later he becomes the chief engineer at Midvale. </li></ul>
  8. 8. Ingenuity and Accomplishments <ul><li>Creates systems to gain maximum efficiency from workers and machines in the factory. </li></ul><ul><li>Focuses on time and motion studies to learn how to complete a task in the least amount of time. </li></ul><ul><li>Becomes consulting engineer for many other companies </li></ul><ul><li>Publishes— The Principles of Scientific Management </li></ul>
  9. 9. Key Points of Scientific Management <ul><li>Scientific Job Analysis – observation, data gathering, and careful measurement determine “the one best way” to perform each job </li></ul><ul><li>Selection of Personnel – scientifically select and then train, teach, and develop workers </li></ul><ul><li>Management Cooperation – managers should cooperate with workers to ensure that all work is done in accordance with the principles of the science that developed the plan </li></ul><ul><li>Functional Supervising – managers assume planning, organizing, and decision-making activities, and workers perform jobs </li></ul>
  10. 10. Henri Fayol <ul><li>Engineer and French industrialist </li></ul><ul><li>In France works as a managing director in coal-mining organization </li></ul><ul><li>Recognizes to the management principles rather than personal traits </li></ul><ul><li>While others shared this belief, Fayol was the first to identify management as a continuous process of evaluation. </li></ul>
  11. 11. Fayol’s 5 Management Functions <ul><li>Fundamental roles performed by all managers: </li></ul><ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Commanding </li></ul><ul><li>Coordinating </li></ul><ul><li>Controlling </li></ul><ul><li>Additionally Fayol recognizes fourteen principles that should guide the management of organizations. </li></ul>
  12. 12. Fayol’s 14 Principles: <ul><li>Division of Work —improves efficiency through a reduction of waste, increased output, and simplification of job training </li></ul><ul><li>Authority and Responsibility —authority: the right to give orders and the power to extract obedience – responsibility: the obligation to carry out assigned duties </li></ul><ul><li>Discipline —respect for the rules that govern the organization </li></ul>
  13. 13. <ul><li>4. Unity of Command —an employee should receive orders from one superior only </li></ul><ul><li>5. Unity of Direction —grouping of similar activities that are directed to a single goal under one manager </li></ul><ul><li>6. Subordination of Individual Interests to the General Interest —interests of individuals and groups should not take precedence over the interests of the organization as a whole. </li></ul><ul><li>7. Remuneration of Personnel —payment should be fair and satisfactory for employees and the organization </li></ul><ul><li>8. Centralization —managers retain final responsibility – subordinates maintain enough responsibility to accomplish their tasks </li></ul>
  14. 14. <ul><li>9. Scalar Chain (Line of Authority) —the chain of command from the ultimate authority to the lowest </li></ul><ul><li>10. Order —people and supplies should be in the right place at the right time </li></ul><ul><li>11. Equity —managers should treat employees fairly and equally </li></ul><ul><li>12. Stability of Tenure of Personnel —managerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization </li></ul><ul><li>13. Initiative —employees should be encouraged to develop and carry out improvement plans </li></ul><ul><li>14. Esprit de Corps —managers should foster and maintain teamwork, team spirit, and a sense of unity among employees </li></ul>
  15. 15. Luther Halsey Gulick (1892-1992) <ul><li>A specialist in municipal finance and administration </li></ul><ul><li>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 </li></ul><ul><li>Expands Fayol’s five management functions into seven functions: </li></ul>
  16. 16. <ul><li>Planning - developing an outline of the things that must be accomplished and the methods for accomplishing them </li></ul><ul><li>Organizing - establishes the formal structure of authority through which work subdivisions are arranged, defined, and coordinated to implement the plan </li></ul><ul><li>Staffing - selecting, training, and developing the staff and maintaining favorable working conditions </li></ul><ul><li>Directing - the continuous task of making decisions, communicating and implementing decisions, and evaluating subordinates properly </li></ul>
  17. 17. <ul><li>Coordinating - all activities and efforts needed to bind together the organization in order to achieve a common goal </li></ul><ul><li>Reporting - verifies progress through records, research, and inspection; ensures that things happen according to plan; takes any corrective action when necessary; and keeps those to whom the chief executive is responsible informed </li></ul><ul><li>Budgeting - all activities that accompany budgeting, including fiscal planning, accounting, and control </li></ul>
  18. 18. Max Weber (1864-1920) <ul><li>German sociologist </li></ul><ul><li>Weber first describes the concept of bureaucracy – an ideal form of organizational structure </li></ul><ul><li>He defines bureaucratic administration as the exercise of control on the basis of knowledge </li></ul><ul><li>Weber states, “Power is principally exemplified within organizations by the process of control” </li></ul>
  19. 19. <ul><li>Weber uses and defines the terms authority and power as: </li></ul><ul><li>Power: any relationship within which one person could impose his will, regardless of any resistance from the other. </li></ul><ul><li>Authority: existed when there was a belief in the legitimacy of that power. </li></ul>
  20. 20. <ul><li>Weber classifies organizations according to the legitimacy of their power and uses three basic classifications: </li></ul><ul><li>Charismatic Authority: based on the sacred or outstanding characteristic of the individual. </li></ul><ul><li>Traditional Authority: essentially a respect for customs. </li></ul><ul><li>Rational Legal Authority: based on a code or set of rules. </li></ul>
  21. 21. <ul><li>Weber recognizes that rational legal authority is used in the most efficient form of organization because: </li></ul><ul><li>A legal code can be established which can claim obedience from members of the organization </li></ul><ul><li>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. </li></ul>
  22. 22. <ul><li>The manager or the authority additionally follows the impersonal order </li></ul><ul><li>Membership is key to law obedience </li></ul><ul><li>Obedience is derived not from the person administering the law, but rather to the impersonal order that installed the person’s authority </li></ul>
  23. 23. <ul><li>Weber outlined his ideal bureaucracy </li></ul><ul><li>as defined by the following parameters: </li></ul><ul><li>A continuous system of authorized jobs maintained by regulations </li></ul><ul><li>Specialization: encompasses a defined “sphere of competence,” based on its divisions of labor </li></ul><ul><li>A stated chain of command of offices: a consistent organization of supervision based on distinctive levels of authority </li></ul>
  24. 24. <ul><li>Rules: an all encompassing system of directives which govern behavior: rules may require training to comprehend and manage </li></ul><ul><li>Impersonality: no partiality, either for or against, clients, workers, or administrators </li></ul><ul><li>Free selection of appointed officials: equal opportunity based on education and professional qualification </li></ul>
  25. 25. <ul><li>Full-time paid officials: only or major employment; paid on the basis of position </li></ul><ul><li>Career officials: promotion based on seniority and merit; designated by supervisors </li></ul><ul><li>Private/Public split: separates business and private life </li></ul><ul><li>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. </li></ul>
  26. 26. <ul><li>A tendency to a leveling of social classes by allowing a wide range of recruits with technical competence to be taken by any organization </li></ul><ul><li>(b) Elite status because of the time required to achieve the necessary technical training </li></ul><ul><li>(c) Greater degree of social equality due to the dominance of the spirit of impersonality or objectivity </li></ul>
  27. 27. Common Criticisms of Classical Organizational Theory <ul><li>Classical principles of formal organization may lead to a work environment in which: </li></ul><ul><li>Employees have minimal power over their jobs and working conditions </li></ul><ul><li>Subordination, passivity and dependence are expected </li></ul><ul><li>work to a short term perspective </li></ul><ul><li>Employees are lead to mediocrity </li></ul><ul><li>Working conditions produce to psychological failure as a result of the belief that they are lower class employees performing menial tasks </li></ul>
  28. 28. Activity: <ul><li>Break into four groups: Taylor, Fayol, Gulick and Weber </li></ul><ul><li>Refer to the power point notes you have been given to examine a classical organizational theorist’s principles </li></ul><ul><li>Consider what you discussed about each principle </li></ul><ul><li>Analyze how the theorists beliefs exist, don’t exist, or are modified within today’s educational world </li></ul><ul><li>Please have someone take notes on your work </li></ul><ul><li>Lead a discussion of how your theorist’s ideas relate to the current system of educational administration </li></ul>