Evolution and Foundation of Management Theories

Classical Organization Theory The Classical Writers viewed the organization as a machine and human beings as different components of that machine . Their approach has focused on input -output mediators and given less attention to constraining and facilitating factors in external environments.

Assumptions The relationship between workers and management was established through formal communications , defined tasks and accountability and formalized procedures and practices to minimize conflict between them. Workers were considered to be driven by economic considerations who can be motivated basically by economic rewards . Money is considered the main motivator.

Assumptions The managers were characterized as rational, kind hearted , intelligent and qualified personnel but they are supposed to deal with the workers firmly in the system. The theory assumes that the organization is a machine and the people its components. In order to make any improvement in the whole system, internal factors were considered and less attention was given on factors in the external environment which may constrain and facilitate the system.

Assumptions The theory puts special emphasis on error and particularly on the detection of errors and its correction after it happens. The classical organization theory , in its essential character, is centralized . The integration of the system is achieved through the authority and control of the central mechanism.

Two streams of the classical theory Scientific Management Emphasized on the efficiency of lower level Administrative Management Emphasized on the efficiency of higher levels

Scientific Management F.W Taylor is called the “Father of Scientific management”. The scientific management group was primarily concerned with the tasks at floor or operative levels and these tasks were quite different from other tasks in the organization because: These tasks are largely repetitive in nature so that the daily activities of a worker can be sub divided in a large no. of cyclical repetitions of essentially the same or closely related activities. These tasks do not require any problem solving activity by the workers who handle them. Thus more attention was given in standardizing the working methods.

Administrative Stream The Administrative stream of organization theory emphasizes efficiency at higher levels. It was concerned with the managerial organization and process. Henry Fayol was the leader for the group. He studied the functions and laid down the principles of management in a systematic manner for guidance of managers.

Key Characteristic of The Classical Theory Scott and Mitchell have pointed out four key pillars on which the classical organization theory seems to have been built. They are: 1. Division of Labor 2. Scalar and Functional Processes 3. Structure 4. Span of Control

Division of Labor Refers to the division of tasks of an organization into sub tasks and then allot these sub tasks or sub parts to individuals. The allotment should be in such a way that he can specialize himself in that part.

Scalar And Functional Processes Deal with the vertical and horizontal organization Scalar process deals with vertical elaboration of an organization or it is the chain of command or line of authority along which the authority flows from the top(Chief Executive) to the bottom ( First line supervisor). Functional l Process deals with horizontal organization i.e grouping of various functions into units and clearly defining the relationship between the various heads of the units. The grouping of functions can be done on the basis of purpose, process, clientele, place and time.

Structure Refers to logical relationship of functions in an organization arranged in an order to accomplish the objectives. These relationships are line and staff relationships. People, departments, divisions and other segments of an organizations that are authorized to determine the objectives of the business and assess their achievements constitute the line. The staff that is the part of an organization which assist and advises the line on matters concerning it, in carrying out its duties.

Span of Control In order to achieve the objectives , the managers are to get the work done from the unlimited no. of workers in a large organization. Span of control refers to the no. of subordinates a supervise can supervise effectively. Wide span yields a flat structure whereas a short span result sin a tall structure.