Evolution and Foundation of Management Theories

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Evolution and Foundation of Management Theories
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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.

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Assumptions

1. 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.
2. Workers were considered to be driven by economic
   considerations who can be motivated basically by
   economic rewards . Money is considered the main
   motivator.

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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.

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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.

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

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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.

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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

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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.

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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.

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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.

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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.