Classical Organizational Theory

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ClassicalOrganizationalTheory

• Vincent Myers
• And
• Nina Presuto

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Main ideaof classical organizational theory

• There is one best way to perform a task

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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

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Major contributors to the Classical
Organizational Theory

• Scientific Management
• Frederick Taylor
• Administrative Management
• Henri Fayol
• Luther Halsey Gulick
• Max Weber

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Frederick Taylor

• Taylor is born in Pennsylvania on March 20, 1856
• After studying in Europe, he plans to go to
  Harvard, but does not pass the entrance exams
• Instead Taylor works as a pattern maker at a pump
  manufacturing company in Philadelphia
• Later, he studies mechanical engineering at
  Stevens, finishing in just three years.

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Taylor identifies two people as having
influenced him

• Lucian Sharpe impresses Taylor with his focus,
  concentration, and task commitment

• John Griffith teaches Taylor how to be an
  appreciative, respectful, and admirable working
  mechanic

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Midvale Steel Company

• Taylor begins working for the Midvale steel
  Company in 1878.
• While there he succeeds in doubling the work of
  his men, is soon promoted to foreman
• As foreman, he begins studying productivity as a
  means of measuring of manufacturing.
• Later he becomes the chief engineer at Midvale.

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Ingenuity and Accomplishments

• Creates systems to gain maximum efficiency from
  workers and machines in the factory.
• Focuses on time and motion studies to learn how
  to complete a task in the least amount of time.
• Becomes consulting engineer for many other
  companies
• PublishesThe Principles of Scientific Management

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Key Points of Scientific Management

• Scientific Job Analysis observation, data
  gathering, and careful measurement determine the
  one best way to perform each job
• Selection of Personnel scientifically select
  and then train, teach, and develop workers
• 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
• Functional Supervising managers assume
  planning, organizing, and decision-making
  activities, and workers perform jobs

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Henri Fayol

• Engineer and French industrialist
• In France works as a managing director in
  coal-mining organization
• Recognizes to the management principles rather
  than personal traits
• While others shared this belief, Fayol was the
  first to identify management as a continuous
  process of evaluation.

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Fayols 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.

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Fayols 14 Principles

1. Division of Work improves efficiency through a
   reduction of waste, increased output, and
   simplification of job training
2. Authority and Responsibilityauthority the right
   to give orders and the power to extract obedience
   responsibility the obligation to carry out
   assigned duties
3. Disciplinerespect for the rules that govern the
   organization

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• 4. Unity of Commandan employee should receive
  orders from one superior only
• 5. Unity of Directiongrouping of similar
  activities that are directed to a single goal
  under one manager
• 6. Subordination of Individual Interests to the
  General Interestinterests of individuals and
  groups should not take precedence over the
  interests of the organization as a whole.
• 7. Remuneration of Personnelpayment should be
  fair and satisfactory for employees and the
  organization
• 8. Centralizationmanagers retain final
  responsibility subordinates maintain enough
  responsibility to accomplish their tasks

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• 9. Scalar Chain (Line of Authority)the chain of
  command from the ultimate authority to the lowest
  
• 10. Orderpeople and supplies should be in the
  right place at the right time
• 11. Equitymanagers should treat employees fairly
  and equally
• 12. Stability of Tenure of Personnelmanagerial
  practices that encourage long-term commitment
  from employees create a stable workforce and
  therefore a successful organization
• 13. Initiativeemployees should be encouraged to
  develop and carry out improvement plans
• 14. Esprit de Corpsmanagers should foster and
  maintain teamwork, team spirit, and a sense of
  unity among employees

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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. Roosevelts Committee of Government
  Administration
• Expands Fayols five management functions into
  seven functions

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1. Planning - developing an outline of the things
   that must be accomplished and the methods for
   accomplishing them
2. Organizing - establishes the formal structure of
   authority through which work subdivisions are
   arranged, defined, and coordinated to implement
   the plan
3. Staffing - selecting, training, and developing
   the staff and maintaining favorable working
   conditions
4. Directing - the continuous task of making
   decisions, communicating and implementing
   decisions, and evaluating subordinates properly

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• Coordinating - all activities and efforts needed
  to bind together the organization in order to
  achieve a common goal
• 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
• Budgeting - all activities that accompany
  budgeting, including fiscal planning, accounting,
  and control

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Max Weber(1864-1920)

• German sociologist
• Weber first describes the concept of bureaucracy
  an ideal form of organizational structure
• He defines bureaucratic administration as the
  exercise of control on the basis of knowledge
• Weber states, Power is principally exemplified
  within organizations by the process of control

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• 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.

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

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• 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
  obedience from members of the organization
• 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.

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• 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 persons
  authority

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• 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

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• 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

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• 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.

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• 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

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Common Criticisms of Classical Organizational
Theory

• Classical principles of formal organization may
  lead to a work environment in which
• Employees have minimal power over their jobs and
  working conditions
• Subordination, passivity and dependence are
  expected
• work to a short term perspective
• 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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Activity

• Break into four groups Taylor, Fayol, Gulick
  and Weber
• Refer to the power point notes you have been
  given to examine a classical organizational
  theorists principles
• Consider what you discussed about each principle
• Analyze how the theorists beliefs exist, dont
  exist, or are modified within todays educational
  world
• Please have someone take notes on your work
• Lead a discussion of how your theorists ideas
  relate to the current system of educational
  administration