Guihulngan City CLASSICAL THEORY • It is the traditional theory, wherein more emphasis is on the organization rather than the employees working therein. According to the classical theory, the organization is considered as a machine and the human beings as different components/parts of that machine. CHARACTERISTICS: • It is built on an accounting model. • It lays emphasis on detecting errors and correcting them once they have been committed. • It is more concerned with the amount of output than the human beings. • The human beings are considered to be relatively homogeneous and unmodifiable. Thus, labor is not divided on the basis of different kinds of jobs to be performed in an organization. CHARACTERISTICS: • It is assumed that employees are relatively stable in terms of the change, in an organization. • It is assumed that the authority and control should be vested with the central authority only, in order to have a centralized and integrated system. Some writers of the classical theory emphasized on the technological aspects of the organization and how the individuals can be made more efficient, while others emphasized on the structural aspects of an organization so that individuals collectively can be made more efficient. Thus, this purview of different writers resulted in the formation of two distinct streams: •Scientific Management Stream •Administrative Management Stream Thus, according to this theory the human beings are just considered as a means of production. Timeline
• The classical theory was
used from 1850-1920 Key Concepts • Classical school emphasized a scientific approach to study management and wanted to make organizations run like a well oiled machine.
• Scientific management helped develop a standard way of
performing each job, selected appropriate workers, trained workers to use that method and provided incentives.
• Administrative principles have 5 basic functions that
include: planning, organizing, commanding, coordinating and controlling. Key Players & Major Contributors Frederick Taylor - Father of Scientific Method. Analyzed jobs to make them highly effective. Scientific Management: 1. Develop a procedure for each job. 2. Job specialization. 3.Train workers scientifically 4. Plan and Schedule work. 5. Establish methods and times for each job. 6. Use incentives Key Players & Major Contributors Frank and Lillian Gilbreth developed more efficient work procedures.
Henry Gantt developed a method for scheduling work.
Henri Fayol "Father Of Modern Management" had five key concepts
of management 1.Planning 2. Coordination 3. Organizing 4. Controlling 5. Commanding The Classical School of Organization Theory They were the 1st to develop such a theory as a foundation which later scholars built their own work. They stress the structural arrangements of organization as machine-like . For these theorists efficiency is the most important value. Classical Theorists assume:- 1. There is a single best way to structure an organization to maximize productivity that can be recognized by systematically examining the way organizations behave. 2. They emphasize the need for a division of labor. 3. They also emphasize hierarchal structure, chains of command with formal systems of authority and bureaucratic behavior. Adam Smith He saw Modern Organizations as “Force Multipliers” They allow for the labor of individual parts to be combined in such a way that the sum of their efforts is greater than those of their parts. Like a machine it allows for efficiency of productivity. Frederick Taylor “Scientific Management” = Time & Motion Studies Specific steps & procedures of implementation Scientific management assumes four fundamental values:- Efficiency = max. goals + min. cost Rationality = the most direct relationship of work to the organization’s objectives Productivity = the highest poosible level. Profit = which is the ultimate goal. Scientific management makes three main assumptions:- 1. Authority:- is best when highly centralized at the top levels of management. 2. The ideal way to perform a task is through scientific research. 3. Management’s job is :- Select ----- capabilities. Organize ----- to best perform. Train ----- to achieve objectives. Criticism
Critics say :- Theorists of these theories look at workers as mere cogs, motivated only by financial incentives. Classical Theorists
Assume that workers are:-
rational and economically motivated. NEOCLASSICAL THEORY OF MANAGEMENT
Reporter:
Miss Christine Dodjieh O. Cańete
Guihulngan City NEOCLASSICAL THEORY OF MANAGEMENT
• It is the extended version of the
classical theory wherein the behavioral sciences gets included into the management. According to this theory, the organization is the social system, and its performance does get affected by the human actions. NEOCLASSICAL THEORY OF MANAGEMENT
• focused on the human beings in the
organization. • This approach is often referred to as “behavioral theory of organization” or “human relations” approach in organizations. NEOCLASSICAL THEORY
• posits that an organization is the
combination of both the formal and informal forms of organization, which is ignored by the classical organizational theory. NEOCLASSICAL THEORY
• asserts that an individual is diversely
motivated and wants to fulfill certain needs. The communication is an important yardstick to measure the efficiency of the information being transmitted from and to different levels of the organization. NEOCLASSICAL THEORY
• The teamwork is the prerequisite
for the sound functioning of the organization, and this can be achieved only through a behavioral approach, i.e. how individual interact and respond to each other. The neoclassical school of organizational theorists Like classical theorists they still measure administrative capacity by efficiency. But they emphasize :- 1- decision making as the heart and soul of administration. 2- organizational roles over individual roles. Herbert Simon
He viewed decision making as the central act
of administration, and proposed that the individual decision maker is rational only within the environmental context of the particular organization. Thus:- The facts of any circumstance are validated by the given set of values in which those facts or actions occur. Simon’s Important Ideas He was te first to distinguish “programmed” and “unprogrammed” decisions. He emphasized the importance of “management information systems”. He pioneered improved organizational decision making through quantitative methods. He led the way in studying the process by which administrative organizations make decisions.