Classical Organization Theory
When was it developed?
Industrial Revolution
Period of Orthodoxy: 2 Phases what do you know about them?
1. Decisions in public policy and administration were political in nature
2. Introduced PODSCORB model: planning organizing, directing, staffing, coordinating, reporting, and budgeting
What do you know about bounded Rationality?
Limited decision making, satisfice
Difference between vertical and horizontal differentiations?
Vertical Differentiations- hierarchical levels of organisational authority and coordination.
Horizontal Differentiations between organisational units. ex. Organisational Chart
Types of Organisation’s structure:
Mechanistic vs. Organic systems.
What do you know about the Systems Theory?
It views the organization:
1.As a complex set of dynamically intertwined and interconnected elements, including it’s inputs, processes, outputs, feedback loops, and the environment in which it operates and with which it continuously interacts.
2.Any change in any element of the system causes changes in other elements
What was the theory known for?
One Best Way to do things, production process is maximized through job specialisation and division of labor
Theory of Bureaucracy, what does Bureau and aucracy mean?
Office/ Rules
Influence of Sociology?
One of the major themes of the neoclassical organization theorists was that organizations did not—indeed, could not—exist as self-contained islands isolated from their environments.
What do you know about the Butterfly Effect?
Something small not related can have greater effects
How many schools of thought under the classical organization model?
Four schools:
1. Fredrick Taylor "Scientific Management"
2. Henri Fayol "General Theory"
3. Period of Orthodoxy 2 phases
4. Theory of Bureaucracy
Who developed the theory of Bureaucracy?
Max Weber
Scientific Management "Taylorisim" focused on what and why?
Time and Motion, to increase efficiency and speed of machines production.
Weber’s ideal type of bureaucracy “10 characteristics"
Weber’s ideal type of bureaucracy possesses the following characteristics:
1. The bureaucrats must be free as individuals; they can only be bossed around with respect to the impersonal duties of their offices.
2. The bureaucrats are arranged in a clearly defined hierarchy of offices, the traditional scalar chain wherein every bureaucrat has an unambiguous place—and knows his or her place!
3. The functions of each office are clearly specified in writing.
4. The bureaucrats accept and maintain their appointments freely—without duress. Slave bureaucrats, while once fashionable in the Ottoman Empire and Imperial China, are an inherent contradiction except within military or prison organizations.
5. Appointments to office are made on the basis of technical qualifications, which ideally are substantiated by examinations administered by the appointing authority, a university, or both.
6. The bureaucrats receive money salaries and pension rights, which reflect the varying levels of the hierarchy. While the bureaucrats are free to leave the organization, they can be removed from their offices only under previously stated, specific circumstances.
7. The office must be the bureaucrat’s sole or at least major occupation.
8. A career system is essential; while promotion may be the result of either seniority or merit, it must be premised on the judgment of hierarchical superiors.
9. The bureaucrats do not have property rights to their office nor any personal claim to the resources that go with it.
10. The bureaucrat’s conduct must be subject to systematic control and strict discipline.
Henri Fayol's General Theory developed which principles?
Principles of Management: Production of goods and services, commerce, and finance, accounting, managerial coordination and control, security, equity, scalar chains and esprit de corps.