ClassicalClassicalOrganizationalOrganizational

TheoryTheory

Vincent MyersVincent Myers

And And

Nina PresutoNina Presuto

Main ideaMain ideaof classical organizational theoryof classical organizational theory

• There is “one best way” to perform a task

Classical organizational theory Classical organizational theory espouses two perspectives:espouses two perspectives:

• Scientific management – focusing on the management of work and workers

• Administrative management - addressing issues concerning how overall organization should be structured

Major contributors to the Classical Major contributors to the Classical Organizational Theory:Organizational Theory:

Scientific Management:• Frederick Taylor

Administrative Management:• Henri Fayol • Luther Halsey Gulick• Max Weber

Frederick TaylorFrederick Taylor•Taylor is born in Pennsylvania on March 20, Taylor is born in Pennsylvania on March 20, 18561856

•After studying in Europe, he plans to go to After studying in Europe, he plans to go to Harvard, but does not pass the entrance examsHarvard, but does not pass the entrance exams

•Instead Taylor works as a pattern maker at a Instead Taylor works as a pattern maker at a pump manufacturing company in Philadelphiapump manufacturing company in Philadelphia

•Later, he studies mechanical engineering at Later, he studies mechanical engineering at Stevens, finishing in just three years.Stevens, finishing in just three years.

Taylor identifies two people as having Taylor identifies two people as having influenced him: influenced him:

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

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

Midvale Steel CompanyMidvale 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.

Ingenuity and AccomplishmentsIngenuity 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

• Publishes—The Principles of Scientific Management

Key Points of Key Points of Scientific Management Scientific Management

1. Scientific Job Analysis – observation, data gathering, and careful measurement determine “the one best way” to perform each job

2. Selection of Personnel – scientifically select and then train, teach, and develop workers

3. 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

4. Functional Supervising – managers assume planning, organizing, and decision-making activities, and workers perform jobs

Henri FayolHenri 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.

Fayol’s 5 Management FunctionsFayol’s 5 Management FunctionsFundamental roles performed by all managers:PlanningOrganizingCommandingCoordinatingControlling

Additionally Fayol recognizes fourteen principles that should guide the management of organizations.

Fayol’s 14 Principles:Fayol’s 14 Principles:

1. Division of Work —improves efficiency through a reduction of waste, increased output, and simplification of job training

2. Authority and Responsibility—authority: the right to give orders and the power to extract obedience – responsibility: the obligation to carry out assigned duties

3. Discipline—respect for the rules that govern the organization

4. Unity of Command—an employee should receive orders from one superior only

5. Unity of Direction—grouping of similar activities that are directed to a single goal under one manager

6. Subordination of Individual Interests to the General Interest—interests of individuals and groups should not take precedence over the interests of the organization as a whole.

7. Remuneration of Personnel—payment should be fair and satisfactory for employees and the organization

8. Centralization—managers retain final responsibility – subordinates maintain enough responsibility to accomplish their tasks

9. Scalar Chain (Line of Authority)—the chain of command from the ultimate authority to the lowest

10. Order—people and supplies should be in the right place at the right time

11. Equity—managers should treat employees fairly and equally

12. Stability of Tenure of Personnel—managerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization

13. Initiative—employees should be encouraged to develop and carry out improvement plans

14. Esprit de Corps—managers should foster and maintain teamwork, team spirit, and a sense of unity among employees

Luther Halsey GulickLuther Halsey Gulick(1892-1992)(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. Roosevelt’s Committee of Government Administration

• Expands Fayol’s five management functions into seven functions:

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

5. Coordinating - all activities and efforts needed to bind together the organization in order to achieve a common goal

6. 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

7. Budgeting - all activities that accompany budgeting, including fiscal planning, accounting, and control

Max WeberMax Weber(1864-1920)(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”

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.

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.

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.

• 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 person’s authority

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

• 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

• 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.

(a) 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

Common Criticisms of Classical Common Criticisms of Classical Organizational TheoryOrganizational 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

Activity:Activity:

•Break into four groups: Taylor, Fayol, Gulick and WeberBreak into four groups: Taylor, Fayol, Gulick and Weber

•Refer to the power point notes you have been given to examine a Refer to the power point notes you have been given to examine a classical organizational theorist’s principles classical organizational theorist’s principles

•Consider what you discussed about each principleConsider what you discussed about each principle

•Analyze how the theorists beliefs exist, don’t exist, or are Analyze how the theorists beliefs exist, don’t exist, or are modified within today’s educational world modified within today’s educational world

•Please have someone take notes on your work Please have someone take notes on your work

•Lead a discussion of how your theorist’s ideas relate to the Lead a discussion of how your theorist’s ideas relate to the current system of educational administration current system of educational administration