Classical And Contingency Theories For Organizational Design

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Critically Evaluate the Contributions and Limitations of Classical and Contingency Theories to Our Understanding of Contemporary Practices in the Area of Organizational Design Table of Contents Introduction 3 Overview of Classical and Contingency Theories 3 Contributions of Classical and Contingency Theories 4 Limitations of Classical and Contingency Theories 5 Conclusion 6 References 7 Introduction Organisation is composed of individuals and groups who work together towards the accomplishment of common goals and objectives. It is thus crucial for the success of any organisation to manage individuals, groups and processes in the most effective manner. Furthermore, it is essential for the managers in an organisation to have…show more content…
Weber developed a new theory called bureaucratic theory which stresses on the needs of the hierarchical structure of power. Henri Fayol is recognised as another major contributor to classical theory. Unlike Taylor and Fayol stressed on manager rather than worker and advocated administrative features in the organisation. Fayol developed five administrative functions including planning, organising, commanding, coordinating and controlling (McNamara, 2009). Precisely, the principles advocated in these three theories namely scientific management, bureaucratic theory, and administrative theory were combined to form a classical theory of organisation process (Xang, Liu & Wang, 2013; Irefin, Ifah, & Bwala, 2012). On the other hand, contingency approach is based on the assumption that there is no single best way to design organisational structure. Drawbacks associated with the classical approaches and the failure of Taylor and Weber to address management style and organisational structure resulted in the development of contingency approaches. The proponents of contingency theory noted that the most appropriate organisational structure not only depends on the organisational objectives but also includes other factors like the environment, the technology, the managerial style, the size of the organisation, and other dynamic factors (Irefin, Ifah, & Bwala, 2012; Kirschkamp, 2008). Contributions of Classical and
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