Classical Organization Theory Essay

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Classical Organization Theory The classical school of organization theory dominated administrations from the early 1900’s well into the 1930’s, and it is still relevant today in many of the contemporary organization theories. Shafritz states that classical organization theory was the first theory of its kind, and serves as the foundation of other schools organization theory (Shafritz, Ott, & Jang, 2011, p. 32). Classical organization theory includes scientific management approach, bureaucratic approach, and administrative management approach. Several major theorists of classical organization were Adam Smith, Frederick Taylor, Max Weber, Henri Fayol, and Luther Gulick. During the early 20th century the factory system started to flourish,…show more content…
The administrative management approach consists of Luther Gulick’s beliefs, that work should be divided according to workers capacity, however he does emphasize limitations in the division of labor. He also believes that organizations of all sizes could benefit from seven basic principles POSDCORB: planning, organizing, staffing, directing, coordinating, reporting, and budgeting. In his essay, “Notes on the Theory of Organization,” Gulick emphasizes that his idea for organization is adapted from Henry Fayol. Fayol emphasizes 14 principles of management which he found most important. These include; division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration of personnel, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and Esprit de corps. • Division of Work — improves efficiency by reducing wasted time and increasing productivity. • Authority and Responsibility— management must have the right to give orders and workers have the responsibility to follow the. • Discipline— the ability to obey an agreement. • Unity of Command— an employee to receive orders from one superior only. • Unity of Direction— not to be confused with unity of command, unity of direction simply means to group similar activities with a single goal
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