Classical And Contingency Theory In Organizational Design

Scientific management or "Taylorism" is an approach to job design, developed by Frederick Taylor (1856-1915) during the Second World War. With the industrial revolution came a fast growing pool of people, seeking jobs, that required a new approach of management. Scientific management was the first management theory, applied internationally. It believes in the rational use of resources for utmost output, hence motivating workers to earn more money. Taylor believed that the incompetence of managers was the major obstacle on the way of productivity increase of human labour. Consequently, this idea led to the need of change of management principles. On the base of research, involving analysing controlled experiments under various working

Frederick Taylor (1917) developed scientific management theory (often called "Taylorism") at the beginning of this century. His theory had four basic principles: 1) find the one "best way" to perform each task, 2) carefully match each worker to each task, 3) closely supervise workers, and use reward and punishment as motivators, and 4) the task of management is planning and control.

The bureaucratic model of leadership is based on the concept of fixed duties that are maintained through a hierarchy of authority. Max Weber (1800) believed that organizations had one critical weakness and that was closely interacting with employees and simulating a family or community like environment. He believed that the only way that and organisation could be run was by separating work and pleasure and ensuring that employees followed a stick code of conduct which would be enforced and managed by more trustworthy and higher ranking employees. However while prominent for over a century the bureaucratic management model has become scarcely used in the last few decades as more and more organisations seem to be gradually reverting to pre bureaucratic values. Organisations like Valve and Google have cause the diminishment of the

Scientific management or Taylorism advocated by Fred W. Taylor, states that the Production efficiency can be maximised by working closely with the workers. It involves fragmenting each task into individual motions, analyse each motion and eliminate the unnecessary motions. With this best possible way to do the task created the workers with proper tool, training and incentives can follow a closely supervised routine, translating into being extremely productive.

Classical organization theory evolved after the first half of the 20th century. This theory represents the merger of scientific management, bureaucratic theory, and administrative theory. Scientific management synthesizes workflows by focusing on getting the best resources for production tasks. Bureaucratic theory is an authority structure that is a system of organization and administration to ensure workplace efficiency. Administrative theory worked to establish a set of management principles that applied to all organizations (Chon, 2016). An advantage of the classical theory is that it is a hierarchical structure. The top level of management is board of directors and chief executives who are responsible for the organization’s long term goals. Middle management is responsible for goals of their specific department and the budget. Lower level supervisors oversee day-to-day operations. Bart is considered a low level supervisor; he implements processes so workers are trained to efficiently perform their jobs.

Philosophers have identified three key perspectives to organization: rational, natural, and open systems. Each of these perspectives include key development for organizational design. They each also exemplify developments of the science of organization. Modern organizational theory can be described as a combination of these three main perspectives (Scott, 2003). This presentation will compare the rational and natural approach with suggestions of restricting to the natural perspective for our current organization.

Classical organization theory evolved during the first half of this century. The evolution of this theory was represented by the merger of the administrative theory, scientific management, and the bureaucratic theory. First, I analyze scientific management

Scientific management (also called Taylorism, the Taylor system, or the Classical Perspective) is a theory of management that analyzes and synthesizes workflow processes, improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911).[1] Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work.

If we go back to the first half of the twenty first century, organization theory was dominated by classicists who viewed organizations as rational systems and valued efficient operations above all. They promoted the idea that management is a process of planning, organization, command, coordination n, and control and that design of an organization should be like that of a machine. This concept spawned the modern bureaucracy. (Morgan, 1997a)

Organizational design can provide quicker decision-making as some models help accelerate information flow and streamline decision-making. It can also provide personal growth by creating opportunities for people to take on different and challenging roles within the same organization. Any work process in the organization can be in scope for organizational design.

According to traditional theorists such as Fayol, Weber, and Taylor, a school of thought identifies a level of agreement in their view of organizational system implementation. These classical theorists indicate in their readings that there is

The bureaucratic model of leadership is based on the concept of fixed duties that are maintained through a hierarchy of authority. Max Weber (1800) believed that organizations had one critical weakness and that was closely interacting with employees and simulating a family or community like environment. He believed that the only way that and organisation could be run was by separating work and pleasure and ensuring that employees followed a stick code of conduct which would be enforced and managed by more trustworthy and higher ranking employees. However while prominent for over a century the bureaucratic management model has become scarcely used in the last few decades as more and more organisations seem to be gradually reverting to pre bureaucratic values. Organisations like Valve and Google have cause the diminishment of the

* Frederick Taylor's theory of scientific management developed techniques for improving the efficiency of the work process.

An organizational design is the strategy or process of creating an organization’s structure and mode of operation. Organization structure is a framework of roles and procedures. An organizational design usually develops a rational model of a formal organization but when it is implemented it is normally referred to as informal organization, reason being the implementation differs from what the rational design intended, hence the theory of contingency.

When using the contingency theory, the focus has been on organizational effectiveness because it has been concerned about explaining the success or failure of the organization. Donaldson argued that organizational effectiveness can have a wider meaning, including efficiency, profitability, employee satisfaction, or innovation rate. He stated that, “Organizational effectiveness can be well defined as the ability of the organization to attain goals set by itself or by its ability to function as a system or by its ability to satisfy