The Classical Theory of Organisation and It's Relevance

4143 WordsOct 6, 201117 Pages
International Research Journal of Finance and Economics ISSN 1450-2887 Issue 41 (2010) © EuroJournals Publishing, Inc. 2010 http://www.eurojournals.com/finance.htm The Classical Theory of Organisation and it's Relevance Mahmoud M. Alajloni Irbid Private University, Dept of Business Admin Ziad. M. S. Almashaqba Irbid Private University, Dept of Business Admin Marzouq Ayed Nemer Al-Qeed Applied Science Private University, Department of Hotel Management Abstract Organization facing competition need to take care of different dimensions of management to perform effectively such as style of leadership, motivational factors, and the importance of informal relations. The classical theory of organization suffers superficiality, over simplification…show more content…
Fayol insisted that management should be considered as a skill like any other one that could be taught once its underlying principles were understood. In 1916, Fayol in his world renowned book "General and Industrial Management described a number of management/organization principles with can be analyzed in terms of (i) human relations, (ii) production efficiency, and (iii) Administration. These three principles again can be divided into fourteen principles of organization. Henry Fayol constructed fourteen principles of organizations that would be applicable universally and would make the organizations most effective and efficient. The fourteen principles of organization can be enumerated thus. (i) Division of Work: Division of work is one of important principles advocated by Fayol. In the management process, it results in better and more work with minimum effort. Factory system of production and our machinery of distribution are based on division of work. In order to improve performance, work must be divided to obtain effective specialization. The more realistic division of labor, the more efficient he will become. (ii) Authority and Responsibility: Authority and responsibility are concerned with giving orders to various functionaries in the organization. This implies that the manager should have the right to give orders and to expect obedience. As such, Fayol prescribes for clear and fair agreement on the procedures and policies to be followed
Open Document