CLASSICAL ORGANIZATIONAL THEORY
This theory came into existence during the early years of the twentieth century. It deals with
the formal organization and concepts to increase management efficiency. Major contributors
to the classical organizational theory are Frederick Taylor, Henri Fayol, Luther Gulick and
Max Weber.
Principles of Organizational Theory:
Scalar principle: line Vs. staff (It refers to line of authority)
Unity of Command: It involves receiving of orders from only one person
Exception Principle: It involves delegation of routine tasks and deals only with
exceptions
Span of Control: This theory is limited to number of people reporting to their
superiors i.e. no. of people can be (3 to 12).
Classical Organizational Theory includes two different management perspectives: Scientific
management and administrative management.
Scientific Management Theory
The theory of scientific management is the brainchild of Frederick Winslow Taylor.
Frederick Taylor (1856-1915), leading proponent of scientific management
This theory emphasized on management of work and workers. In its simplest form, the theory
follows the idea that there is one best way to do a job and that is to use scientific method. In
his view, if a task is scientifically managed it will increase the productivity by increasing
efficiency and wages of workers. Scientific management in terms of time study standards,
separation of administrative and employee duties and incentive systems would correct the
performance of labours.
The main features of this theory are:
It finds out best method for performing each job.
It selects employees by using scientific selection procedure.
It believes in having close relationship with management and employees.
It uses division of labour.
It tries to produce maximum output by fixing performance standards for each job and
by having a differential piece rate system for each job for payment of wages.
This theory is based on certain principles. In the year 1911, Taylor gave four principles for
scientific management:
1. Scientific Job Analysis: Job should be analyzed through observation, data gathering,
careful measurement and management. Such job analysis will replace the old rule-of-thumb
method.
2. Selection of Personnel: Once the job is analyzed, the next step is to scientifically select,
train, teach and produce workers. Previously, workers chose their own work and train
themselves.
