Classical Organization Theory

Classical Organization Theory

The Machine theory, physiological theory as it views an organization as a machine and human beings as different components of that machine. Its built on accounting model and maximizes neatness and control, detection on errors and its correction

Four Classical pillars

1.division of labor: each task performed by employees is formally created and recognized as an official duty (yours and no one else’s). Specialization.

2.Scalar & Functional Processes: each lower position controlled and supervised by a higher one. Chain of Command

Departmentation, co-ordination by hierarchy, Unity of command, delegation of authority, line and staff relationships

3.Structure:.Formal relationships among various tasks,

activities and people in the organization. Organization structure may be centralized or decentralized acc to the distribution of authority.

Span of control : number of subordinates which can be effectively supervised by a superior.

Appraisal of Classical Theory

The classical concepts represent an important part of organization theory and give clue about how to design an organization and manage it. The concepts have organized the fragmented thoughts in the area of management into a consolidated discipline to form base for further development. Many of the classical concepts hold valid even today and provide guidance for design of an organization.

Criticisms of Whole Theory.1. Motivational assumptions underlying the theory

are incomplete and consequently inadequate.2. There is little appreciation of the role of intra

organizational conflict of interest in defining limits of organisational behaviour.

3. The constraints placed on the human being by his limitations as complex information-processing system are given little consideration.

4. Little attention is given to the role of cognition in identification and the classification as well as in decisions.

5. The phenomenon of programme elaboration receives little emphasis.

Closed system assumptions

Organization have been treated as closed system by classicists. A closed system is one that has no environment and hence no interaction with out side world.

Static View of Organisation

Classicists take static view of the organisation and assume that once structure is created, it will work for ever. This means that there is no need for change or adjustment in organisatonal design. This is not true.

Too much Reliance on Classical Pillars

Classical organisation theory relies too much on classical pillars like division of work, scalar functional processes, structural arrangement, and span of controls. No doubt, at the beginning of the development of the organisation theory, these pillars were quite strong but not in today’s context when more knowledge has been developed in the area.

Criticisms of classical Principals1. Lack of universality :- As against the views

held by classists, principals of organization lack university.

2. Lack of Empirical Research :- The Various Classical Concepts and principles written by practitioners in management are based on personal experiences and observations there for, various principles have not stood the test of rigorous empirical research using scientific method. More over, it is not clear whether various principals are only action recommendations or definitions.

“it would not be fair to say that the classical school is unaware of the day-to-day administrative problems of the organisation. Classical organisation theory has relevant insights in to the nature of organisation, but the value of this theory is limited by its narrow concentration on the formal anatomy of organisation”

“The distinctive qualities of modern organisation theory are its conceptual-analytical base, its reliance on empirical research data and, above all, its integrative nature. These qualities are framed in a philosophy which accepts that the only meaningful way to study organisation is to study it as a system.”

Modern organisation theory, as a systems approach, is an integrative one which considers the organisation in its totality. The study of system must rely on a method of analysis involving the simultaneous variations on mutually dependent variables. This is what system approach of organisation theory offers.

Subsystems in Organisation

Every system has subsystems which are interrelated to constitute system as entity. Since the organisation is a system, it contains various subsystems. Each subsystem is identified by certain objactives, processes, roles, structures, and norms of conduct. The various subsystems of the organisation constitute the mutually dependent parts.

Accordingly, there are various subsystems in the organisation and have been classified in different ways. For example, Seiler has identified four components is an organisation system: human inputs, technological inputs, organisational inputs and social structure and norms.

1. Technical/production Subsystem.Technical subsystem is a vehicle for conduct of work in the organisation. It refers to the knowledge required for the performance of tasks, including the techniques used in the transformation of inputs into outputs.

2. Social subsystem.This system performs the function of acquiring various inputs from the environment & marketing the final product in form of goods or service. It also concerns with maintaining a favorable relationship with its environment for facilitating the performance of organization functions and activities

3. Power subsystem.

It concerns with the hiring, indoctrinating socializing , rewarding and punishing the employees. It also pertains to the maintenance of favorable patterns of employee attitude and behavior with the aim of motivating them to work effectively .

4. Adaptive Subsystem.

It relates organization to its environment. It anticipates influence and responds to the enviornment.

5.Mangerial subsytem

It consists of Planning, organising, staffing, directing, co-ordinating and controlling the activities of the various subsystems.

System Approach of Organisational Design.

System approach of modern organisation theory has suggested three aspects relevant to design of organisation structure. These are modern organisational models, lateral relationship, and cybernetics.

1. Modern Organisational Models.Systems approach of organisational design recognise the problems involved in managing large and complex organisations. Therefore, it has replaced the simpler classical and neoclassical models because they have been too inadequate to solve the problems of today’s organisation structure. The approach recognises the need for flexibility and adaptability of organisation structure and various new models have been suggested such as project organisation, matrix organisation, task force, etc.

2. Lateral Relationships.

Systems approach suggests emphasis on lateral relationship among people in the organisation. This emphasis is in contrast to vertical relationships emphasized by classical theory and horizontal relationship.In modern organisational designs, peoples are not exactly placed in superior-subordinate relationship and, therefore exercise of authority for controlling behaviour is not effective.

3. Cybernetics.

Cybernetics is a crucial aspect of systems theory. Cybernetics is an important concept for the control function.

It is concerned with information flow in complex systems.