Question

In: Economics

Describe how the classical theories are still utilized in organizations today:

Describe how the classical theories are still utilized in organizations today:

Solutions

Expert Solution

Classical management theory was introduced in the late 19th century and it became widespread in the first half of the 20th century. It mainly focuses upon the organisational structure, aspects such as optimal organisational performance plans, organisational power relationships, and compartmentalizing different organisational units.

As the organisations tried to face issues regarding industrial management, including specialization, efficiency, higher quality, cost reduction and management-worker relationships and the increase in number of factories, managers continued to search for ways to improve productivity, lower cost, increase quality of their products, improve employee/manager relationships and increase efficiency. The focus shifted from using machines to increase productivity to how they could increase employee productivity and efficiency. When they did this, they began to notice some new problems inside their factory systems. Employees were dissatisfied with their current working conditions, and many lacked the necessary training for how to do their work efficiently. Managers then began to formulate and test possible solutions, one of which was to find the best possible way for workers to perform and manage their tasks.

The Industrial Revolution was a time where innovation really began to change the way that products were produced and sold. The invention of machines to produce goods in the 19th century drastically improved productivity, which in turn lowered the cost to the consumer. The lower price resulted in a greater demand for products and thus a greater need for more factories and workers.while other management theories have developed since then, classical management approach are still used today by many small business owners as well as medium to large business holders to build their companies and to suceed


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