Question

In: Economics

Describe the Fayol, Weber and Taylor’s classical organizational theories.

Expert Solution

Three classical organizational theories:

(1) Fayol's Administrative theory

(2) Weber's Bureucratic approach theory

(3) Taylor's Scientific management approach theory.

FAYOL'S ADMINISTRATIVE THEORY :

It is based on several principles of management.Elements of this theory relate to accomplishment of tasks and also include principles of management and functions of management.

- Division of work/ Specialisation : It increases productivity in both managerial and technical work.

- Responsibility and authority: These are imperative for an organisational employees to accomplish the organisational objectives/goals.

- Unity of command : This means taking orders from and being responsible to only a superior.

- Subordination of individual interest : Interest of the orgainsation should not become subservient to individual interests.

- Unity of direction: Members of the organisation should jointly work toward the same objective.

- Centralisation: Management should use both centralisation and de-centralisation of authority and decision making.

-Scalar chain: There have to be proper interaction between peoples.

- Espirit de corps: Union is strength.

- Remuneration of personnel: It can be based on several factors such as time, job and profit-sharing.

Functions of management considered management as set of planning, orgainising , training and coordinationg functions.

WEBER'S BUREUCRATIC APPROACH:

This theory tells that orgainsation is based on the principles of structure, specialization, democracy, rationality.

Structure : In the orgainsation, positions should be arranged in a hierarchy ,each with established amount of authority and responsibility.

Rationality: Recruitment and selection of employees / personnel should be impartial.

Specialisation: Tasks should be separated according to specialisation , on functional basis , with having separate chain of command.

Democracy: Authority and responsibility should be recognized by designations and not be persons.

Predictability and stability: Organisation should operate in a system consisting of rules and regulations.

TAYLOR'S SCIENTIFIC MANAGEMENT APPROACH:

This theory is based on the concept of planning of work to achieve efficiency, standardization and specialization.

Taylor suggested that to increase level of trust:

-the advantages of productivity improvement should go to workers,

- Stress and anxiety should be reduced as much as possible,

- Capabilities of workers should be developed through training and education,

Four principles of scientific management for improving productivity:

Scientific selection of the worker: Orgainsational members should be selected based on some analysis .

Scientific training of the worker: Workers should be trained by experts using scientific methods.

Science, not rule of thumb: Old rule of thumbs supplanted by a scientific approach.

Management and labour cooperation rather than conflict : Management should collaborate with all organisational members.

Rahul Sunny answered 1 year ago

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