Evolution of Management Theories - Part - II (Classical Theory)

CLASSICAL ORGANIZATION THEORY

 

Henri fayol (1841-1925) is generally hailed as the founder of the classical management school –not because he was the first to investigate managerial behavior but because he was the first to systematize it.

Classical organization theory grew out of the need to find guidelines for managing such complex organization as factories.

 

 

1. DIVISION OF LABOR  

• The most people specialize the more efficiency they can perform their work. This principle is epitomized by the modern assembly line.  

 

2. AUTHORITY   

• Managers must give orders so that they can get things done while this format give them a right to command managers willl not always compel obedience unless they have
• Personal authority (such as relevant )expert as well  

 

3. DISIPLINE MEMBERS IN AN ORGANIZATION need to respect the rules and agreement that govern the organization .  

 

• To fayol ,discipline leadership at all levels of the organization fair agreements and judiciously enforced penalties for infractions.

 

 

4. UNITY OF COMMANDS

 

• Each employee must receive instruction from one person,fayol believe that if employee reported.
• More than one manager conflict in instruction and confusion in of authority would result.  

 

5. UNITY OF DIRECTION  

• Those operation with in the same organization that have the same objective should be directed by only one manager using one plan.
• For example the personnel department in the company should not have a wo directors each with a different hiring policy.  

 

6. SUBORDINATE OF INDIVIDUAL INTEREST TO COMMON GOOD  

• In any undertaking the interest of employees should not take the precedence over the interest of organization as a whole  

 

7. REMUNERATION 

• Compensation of work done should be common to both employees and employers. 

 

8. CENTRALIZATION 

• Decreasing the role of subordinates in decision making is centralization, increasing their role is decentralization.
• Fayol believed that the managers should retain the final responsibility.
• But should at the same time give their subordinate enough authority to do the jobs properly.
• The problem is finding the proper degree of centralization in each case. 

 

9. THE HIERARCHY  

• The line of authority in an organization should represent in the neat box and the line of chart runs in order of rank from top management and lowest levels of enterprise.  

 

10. ORDER 

• Materials and the order should be in the right place at the right time.
• People in particular should be in job or position they are most suited to.  

11. EQUITY

• Managers should be fair and friendly to their subordinate. 

12. STABILTY OF STAFF

• A high employee turnover rate undermines the efficient functioning of an organization.  

13. INITIATIVE 

• Subordinate should be given the freedom to conceive and carry out their plans even though some mistake may result.  

14. ESPRIT DE CROPS
 

• Promoting team spirit will give the organization a sense of unity. 
• To fayol even the small factor help to develop the spirit. 
• He suggested for example the use of verbal communication instead of formal, written communication whenever possible.