The Beechmont Crest Online Guide to Management Science
CLASSICAL ORGANIZATION THEORY
Scientific management theory concerned the optimization of individual workers and work processes. During the same period, classical organization theory complimented scientific management by providing a framework for the structuring the organization. The leading proponents of classical organization theory were Henri Fayol (a French engineer), Lyndall Urwick (a British company manager), and Max Weber (a German sociologist).
Classical organization theory is the “B” in bureaucracy. Weber defined the organization elements which comprised the “ideal bureaucracy.” These included:
- A clearly defined (and documented) set of rules and procedures. This is the company handbook, and other written instruments of company policy
- Division of labor according to functional expertise. This is the notion of individual departments (sales, purchasing, accounting, etc.)
- A clear chain of command. There is a hierarchy based on management rank. Weber also stipulated that authority in an organizational setting should be based on the office itself—not on the individual. (Consider a political analogy: Neither Gerald Ford nor Jimmy Carter would be empowered to declare war or veto a bill today. Their past executive powers were based on the office they held—not on their individual persons.)
- Individual advancement based on merit. Promotions should go to those who deserve who perform well on the job.
- Professional managers. The person (or other entity) who owns the company doesn’t necessarily possess the expertise needed to keep it running smoothly on a day-to-day basis.
As you can see, many aspects of Weber’s “ideal bureaucracy” are simply measures that ensure fairness and objectivity. But critics of classical organization theory charged that it placed too much faith in the infallibility of rules and procedures, while ignoring important aspects of individual motivation.
