Chapter 1 of Classics of Organization Theory focusing on the classical organization theory

The history of classical organization theory can be traced back to Muslims, Hebrews, Greeks, and Romans, and other origins dating back to the medieval times and biblical times. One example of usage of the classical organization theory is in the Book of Exodus, Chapter Eighteen. Moses’ father-in-law, Jethro chastised Moses for failing to create an organization where he can delegate responsibilities for the administration. Later, in the eighteenth century, in Great Britain, the factory system was implemented. The factory system caused problems where managers had to arrange for organizing reliable large-scale production. Great Britain is also the birthplace of the economic organization.

Henri Fayol was a former French mining engineer, who developed the basic theory of business administration. He was also one of the most influential contributors to modern management concepts. His main theory that is explained in the book discusses the principles of management; which includes the division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual and general interest, remuneration of personnel, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps.

1. The division of work’s main objective is to create better work with the same amount of effort. It permits the reduction in the number of objects that attention has to be focused on.

2. The second principle of management is authority and responsibility. Authority is considered to be the right to give orders and have power of obedience. Responsibility is considered as a consequence and counterpart. The degree of responsibility has to be established.

3. Discipline is the third principle of management. It is considered the obedience, application, and energy of respect that is observed in accordance with the standing agreements between employees and firms.

4. The fourth principle of management is unity of command, which arises from general and ever-present necessities. The dual command is very common and wreaks havoc in large and small situations.

5. Unity of direction is the fifth principle of management, which is expressed through one head and one plan for a group of activities that have the same objective. It is very important to the unity of command, but should not be confused with the fourth principle. Unity of direction is provided for the body of a corporation.

6. The sixth principle of management is subordination of individual interests to general interests, which means in a business the interest of one of the employees or the whole group should not prevail over any other concerns, and that home interests should be before the member’s interests.

7. The seventh principle of management is remuneration of personnel, which is the price of services that are rendered. Remuneration rates depend on employee’s will and worth and the value of employees and the mode of payment. The method of payment can influence a businesses’ progress. The method of payment generally looks for fair remuneration, rewarding well-directed efforts, and not leading towards overpayments past reasonable limits. There are different modes of payment for workers; which are time rates, job rates, and piece rates.

8. Centralization is the eighth principle of management. It is not a system of management that is good or bad. In small firms, there is absolute centralization; but in large firms, there has to be a series of intermediaries. Degrees of centralization are varying different cases.

9. The ninth principle of management is the scalar chain, which is the chain of superiors that range from ultimate authority to the lowest ranks. The route followed is the line of authority. The path is determined by the needs for transmission and by the fourth principle, of unity of command.

10. Order is the tenth principle of management. It is considered as a formula for material things that states “A place for everything and everything in its place”. For human order, the statement is “A place for everyone and everyone in his place.” For material order, there has a be designated place for each object. For human or social order, there has to be a designated area for every employee. The area has to be suitable for the employee.

11. The eleventh principle of management is equity. Equity is neither stern nor forceful; and the application of it needs common sense, experience, and good nature. Some of the aspirations that are used when dealing with employees are the desire for equity and equal treatment.

12. Stability of tenure of personnel is the twelfth principle of management. In order for an employee to adjust to their work and actually succeed in what they do, time is required for them to acquire the skills needed for the job.

13. Initiative is the thirteenth principle of management. Initiative is the ability to execute tasks and is also the freedom to propose initiatives.

14. The last principle of management is esprit de corps, which means “union is strength”. The principle of the unity of command is used in this principle. Two notions are addressed: personnel cannot be split and the abuse of written communications. An organization should not divide its team, because it may cause issues within the organization. As far as written communications, there may be misunderstandings through written communication and not verbal communication. Therefore, all communication should be verbal.

Frederick Winslow Taylor is an American, who focused on the study of Scientific Management. Taylor’s main objective of Scientific Management was to increase the efficiency. In order to do that, the differences between what can be done by “first-class” men and ordinary workers had to be focused on. Taylor’s main blame landed on the management. According to Taylor, the basic cause for inefficiency is due to management’s ignorance concerning the time needed to perform tasks. In order for workers to implement their tasks, management has to make itself efficient. Under Scientific Management, science replaces rules, harmony replaces discord, the maximum output replaces output, and each of the workers develop to their greatest efficiency. Taylor formed what is known as the wage-incentive system, which is used to give employees encouragement to do their jobs. Incentives can be considered an increase in income. Also, to encourage workers to accomplish their tasks, Taylor advised a “crack the whip” supervision style of management.

The final theorist I will discuss is Luther Gulick. Gulick believed that the theory of organization should deal with structured co-ordination. The theory of organization includes the division of work, the co-ordination of work, and organizational patterns. The division of work states that the same man cannot be in two different locations at once, meaning division of work deals with human nature, space, and time. The purpose of the division of work is to increase the maintenance of skills and development. Co-ordination of work may be achieved in two different ways: through organization of subdivisions or by dominating the idea; but time and size are the main factors in the development of coordination. Organizational pattern brings up the topic of the main task of the chief executive, is an acronym known as POSDCORB. This stands for planning, organizing, staffing, directing, co-coordinating, reporting, and budgeting.

· Planning consists of dictating the methods for doing certain task.

· Organizing is considered establishing formal structure of authority through subdivisions.

· Staffing is the personnel function of training the staff.

· Directing consists of decision-making tasks.

· Co-coordinating has to do with the duties of the different positions of work.

· Reporting consists of keeping executives informed of organization events by using records and inspections.

· Budgeting deals with fiscal planning, accounting, and control.

In conclusion, I gained knowledge of some of the most important theorist dealing with Public Administration and organization theory. The brief background on the origins of organization theory enlightened my knowledge of the topic. The most interesting theorist I read about was Henri Fayol; who created the principles of management. Every single principle has its own important role in an organization.