1 - Classical management theory stipulates that organizations are closed systems that are static and never changing and are unaffected by the outside world. It is concerned with the management of tasks rather than the organization.
2 – Organizations are rational entities where employees work to achieve a common objective. Follow a horizontal structure. Employees do not have monopoly over the tasks knowledge and know how. They are told what to do when to do it and how to do it.
3 - Employees only motivation is to earn money. They tend to use their skills as a bargaining chip for a better wage. For this reasons organizations design jobs in a way to reduce ...view middle of the document...
5 The interest of a person or group of persons should not prevail over the interest of the organization.
Chester Bernard developed the authority theory by saying that its not important to have someone give out orders but rather have the subordinates execute those orders. For that to work:
1 Employees need to understand what was communicated to them.
2 Orders were in line with the needs of the employee
3 And they are physically and mentally able to carry out the task.
Max Weber’s Bureaucracy.
Bureaucratic organizations follow strict well developed, detailed set of instructions. Authority and legality are enshrined in the rules governing the organizations. Bureaucracy stresses laws, rules, procedures and pre-defined routines as giving form to a clear and explicit system of administration. Weber saw this as the ideal tool for centralized administration where the ligitmacy of those in control was underpinned by the rule of law. The negative side of bureaucracy is that its rigid and causes people to be un motivational. Also it can fail sometimes because certain right wing groups can take over the organization and twist its policies to suit personal ambitions.
Weber was the one who identified three types of organizations:
1 – The charismatic organization: In this organization all authority and leadership is invested in a charismatic leader.
2 – The traditional Organization: In this organization things get done by the “rule of thumb” that how we do things.
3 – Rational legal organizations: This is the bureaucratic organization to the last letter.
This theory says that organizations are made up of a number of subsystems or departments. Each department will work towards the...