Page 32 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes Harvey-Jones, Managing to survive (1993)
J (1990s)
Harvey Jones feels that the most important personal skill in this decade is that of
managing radical change. His view is that no one actually' manages' change, they
release and guide it', He also states that organizations do not change until the
people in those organizations have - and people do not change their ideas and
values quickly.
Handy C. Understanding organization (1976) Handy's 1976 book outlined differences
(1990s) between a 'power culture', a 'role culture', a 'task culture' and a 'person culture' in
organizations. His later books, including Gods of Management, The Age of
Unreason and The Empty Raincoat have expounded his ideas. He purposed the
model of the 'shamrock organization'

We will discuss a few major theories in this unit.

2.1 Classical Theory

The classical theory signifies the beginning of the systematic study of management organisation.
It is often called the traditional theory. It can be traced historically to the 19th century prototype
industrial and military organisations. Several writers contributed to the classical thought in the
early years of the 20th century. They include Taylor, Fayol, Weber, Luther Gulick, Urwick,
Mooney and Reiley and may others.

The classical theory incorporates three viewpoints: (1) Taylor’s Scientific Management (2) Fayol’s
Administrative Management; and (3) Weber’s Ideal Bureaucracy (an organisation based on rules
and regulations, formal relations, specialization, etc.). All the three concentrated on the structure
of organisation for greater efficiency. Several other trailblazers have also contributed to the
classical theory. For instance, Mooney and Reiley published ‘Onward Industry’ in 1931 in which
they attempted to find organisational universals. Subsequently, notable contributions came
form Gullick, Oliver Sheldon, Urwick and many others. All these theorists were concerned with
the structure of organisations and that is why their approach is also sometimes labelled as
‘structural theory of organisation’. Salient features of classical approach are as follows:
1. The classical theory laid emphasis on division of labour and specialization, structure,
scalar and functional processes and span of control. Thus, they concentrated on the anatomy
of formal organisation.
2. The classical theorists emphasis organisation structure for co-ordination of various
activities. They ignored the role of human element.
3. The classical theory ignored the impact of external environment on the working of the
organisation. Thus, it treated organisations as closed systems.
4. The efficiency of the organisation can be increased by making each individual efficient.
5. The integration of the organisation is achieved through the authority and control of the
central mechanism. Thus, it is based on centralization of authority.
6. There is no conflict between the individuals and the organisation. In case of any conflict,
the interests of the organisation should prevail.

7. The people at work could be motivated by the economic rewards as they were supposed
to be ‘rational economic persons’.

2.2 Scientific Management Approach

The impetus for the scientific management approach came from the first industrial revolution.
Because it brought about such an extraordinary mechanization of industry, this revolution

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