Page 39 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 2: Evolution of Management Thought

2. Assumption of Closed System: Classical theorists viewed organisation as a closed system, Notes
i.e., having no interaction with environment. This assumption is totally unrealistic.
A modern organisation is an open system which has continuous interaction with the
environment through the exchange of inputs and outputs and various types of information.
3. Assumptions about Human Behaviour: The human being were treated like any other
factor of production. They were supposed to obey their superiors. The classical writers
ignored the social, psychological and motivational aspects of human behaviour.

4. Economic Rewards as Main Motivators: The assumption that people at work can be
motivated solely through economic rewards is also wrong. Several researches in human
behaviour have contradicted this assumption. Non-monetary factors like better status and
job enrichment can also motivate the workers.
5. Lack of Empirical Verification: The classical principles are mostly based on the personal
experiences and limited observations of the practitioners. They are not based on empirical
research. They lack precision and comprehensive framework for analysis. Moreover, it is
not clear whether these principles are action recommendations or simply definitions.
6. Lack of Universality of Principles: Classical theorists claimed that their principles have
universal application. This suggests that the same principles can be applied in: (i) different
organisations, (ii) different management levels in the same organisation, and (iii) different
functions of the same organisation. The empirical researches, however, suggest that none
of the principles has such characteristics. Moreover, there are many of the principles
which contradict with other principles. For example, principle of specialization is quite in
conflict with the principle of unity of command.
7. Excessive Emphasis on Rules and Regulations: Weber’s ‘ideal’ bureaucracy, a major
constituent of classical theory, suggested strict adherence to rules and regulations. The
scope for individual initiative is thus limited. The result is red-tapism in the organisation.
Observation of rules and regulations becomes the main objective while the real objectives
for which these rules and regulations are formed are forgotten.

Caselet An Example of Bureaucracy at an
Aircraft Manufacturer

–told by an employee of that Aircraft Manufacturer
learned the concept of optimizing sub-functions from an executive at a large aircraft
manufacturer. This example is a lesson that took place 33 years ago, and it has played
Ian important part in my thinking ever since. I'll tell you what I remember of the
example he used, and I hope those more familiar with the story will forgive me if I don't
recount the story exactly. Anyway, it's the idea that counts.
Evidently, this aircraft manufacturer had a number of plants all around the area, each
making parts for airplanes that were then assembled into whole airplanes. Each plant had
its own fleet of trucks that they used to pick up what they needed from other plants and
from suppliers, and to deliver their sub-assemblies to the assembly plants.
One day, somebody had the idea of centralizing the control of all the trucks into one
motor pool. (This is the kind of "efficiency" argument that always seems to make good
sense.) The idea was simple. At that time there were a large number of trucks, let's say 100.

Contd...

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