Page 34 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 2: Development of Management Theories

4. The theory assumes that the organisation is a machine and the people its components. In Notes
order to make any improvement in the whole system, internal factors were considered
and less attention was given on factors in the external environment which may constrain
and facilitate the system.
5. It has been assumed by the theory that both workers and managers are rational. Workers
can easily perceive that their interests can be served only by increasing the productivity
and getting more wages for higher productivity, on the other hand, management gets the
fruits of higher productivity. Management tries to find out best ways of doing a job by
introducing new improvements in machines and devoting time to such technical
engineering and administrative aspect of organisation which can make the man produce
as much as he can with minimum expenses so that workers can contribute more to the
organisation and earn more for themselves in return.
6. The theory puts special emphasis on error and particularly on the detection of error and its
correction after it happens.
7. The theory assumes that man is relatively homogeneous and un-modifiable while designing
the jobs and in picking the extra pairs of hands.
8. The classical organisation theory, in its essential character, is centralised. The integration
of the system is achieved through the authority and control of the central mechanism.

2.1.2 Two Streams of the Classical Theory

Classical theorists were divided in opinion. The two streams are scientific management and
administrative management. The scientific management stream of the organisation theory
emphasised on the efficiency of lower levels of organisation while administrative stream focused
on the efficiency of higher levels.

Did u know? F.W. Taylor is called the father of scientific management approach. Taylor
and his followers insisted upon dividing and sub-dividing the tasks through time and
motion studies because he was of the view that objective analysis of facts and collection of
data in the workplace could provide the basis of determining the best way to organise the
work. Thus, they investigated the effective use of human beings in industrial organisations
and studied primarily the use of human beings as adjuncts to machines in the performance
of routine tasks.
The approach taken by this theory is quite narrow and encompasses primarily psychological
variables. As such this theory is also referred to as ‘Machine Theory’ or ‘Physiological Theory.’
The scientific management group was mainly concerned with the tasks at floor or operative
levels, and these tasks were quite different from other tasks in the organisation because:
1. These tasks are largely repetitive in nature so that the daily activities of a worker can be
sub-divided in a large number of cyclical repetitions of essentially the same or closely
related activities.
2. These tasks do not require any problem-solving activity by the workers who handle
them. Thus, more attention was given in standardizing the working methods.
The second stream is the administrative stream of organisation theory emphasises efficiency at
higher levels. It was concerned with the managerial organisation and process. Henry Fayol was
the leader for this group. He, for the first time studied the functions and laid down principles of
management in a systematic manner for the guidance of managers.

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