ORGANIZATIONAL

THOUGHT AND THEORY

THE RISE OF CLASSICAL
ORGANIZATIONAL THEORY, 1910 –
1935

THE HUMAN RELATIONS

MOVEMENT, 1935 - 1950

16 Dec 2018 Reported by: Jerralyn Cortez - Alva

CLASSICAL ORGANIZATIONAL THEORY

Deals with the anatomy of formal organizations

(job-unit / authority, accountability-responsibility).
 MAJOR CONTRIBUTORS TO THE
CLASSICAL ORGANIZATIONAL
THEORY
Scientific Management
 Frederick Taylor

Administrative Management
 Henri Fayol

 Luther Halsey Gulick

 Max Weber
FREDERICK W. TAYLOR
(Mar. 20, 1856 – Mar. 21, 1915)

 “Father of Scientific Management”, he is

best known for his “One best way
approach” in accomplishing task
 He pioneered the development of TIME and
MOTION STUDIES and published the
result of his studies in 1911 on the
PRINCIPLES of SCIENTIFIC
MANAGEMENT

 Scientific Management – focusing on the

management of work and workers.
TAYLOR’s
ACCOMPLISHMENTS
 Creates system to gain maximum efficiency from
workers and machines in the factory

 Focuses in time and motion studies to learn how to

complete a task in the least amount of time

 Becomes consulting engineer for many other

companies
4 Principles of Taylor’s Scientific Management

1. Replace rule-of-thumb work methods with

methods based on a scientific study of the tasks.
2. Scientifically select, train and develop each
employee rather than passively living them to train
themselves.
3. Provide “Detailed instruction and supervision if
each worker in the performance of that worker’s
discrete task”
4. Divide work nearly equally between managers and
workers.
HENRI FAYOL
(Jul. 29, 1841 – Nov. 19, 1925)

 Engineer and French Industrialist

 In France, he works as managing
director in coal-mining organization
 Recognizes to the management
principles rather than personal traits
 Fayol was the first to identify
management as a continuous process
of evaluation
Fayol’s 5 Management Functions

 Fundamental roles performed by all managers:

 Planning
 Organizing
 Commanding
 Coordinating
 Controlling
FAYOL’s 14 MANAGEMENT PRINCIPLES

1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to the
General Interest
7. Remuneration of Personnel
FAYOL’s 14 MANAGEMENT PRINCIPLES

8. Centralization
9. Scalar Chain (Line of Authority)
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
LUTHER HALSEY GULICK
(May 4, 1865 – Aug. 13, 1918)

 A specialist in municipal finance and

administration
 Gulick works with the Institute of
Public Administration, professor of
municipal science and administration
at Columbia and serves on Franklin
D. Roosevelt’s Committee of
Government Administration
 Expands Fayol’s 5 management
functions into 7 functions
GULICK’s 7 MANAGEMENT FUNCTIONS

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Coordinating
6. Reporting
7. Budgeting
MAXIMILIAN KARL EMIL WEBER
(Apr. 21, 1864 – Jun. 14, 1920)

 German Sociologist
 He first describes the concept of
Bureaucracy – an ideal form of
organizational structure
 He defines bureaucratic
administration as the exercise of
control on the basis of knowledge
 “Power is principally exemplified
within organizations by the process
of control”
 WEBER’s 3 BASIC CLASSIFICATIONS OF
ORGANIZATION ACCORDING TO THEIR POWER
AND USES
 Charismatic Authority – based on the sacred or
outstanding characteristic of the individual.

 Traditional Authority – essentially a respect for

customs.

 Rational Legal Authority – based on a code or set

of rules.
 COMMON CRITICISMS OF
CLASSICAL ORGANIZATIONAL
THEORY
 Employees have minimal power over their jobs and
working conditions
 Subordination, passivity and dependence are
expected
 Work to a short term perspective
 Employees are lead to mediocrity
 Working conditions produce to psychological
failure as a result of the belief that they are lower
class employees performing menial tasks
THE HUMAN RELATIONS MOVEMENT

Management focuses on the person as an individual

and analyzes what motivates and cultivates their
achievement in a work setting.
THE HUMAN RELATIONSHIP MOVEMENT
(1935 – 1950)

 Application of behavioural sciences to management

theories
 Stemmed from Hawthorne Studies is based on the
idea that a manager’s concern for workers will lead
to their increased satisfaction and improved
performance.
 The movement includes the theories of motivation,
like Maslow Hierarchy of Needs and McGregor
Theory X and Theory Y.
PROF. GEORGE ELTON MAYO
(Dec. 26, 1880 – Sept. 7, 1949)

 Father and Founder of Human

Relations Movement
 Australian psychologist,
sociologist and Harvard
University Professor of Business
and Industrial Research
 Known for his Hawthorne
Studies (1924-1932)
THE HAWTHORNE
EXPERIMENTS
 Carried out at Western Electric’s Hawthorne Plant
in Chicago in 1920 to 1930
 Hawthorne Experiments have 4 phases:
1. Hawthorne Illumination Test (Nov.1924)
2. Relay Assembly Test Room Study (1927-1932)
3. Mass Interviewing Programme (1928-1930)
4. Bank Wiring Observation Study (Nov.1931-May
1932)
CONCLUSIONS OF HAWTHORNE STUDIES

 The social and psychological factors are

responsible for worker’s productivity and job
satisfaction.
 The informal relations among workers influence
the worker’s behavior and performance more than
the formal relations in the organization.
 Employees will perform better if they are allowed
to participate in decision-making affecting their
interests.
THANK
YOU!