Classical Theory
The essence of classical theory of organizational design is the set of activities, functions or structural factors aimed at achieving the objectives or the organization. Chain of command co-ordination emerges to be predominant in this theory. This theory rose from the industrial revolution and the epicenter of it is ‘efficiency’. According to classical theory the entire work is divided into two broad categories: Specialized and standardized tasks. The chain of command is ‘the right to direct’ (authority) and ‘the obligation to perform’ (responsibility). Authority is mainly derived from position in the hierarchy and it is termed as ‘line authority’ (Miller, 1986). An advisory relationship in form of staff authority is also …show more content…
It also encourages adaptability across organization. One of the main advantages of this theory is that it enables leaders to have a perspective about a situation and act accordingly. It does not have a ‘one size fits all’ and enables managers to take different approaches according to the situation. It motivates manages to study situational and individual difference and choose right approach accordingly Northouse (2007). It may increase efficiency to a certain extent because constraints like those in classical theory are uplifted in contingency theory. Also, because the adoption of an approach to a problem is more or less in accordance with the current situation, a set of formal training skill may not be necessary to handle a situation. It helps managers to change the roles and responsibilities of employees quickly in order to meet the requirements of a given project at …show more content…
Contingency theory is a reactive model of managing business. This means that companies will not have personnel planning ahead of a situation in order to mitigate the damages that a situation can cause. The companies will have limited control over building predictive strategies if reactive model is being used. This can result in a sudden shortage or lack of required talent and skill set within the company. Employees are given too much freedom which can act negatively for the company as control over the employees is limited and company’s ability to monitor whether the goals of employees are aligned with that of
The essence of classical theory of organizational design is the set of activities, functions or structural factors aimed at achieving the objectives or the organization. Chain of command co-ordination emerges to be predominant in this theory. This theory rose from the industrial revolution and the epicenter of it is ‘efficiency’. According to classical theory the entire work is divided into two broad categories: Specialized and standardized tasks. The chain of command is ‘the right to direct’ (authority) and ‘the obligation to perform’ (responsibility). Authority is mainly derived from position in the hierarchy and it is termed as ‘line authority’ (Miller, 1986). An advisory relationship in form of staff authority is also …show more content…
It also encourages adaptability across organization. One of the main advantages of this theory is that it enables leaders to have a perspective about a situation and act accordingly. It does not have a ‘one size fits all’ and enables managers to take different approaches according to the situation. It motivates manages to study situational and individual difference and choose right approach accordingly Northouse (2007). It may increase efficiency to a certain extent because constraints like those in classical theory are uplifted in contingency theory. Also, because the adoption of an approach to a problem is more or less in accordance with the current situation, a set of formal training skill may not be necessary to handle a situation. It helps managers to change the roles and responsibilities of employees quickly in order to meet the requirements of a given project at …show more content…
Contingency theory is a reactive model of managing business. This means that companies will not have personnel planning ahead of a situation in order to mitigate the damages that a situation can cause. The companies will have limited control over building predictive strategies if reactive model is being used. This can result in a sudden shortage or lack of required talent and skill set within the company. Employees are given too much freedom which can act negatively for the company as control over the employees is limited and company’s ability to monitor whether the goals of employees are aligned with that of