Gantt Henry Fayol's Importance Of Classic Organizational Theory

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4. He introduced an incentive plan to pay the workers according to the rate of production to minimize workers dissent and reduce resistance to improved methods.
5. Increased production and produce higher profits.
• The effect of time- motion study of Taylor:
• 1. Reduced wasted efforts
• 2. Set standards of performance
• 3. Encouraged specialization and stressed on the selection of qualified workers who could be developed for a particular job.

Gantt Henry I. Gantt (1861-1910):
Gantt was concerned with problems related to efficiency. He contributed to scientific management by refining the previous work of Taylor than introducing new concepts.
• He studied the amount of work planned or completed on one axis to the time needed or taken
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• Standardized schedules, conditions and written instructions should be there to facilitate performance.
• Efficiency rewards should be given for successful completion of tasks.

CLASSIC ORGANIZATIONAL THEORY:
Importance of classic organization theory:
• The classic administration-organization thinking began to receive attention in 1930.
• Organization is viewed as whole rather than focusing solely in production.
• The concepts of scalar levels, span of control, authority, responsibility, accountability, line staff relationships, decentralization, and departmentalization become prevalent.

Henry Fayol (1841-1925):
Fayol was a French industrialist known as father of the management process school concerned with management of production shops. He studied the functions of managers and concluded that management is universal.
Functions of management:
1. Planning, policies, programs and procedures.
2. Organization based on hierarchy of authority.
3. Directing the business in order to gain optimum return from all workers.
4. Coordination, signifying harmony in activities of the organization and to facilitate its
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This includes financial and non-financial compensation.
• Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
• Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain.
• Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
• Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.
• Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority.
• Initiative – Employees should be given the necessary level of freedom to create and carry out plans.
• Esprit de Corps – Organizations should strive to promote team spirit and unity.

Max Webber theory (1864-1920):
He is German psychologist. He earned the title of father of organizational theory. His emphasis was on rules instead of individuals and on competencies over favouritism. His conceptualization was on bureaucracy, structure of authority that would facilitate the accomplishment of organizational

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