The Classical Theory Of Organizational Design Essays

1107 Words Dec 6th, 2015 5 Pages
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 existent in such structures. Organizational structure or work group are arranged on the basis of departmentalization. Authority also brings in ‘span of control’ which is indicative of the number of employees effectively supervised by a manager. The organizations will have a centralized, tall structure of authority in place with uniform procedures, policies and rules.
Contributions of Classical Theory
According to Terry (1975) Classical approach is an excellent one when organizations face issues like rapid increase in number of employees, upsurge in demand in market, automation and mechanization and rationalization of tasks in jobs. Such circumstances were witnessed in early 1900’s and Classical theory has helped quite a number of…

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