THEORY OF ORGANIZATION The theories of organization deals with all organized collective endeavor, organizational behavior, decision making

in organizations on the one hand or, on the other hand they deal with unique practices, administrative processes, specific institutions or particular administrative case studies. 1. 2. 3. 4. Scientific Management Classical theory Human relations theory Bureaucratic theory

Scientific Management The first systematic theory of organization was formulated by Frederick Winslow Taylor. The major goals of scientific management were to raise industrial output by systematic application of the methods of science, to managerial problems and work procedures, in industrial establishments. The major principles of scientific management are as follows, a) Standardization of work methods Taylors first principle related to the development of a scientific method for each task which would replace ad hocism and selection of work procedures This could be achieved by scientifically investigating the working conditions and the total quantum of work t be undertaken in any enterprise in a given period and then fixing daily task assignments so that workers may work in a planned way The goal of good management should be either higher productivity or lower unit cost To achieve the goal the management must pay high wages. Remuneration as well as penalty should be imposed according to the performance of the workers. b) Scientific selection and training of workers Taylors second principle related to the selection, placement and training of workers in a scientific manner Standardization of working conditions will be crucially served by selecting and placing workers on jobs for which they are best suited by their physical and intellectual abilities. Its the duty of the management to train workers for their tasks and provide them all facilities to for the development of their personalities c) Equal division of work between management and workers

Taylors third principle was an open advocacy of an equal division of work and responsibility between management and workers Taylor observed the unhealthy trends of the managers to place increasing burden on workers while assuming for themselves only the minimum responsibilities It was suggested that half of the work should be taken over by the management like, planning, organizing, controlling and determining the methods of work

d) Mutual collaboration of workers and management

The last Taylorian principle was that there should be active cooperation and cordial relations between management and workers There should be mutual faith and trust Efficiency and productivity can be best promoted by creating healthy and congenial environment in the organization by the workers and management.

Classical Theory Classical theory of organization is also known as the structural theory and its foremost proponents have been Henry Fayol, Luther Gulick, L F Urwick, J D Mooney, A C Reiley, M P Follet and R Shelton. The classical theory is marked by four features, impersonality, specialization, efficiency and hierarchy. Having stressed on the importance of the structure of organizations Gulick and Urwick devoted their attention to the discovery of principles based on which the structure may be designed. Gulick enumerates ten principles of organizations, 1. Division of work or specialization 2. Base of departmental organizations 3. Coordination through hierarchy 4. Deliberate coordination 5. Coordination through committees 6. Decentralization 7. Unity of command 8. Staff and line 9. Delegation 10. Span of control Among the ten principles of administration listed out Gulick says that division of work and integration are the bootstraps by which mankind lifts itself in the process of civilization. Urwick also identified eight principles of organization 1. The principle of objective- organization should be an expression of a purpose

2. the principle of correspondenceauthority and responsibility must be coequal 3. the principle of responsibility- responsibility of superiors for work of subordinates is absolute 4. the scalar principle 5. the principle of the span of control, a superior cant supervise directly, the work of more than five or six subordinates whose works interlock 6. The principle of specialization- limiting ones work to a single function 7. the principle of coordination and 8. the principle of definition Human relations theory The essence of the human relations theory lies in its primary emphasis on human beings, psychological motivations (effect of improved lighting on workers output) and informal group behavior in contradiction to the structuralists exclusive concern for principles of organization

The theory or approach focuses on management as a web of interpersonal relationships. It lays greater stress on the behavior of role occupants in an organization than on the formal structure of the organization Since management and administration involve group effort and collective endeavors of people, the study of management must be centered on the individual as socio-psychological being and are more concerned with his motivations The human relations theory of organization rejects formal institutionalization. It considers the informal, day to day functioning of the structure more revealing than the mechanistic study of structure and principles of organization For a realistic analysis of workers behavior, all the factors motivating them have to be studied

Comparison between Classical and Human Relations theory

Although human relationists and Classical Theorists are generally considered antithetical in their approach to organizational dynamics, there is a significant similarity in the views of both regarding the objectives of an organization In both the theories, the goals are same e.g. economy, efficiency and the use of scientific methods The conceptualization of classical theory was based on the recognition of the motivation of a social man who was emotional while the latters focus was on the need of an economic man who was rational and logical. The classicist focused on the motivations of workers while human relationists examined the needs and aspirations of workers as well as managers

Formers prescription of organizational change lay in the realm of formal structure while the latter recognized that it is the informal group in an organization which primarily determines the nature of change. The classical theory emphasizes in rationalizing and stimulating the quality and quantity of production while latters emphasis on variables of leadership, morale, motivation, informal groups and the external as well as internal groups of organization.

Difference between formal and informal organization

The classical school emphasizes the formal structure and principles of an organization, rather than the informal group behavior in any organization stressed by the human relationists. The human relations theory goes beyond the formal institutionalization of an organization to concern itself with the human motivations and the informal behind-the-scenes group functioning of the structure Formal organization is the planned structure; it corresponds to a formal design. On the contrary, informal organization (employee welfare unions) is a natural growth which may or may not coincide with the formal model of organization Central to the distinction between formal and informal organization is the difference between authority and influence. Authority is the legitimate exercise of power over others whereas influence is the informal capacity over others to get things done. The formal organization theory only gives only a partial and incomplete picture of organizational dynamics. The complete picture of an organization emerges only when the formal theory is supplemented with the informal.

Bureaucratic theory Max Webers bureaucratic model continues to be the dominant paradigm in public administration. The bureaucratic form of organization, according to Weber, is distinguished by the following structural behavioral characteristics 1. Division of labor This involves a specified sphere of competence which has been marked off as part of a systematic division of labor in the organization. The placement of the job is based on ones qualifications or special training 2. Hierarchy Hierarchy is the second fundamental characteristics which is the feature of any bureaucratic form of organization. Remuneration is fixed in accordance with nature of the job and the grade of responsibility. Promotion and career advancement are on the basis of seniority and merit. 3. Rules Thirdly, bureaucracy operates in accordance with a consistent system of abstract rules laid down regarding the performance of official jobs. Every act of personal direction of officials must be justified by impersonal ends.

The set of behavioral characteristics can be described as follows: 4. Rationality Bureaucracy is the most rational means of achieving imperative control over human beings. It is capable of attaining a high degree of efficiency since the means used to achieve goals are rationally and objectively chosen towards the desired ends. 5. Impersonality The bureaucratic form has no place for personal whims, fancies or irrational sentiments. Official activity is conducted in a business like manner with a high degree of operational impersonality 6. Rule orientation Rationality and impersonality are mainly achieved through formulation of rules and procedures which clearly define official spheres of authority and conduct, which the employees are to rigidly maintain in discharging their duties. 7. Neutrality Bureaucracy is supposed to be apolitical and neutral in its orientation and support to the political regime it serves. It is also value-neutral committed only to the work it is meant to perform.