Organizational

Design
Sayed Mahmood Fazli
Sayed.mfazli@gmail.com
0706317442
Classical Management Theory

Historical Context
Late 1700s to late 1800s
 Industry = work
 Revolution =Rapid Change
 From farms to factories
 From small shops to large companies
 Primary Sparks

 Power ( Steam to hydro)

 Machinery innovations

 Transportation

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 Emerging Issues

• Large Groups working together

• People working alongside machinery

• Increasing pace of industry

• Companies were looking for answers

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• How are we going to organize all of this

• How are we going to maximize productivity

• How are we going to manage all of these

people

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 Bureaucracy

• Organizations should look like the

Government and the legal system
• A legal –rational approach
• Not traditional , family –Based leadership
• Not charisma –based leadership

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 Bureaucracy

• One’s authority should be tired to the official

position he or she occupied
• Clear rules should govern performance
• Standardized guidelines should determine
hiring and firing
• Was against favoritism or particularism

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 Scientific Management
• Applying science to work
• Saw customized , self-styled work as a
serious productivity problem
• Popularized time and motion studies
• Wanted to find the ‘one right way ‘ to do
every single work

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 Scientific Management

• Reduce the amount of time

• Reduce the number of motions
– Break each task into small steps
– Standardize each step
– Do all tasks the new ‘ one right way’

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Bureaucracy
Big Picture

Managerial

Micro

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 Business foundation

Administrative Science or Classical management

• Wanted more systematic principles to train

managers
• Saw a noticeable lack of available management
theory in his day
It is a case of setting it going , starting general
discussion that is what I am trying to do by publishing
this survey , and I hope a (management ) theory will
emanate from it (fayol , 1949,p.16)
 Business foundation

Administrative Science or Classical management

1. Planning : look ahead , chart a course

2. Organization : select and arrange people
3. Command: oversee , lead , drive
4. Coordinate: harmonize and facilitate
5. Control: Ensure compliance

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 Commonalities and overlap

• Hierarchy
• Standardized
• Centralization
• Separation of personal and work life
• Wanted to select the best employees
• Division of labor
• Wanted people paid fairly , in theory

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