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    B. Classic Organizational Theory:: 1) Henry Fayol (1841-1925)

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    This document summarizes classic organizational theory and three of its pioneers. It discusses the importance of viewing organizations holistically rather than solely focusing on production. It outlines Henry Fayol's contributions, including identifying five primary management functions and dividing work into technical, commercial, financial, security, and managerial activities. It also lists five principles for effective organization structure put forth by Fayol, such as minimizing organizational levels and cross-relations between units.

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    B. Classic Organizational Theory:: 1) Henry Fayol (1841-1925)

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    This document summarizes classic organizational theory and three of its pioneers. It discusses the importance of viewing organizations holistically rather than solely focusing on production. It outlines Henry Fayol's contributions, including identifying five primary management functions and dividing work into technical, commercial, financial, security, and managerial activities. It also lists five principles for effective organization structure put forth by Fayol, such as minimizing organizational levels and cross-relations between units.

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    This document summarizes classic organizational theory and three of its pioneers. It discusses the importance of viewing organizations holistically rather than solely focusing on production. It outlines Henry Fayol's contributions, including identifying five primary management functions and dividing work into technical, commercial, financial, security, and managerial activities. It also lists five principles for effective organization structure put forth by Fayol, such as minimizing organizational levels and cross-relations between units.

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    14 views2 pages

    B. Classic Organizational Theory:: 1) Henry Fayol (1841-1925)

    Uploaded by

    baby
    This document summarizes classic organizational theory and three of its pioneers. It discusses the importance of viewing organizations holistically rather than solely focusing on production. It outlines Henry Fayol's contributions, including identifying five primary management functions and dividing work into technical, commercial, financial, security, and managerial activities. It also lists five principles for effective organization structure put forth by Fayol, such as minimizing organizational levels and cross-relations between units.

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    of 2

    2) The means of determining the feasibility of replacing manual operations with

    automatic machinery.

    B. CLASSIC ORGANIZATIONAL THEORY:


    Importance of classic organization theory:
     The classic administration-organization thinking began to receive attention
    in1930.
     Organization is viewed as whole rather than focusing solely in production.
     The concepts of scalar levels, span of control, authority,
    responsibility,accountabilityline staff relationships, decentralization,
    anddepartmentalization become prevalent.

    Three pioneers of Classic organizational theory:


    1) Henry Fayol (1841-1925):
    Fayal 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 tofacilitate its
    working
    5. Control, the errors of the functionaries of organization and ensure that sucherrors do
    not occurs.

    Fayol divided all the work carried out in a business enterprise into the following
    categories.
    1. Technical activities (production, manufacture, etc)
    2. Commercial activities (buying, selling, personnel, and industrial relations)
    3. Financial activities( to have optimum use of capitals)
    4. Security activities(production of property and persons)
    5. Managerial activities(planning organizing, commanding, directing, coordination,
    communication, motivation .leadership)

    Principles by which good organization can be recognized. They are as follows:


    1. The number of organization units should be the minimum needed to cover the
    major enterprise functions.
    2. All related functions should be combined within one unit.
    3. The number of levels of authority should be kept to a minimum.
    4. There should be room for initiative with the limit of his assigned authority.
    5. Functions should be assigned so as to minimize cross relations between
    organizational units.
    6. No more employees should report to a superior than he can effectively direct and

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