Classical Organization Theory - 6 Pillars of Classical Organizational Theory
Classical Organization Theory - 6 Pillars of Classical Organizational Theory
Classical Organization Theory - 6 Pillars of Classical Organizational Theory
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2. Departmentalization- Di!erent
departments must be created for
di!erent activities and jobs which
would allow the Organization to
minimize its costs and facilitate
administrative control. The
company needs to organize into
divisions di!erent tasks and jobs.
This enables expenditures to be
reduced and administrative
control facilitated as well.
An organization is regarded by
most classical theorists as a closed
structure with no interaction with
its environment.
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National Income
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Division of Labor
Departmentalization
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Structure
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