The Classical Administrative Theory Commerce Essay

Theories of the management of organisations have been developed and have evolved over the years: from simplistic theories to more scientific and behavioural theories. A more classical management theory would be likened to a machine. Where by organisations were departmentalised and workers were expected to behave and act in a predictable manor. Modern management theories tend to focus more so on the behaviours and efficiency of workers and the processes employed in the organisation.

Classical management theories are divided into two types, the classical scientific and the classical administrative. In regards to the classical scientific theory, this was born from to the scientific behaviourism of attempting to bring about increased productivity. During the time the classical scientific theory was predominantly used, theory practitioners would use almost machine like methods towards the structure and planning of the organization and labor. It was thought that this approach would help achieve goals of productivity and efficiency. The basic approaches and techniques of the classical scientific theory include dividing work between employees equally and creating standardized methods for a task.

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However, the classical administrative theory concerned its self with ways in which the management departments could be structured and organized to increase productivity and efficiency. Henri Fayol, who was a figure head in management theory, masterminded various theories of management geared towards productivity and efficiency, such as creating a consolidated and cooperative attitude and direction among managers, centralization, and discipline of management and organizations. His other management theories looked into building confidence in teams, such as establishing and encouraging team work, encouraging employees to use their own initiative, and building equality in the work place.

In 1943 Abraham Maslow proposed the theory of the Hierarchy of Needs. Maslows theory is based on the belief that within each individual there is a hierarchy of five basic needs.

Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job security, financial security, protection from animals, family security, health security, etc.

Self-actualization need- This include the urge to become what you are capable of becoming / what you have the potential to become. It includes the need for growth and self-contentment. It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic.

According to Maslow, each individual is motivated by needs that are not yet satisfied. That is to say that as each of an individual’s needs are significantly satisfied, it energises and motivates the next need in the hierarchy to emerge. The lower-order needs are constituted by physiological and the safety needs. The higher-order needs are constituted by social, esteem, and self-actualization needs.

In 1960, Douglas McGregor formulated X-Y Theory suggesting there are two fundamental approaches to the management of people at work. According to McGregor, the perception of managers as to the nature of individuals is based on various assumptions about the individual (Cole, 1996).

The Y theory would label the management style more cooperative and nurturing. Theory y implies that managers employing this style encourage employees to take initiative and self-direction and create a work environment which provides opportunities to participate in decision making within in an organization and inspire teamwork.

Matrix management is a structure of organizational management in which people with similar skills are grouped together for project assignments (Carnall, (2007). For example on a construction site a single trade may be in one department and report to the manager of there trade, but these same tradesman may be assigned to various projects and report to a different project manager or a contract manager while working on that project. Thus, each tradesman may have to work under several managers to get their job done.

In contrast a linear management structure would employ a more hierarchical style of management. Instructions would flow from the management team in a straight line down to the tradesmen who will complete the works.

According to (Burke 2007) selecting the right organizational structure is a delicate balancing act dependant on the projects needs, the project team’s needs, the stakeholder’s needs and just as importantly the needs of the client. When the project requires input form a number of different departments the Matrix structure offers a real solution to the functional division of responsibility and authority However if the project is a large capital project likely to run for several years then setting up a more linear structure may be the most appropriate organization structure.

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