A Theory is a set of inter related concepts, definitions & propositions that present a systematic view of phenomena. It also specifies the relationship among variables with purpose of explaining and predicting the phenomena.
“Organization theory refers to the study of the phenomena of organizational functioning and performance and of the behavior of Groups and individuals working in them.”
The main theories which seek to study the organization are: * Classical theory * Neo classical theory * Bureaucratic theory * Systems theory * Contingency theory
These theories are based on the generally accepted principles ,set of assumptions and value judgment. Each theory is based on How organization can be made effective.
Classical theory:
Classical theory is the beginning of the systematic study of the organization. It deals with the anatomy of formal organizations.(job-unit/authority, accountability-responsibility).We know that a formal organization is one which is deliberately created with defined jobs , a definite measure of authority, responsibility & accountability.
The classical theorists considered organization as a machine –goal fulfilling machine and workers were cogs in the machine. efficiency and productivity can be improved by improving the efficiency of the workers. * F.W.Taylor is the foremost among those thinkers.He is considered as the father of scientificmanagement. Taylor's scientific management isoften called –physiological organization theory ormachine theory-his associates gave a rigid machinemodel of organization and concentrated onproduction.
He considered men also as machines, well maintained machines produce more so also men. He assumed there is one best method for every job.
He introduced division of labour, Standardization of task, Analysis work and work and time measurement. He introduced the concept of fair day wages for fair days work.His philosophy can be summed up in