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Classical Organizational Theory
In this early period in Organizational Theory, theorists first began to develop working theories about complex organizations, their structure, and operations. The major theorists of this era emphasized a closed systems approach (focusing on the innerworkings of organizations) and foscused on central idealistic ways of doing things ("one best way"). The contexts of organizations or their external environments was not a focus. Two principal theorists of this era were Max Weber, Frederick Taylor. -
Rise of Taylorism & Scientific Management
Frederick Taylor developed Scientific Management theory during the classical period. Taylor's Scientific Management Theory had core principles: i.) the "best way" to perform each task, ii.) closely monitoring workers, iii.) provide incentives and disincentives, iv.) appropriately matching each worker to a specific task.
Efficiency, managerial control, and adequate pay were central tenants of Taylorism -
Max Weber's work hits America
Max Weber was a founding father of sociology. In 1922 his monumental book, Economy and Society, is posthumously published. Weber was influential in establishing the rational-legal perspective and wrote the first authoritative analysis of bureaucracy. Weber focused his organizational theory on merit, hierarchies of authority, advancement, and rules and regulations. Bureaucracy for Weber was one of his "ideal types" making it superior to aristocracy, and traditional authority. -
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Interdisciplinary/Social Science Infusions
During this loose, innovative ear after Weber's work makes a lasting impression, more social theorists interject from psychology, political science, social psychology, etc. pushing the study of organizations away from Scientific Management (a MECHANISTIC) approach and more to an interdisciplinary employee focus. Hawthorne, Maslow, Lewin and McGregor make contributions. -
The Hawthorne Studies
From 1924 to 1932 experiments were conducted at the a large electric factory, the Hawthorne Works. The physical work environment was the central part of this study (specifically lighting levels). Productivity was measured in low and high lighting situations. The employees proved to perform better in brighter conditions, demonstrating that when workers feel valued and invested in, they will perform better (even if compensation does not change). -
The Work of Lewin
Kurt Lewin began studying group processes and various forms of leadership. Group dynamics and social psychology were infused into the study of organizations, which started to break away from classical "one best way" approaches of management. Lewin's work made organizational behavior a more dynamic discipline. This would later give rise to the work of McGregor and Maslow. -
Chester Barnard's Executive Functions
Barnard's book 1938, The Functions of the Executive is published. Barnard centered his work on executive's roles in organizations and implementation. Incentives were a major theme. -
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Modern Organizational Theory
Contingency Theory, Open Systems Theory, Total Quality Management, and Organizational Culture are significant examples of Organizational Theory, often times they overlap or have situational relevancy. Ultimately these theories emphasize external environment of organizations and organizational context, which takes a more real-world, grounded approach to analyzing organizations and institutions. -
Maslow's Hierarchy of Needs
Abraham Maslow developed his famous "needs hierarchy" which demonstrates that virtually all people (especially in working settings) have various needs. Physiological needs (food, water, etc.) were at the primal, safety was second most important, followed by love, self-esteem, and finally, self-actualization. Maslow (1954) conveyed the importance of realizing that organizations and their employees often rate their needs based on importance. -
McGregor (Theory X and Theory Y)
Douglas McGregor, a Management Professor at MIT, developed these two divergent theories of human behavior which have become central to HR, Public Administration, and Organizational Theory. Theory X views employees as naturally lazy, not creative, and motivated by money whereas theory Y views employees as genuinely accountable, motivated, and human potential. These theories reinforce the work of Maslow. -
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Total Quality Management or TQM
Total quality management (TQM) is a holistic approach to management in all sectors and first came on the scene in the early 1990s. TQM focuses on the whole management picture, collaboration, and horizontal accountability. Its central tenants are: process management, quality control, cross-functional systems design, involving stakeholders/customers, involving employees from all departments, sound leadership, strategic planning, and cross training. TQM is still utilized today.
