A deeper understanding of Classical organization theory

A deeper understanding of Classical organization theory

By: Dantes, Michelle M.

When talking about management, what comes first in your mind? I guess that would be business right.

For so many years, management often co relates with business. A traditional belief says that in business, a proper management is indeed a key variable in success. But what is management?  Management is a process of coordinating and supervising personnel and resources to accomplish organizational goals. It comprises planning, organizing, staffing, directing and controlling.

In management, it utilizes theories, the same as of the others. A lot of theories regarding management have arises. But I am much convince with the theory made by Henry Fayol (father of management process) entitled classical organization theory, wherein he proposed 14 principles of management.

1. Unity of command- Each employee has one and only one boss. Which I do believe that having a single leader tends to be less complicated and confusing. Decisions can be made quickly and informally in emergency situations. When there are several owners- managers looking after the business, leadership responsibilities may become diffuses leading to sometimes slow, ineffective actions.
2. Unity of direction- one head and one plan for a group having the same objective.This can harbor cooperation with the members. It is the knowing that you are headed with the same direction with nothing more and nothing less to expect. This can prevent unnecessary stress or pressure to both manager and subordinates.
3. Subordination of individual interest to general interest- it means that there should be no conflict of interest between individuals ambition and the well being of the organization as a whole. This principle requires a firm but fair hand from superior who should set a good example. It requires constant supervision. Human as we are, sometimes we tend to do thing which is against from our principle. We develop " hidden agenda" for our personal good.
4. Division of labor-it is making sure that work is equally distributed among the group. Group projects are designed to help you improve your ability to lead and work as part of a team. One of the most common sources of conflict is the improper division of work. One member can be loaded with work and the other may not. And that may end up in misunderstanding thus making your group slow on progress.
5. Esprit de corps- it’s the Harmony or cohesion among personnel. It's a great source of strength in the organization.  When a group works in harmony, results would be very productive and fewer interruptions will happen.
6. Respondeat superior- the term is referring to the request of the court that you answer for any liability you may have even when you had an agent acting on your behalf.. In nursing it refers to the accountability of nurses in delegating work to other personnel.  You may not be held responsible for the mistake of your people but you are accountable for it. It means you are the one who is answerable if your agent acts in such a way that is not deemed legal, or involves intentional tort. But it does not mean your agent is relieved any liability in the matter.
7. Centralization-it is where the decision is made from top to bottom. It has an order. In business the one who likely makes the decision is the manager, whatever the decision, members must follow it. Or on the other way, all the important decision and actions proposed at the lower level are subjected to the approval of top management.
8. Tenure- it is defined as a length of service or term of office that a worker have. Tenure in short provides direction a worker needs to take and follow. It is the legality of the contract you made with the company.
9. Authority- it was defined by Henry Fayol as the “the right to give orders and the power to exact obedience”. It is the distinguishing advantage of a leader.  A leader has the authority to make things happen. It is the basis in which he can issue task, responsibilities and obligations to the followers.
10. Justice and equity-Equality of treatment. No favoritism is allowed.  Favoritism is a destructive trait.  Favoritism results in making a decision based not upon the merits of the matter at hand, but upon some other basis. It can lead to false decision and can affect the group performance.
11. Span of control- it refers to number of subordinates a supervisor has.  The supervisors control only suited for those who are under him. His legitimacy will be effective only for those who are under him.
12. Remuneration-Employees receive fair payment for services.  It is believed that giving a fair salary encourages keenness by rewarding a well directed effort.  I also believed that giving a fair salary is the most effective way on retaining and motivating employees.  As part of human behavior, we usually respond to which we know our effort would be rewarded.
13. Channel of communication – it refers to the way this information flows within the organization and with other organizations. And since we already know that this type of management uses centralization, it means the decision is made by the manager.
14. Chain of command- a command running from top to bottom of the organization, it is just the same with the centralization.

This theory is the most organized theory in management. It gives specific direction and job description on which the leader must do to attain optimum productivity of the group.  The 14 principles not only help the leader but also it safeguards the role of the member.

So if one is planning to have a business establish, then I highly recommend following this theory.