What is classical management theory? |

Do you want to learn what classical management theory is? Here we will teach you!

If you are interested in knowing what is classical theoryit is worth telling you that it is a approach of business administration driven mainly by Henri Fayol in 1910. This theory came to reform all the scientific management that Taylor had developed during the previous years. Do you want to know how this theory works and what it exposes? Keep reading!

The classic theory of administration arose from the Industrial Revolution, where the accelerated growth of Business Along with the great need to increase efficiency and competition in the markets, they were present in the world… Learn how this theory works below, don’t stop reading!

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What is classical theory?

This theory also called school classical It is focused on the efficiency of an organization, and is mainly concerned with emphasizing the structure and functions that must be governed to achieve the desired results in the organization. trade international.

Characteristics of the classical theory

The main characteristics that are denoted to understand in greater depth the what is classical theory are the following:

  • Its promoter is Henri Fayol, who in 1916 in France exposed this theory in the book “Administration Industrielle et générale”.
  • It emphasizes structures and functions that organizations must fulfill.
  • It was developed from the Industrial Revolution due to the great changes that the world underwent.
  • This theory was given the task of introducing the concept of formal organization and informal organization.
  • Other concepts introduced were staff advisory bodies and the line within the organization.

Functions of classical theory

to organize a good management business and understand more what is classical theoryHenri Fayol divided the functions administrativewhich he called «basic functions of the organization»:

  • They are commonly related to the production of the organization.
  • Tasks such as selling, buying and exchanging products of the organization are carried out.
  • They develop the capital management of organizations.
  • They are related to the conservation of the assets of the organization and the protection of its members. business.
  • Work directly with records, inventories, balance sheets, and a evaluation criticism of the costs of the organization, in other words, it is in charge of its complete management.
  • Integration of all the functions mentioned using the elements of administration (plan, organize, direct, coordinate and control).

Exponents of classical theory

The following are the 3 authors forged the core of the contributions of the what is classical theory of the management scientific:

  • Henry Fayol (1841 – 1925): Establishing the basic principles and functions.
  • lyndall Urwick (1891 – 1983): Provided the basis for the principles of administration.
  • Luther Gulick (1884 – 1966): Contributions on the functions of the administrator.

Principles of classical theory

In what is classical theory of the administration establishes 14 principles to improve the psychologist of said theory, which were proposed by Henri Fayol for the correct functioning and efficiency in an organization, the following was declared:

  • Division of labor for the good organization of a company.
  • Authority and responsibility that will help us maintain order.
  • Discipline, where the rules established by these organizations must be respected.
  • The employee must receive orders from only one superior.
  • Individual interest that in turn generates a more important interest for the organization and not for the individual in question.
  • Remuneration of staff to assist in the equitable compensation of each worker.
  • Hierarchy to obtain the order of positions in the organization.
  • It is essential to work under an order within the company.
  • There must always be fairness, where leaders must be primarily fair to their subordinates.

Criticisms of classical theory

The main criticisms made of this management theory are:

  • The experimentation and verification of their ideas and hypotheses.
  • Human elements are not taken into account as a fundamental pillar of the organization.
  • They neglect humanization and expose employees to deplorable conditions.
  • Modern authors call the classical theory as “the machine theory” due to its repetitive actions.

The classical theory, without a doubt, represents a business model that can present various advantages and disadvantages for employees in the company, but currently there are mostly functional organizational structures that could mean obtaining more optimal results, in this sense. Would you like to know more about it? You are in the right place!

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