Business Organisations Essay Example | Topics and Well Written Essays - 1500 words

Business Organisations - Essay Example The classical school of organisation and management thought was mainly focussed on the overall development of organisations. It comprises of three theories of management, i.e. the ‘Scientific Management Theory’, the ‘Bureaucracy Theory’ and the ‘Administrative Management Theory’. The ‘Scientific Management Theory’ is based on well developed, specifically defined and definite principles of management. Such theories are often observed to assist the effectiveness of management in the organizations in its current status and in future as well (Agarwal, 1983). In the scientific management theory, managers are responsible for enhancing the productivity of the organisation. This theory was introduced by Frederick Winslow Taylor, who is regarded as the â€Å"Father of Scientific Management†. This theory was mainly concerned with its implication in the American Economy when it faced limited competitive productivity along with GNP growt h. Subsequently, four principles of â€Å"Scientific Management† were developed by Taylor. ... l strengthen the employer-employee relationship All of these four principles significantly support the managers to resolve problems related to the productivity of the organisation. With its virtues, these principles became extremely popular in the organisations of America which later influenced the business sector of Europe as well (Hartman, n.d). The â€Å"Bureaucratic Theory† was put forward by Max Weber which largely influenced the management philosophy of organisations in the 20th century with its emphasis on the organisational structure (Agarwal, 1983). According to the assumptions of the theory, the higher level authority would control and supervise the lower level in the hierarchy; the employees in the organisation must have requisite skill to be expertise in a definite task as per the ‘division of labour’. Moreover, the ‘rules and regulations’ in the organisation must be in a standard manner in order to facilitate coordination. There must also be ‘impersonal relationship to be existed in between managers and employees’ so as to develop logical decision making process in the organisation. The competency level needs to be high as this would facilitate to remove biasness while hiring in addition to promoting the employees. It is essentials for an organisation to maintain the complete records of the entire activities in the organisation (Hartman, n.d). The â€Å"Administrative Theory† was proposed by Henri Fayol. This theory was later recognised as Management Process School as it entails that management is a continuous process that can be evaluated by its functions. Because of the fact that the theory considers almost every aspect of management, it was able to gain relevance in all levels of management and in different types of organisations (Agarwal,