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Running Head: Historic Perspective of Organizational Theory

Historic Perspective of Organizational Theory

Michelle Mendez

Historic Organizational Theory

Theories pertaining to concepts of management were developed by Max Weber, Henri Fayol, and Elton Mayo. Management is the central component to an organized view on what each theory encompasses, the contributions and how the theories differ and even complementary factors. Individual contributions to management theories impact organizational power as well as the society and state which the ideas are focused. The legacy of theses theories will continue to shape business in the present and future. Organizational theory is designed to understand the nature of the organization. By which organizations can evaluate its overall business by putting the right structure and operate in different ways. Organizational theory also helps us understand how processes such as change and decision making can be managed. It deals with different structures and cultures such as large organizations have different structures and cultures than small ones, and the manufacturing organizations operate in a different way than those in the service sector. (Burton & Obel, 1984)

Frederick Taylor composed the principles of scientific management in the early nineteenth century, which marked the beginning of modern management theory (Robbins, 2000). The theory influenced management and has the greatest impact because of the insistence on application of scientific method. Furthermore, managers relied upon instinct and intuition as the source of constructive ides and information but the scientific method provided a formulation for conscious analysis.

Max Weber contributed to management theory that within a bureaucratic system the organization was continuous bond of rules and the hierarchical arrangement is where one level was subject to control by the level above. Bureaucracy lends to the notion of society becoming more integrated and more complex. Organizations have become more dependent on specialists and experts for advice and for influence. In the managerial perspective, democracy is seen as a consequence of elite competition (Alford and Friedland1985,). Henri Fayol, an industrialist divided the management structure into six basic groups, technical, commercial, financial, security, accounting and managerial activities. The six categories or groups are not absolute but can be manipulated according to purpose and need. Fourteen general principles of management were developed such as organize, delegate, staff, control, co- ordinate, lead and budget, your organization will prosper with efficiency and effectiveness therefore bringing great productivity. An administrative principle is a major contribution because this creates a narrower process of developing and maintaining procedures. The principle gives clear structure and rules and takes into consideration the changing environment and it applies to the organization, powers, duties and information that sets each organization apart and the basis for which all employees can be trained. A rigid form of rules and power being still govern any organizations so that uniformity can be establi...

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