Question

Assertion (A): Classical theory's neglect of informal organization leads to a static model uninfluenced by external environments.

Reason (R): Systems approach highlights this limitation, as classical views organizations as closed systems focused on formal structures.

• A. Both A and R are true, and R is the correct explanation of A
• B. Both A and R are true, but R is not the correct explanation of A
• C. A is true, but R is false
• D. A is false, but R is true

Answer 1

Answer:

A. Both A and R are true, and R is the correct explanation of A

Classical Theory and its Limitations

• The Classical Theory of management, encompassing approaches like Scientific Management (Taylor), Administrative Theory (Fayol), and Bureaucracy (Weber), primarily focused on the formal organization.
• It emphasized principles such as specialization, hierarchy, chain of command, and unity of command to achieve efficiency and rationality.
• A significant criticism of this theory is its neglect of the informal organization – the social relationships, norms, and networks that emerge spontaneously within a formal structure.
• This oversight resulted in a static model that treated organizations as self-contained units, largely ignoring the dynamic impact of their external environment (e.g., economic, social, political factors).
• Consequently, classical theory presented a rigid and somewhat unrealistic view of organizations, unable to adapt to change effectively.

The Systems Approach as a Corrective

• The Systems Approach emerged as a more comprehensive way to understand organizations by viewing them as open systems.
• An open system is one that interacts with its environment, receiving inputs, transforming them, and producing outputs.
• This approach directly addresses the limitation of the classical theory by highlighting that organizations are not closed and are heavily influenced by external factors.
• It recognizes the importance of both formal and informal elements within the organization and their interplay.
• The systems approach posits that for an organization to survive and thrive, it must achieve equifinality – the ability to reach the same end goal through different means and in response to varying environmental conditions.
• Therefore, the systems approach correctly identifies and explains the static nature and environmental insensitivity inherent in the classical theory's focus on closed, formal structures.