Question

Consider the following statements according to the Classical Theorists:

I. The primary motivation for individuals in an organization is primarily socio-psychological satisfaction.

II. Division of labour is considered the central tenet of organizational structure.

III. Administration is viewed as a context-specific activity whose principles vary significantly based on the nature of the enterprise.

Which of the following is correct?

• A. I and III only
• B. II only
• C. . I, II, and III
• D. II and III only

Answer 1

Answer:

B. II only

Classical Theories of Management

• Classical management theories, which emerged from the late 19th to early 20th centuries, focus on the formal structure of organizations and the efficiency of work processes. Key proponents include Frederick Winslow Taylor (Scientific Management), Henri Fayol (Administrative Theory), and Max Weber (Bureaucratic Theory).

Analysis of Statements:

• Statement I: The primary motivation for individuals in an organization is primarily socio-psychological satisfaction.
  This statement is incorrect according to classical theorists. Classical theories, particularly Taylor's Scientific Management, largely viewed workers as motivated primarily by economic incentives (i.e., higher wages). They believed that by paying workers more, they would be more productive. The socio-psychological aspects of motivation were explored later by behavioral theorists like Elton Mayo (Hawthorne Studies).
• Statement II: Division of labour is considered the central tenet of organizational structure.
  This statement is correct and aligns with classical thinking. Classical theorists strongly advocated for the division of labour (specialization) as a means to increase efficiency and productivity. Henri Fayol's 14 Principles of Management includes 'Division of Work' as the first principle, emphasizing that specialization leads to better outcomes.
• Statement III: Administration is viewed as a context-specific activity whose principles vary significantly based on the nature of the enterprise.
  This statement is incorrect according to classical theorists. Classical theorists, especially Fayol and Weber, believed in the universality of management principles. They argued that certain principles of administration could be applied across all types of organizations, regardless of their specific industry or purpose. Fayol's goal was to develop general principles of management applicable everywhere.

Key Concepts in Classical Management:

• Scientific Management (Taylor): Focused on improving efficiency at the individual worker level through scientific study of work methods, time and motion studies, and financial incentives.
• Administrative Theory (Fayol): Focused on the overall management of the organization, developing 14 general principles of management such as division of work, authority, discipline, unity of command, unity of direction, etc.
• Bureaucratic Theory (Weber): Emphasized a formal hierarchy, clear rules and regulations, impersonal relationships, and division of labour to ensure efficiency and predictability in large organizations.