Question

Consider the following statements regarding Classical Theory of Administration:

I. The classical theory was developed during the first half of the twentieth century, with major exponents including Henry Fayol, Luther Gulick, and Lyndall Urwick.

II. This theory reached its zenith in 1937 with the publication of "Papers on the Science of Administration" by Gulick and Urwick.

III. Classical theory is also known as the structural theory and management process school, focusing exclusively on shop-floor efficiency like Taylor's scientific management.

• A. Only I and II are correct
• B. Only II and III are correct
• C. Only I and III are correct
• D. All are correct

Answer 1

Answer:

A. Only I and II are correct

Classical Theory of Administration

• The Classical Theory of Administration emerged in the early 20th century, primarily between 1900 and 1930.
• Prominent figures associated with this theory include Henry Fayol (considered the father of modern management theory), Luther Gulick, and Lyndall Urwick.
• Fayol's contributions, particularly his 14 Principles of Management and the functions of management (planning, organizing, commanding, coordinating, and controlling), are foundational to classical theory.
• Gulick and Urwick's seminal work, "Papers on the Science of Administration", published in 1937, is often seen as a major milestone and a culmination of classical management thought.
• Classical theory is also referred to as the structural theory or the management process school.
• While it emphasized organizational structure and efficiency, it primarily focused on administrative principles and the overall management process, rather than exclusively on shop-floor efficiency as Taylor's scientific management did. Scientific management (associated with Frederick Winslow Taylor) is a distinct but related stream within the broader classical approach, focusing more on micro-level efficiency at the worker level.
• Classical theory assumes a rational and economic view of man, believing individuals are motivated primarily by economic incentives.
• It often overlooks the social and psychological aspects of human behavior in organizations.