Question

Consider the following statements regarding Division of Labour in Classical Theory:

I. Division of labour is the central tenet of classical theory, advocating the 'economic man' concept where people are motivated only by material rewards.

II. Classical thinkers believed that the efficiency and economy of the organization can be maximized when established with certain fundamental principles.

III. The theory posits that administration is the same everywhere, irrespective of the nature, type, or context of work, leading to universal validity of principles.

• 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:

D. All are correct

Division of Labour in Classical Theory

Core Tenets and Concepts:

• Centrality of Division of Labour: The classical theory places significant emphasis on the division of labour as a cornerstone for increasing productivity and efficiency. This concept suggests that breaking down a complex task into smaller, specialized sub-tasks, and assigning each sub-task to a different worker, leads to greater output.
• 'Economic Man' Concept: This theory is closely associated with the idea of 'economic man', which posits that individuals are primarily motivated by self-interest and material rewards. In the context of division of labour, it implies that workers will be more diligent and productive when their efforts are directly linked to economic incentives.
• Maximizing Efficiency and Economy: Classical thinkers, such as Adam Smith and Henri Fayol, believed that organizations could achieve maximum efficiency and operational economy by adhering to certain fundamental principles of management and organization. Division of labour was seen as a primary driver of this efficiency.
• Universality of Principles: A key assumption of classical theory is the belief in the universal applicability of administrative principles. It suggests that effective management techniques and principles are the same across all types of organizations, regardless of their size, purpose, or the specific nature of the work being performed. This contrasts with later contingency theories, which emphasize the importance of situational factors.

Key Figures and Contributions:

• Adam Smith: In his seminal work, The Wealth of Nations (1776), Smith famously illustrated the benefits of the division of labour using the example of pin manufacturing, demonstrating how specialization dramatically increased output compared to individual craftsmen making the entire product.
• Henri Fayol: A pioneer of administrative theory, Fayol identified 14 principles of management, many of which implicitly or explicitly support the division of labour and specialization as means to enhance organizational effectiveness.

Implications for Administration:

• The classical approach laid the groundwork for modern organizational structures, emphasizing hierarchy, specialization, and formalization to achieve predictable and efficient outcomes.
• The focus on efficiency and rationalization through division of labour has had a lasting impact on industrial and organizational practices worldwide.