Classical Organizational Theory

Front

What is the primary reason organizations exist according to Classical Organizational Theory?

Back

Organizations exist for economic reasons and to accomplish productivity goals.

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What is the basic ingredient of any organization?

Back

The basic ingredient of any organization is the system of differentiated activities that are linked to each other.

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What role do people play in an organization?

Back

People perform tasks and exercise authority.

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What does cooperation toward a goal imply in an organization?

Back

It implies unity of purpose in pursuit of their common goals.

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What is the significance of authority in an organization?

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Authority ensures cooperation among people pursuing their goals.

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What assumption does Classical Organizational Theory make about organizational structure?

Back

It assumes there is a 'right' structure for an organization and one best configuration to accomplish goals.

Front

What method does Classical Organizational Theory suggest for identifying the best way to organize for production?

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Scientific Analysis will identify the one best way to organize for production.

Front

What does Classical Organizational Theory deal with to increase management efficiency?

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It deals with the formal organization and concepts.

Front

How do people and organizations act according to Classical Organizational Theory?

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Both people and organizations act in accordance with rational economic principles.

Front

What is the Functional Principle in organizational theory?

Back

The concept behind division of labor, where organizations should be divided into units that perform similar functions into areas of specialization.