Most, if not all, companies are made up of organizations. As an organization, it consists of people who are structured and managed with a specific purpose. That purpose is to create and achieve one or more specific goals as a whole. The people within the organization all play a different role that helps to meet the goals that are set for them individually and as a whole. Each organization’s practices come from various theories that help to explain their structure, behavior, and function of these organizations. These theories consist of classical, neo-classical, and modern.
Classical Organization Theory
The classical organizational theory was created back in the twentieth century during the beginning of the Industrial Revolution. The classical theory was created from the ideas of Frederick Taylor and Max Weber. They were the ones to establish the foundation of the classical theory. This theory focuses on bringing together scientific management, bureaucratic and administrative theory. These theories focus on putting production first and the workers second (Broad, 2009).
Frederick Taylor went more for the scientific management approach. This approach is one that looks more and what can increase productivity based on what is needed. It did not take into consideration how the workers felt about their work and working conditions. This proved to be successful in the beginning but soon led to workers becoming unhappy and the quality of production suffering greatly (Broad, 2009).
Max Weber went more for the bureaucratic theory. This focused on making a clear line between the authority and control of the organization. Division of labor and specialization were important. Rules were set in place that helped to ensure stability and uniformity while