What is classical and contemporary organization theory of management?

Certainly the importance of the values ​​and ethics of the business organization cannot be ignored. Therefore, through this guide we will talk about what is the classical and contemporary organization theory of administration , in this way you will be able to determine the differences between each one.

The basic types of organizational structures of companies are diverse, but many start from the principles of classical theory and contemporary management theory. Given this, let’s know a little about it.

Classical theory of the organization of the administration

The history behind business organization and administration is extensive, in any case, there are a few figures that we can highlight from the rest. Being more specific, and already in contemporary times, the emergence of the classical organization is mainly due to the figure of Frederick Winlow Taylor .

Taylor was born in 1856 in Philadelphia, United States, standing out as an excellent promoter of new ideas, for which he became one of the most important figures in the organization of the industry . Taylor established organizational principles that allowed for an efficient company. Being one of the first to establish analysis as a fundamental aspect.

In any case, he was not the only one to establish organizational principles thought for the industry and the company. Another well-known figure in this field was Henry Ford, who would establish a mass production system that would be revolutionary for later industrial development.

Now, the history is extensive and there are many who intervened for the development of the “classical” organization . In any case, we can indicate certain principles present in this type of organization.

Principles of classical organization theory

  • Efficiency: efficiency is the primary principle of classical organization theory, being its foundation.
  • Qualified personnel: the theory contemplates that the most qualified personnel must be sought to carry out a specific task.
  • Adequate planning: in turn, planning is relevant to prosper according to classical theory.
  • Employee evaluation: employee performance will be evaluated on an ongoing basis.

In addition to the above, at the administrative level, it is common to see directors and different managers , who have power over other people. These personnel are usually the ones who make the most relevant decisions, and the rest simply obey the regulations that they set.

Contemporary organization theory of administration

The views on contemporary organizational structure are diverse. Some people accept it as the most appropriate way to work, but it has many detractors. Either way, let’s take a look at the principles of this type of organization. Anyway, it is very important that you deeply analyze the advantages and disadvantages of an organizational change .

Perhaps the main foundation of contemporary organization is that flexibility is one of the most relevant principles. Clearly the work is relevant, but other factors that many consider more “human” are taken into account .

In fact, contemporary organizational structures establish that a happy person will work more adequately . For this reason, the welfare of the worker is sought, something that conflicts with the structure of the classical organization, which usually seeks business performance before the human development of the staff.

Contemporary theory and empowerment

In contemporary theory we find the “empowerment”, essential in the team structure. It represents a main aspect of contemporary organization, in which all team members establish a work plan in a democratic way.

In contemporary organizational systems , hierarchy does not exist (or is very limited). In fact, in this type of systems, employees, bosses (managers) and others involved directly intervene in the proposal of ideas and the general development of the company.

The contemporary organizational structure requires that those in charge work for the welfare of all . Given this, the human departments section is essential.

There are many views related to classical and contemporary organization. Some fervently defend classical organization, others view contemporary organization as lacking in seriousness, and many see it as the path of the new century. In any case, the importance of organizational culture in companies to be successful is undeniable.

 

by Abdullah Sam
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