Classical Theory of Organisation Streams

The Classical theory of organisation is a foundational perspective in management thought that emerged in the late 19th and early 20th centuries. It focuses on efficiency, structure, and formal organisation. This theory is not a single, unified concept but rather a collection of approaches that share common assumptions about human behavior and organisational goals. Several distinct streams contributed significantly to the development and understanding of the Classical theory.

The major streams recognised within the Classical theory of organisation include:

• Bureaucracy: Developed primarily by Max Weber, this stream emphasizes a hierarchical structure, formal rules and procedures, division of labor, impersonality, and technical competence. Weber's ideal bureaucracy was seen as the most efficient form of organisation due to its rationality and predictability.
• Administrative Theory: Pioneered by Henri Fayol, this stream focuses on the management process and principles of administration. Fayol outlined key managerial activities (planning, organizing, commanding, coordinating, and controlling) and proposed principles like unity of command, scalar chain, division of work, and authority and responsibility to guide managers in structuring and running an organisation effectively.
• Scientific Management: Advocated by Frederick Winslow Taylor, this stream is primarily concerned with improving efficiency at the operational level. It focuses on optimizing the relationship between workers and tasks through methods like time and motion studies, standardization of tools and procedures, and incentive wage systems based on output. The goal was to find the "one best way" to perform a job and increase productivity.

Each of these streams contributed unique insights and frameworks that collectively form the core of the Classical theory of organisation. Bureaucracy provided a model for formal structure, Administrative Theory offered principles for managing the overall organisation, and Scientific Management focused on optimizing individual tasks and worker productivity.

Therefore, the Classical theory of organisation encompasses the perspectives developed under Bureaucracy, Administrative Theory, and Scientific Management.