Classical Efficiency Theory Composition

Time-honored organization theory

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Taylor's scientific supervision approach

Weber's bureaucratic way

Administrative theory

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Time-honored organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase management efficiency. Taylor presented technological management ideas, Weber gave the bureaucratic approach, and Fayol developed the administrative theory from the organization. They each contributed substantially to the progress classical firm theory. Taylor's scientific administration approach

The scientific supervision approach produced by Taylor is based on the concept of planning of work to accomplish efficiency, standardization, specialization and simplification. Recognizing that the method of increased output was through mutual trust between managing and personnel, Taylor advised that, to enhance this amount of trust, • the advantages of productivity improvement should go to workers, • physical stress and panic should be eliminated as much as possible, • capabilities of workers must be developed through training, and • the conventional 'boss' concept should be taken away.

Taylor designed the following four principles of scientific management for bettering productivity: • Science, certainly not rule-of-thumb Aged rules-of-thumb should be supplanted with a scientific method of each element of a person's operate. • Scientific selection of the worker Organizational members ought to be selected depending on some evaluation, and then educated, taught and developed. • Management and labour cooperation rather than issue Management will need to collaborate with all organizational members so that most work can be done in conformity with the clinical principles developed. • Technological training from the worker Employees should be qualified by experts, using clinical methods. Weber's bureaucratic procedure

Considering the firm as a portion of wider society, Weber (1947) based the concept of the...

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