Wolkite

University

CHAPTER - THREE
Administrative/Organisational/
Theories /School of Thoughts
 Overview
Administrative Theories /School of Thoughts

Classical School of Thought

❑Scientific Management.
❑Administrative Management
❑Bureaucracy

Neoclassical Schools
❑Human Relations Theory

Modern Theories.
❑System Theories
❑Contingency Theories
07
Quality Management
 Introduction

▪ Developed since the 1920s; highly relevant to public administration

▪ Purpose Administrative/ Organisational Theory:

✓ Explain organisational problems: structure, interrelationships, coordination, & internal
functioning
✓ Understand human behaviour in organisations and organisational functioning.
✓ Bases and ideas developed to understand, explain, & improve how organisations are managed
& structured
✓ Provide insights on optimising administrative processes
✓ Aim to enhance efficiency, effectiveness, and productivity within organisations
 Cont.…

▪ Relevance: Particularly important for public sector organisations delivering goods and services

▪ Three Broad Schools Of Thought:

✓ Classical School of Thought (Scientific Management, Administrative Management &
Bureaucracy)
✓ Neo Classical Schools (Human Relations Theory)
✓ Modern Theories (System Theories, Contingency Theories, Quality Management

▪ Each school includes multiple sub-theories

1. Classical School of Thought

❑Scientific Management.
❑Administrative Management
❑Bureaucracy Theory
 1. The Classical Theory
The Classical Theory of Organisation/Administration
▪ Also known as Structural Theory or Scientific Administration Theory
▪ Key proponents: Frederick W. Taylor, Henri Fayol, Luther Gulick, James Mooney
▪ Main concern: Developing universal principles of organisation
▪ Focuses on:
✓ Formal organisational structure
✓ Identifying activities needed to achieve objectives
✓ Grouping activities for efficient specialisation and coordination
▪ It is a foundational approach to management and organisational design that emerged in the late 19th
and early 20th centuries.
▪ It emphasises formal structures, clear hierarchies, and systematic processes to improve
organisational efficiency and effectiveness.
 Cont...

▪ Classical Management Theory: This includes the works of Henri Fayol, Frederick Taylor, and
Max Weber.

1. Frederick Taylor: Developed Scientific Management, which focuses on improving efficiency

through time studies, work specialisation, and standardised procedures.

2. Henri Fayol: Proposed 14 principles of management, such as division of work, authority,

discipline, and unity of command.

3. Max Weber: Introduced the concept of bureaucracy, emphasising a structured, formal

organisation with clear hierarchies and rules.

 Main Features of the Classical School

1. Determining Objectives: 2. Specialisation and Groupings

▪ The basic purpose of determining organisational ▪ Specialisation is the basis of efficiency
objectives is seen as being to: ▪ Emphasises effective grouping of specialist
✓ Establish management priorities
functions.
✓ Indicate key departments and activities
✓ Ensures human & material resources align with objectives.

Principles /factors/ of Grouping

▪ Span of control: one manager can supervise only a limited number of subordinates.
▪ Economies of scale: group activities to reduce costs and improve efficiency.
▪ Coordination: grouping should improve integration of efforts.
▪ Unity: interdependent, long-term activities should be under one head.
 Cont...

3. Delegation 4. Divisionalization
▪ It is the institutionalized right to make decisions or ▪ Divisionalization: dividing the organisation by
give orders on behalf of an organization. product, geography, or service.
▪ Transfer of decision-making authority to the lowest
5. Hierarchy & Centralization:
possible level for specific tasks or jobs
▪ Hierarchy: A structured chain of command
•Promotes:
where authority flows from top to bottom.
✓ Economies of scale & specialisation
▪ Centralization: Concentration of decision-
✓ Employee initiative & job satisfaction
✓ Stronger identification with organizational goals making authority at the top of the hierarchy.
 Cont...

6. Specifying Responsibility 7. Line and Staff Relations

▪ Establishes clear vertical (line) and horizontal (staff)
▪ Responsibility follows from authority & result
relationships.
of exercising power
▪ Ensures:
▪ Clear responsibilities help: ▪ Clear communication channels
▪ Avoid confusion and conflict ▪ Clear accountability
▪ Ensure accountability ▪ Coordination among units
▪ Limit unnecessary interference by supervisors ▪ Line Function: direct contributors to goals.
▪ Staff: supporting/advisory functions/ indirect contributors
 Scientific Method in the Classical Approach

▪ The Classical School applies the scientific method to achieve desired results in the workplace.

Investigate the
Obtain information
Identify the proposition Formulate a hypothesis objective systematically
about the objective
(objective) about the objective by controlled
through observation
experiments

Set priorities and Adjust and implement

State tentative answer
clarify the data the answer to the
to the objectives
obtained objective
 1. Scientific Management

Frederick W. Taylor (1856- 1915)

▪ Founder of Scientific Management
▪ One of the first people to study the behaviour & performance of people at work
▪ He believed that by increasing specialisation and the division of labour, the
production process would be more efficient.
▪ Early classical thinkers focused on improving management to increase
productivity.
▪ He argued that work should be studied scientifically to find the most efficient
method.
▪ Objective is to improve productivity and efficiency through scientific analysis
of work processes
 Cont.……

Core Concepts of Scientific Management

▪ Management, not labour, is the key to solving industrial problems.
▪ Advocated a “mental revolution” to align labour and management interests.
▪ Emphasised mutual understanding and better labour and management relations.
▪ Promoted scientific study of work, specialization, standardization, and efficiency.
▪ Suggested scientific selection, training, weakness reduction, and wage incentives.
▪ Productivity was believed to rise through better job design and financial incentives.
▪ Tasks can be broken into small, measurable steps to improve performance.
▪ Workers are primarily motivated by higher wages earned through increased output.
▪ Scientific management aims to improve coordination, control, and standardisation of work.
 Cont.……

Principles of Scientific Management

1. Development of a true science of work: Management should study each job carefully, break it into
tasks, measure each task, and determine the most efficient method to perform it.
2. Scientific selection, training, and development of workers: Employees should be chosen based on
their abilities for specific tasks and then trained scientifically rather than left to learn on their own.
3. Co-operation between management and workers: Management must work closely with employees,
guiding and supporting them to ensure tasks are performed according to the scientifically established
method.
4. Equal division of work and responsibility: Management handles planning, organising, and
supervising the work, while workers focus on executing tasks.
▪ Responsibilities are shared so each does what they are best suited for.
 Cont.……

Relevance of Scientific Management – F.W. Taylor

▪ Developed during the industrial reorganization era with large, complex organizations.
▪ Focused on improving the efficiency of workers and management.
▪ Aimed to enhance management labour relations and overall industrial productivity.
▪ Workers are viewed as rational economic beings, motivated by monetary incentives.
▪ Emphasis on standardized procedures; workers treated as units of production, “machine theory
model.”
▪ It led to significant improvements in productivity and efficiency in manufacturing and other
industries & placed the groundwork for later management theories and practices
▪ Modern critique: Seen as overemphasis on efficiency, rigid and dehumanizing (neglect of Human
Factors), despite the criticisms, foundational for the systematic study of industrial efficiency.
 Cont.……

Relevance of Scientific Management – F.W. Taylor

▪ Developed during the industrial reorganisation era with large, complex organisations.
▪ Focused on improving the efficiency of workers and management.
▪ Aimed to enhance management labour relations and overall industrial productivity.
▪ Workers are viewed as rational economic beings, motivated by monetary incentives.
▪ Emphasis on standardized procedures; workers treated as units of production, “machine theory
model.”
▪ Modern critique: Seen as rigid and dehumanising, despite the criticisms, foundational for the
systematic study of industrial efficiency.
2. Administrative Management Theory

Henri Fayol (Administrative Management Theory)

▪ Henry Fayol (1841–1925): French industrialist; father of Operational or
Administrative Management Theory.
▪ Focused & defined on managerial roles or functions: planning, organising,
commanding, coordinating, & controlling.
▪ Emphasised the need for guiding principles for managers.
▪ Proposed 14 Principles of Management (Fayol, 1949).
▪ Considered the first complete theory of management.
▪ Classified organisational activities into six groups:
• Technical, Commercial, Financial, Security, Accounting, & Administrative.

▪ The objective is to establish general principles of management applicable to

all types of organizations.
 Cont.……

14 Principles of Management

Authority: Managers
Division of Work: Discipline: Unity of Command: Unity of Direction:
must have the
Specialisation Obedience to rules is One supervisor per One plan for group
authority to do/ match
increases efficiency essential employee efforts
the responsibility

Subordination of Centralization: Scalar Chain: Clear Order: Right person

Individual Interests: Remuneration: Fair Balance between line of authority; in the right place/
Organisation’s pay for work centralization and communication flows proper organization of
interest first decentralization along chain materials & resources

Stability of Tenure:
Equality: Fair and Esprit de Corps:
Long-term Initiative: Encourage
just treatment of Promote team spirit
employment employees’ initiative
employees and morale
improves efficiency
 Cont.……

Other Contributors:
Mooney & Reiley (The Principles of Luther Gulick: developed POSDCORB
Organisation, 1939)
▪ Identified core managerial functions using the
▪ Organisational structures are based on
acronym POSDCORB:
superior–subordinate relationships.
• Planning
▪ Defined the scalar principle: hierarchy with
• Organizing
graded duties, authority, and responsibility. • Staffing
▪ Scalar principle incorporates: • Directing
• Leadership: Superiors guide and direct subordinates.
• Coordinating
• Delegation: Authority and responsibility are passed down to
subordinates.
• Reporting
• Functional Definition: Roles, duties, & responsibilities are clearly defined • Budgeting
 3. The Bureaucracy Theory
▪ Meaning of Bureaucracy
✓ First used in 18th-century France to describe “the government in operation.”
✓ Term combines “bureau” (office/department) and “cracy” (rule/government).
✓ Accurately refer to the rule by governmental offices.
✓ Refers to a system of official rules and procedures used in government or organisations.
✓ Often involves complex administrative structures and non-elected officials.
▪ Bureaucracy as an Organizational Form
✓ Deliberate division of labour, power, and communication to achieve set goals.
✓ Existence of power centres that guide organisational effort and assess performance.
✓ Classification of personnel based on function, hierarchy, and specialization
• The objective of bureaucracy theory is to create a formal organizational structure with clear rules and
hierarchical authority.
 The Weberian Model of Bureaucracy

▪ Developed systematically by Max Weber, a German sociologist of the 19th century

▪ Every organisation has a bureaucratic structure of activities (means) directed toward achieving
objectives (ends)
▪ Every organisation relies on task specialization and formal rules.
▪ Designed to maximise efficiency through rational procedures.
▪ Considered the most effective form of organisation for precision and stability.
▪ Ensures discipline, reliability, and consistency in operations.
▪ Bureaucracy attains the highest efficiency by using rational and objective means to achieve
organisational goals.
▪ Considered superior to other forms of organisation in precision, stability, discipline, and reliability.
 Cont.…

Factors Contributing to the Growth of Bureaucracy (Weber)

❑Large-scale organisations and corporations
✓Growth of complex administrative structures
✓Bureaucracy becomes indispensable despite its potential drawbacks
❑Expanding technical knowledge and modern technology
✓Specialisation required for high efficiency
✓Necessary across all economic systems (capitalist or socialist)
❑The capitalist system
✓Capitalism drives the need for a stable, well-organised bureaucracy
✓Ensures predictable and efficient functioning of the state
 Cont.…

Weber’s Two Key Aspects of Bureaucracy

1. Bureaucracy as a social mechanism

▪ Maximizes efficiency in administration

▪ Ensures rational organisation and execution of tasks

2. Bureaucracy as a form of social organisation

▪ Consists of institutionalized strategies to achieve administrative objectives

▪ Achieved through coordinated efforts of multiple officials

 Cont.…

Structural and Behavioural Characteristics of Bureaucracy

▪ Division of Labour: Tasks are specialised; jobs are assigned based on qualifications or training.

▪ Hierarchy: Clear chain of command; supervision by higher offices; promotion based on merit/seniority.

▪ Rules: Formal, consistent rules applied to all cases to prevent favoritism or arbitrariness.

▪ Rationality: Decisions based on technical competence; personal desires excluded; results measurable.

▪ Impersonality: Officials follow obligations, not personal preferences or emotions.

▪ Rule Orientation: Strict adherence to rules ensures discipline, proper conduct, and efficiency.

▪ Neutrality: Bureaucracy is apolitical and value-neutral, focusing solely on its official functions.
 Cont.…

Max Weber on Bureaucratic Procedures

▪ Bureaucratic procedures command actions through prescribed, abstract rules designed to ensure

uniformity in administrative actions.

▪ These rules are broad and general at higher levels and become more detailed at lower

hierarchical levels to guide diverse operational tasks.

 Cont.…

Criticisms of Weberian Bureaucracy

▪ Bureaucracy is often criticized for its mechanistic and regimented nature, emphasizing strict
discipline, predictability, and formalism.
Key Criticisms
▪ Officials perform only small, segmented tasks with little control.
▪ Workers have limited personal judgment and feel isolated from their work.
▪ Strict rules require uniform behavior, reducing flexibility.
▪ General rules may cause inefficiency or unfair outcomes in specific cases.
▪ Impersonal treatment is often unrealistic in actual practice.
▪ Avoiding close relations among staff leads to practical problems.
▪ Bureaucracy has difficulty managing change, uncertainty, and non-routine tasks.
 2. Neoclassical Schools

❑Human Relations (Behavioural) Theory

 Human Relations (Behavioural) Theory

▪ Focuses on the study of motives and behaviour in organisations.

▪ Aims to develop criteria that help design organisations that stimulate member cooperation.
▪ Belongs to the neo-classical school of thought, emphasizing behavioural, humanistic, or human
relations aspects of administration.
▪ Concerned with the human relations dimension of administration.
▪ It focuses on the importance of interpersonal relationships, employee motivation & social aspects of work.
▪ Elton Mayo (Australian-born Psychologist)is identified as the major contributor to this theory
(Hawthorne Studies from 924-1932)
▪ Emphasises understanding workers as human beings with needs and motives.
▪ Argues that organisational success depends on motivating people, not just structure.
▪ Highlights the need for organisations to encourage cooperation to achieve organisational aims.
•.

Cont.…..

▪ Primarily concerned with the analysis of the behaviour of groups & individuals in organisational
settings.
▪ Emphasises understanding how people behave within the organisational context.
▪ Much of the work is experimentally based, relying on observation and studies.
▪ Concludes that social classification must be considered to explain behaviour.
▪ Organisations should plan objectives considering both staff needs and organisational goals.
▪ Positive measures should be implemented to stimulate cooperation among employees.
▪ Organisations must also take steps to avoid conflict in the workplace.
▪ The theory highlights the importance of aligning human and organisational factors for effectiveness
Neo-Classical (Human Relations/Behavioural) Theory Key Concerns

A. Needs and Wants:

▪ It studies individual wants and needs and the factors that stimulate satisfaction.
▪ Needs are classified as physical, safety, social, egoistic, and self-actualisation.
▪ Organisations should provide incentives to satisfy needs while aligning employees’ values with
organisational goals.
▪ Incentives are appeals made to personal values to induce acceptance of organisational values.

▪Types of incentives include:

• Material inducements
• Opportunities for distinction, honor, and recognition
• Good physical working conditions
• Confidence and satisfaction in social relationships
• Conformity with habitual practices
• Feeling of participation and belongingness
Neo-Classical (Human Relations/Behavioural) Theory Key Concerns

B. Work Groups C. Supervisory Behaviour

• The approach recognises the influence of groups • Preserved as a vital factor in influencing work group
on individual behaviour. behaviour.
• Individuals do not operate in isolation; group • The supervisor represents the link between the group
dynamics shape attitudes and morale. and the formal organisation.
• Employees tend to follow group pressure. • Supervisors affect how groups function and achieve
• Attitudes and morale are heavily influenced by objectives.
group associations. • Supervisory behaviour is crucial for aligning
• Problem-solving is often a group function rather individual & group behaviour with organisational
than an individual one. goals.
 Cont.…

Importance of Behavioural Studies:

▪ The neoclassical model highlights the importance of behavioural studies in organisations.
▪ During the classical time, there was a failure of public administration to consider behaviour as an
influential factor.
▪ Public administration studies in classical times tend to focus on the machinery of administration;
behavioural factors are often excluded, reducing organisational effectiveness.
▪ Any public administration system depends on both organisational factors and behaviour.
▪ Understanding behaviour is essential for organisational effectiveness.
▪ Behavioural studies help in aligning human factors with administrative functions.
 Cont.…

▪ The behavioural approach focuses on inter-group behaviour rather than individual behaviour.
▪ Emphasizes the power of groups in decision-making.
▪ Group participation has criticisms:
✓ Increases group domination of members
✓ Responsibilities become blurred
✓ Group and expert judgments may conflict
✓ Cost of reorienting supervisory functions may exceed benefits
✓ Effectiveness depends on supervisory and management attitudes
▪ Group participation is not automatically effective and needs careful management.
 Cont.…..

3. Modern Theories

❑System Theories
❑Contingency Theories
❑Quality Management
 System Theory

▪ The systems theory of management/ administration/ states that organizations represent a complex
collection of various components that work together to reach a common goal.
▪ An organization is viewed as a system, a set of interdependent parts forming a unified whole to
accomplish a defined function.
▪ An organization is made up of numerous subsystems, such as different departments.
▪ Managers using this theory examine how these subsystems interact with each other & their external
environment and affect one another, rather than analyzing them separately.
▪ They must also consider their surrounding environment and external factors that influence or affect
these systems.
▪ The systems approach further defines an organization by dividing it into different components.
 Cont.….

▪ The system theory argues that the organization is made up of five components:
1. Inputs: Inputs represent the factors that are needed to create goods and services.
• For example, inputs may include raw materials, capital, technology, or information.
2. Process: Processes represent the activities or abilities that convert the organization's inputs into
outputs.
• For example, these processes may include employees' work tasks or operational activities.
3. Outputs: Outputs represent the results produced by an organization.
• These outputs may include products, services, and financial results, such as profits.
4. Feedback: Feedback represents information related to the organization’s outcomes or outputs.
• Leaders can use this information to influence or make decisions related to the organization's inputs.

5. The Environment: These components make up internal and external factors that affect the system.
•.

Cont.….

▪ Views an organization as a coordinated system made up of interdependent parts working toward

shared objectives.
▪ Emphasizes that effective decision-making is central to organizational success.
▪ Organizational structure is designed to support information flow & facilitate sound decision-making
▪ Several theorists have contributed to system theory.
• Ludwig von Bertalanffy (1901–1972), Austrian biologist: introduced General Systems Theory, emphasising the
importance of understanding systems as wholes.
• Daniel Katz and Robert Kahn(1966), American social psychologists: Developed the concept of open systems in
organisations, focusing on the interaction between organisations and their environments.
• W. Edwards Deming(1900–1993): American business theorist, economist, and so. He advocated for systems
thinking in quality management and organisational improvement.
•.

Cont.….

Key Concepts of Systems Theory

▪ System: A set of interrelated components working together towards a common goal.

▪ Subsystems: Smaller systems within a larger system, each with specific functions and objectives.
▪ Environment: External factors influencing the system, including social, political, economic, and
technological elements.
▪ Feedback Mechanism: Processes that enable systems to adjust based on performance &
environmental changes.
•.

Cont.….

Types of Systems

Open Systems: Interact with their environment,

Closed Systems: Do not interact with their
exchanging information, resources, and energy.
environment; operate independently.
For example, Public organisations that engage with
Such systems are rare in public administration
citizens and stakeholders.
 Cont.…..

Characteristics of Systems Theory

❑Holistic Approach: Focuses on the entire system rather than just its parts.

❑Interdependence: Components are interconnected; changes in one part affect others.

❑Dynamic Nature: Systems are constantly changing and adapting to their environment.

❑Synergy: The collective output of the whole system is greater than the sum of the

outputs of its subsystems.

 Cont.…..

Advantages of System Theory

▪ Systems theory offers numerous advantages for Public Administration.

▪ Promotes a comprehensive understanding of complex organisational dynamics.
▪ Encourages collaboration and communication among different parts of an organisation.
▪ Facilitates better decision-making by considering the broader context and
interdependencies.
 Cont.…..

Limitations of System Theory

▪ This theory deals with excessively abstract and complex concepts, making practical
application challenging.
▪ May overlook individual behaviours and motivations within the system.
▪ Risk of oversimplifying the interactions and dynamics of real-world organisations.
 Contingency Theory

▪ The contingency management theory suggests that there is no one best way to manage an organization.
▪ It states that there is no single management approach that fits every organization.
▪ The most effective management style depends on the situation.
▪ Leaders who apply this theory do not rely on a single management style; they adapt their approach
based on circumstances.
▪ The choice of management style is influenced by factors such as the organization’s size, technology,
and environment.
▪ Leaders develop additional traits and skills to effectively employ diverse management strategies.
▪ Using a range of styles makes leaders more flexible and adaptable, enhancing their effectiveness in
the workplace.
 Cont.…..

▪ This theory outlines three variables that it believes influence an organization's structure:
▪ The organization's size.
▪ The technology it uses.
▪ The leadership styles.
▪ An effective manager understands these factors and how they may impact performance.
• For example, a small organization may represent more flexibility and less separation between departments,
whereas a large organization may be more complex and divided.
▪ Managers in smaller organizations can have more control over processes due to their flexibility and
potentially make changes to them more easily.
▪ Key Contributors include Fred Fiedler (1922 -2017), leading Austrian researcher of industrial and organizational
psychology, Paul Hersey, and Kenneth Blanchard (US) developed Situational Leadership Theory
 Cont.…..

Features of the contingency theory

▪ Based on Situation: Management style depends on the situation; there is no single style suitable for all situations.

▪ Provides Solution: Offers the best solution according to the behavioral patterns of the organization.

▪ Inter-Relationship: Connects situational variables with managerial actions, considering environmental factors.

▪ Structural Adaptability: Managers adjust to changing circumstances and organizational structures.

▪ Practical Approach: practical, flexible, and adapts to environmental changes, avoiding outdated policies.

▪ Analytical: Analyzes the link between environment & managerial actions, bridging gaps in existing theories.

▪ Suggest Alternatives: Provides both qualitative and quantitative suggestions, offering multiple alternatives.

▪ Improved Approach: Recognizes and integrates organizational subsystems effectively with the environment.
 Cont.…..

Limitations of the Contingency Approach

▪ Lack of Theoretical Base: Lacks a solid theoretical foundation to guide actions in specific
situations.
▪ Difficulty in Testing: It is a very complicated job to test this approach because this approach
is based on experience and practice. There is no set of principles for this approach.
▪ Limitation of Pro-activeness: Reactive rather than proactive; managers respond to situations
instead of anticipating them.
▪ Tedious: Only saying that deciding according to the situation is not a solution requires
detailed analysis of situations, making it time-consuming and complex to apply.
• Therefore, to apply this approach in practice is very complicated, not simple.
 Quality Management Theory

▪ Quality Management is the act of overseeing all activities and tasks that must be accomplished to
maintain a desired level of excellence.
▪ This includes the determination of a quality policy, creating and implementing quality planning and
assurance, and quality control and quality improvement.
▪ It is also referred to as Total Quality Management (TQM).
▪ Quality management emphasizes making sure that an organization’s products or services
consistently meet customer needs and fulfill quality standards.
▪ It highlights continuous improvement, customer satisfaction, and reducing mistakes and errors.
▪ TQM Concepts developed in Japan beginning in the late 1940s and 1950s, pioneered there by W. Edwards
Deming, Armand V. Feigenbaum, and Joseph M. Juran, jointly developed the concept of TQM.
 Cont.…..

The key principles of Quality Management/TQM

▪ Customer Focus: Priority is given to understanding and meeting customer needs and expectations:
▪ Continuous Improvement: Organizations strive for constant improvement in processes, products, and services.
▪ Employee Involvement: All employees are engaged in quality improvement and problem-solving.
▪ Process Approach: Adhering to processes is critical in quality management. Processes ensure that the proper steps
are taken at the right time to ensure consistency and speed up production.
▪ Fact-Based Decision Making: Decisions are made using data and analysis, not assumptions.
▪ Integrated System: Quality efforts are aligned and integrated across the entire organization.
▪ Strategic & Systematic Approach: Integrating quality into the organization's overall strategy and long-term vision
 Cont.…..

Advantages of Quality
Management/TQM

Higher employee morale:

Lower cost: decrease
Improves reputation: workers motivated by extra
waste as fewer defective
faults and problems are duty, teamwork work a Quality control inspector:
products and no need for
marked and sorted quickly. involvement in decisions of
separate
QM

Limitations of Quality Management/TQM

✓Initial introduction cost
✓Benefits may not be seen for several years
✓Workers may be resistant to change
 Wolkite
University

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