1. CLASSICAL ORGANIZATION THEORIES &NEO-CLASSICAL ORGANIZATION THEORIES

2. CLASSICAL ORGANIZATION THEORIES

3. TODAY’S PLAN Classical Organization Theories
Scientific Management Approaches
Administrative Management Approach
Management Process Theory
Bureaucratic Organizations
An Overview of Classical Organization Theories
Neo-Classical Organization Theories
Human Relations Theory
Cooperation Approach (Behavioral Science Approach)
Theory of Cooperation
Fusion Process Theory
Maturity Theory
Social System Review
Maslow’s Hierarchy Of Needs
Theory of X and Y
An Overview of Neo-Classical Organization Theories

4. CLASSICAL ORGANIZATION THEORY
Classical Organization Theory is the first theory that emerges about organization that takes the formal structure of the business as an examination and research field.
This view is striking in the works of Fayol (1916) in France, Taylor (1911), Mooney and Reiley (1932), Allen (1958) in America, Urwick (1928 and 1943) and Brech (1957) in England.
In classical theory, the organization is considered as a tool for the realization of goals and objectives, and the realization of the organization's goals by maximizing the available resources is considered in the foreground

5. CLASSICAL ORGANIZATION THEORY
There are four different approaches under the name of Classical Organization Theory.
These four approaches are: Taylor's "Scientific Management Approach", its “Administrative Management Approach" by Fayol, ‘’Management Process Theory’’ by Luther Gulick and ‘’Bureaucratic Organizations " by Weber.

6. 1. SCIENTIFIC MANAGEMENT APPROACHES
It is founded by Frederick W. Taylor who is an engineer. ( )
Taylorism
Taylor focused on work, not worker.
“Soldiering”
The task of the administrators is to find ways of doing the work in the most effective way (the best way) through scientific research.
Time and motion: How much work can be done at a certain time interval.

7. 1. SCIENTIFIC MANAGEMENT APPROACHES
Taylor's 4 Fundamental Principles of Management
Scientific Work Analysis: Management with observation, data collection and careful measurement determines the "best way" to accomplish each task.
Personnel Selection: Personnel are selected, trained and developed after the work is analyzed scientifically.
Management Cooperation: Managers should work together with workers to ensure that all jobs are working in accordance with established scientific principles.
Functional Control: While managers are concerned with issues such as planning, organizing and decision making, workers must only do the work that managers give
The aim of these principles was to improve the productivity of employees.

8. 1. SCIENTIFIC MANAGEMENT APPROACHES
Taylor wanted to bring foremanship; the managers who think that this situation will reduce the influence of hierarchy opposes to this situation.
Two important questions are tried to be answered in Taylorism:
How can productivity be improved?
How can workers be motivated?
Taylor believes that employees will be motivated by salary increases, bonuses, etc. This is called "incentive payment system"

9. 1. SCIENTIFIC MANAGEMENT APPROACHES
The Negative Aspects of Taylor's Theory of Scientific Management
Taylor took care of the "time and motion" aspects of work and neglected the needs of workers.
Taylor perceived workers as machines from a mechanical point of view. Higher yields and efficiency are considered as the measure of good management. This reduced the motivation of the workers (social and psychological factors were neglected).

10. 1. SCIENTIFIC MANAGEMENT APPROACHES
The Negative Aspects of Taylor's Theory of Scientific Management
The individual is treated as an entity which is isolated from its environment
It was believed that what was appropriate for management would be good for the worker. It is thought that high productivity allow to high profit and high profit will lead to higher salary.
People was seen as entity which acted with fear of hunger and pursued for profit. (Workers are tried to be deceived by money)
Such an understanding of management seems to have ignored an inevitable conflict of interest between the ruled and the ruler (it was not thought that it would lead to "burnout" in the long run).

11. 1. SCIENTIFIC MANAGEMENT APPROACHES
Positive Aspects of Taylor's Theory of Scientific Management
Taylor's work has shown that although it has a narrow physiological point of view and many psychological and sociological variables are ignored, many things can be done more effectively.
Taylor has helped unskilled laborers by increasing the productivity of unskilled workers and ensuring that they receive wages as much as qualified workers.
Perhaps most importantly, Taylor created "Industrial Engineering".

12. 2. ADMINISTRATIVE MANAGEMENT APPROACH
While scientific management focuses on the duties of individual workers, administrative management focuses on all organization management.
The most important contributors to the field of administrative management are Henri Fayol, and Luther Gulick.
Fayol expect the things from managers that Taylor expect from workers.
Fayol is the first person to define management as an uninterrupted process.

13. 2. ADMINISTRATIVE MANAGEMENT APPROACH
Like Taylor, Henry Fayol has approached to management from a scientific standpoint. Fayol, a French mining engineer, examines business operations in terms of major departments and collects them in six organizational action groups in the form of commercial, technical, financial, security, accounting and managerial activities.

14. 2. ADMINISTRATIVE MANAGEMENT APPROACH
Technical Actions: Associated with the production
Commercial Actions: Includes actions such as selling, buying and exchanging.
Financial Actions: Actions related to the best use of the main fund and to conduct research in this direction.
Security Actions: Actions to take necessary measures to protect human and material resources against various threats
Accounting Actions: Data collection activities related to the economic situation of the organization.

15. 2. ADMINISTRATIVE MANAGEMENT APPROACH
6. Managerial Actions: Fayol suggests that all executives fulfill five basic functions. These are:
Planning: Working on the future and making action plans.
Organizing: Organizing human and material resources.
Commanding: Having the job done.
Synchronization: to associate and integrate all actions.
Control: To check that everything in the organization is in accordance with established rules and given orders.

16. 2. ADMINISTRATIVE MANAGEMENT APPROACH
Fayol also focuses on 14 management principles that he believes should guide organizational managers. These are:
Division of Labor: According to Fayol, the division-of-work (or specialization) is necessary to achieve better and more production with the same effort.
 Authority: Fayol defines authority as the right to order and the power to obey. Responsibility which is the natural result of authority is the obligation to perform the assigned task.
Discipline: According to Fayol, discipline is absolutely essential for proper business; it is impossible for an undisciplined business to develop.
 Command Union: An employee should only take orders from an admirer. This loyalty to the principle prevent disruptions in authority and dicipline.
Direction: Jobs or tasks related to each other should be grouped under an administrator according to a common basis.
 Superiority of general interests over personal interests: The interests of groups and individuals within an organization should not be more important than the interests of the organization as a whole.

17. 2. ADMINISTRATIVE MANAGEMENT APPROACH
7. Wage: There must be a fair wage for the workers’ labor; they must satisfy both the workers and the organization.
8. Centralization: The last authority and responsibility should be in the manager, but the manager must give the necessary authority to the workers to do their jobs in the most effective way.
Chain of command: With this principle, Fayol means that each subordinate must depend on a superior and should take an order from superior.
Order: Human and material resources should be coordinated at the right time and in the right place.
Fayol considers the principle of "justice" as one of the decisive factors of the motivation necessary to carry out the duties of employees according to the principles of "commitment and loyalty“
Continuity of the Workers(stability): Successful organizations need constant labor. Managerial practices should encourage employees' long-term commitment.

18. 2. ADMINISTRATIVE MANAGEMENT APPROACH
13. Initiative: Effort and energy initiative should be added at each step of the operation. In order to encourage the spirit and creativity of the members of the organization, certain skills must be found in the manager and the importance of this subject must be understood. 14. Espirit de Corps: Fayol defines " Espirit de Corps " as an unity of action for union of interests. The most effective way of reaching the unity feeling is to take the face-to-face communication instead of the written communication on the one hand while forming the command unity on the other hand.

19. 3. MANAGEMENT PROCESS THEORY
Gulick stated that division of labor constitutes the basic element and reason for the organization. He argued that this principle emerged the neccesity of cordination and cordination can be achieved through organization and affacting the thoughts.
Gulick and Urwick developed Fayol's five management processes and created the management process called "POSDCoRB".

20. 3. MANAGEMENT PROCESS THEORY
Planning: It is the act of planning, fulfilling and finding new ways to do things.
Organizing: Provides a formal organization structure. The lower stages are created, defined and coordinated to fulfill the plan.
Staffing: Personnel are hired, trained and adapted to the job.
Directing: Directing, which is closely related to leadership, involves the task of continuous decision-making, the transmission and implementation of decisions, and the appropriate evaluation of subordinates.
Coordinating: Includes all efforts and work to achieve a common goal and to keep the organization together.
Reporting [Documentation]: The organizational development is followed by research, records and audit results.
Budgeting: Includes all work on budget planning.

21. 3. MANAGEMENT PROCESS THEORY
Organizational Principles
Fitting members to the structure
Avoiding committee work and relying on one man management
Do not give up from the unity of command
To establish two types of attendants, general and special, and to use specialists in the second group
To pay regard to homogeneity principle while distributing tasks to members
Balance authority and responsibility
Performing the authority transfer
Keeping the control area narrow

22. 3. MANAGEMENT PROCESS THEORY
Disadvantage: Formal aspect is heavy but does not involve human relations.

23. 4. BUREAUCRATIC ORGANIZATIONS
According to Weber, bureaucracy is an ideal management structure.
At the base of the formation of the bureaucracy is the desire to get rid of confusion and indecision.
Provided the most effective contribution to the Classical Organization Theory.
It is believed that Weber's bureaucracy principles (along with Fayol's 14 principles) constitute an ideal structure for organizational effectiveness.
Weber's ideal bureaucracy and Fayol's fourteen principles constituted the basis for contemporary organizational theory.

24. 4. BUREAUCRATIC ORGANIZATIONS
According to Weber, the ideal bureaucracy has the following characteristics.
Division of Labor: The work to be done in the organization has been distributed as a fixed duties (authorization) among the individuals. In most organizations, doing tasks-parting between positions increases the productivity of the organization, since tasks are more difficult for a single individual to do. For example, teachers are divided into branches. Individuals doing the same job become experts in their subjects. Specialization prepares the basis for taking the individuals into organizations on the basis of technical qualifications.
Rules: There are intentional rules and regulations in the bureaucracy. They define the duties, behaviors and rights of individuals and groups in the organization. Even if these rules are changed, the organization will produce the same way.

25. 4. BUREAUCRATIC ORGANIZATIONS
Hierarchy of Authority : According to Weber, the bureaucracy's effectiveness and productivity depend on the existence of a well-defined hierarchy of authority that removes ambiguity and determines the nature of the relationships among tasks within the organization. In the hierarchy of authority, the occupation at any level is under the supervision of a supervisor above. This situation is shown in the diagram of an organization. Hierarchy is the most striking feature of modern bureaucracy.
Impersonality: In Weber's bureaucracy, individuals are perceived not by their personalities, but by their position that they occupied in the organization. In other words, positions occupied by individuals are more important. This causes managers to make rational decisions rather than emotional decisions. When managers decide, they consider the role of individuals in the organization rather than individuals.
Proficiency: Since working in bureaucratic organizations is based on the technical skills of individuals, the individuals who work view their work as a career. According to Weber, bureaucratic organizations open up a career path to talented workers. Adequate and capable individuals should be rescued from arbitrary firing and from their unwarranted promotion obstacles. Employees should be promoted based on performance. Promotion of the individual is one of the ways that connect him or her to organization.

26. 4. BUREAUCRATIC ORGANIZATIONS
Critique for the Bureaucratic Organizations
Even if excessive task distribution creates expertise, it prevents to try new things and this leads to decrease in performance. In conclusion, it can cause to shirk or even to leave from the work.
Extreme loyalty to bureaucratic rules cause to decrease in efficiency. Because subordinates do not much participate in decision-making mechanisms.

27. An Overview of Classical Organization Theory
Key Features;
A task should be conducted in a way that requires minimum effort and time.
Effectiveness can be obtained by being divided into basic items of any business.
To coordinate the organization, decision-making is centralized with responsibility which is transferred from above to down.
The unity of command and coordination are only possible when there is a limited number of subordinates under the command of each supervisor at any level.
Part of the organization should not do the work done by other departments.
Formal organizational structure should be analyzed.

28. An Overview of Classical Organization Theory
Contributions;
They have greatly enriched management science.
They emphasized processes such as planning, orientation, organizing, coordination, budgeting and personnel selection.
They paid great attention to efficiency and effectiveness.

29. An Overview of Classical Organization Theory
Limitations
Task is focused. They are interested only in efficiency with the people in the organization.
They saw people like a wheel of a machine. They ignored psychological and social factors.
They have gone to the motivation to provide only financially.
They have tried to develop theories, which ignore people as human beings.
The informal groups in the organization and the surrounding environment are ignored.

30. An Overview of Classical Organization Theory
General Evolution
Although classical theorists view man as an efficiency machine only with a task-oriented perspective, it is important to bring the manager into a profession and to define him as an honorable work, to support the managers with various principles and techniques, to direct the managers, to show the keys of success and to manage the public in a certain place contributed.

31. NEO-CLASSICAL ORGANIZATION THEORIES

32. NEO-CLASSICAL ORGANIZATION THEORIES
Although classical organization theory was criticized in its period, it remained as an only understanding which guides for businesses. But in those years, economic changes and technological developments have led to an increase in the size of businesses. As businesses grew, the management became more complicated and central management understanding became unsufficient and managers fell into a caos. As developments continues, people became more conscious. So, the classical theory has been unable to respond to problems. With the crisis in 1929, business were in search for new management understanding. As a result, a new understanding of management emerged called as Neoclassical approach.eoclassical approach complements the gaps and shortcomings of the classical administration rather than introducing new principles to governance.The fact that people who are missing in classical management act in the direction of emotions and thoughts is the mainstay of neoclassical management. Elton MAYO, accepted as the forerunner of neoclassicism, argued that if more understanding is given to workers, industrial enterprises will gain more and more, a revolutionary approach to human beings was revealed for that period.

33. NEO-CLASSICAL ORGANIZATION THEORIES
The authors who contributed to the development of neoclassical theory came from various fields such as psychology, sociology, anthropology, social-psychology .... Therefore, the most important contribution of the neoclassical approach to the organization has been to explain how human beings behave, why they behave, and how they relate to structure and behavior within the organizational structure. Classical theory shows that human element is passive, neoclassical theory shows that human being is the factor determining the efficiency in an organization. In the transition from classical to neoclassical, scientist Hugo Munsterberg provided the bridge.

34. 1. HUMAN RELATIONS THEORY
Elton Mayo, An university professor trained in psychology and philosophy, and his colleagues near Chicago, the famous "Hawthorne Studies", which took place in the Western Electric Hawthorne Fabric between 1927 and 1933, began to measure the effect of light conditions on workers' production. Later on, the workers' behaviors were examined in terms of physiological, psychological, economic and other aspects and the effects of the results obtained on social organizations and management were monitored.
Hawthorne Studies consists of a series of experiments. Two of them stand out.

35. 1. HUMAN RELATIONS THEORY
Relay Mounting Test Chamber Experiment:
Two female workers' groups (one experiment and one control group) were created.
The lighting and environmental factors of the experiment group were changed.
After the productivity of two groups was measured and analyzed.
Improvement in efficiency in both the control group and the experimental group, regardless of the changes in light level or resting time and the length of working day and working week and even worse conditions, were found to be much higher efficiency.

36. 1. HUMAN RELATIONS THEORY
b. Serial Binding Observation Chamber Experiments:
Nine people were paid per park.
It was expected to increase productivity over time.
Unexpected results are obtained.
Group Norm (Informal): refers to standard productivity level. The "incentive wage system" was not respected.
Slings from Normal: They are disciplined by the group.
"Rate-breaker"
“Trickster"

37. 1. HUMAN RELATIONS THEORY
Results;
More than 20,000 workers who participated in the experiments were interviewed.
Complex and surprising result patterns were obtained.
It was understood that the reason for the increase in performance was not light, it was due to the fact that they were aware of the importance given to them.
Observations and interviews made during the experiments showed that the human-social element is effective at the workplace.
The increase in productivity was assessed as a result of the group's dynamics and effective management.
Human-social factors: Morale, belonging, etc.
It recognizes that productivity derives from motivation, leadership, participatory decision making and interpersonal skills in which effective communication is used.

38. 1. HUMAN RELATIONS THEORY
According to the results of the "incentive payment system experiment", informal working groups are the result of their norms, which are appropriate for the behaviors of group members. In other words, the amount of production was determined according to norms of informal group, not formal.
It was emphasized that informal leaders are as important as formal supervisors.
In short, Mayo and colleagues emphasized the importance of human behavior and human relationships in the organization. The factor that increases performance or productivity is the social elements rather than the physical elements (lighting, heating, working time, etc.). Motivation of employees, rewarding, job satisfaction etc. elements are the main factors that increase productivity. Giving worth to human, appreciation, desire to work together, level of cooperation, respect for organization, environment of love and confidence, human behavior etc are the determining factors of. productivity and quality .According to the researchers, precaution should be taken for the psychological and physical fatigue of the employees in the organization, team work and working environment should be created, communication between managers and employees should be strengthened.

39. 2. Cooperation Approach (Behavioral Science Approach)
Behavioral scientists considered both the rational-economic model of classical approachers and the social model of the human relations approach as the incomplete role of those working in the business environment.
Many authors attempted to reconcile theories of classical and human relation or to show the points of conflict between them; so the behavioral science approach emerged.

40. 2. Cooperation Approach (Behavioral Science Approach)
Chester Barnard, Theory Of Cooperation
Barnard, who has been the general manager of the New Jersey Telephone Company for many years, is one of the firsts to address the behavioral approach.
Barnard's initiative to integrate human relationships and classical management principles in a single framework has created a system of cooperation. According to Barnard,life of an organization depends on efficiency. The efficiency is viewed from the two perspectives of fulfillment of organization goals and meeting member needs. If both are provided, the life of organization becomes longer.
Fulfillment of organization goals
Meeting member needs

41. 2. Cooperation Approach (Behavioral Science Approach)
According to Chester Barnard, items of an organization are a common goal, willingness to serve and communication. They are interdependent and interactive.
Barnard recognized the organization as a system of cooperation based on consciously coordinated actions. The existence of such an organization depends on the balance between the member's contribution to the organization and the organization's ability to meet member needs. These needs are met with pecuniary, personal and ideal incentives. One of the duties of the manager is to arrange these incentives.
Barnard's authority view is based on bi-directional communication, which takes into account anyone who is affected by the use of the authority.

42. 2. Cooperation Approach (Behavioral Science Approach)
It is the concept of "acceptance area" that facilitates the acceptance of the authority in organization. In other words, every member has an area where they can accept orders by will.
According to Barnard, responsibility is the necessity of using authority. On the other hand, it acts as an accusation in cases of avoidance and misuse. But towards the upper levels of the hierarchy this accusation becomes more difficult.
Responsibility is also an expression of loyalty. In general terms, responsibility is a concept that protects manager against weaknesses towards values and its desires.

43. 2. Cooperation Approach (Behavioral Science Approach)
2. E. Wight Bakke - Fusion Process Theory
Another person who has a significant contribution to the behavioral conscious approach is Bakke, from Yale University's business and management center.
Organizations are in a fusion. That is, while the person uses the organization to achieve its own goals, the organization also uses the person to achieve its own goals.

44. 2. Cooperation Approach (Behavioral Science Approach)
3. Chris Argyris - "Maturity Theory“
Chris Argyris is the other specialist who first dealt with the human dimension in management. This management specialist published his works called Personality and Organization in 1957, Understanding Organizational Behavior in 1960, and Intergrating the Individual and Organization in 1964.
Argyris has developed a theory called "Maturity Theory" in the literature. According to Argyris, there is always a conflict between the person and the organization. The source of this conflict is seen as the maturation of the person in the organization over time, and the need for many organizations to control it.
The development process of the person in the organization
Dependency to organization and immaturty Maturity and independence

45. 2. Cooperation Approach (Behavioral Science Approach)
According to Argyris, maturity and independence are often incompatible with the basic principles of organizations.
This incompatibility between person and organization causes conflict, disappointment and failure at work.
How is the person adapting to this situation? Rising in the hierarchy, using the defensive mechanism, or being indifferent to the work. This prevents the organization from achieving its goals.

46. 2. Cooperation Approach (Behavioral Science Approach)
4. Jacob Getzels and Egon Guba - Social System Review
Social system review developed for educators is a useful theoretical structure.
There are two important dimensions in the social system:
Institution Dimension: Roles and expectations
Individual Dimension: Personality and needs
The training manager should follow a situational attitude without emphasizing one of these two dimensions.
Employees must be motivated and grouped in order to fulfill institutional expectations.

47. 2. Cooperation Approach (Behavioral Science Approach)
5. Abraham Maslow Hierarchy of Needs
The behaviorist approach is based, in large measure, on the work of Abraham Maslow, who develops the hierarchy of needs.

48. 2. Cooperation Approach (Behavioral Science Approach)
The task of the manager to fulfill the goals of the organization is to fulfill the needs of his employees.

49. 2. Cooperation Approach (Behavioral Science Approach)
6. Douglas McGregor – Theory of X and Y
Another neo-classical management theorist is Douglas McGregor. McGregor published the book Human Side of Enterprise in Based on Maslow's work, this management specialist handled and compared two different types of people, X and Y. The characteristics of two different types of people McGregor has scripted are as follows:

50. 2. Cooperation Approach (Behavioral Science Approach)
Theory X and Assumptions:
Humans do not like to work from their birth and escape from work as much as possible.
it is necessary to motivate, reward, control and punish people because they do not like to work.
Generally, people tend to run away from responsibility and wish to be managed rather than manage. Security is especially important in the job.

51. 2. Cooperation Approach (Behavioral Science Approach)
Theory Y and Assumptions:
For every people, working is a natural desire such as taking rest and having fun. Working can be a source of satisfaction for the people.
Only controling from the outside and punishing may not lead the individual to realize the organizational goals. Man can achieve goals by self-directing and supervising.
Giving responsibility and authority to people create an opportunity to reveal his or her self and personal skills. This kind of satisfaction therefore allows the organization to achieve its objectives.

52. 2. Cooperation Approach (Behavioral Science Approach)
Theory Y and Assumptions:
Escaping from responsibility is not a property that is fixed in nature of human.
Creativity, high-capacity imagination, skill to solve the problems in the organization are available in the employees.
Under the conditions of contemporary industrial life, very little of the available potential in human beings is utilized.

53. 2. Cooperation Approach (Behavioral Science Approach)
McGregor's theories of X and Y essentially emphasize the importance of human relations in the organization. According to McGregor, to improve organizational performance, it is necessary to adopt the Y theory, which attaches importance to communication, motivation and rewarding, giving authority and responsibility.

54. An Overview of Neoclassical Organization Theories
Contributions;
The effects of informal groups on motivation and productivity have explained.
The importance given to individual and informal groups has led to the emergence of participatory management understanding.
The opportunity to participate in the decision of the businessmen with the idea of increasing the production has been given.

55. An Overview of Neoclassical Organization Theories
Limitations;
Like how classical theories have focused on organizational dimension, neoclassical theories have focused on individual and informal group dimensions.
The interaction with the surrounding environment is ignored.

56. References
İstanbul İşletme Enstitüsü Yönetim ve Organizasyon Eğitim Materyalleri
Richard L. Daft, Jonathan Murphy & Hugo Willmott, (2017) “Organization Theory & Design” Third Edition

57. Thank You for Your Listening