The Classical Organization Theory

2.1.1 What is an Organization?
Different definitions exist for the word “Organization” as mentioned by (Mintzberg, 1983):
"Every organized human activity -- from the making of pots to the placing of a man on the moon -- gives rise to two fundamental and opposing requirements: The division of labor into various tasks to be performed, and the coordination of these tasks to accomplish the activity".
While (Lawrence & Lorsch, 1967) mentions defines the organization in terms of its effectiveness:
"The most effective organizations achieve a degree of differentiation and integration in organizational boundary-spanning functions which is compatible with environmental demands"
(Blau & Scott, Formal Organization, 1962, p.5) defines it as: "Formal organization:

Hunters and collectors in tribes used to form organizations through highly royal and clerical power structures to industrial structures and today 's post-industrial structures.

 Classical Organization Theory
(David S. Walonick Ph.D., 1993) explained that “the Classical organization theory evolved during the first half of the 20th century. It represents merger of scientific management, bureaucratic theory, and administrative theory.”

Back to the beginning of the 20th century, the scientific management theory was developed by Frederick Taylor (1917) (often called "Taylorism"). His theory had four basic principles:
1) Find the one "best way" to perform each task,
2) Carefully match each worker to each task,
3) Closely supervise workers, and use reward and punishment as motivators, and
4) The task of management is planning and control.

According to (David S. Walonick Ph.D., 1993) “Taylor was very successful at improving production. His methods involved getting the best equipment and people, and then carefully scrutinizing each component of the production process. By analyzing each task individually, Taylor was able to find the right combinations of factors that yielded large increases in

The philosophy of "production first, people second" has left a legacy of declining production and quality, dissatisfaction with work, loss of pride in workmanship, and a near complete loss of organizational pride.

Max Weber (1947) expanded on Taylor 's theories, and stressed the need to reduce diversity and ambiguity in organizations. The focus was on establishing clear lines of authority and control. Weber 's bureaucratic theory emphasized the need for a hierarchical structure of power. It recognized the importance of division of labor and specialization. A formal set of rules was bound into the hierarchy structure to insure stability and uniformity. Weber also put forth the notion that organizational behavior is a network of human interactions, where all behavior could be understood by looking at cause and effect.

Administrative theory (i.e., principles of management) was formalized in the 1930 's by Mooney and Reiley (1931). The emphasis was on establishing a universal set of management principles that could be applied to all