Classical Management Theory and Organizational Coordination

Foundational Management Theories

Taylor: Scientific Management Principles

Taylor focused on increasing productivity through the rationalization and design of work processes. The goal was to carry out each task more efficiently. Key elements include:

• Thorough division of labor based on corresponding expertise.
• Selection of workers suitable for specific tasks, matching the worker's fitness to the job.
• Requirement for specialized machinery, tools, and improved working conditions.

Fayol: Administrative Management

Fayol aimed to improve overall company productivity by designing a robust organizational structure. He divided business operations into six core functions:

1. Technical
2. Commercial
3. Financial
4. Accounting
5. Security
6. Administrative

Fayol proposed a set of principles valid for general administration, including unity of command, specialization, and centralization.

Organizational Directives and Goal Setting

Directives define the direction and claims of the firm across different time horizons:

• Purpose: The fundamental reason for which the company was created (e.g., manufacturing canned vegetables).
• Goals: Long-term objectives for the company (e.g., achieving 40% national market share leadership in the sector).
• Objectives: Short-term claims established during planning (e.g., increasing national sales by 10%).
• Subgoals: Specific breakdowns of objectives for distinct departments. These must be perfectly coordinated to ensure no conflict exists between them (e.g., increasing the production department's output by 15% to achieve a 12% sales increase).

Mintzberg's Coordination Mechanisms

According to Mintzberg, three primary mechanisms facilitate coordination within an organization:

1. Mutual Adjustment

Coordination achieved through informal communication, allowing two persons to reach concrete decisions or purchase agreements without the authority of one person prevailing over the other.

2. Direct Supervision

Occurs when one person holds power and responsibility over the work of other organizational members. The superior gives orders and controls the responsible parties.

3. Standardization

A mechanism where a worker does not need frequent verbal communication to carry out their duties; they know what they have to do upon starting work. There are three types of standardization:

• Standardization of Work Processes: Job content is pre-established.
• Standardization of Results: Prior to execution, the desired outcome the individual must achieve is set.
• Standardization of Skills: Focuses on the preparation and training of employees to ensure they can perform the job.

Understanding Collective Agreements

A collective agreement is a contract negotiated and concluded by representatives of workers and employers for the regulation of working conditions. Individual contracts signed must be adjusted within the agreement's field of application.

Regarding scope (ambito), these agreements can be:

• Sectoral
• Enterprise-level
• Workplace-level
• Lower levels