Organizational Theory.docx - Running head ORGANIZATIONAL THEORY Organizational Theory Student’s Name University of Affiliation 1 ORGANIZATIONAL THEORY

Organizational Theory.docx - Running head ORGANIZATIONAL...

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Running head: ORGANIZATIONAL THEORY 1 Organizational Theory Student’s Name University of Affiliation
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ORGANIZATIONAL THEORY 2 Organizational Theory Pin Introduction Division of labor is when tasks, projects, or other activities in an organization are divided into different parts or processes, which are later distributed to individuals or groups depending on their aptitude and ability. For instance, in a mass-scale production firm, employees are grouped depending on the type of work they perform such as electricians, technicians, and supervisors. Division of labor may be classified as international, territorial, complex, and simple divisions of labor. There are both advantages and disadvantages associated with the division of labor. Adam Smith is so important to classical theorists due to the production of The Wealth of Nation . This is a book he wrote in 1776 and is regarded as the beginning of classical economics. The central message in Smith’s The Wealth of Nation is that a country’s wealth depends on its national income but not the richness in the monarch’s coffers (Elmslie, 2018). Further, Adam Smith emphasized the significance of division of labor in realizing the required national income. Smith's idea that the labor of a nation's inhabitants, which is guided by the use of accumulated capital and division of labor (is the basis of the national income) is now the central concept in classical economics. Many other classical theorists have based their work on this concept. Smith’s classical economic growth theory is characterized by four fundamental propositions that are interrelated (Shafritz, Ott, & Jang, 2015). Firstly, he notes that increasing division of labor is an essential force required to drive productivity. Secondly, he notes that increased division of labor is supported by both a rise in the levels of production and market scales. Thirdly, Adam Smith argued that an increase in the scale of production and division of
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ORGANIZATIONAL THEORY 3 labor results in a rise in the levels of a country investment. Fourthly, the improvement in technology is an outcome of labor division. At the time when Smith was preparing his work, “The Wealth of Nations,” one of the most significant that was happening at this point is that his country was experiencing a lot of strife with its colonies. One Best Way In F.W. Taylor’s system of management, the management of factories is entirely based on scientific methods. One of the aspects that formed an essential part of the classical school but had no impact on Taylor's scientific management is the empirical "thumb rule." The "rule of thumb" was a common approach during the 19 th century but Taylor only focused on developing his model of "scientific management" (Waring, 2016).
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