Principles of Hotel Management

parts of organisation to maximise output with the use of minimum
input. The classicists concentrate their views along with the
division of labour, organisation structure, grouping of activities
and span of control, etc. but not with its effects on the
interrelationships. It is a need model and assumes action and
communication will flow uninterrupted.
They do not envisage the development of informal groups
and their leaders who control the behaviour of their members.
According to neo-classicists, there is no scope for emotions and

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Principles of Hotel Management
sentiments and no conflicts due to elaborate job descriptions,
policy specifications, rules and regulations, clear-cut authority
and responsibility, etc. under the classical theory. In this way,
it recognises tasks and not the people.
The theory provides little scope for integrating people with
the organisation. The goals are set at the top without consulting
the subordinates who are actually, the real executors. The
decision-making is highly centralised. The theory concentrates
too much of authority at the top as the people at lower level
are considered to be the ‘inferior lot.’
The various criticisms of the classical organisation theory
should not lead one to feel that it is a useless theory and does
not offer any guidance for managerial action in an organisation.
In fact, still there are many classical principles which are applied
successfully in many organisations. It shows that though not
much, the classical theory has its validity in designing an
organisation. Scott observes, “It would not be fair to say that
the classical school is unaware of the day-to-day administrative
problems of the organisation. The classical organisation theory
has relevant insights into the nature of an organisation, but the
value of this theory is limited by its narrow concentration on the
formal anatomy of the organisation.”