Classical approach techniques were founded in the early 1900’s and is the foundation of many modern management theories.
The classical approach concentrates solely on the economical and physical stance of an organisation.
Henri Fayol’s studies show that centralisation should require a balance of centralisation and decentralisation.
This balance allows change in the classical management era to be communicated effectively and also enables decisions to made from the upper hierarchy.
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However in modern organisations, various different types of hierarchy structures can be implemented inorder to suit the business needs.
For example Flat structure and Matrix structure, the flat structure gives employee’s more decision making responsibility with fewer layers of management from the director to the worker, on the other hand a matrix structure has various management and supervisory layers from top to bottom.
However American modernist named Melville Dalton argued in his management studies that power and decision making can be spread amongst lower ranking employees instead of having managers to make decisions on their behalf in any hierarchy model.
“the increasing size of modern organizations and the increasing complexity of the problems with which they have to deal makes technically impossible the participation of the rank and file in the making of decisions.” (lilt.ilstu.edu, 1998) This quote also shows that larger organisations find it increasing difficult to implement decisions and change. Henri Fayol A Classical Management Administrative Theorist Commerce Essay.