Discussion
Which of the following statements is incorrect regarding the classical theory ?
Answer: D
The incorrect statement is D: classical theory does not give adequate attention to formal and informal groups.
Classical (administrative management) theory, associated with Taylor, Fayol, Gulick and Urwick and, in its structural form, Weber, treats the organisation as a formal structure built on universal principles such as division of labour, unity of command, span of control and POSDCORB. It paid little attention to informal groups, which the Hawthorne studies and the human relations school brought in later. So D reverses the theory's position.
Statements B and C describe the theory correctly. Statement A, that 'classical' is the name Simon gave it, could not be confirmed: Simon is known for attacking these principles as 'proverbs of administration', but I found no source showing he coined the label. D is the one statement that is certainly wrong, which fits the key.
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