The classical theory of organization has with held the test of many upheavals in the changes that have
accrued in the management of organization. The modern organizations in the private as well as in the
public sector enterprises are facing an environment which does not seem to be conducive to their
structure that is based on the principles of classical theory of organization. The classical school of
organization developed and pursued in the development of universal principles that would apply to all
the organizations in all situations. The classical theorists conceived of organizations as mechanical
devices to achieve organization's goals and objectives.