Classical and Neo Classical Theory in Organizational Performance

Essay

INTRODUCTION...........................................................................................................................................3
Classical Theory.......................................................................................................................................3
Neo Classical Theory................................................................................................................................4
The factors that will affect the performance of the organization............................................................6
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................9

INTRODUCTION
The classical theory is the process where the physical and economical needsd of the
employees are analyzed in the organizations. It is dependent on the model of mechanical and
military organisation. The theory focuses on organisation structure and their process
(Schlegelmilch, 2016). The Neo Classical Theory is the all-encompassing type of the classical
theory where the actual sciences get included into the organisation. According to theory, the
organisation is the social framework and performance gets influenced by the human activities.
The chosen organisation for the report is ALDI which was founded in 1946 and is one of the
largest retail stores in the world. The report includes classical theory, neo classical theory and the
factors affecting the performance of the organization.
Classical Theory
The classical viewpoint of the employees which is influenced by the Industrial
Revolution and focuses on improving the proficiency, profitability and performance of workers
and importance of the ALDI business overall. It is by and large doesn't reduce in on human and
conduct the behavior and fluctuations among employees. For example, how achievement of work
improves worker proficiency.
Scientific management theory, which was first given by Frederick Winslow Taylor,
reduced in on improving the performance and efficiency of workers. They are focusing on
increasing the performance as a science. Taylor felt that the skilled employees of the ALDI could
be totally controlled (Leung, Bai and Erdem, 2017). He has the logical strategy for estimation to
make rules for the preparation and the work of the employees. The Scientific management theory
is quantitative, productivity based method is an example of the classical viewpoint.
Another leader in the classical view point of the employees is Max Weber and has made
the Bureaucracy theory of the board which focuses on the subject of defense, rules and ability for
an organisation in general. Weber's theory focuses on the performance of the employees and
clear jobs in ALDI by implying that Bureaucracy in organizations should run as successfully as
conceivable with as meager of the organization and could be expected under the circumstances.