Business Management Organization Theory

Running head: MANAGEMENT
BSC (hons) Business Management Organization Theory
Name of the Student:
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Author Note:

MANAGEMENT1
Executive Summary:
The objective of the report is to provide an overview of the organizational theory. Here, the
report provides an insight into classical approach, neo classical approach and the forces that
shape the organization and its structure in future by focusing on the Japanese Approach and the
organizational learning. The report segregates the classical approach into scientific and the
bureaucracy approach. The report also classifies the neo classical approach into hawthorn
experiment, Maslow’s hierarchy of needs and contingency theory.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Discussion:...................................................................................................................................3
1. Classical Approach......................................................................................................................3
a. Scientific Management – Frederick Taylor..............................................................................3
b. Bureaucracy- Max Weber........................................................................................................4
2. Neo- Classical Approach.............................................................................................................5
a. Hawthorn experiment- Elton Mayo:........................................................................................5
b. Maslow’s Theory of Needs:.....................................................................................................7
c. Contingency Theory:................................................................................................................8
3. Forces that will Shape the Organization and Their Structure in the Future:...............................8
a. Japanese Approach:..................................................................................................................8
b. Organizational learning:...........................................................................................................8
Conclusion:......................................................................................................................................8
References:......................................................................................................................................8

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1. Introduction
The report aims at providing an insight into organization theory. The theory represents
definitions and the interrelated concepts that helps in explaining behavior of the groups or the
subgroups or the individuals who interact with one another in ensuring the performance of the
activities intended towards accomplishment of the common goal. This theory helps in studying
the impact of the social relationships between individuals within organization and their actions
on organization (Young and Ghoshal 2016). It also helps in studying the impact of internal and
external environment in the business thereby focusing on the political, legal, social, economic,
cultural and environmental aspects.
2. Discussion:
1. Classical Approach
a. Scientific Management – Frederick Taylor
Frederick Taylor in the year 1911 put across the ‘The Principles of Scientific
Management’ where he explained that productivity could be improved hugely through
application of the scientific method (Grachev and Rakitsky 2013). Taylor however believed that
a simple task can be managed in a scientific manner for greatly improving the productivity. He
also realized that this method hugely out-produced initiative incentive method. This is because
initiative incentive method although increased the productivity however it placed the
responsibility on the workers to figure out the ways of doing work. Taylor then started
implementing time studies which allowed him to use a stop watch for timing the sequence of
motions of the workers for determining the most suitable method for generating optimal
performance.