Organizational Theory: Classical and Neoclassical Approaches

Organizational Theory

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Classical Approach......................................................................................................................3
Neoclassical Approach.................................................................................................................4
Forces that shapes in organization and their structure.................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Classical theory belief that the employees have economic and physical needs only
completely ignoring the job satisfaction and social needs (Bharadwaj, 2017). It has centralized
leadership and focus on profits. Neo classical theory says that the company is the social system
and human actions affects the performance of the company, it is the advanced version of
classical theory. This study will discuss the contemporary marketing orientation, organizational
learning, cultural excellence and Japanese approach. Further it will discuss complete classical
and neo classical approach.
MAIN BODY
Classical Approach
Figure 1 Classical approach
Source: Classical approach to decision making., 2021
The classical approaches theory is one of the oldest theory which represent various
thoughts of organization. This theory also concentrate about structure in organization as well
their managements. The classical basically ignore human relations and do not determine the role