Organisation Theory

Organisation Theory

Table of Contents
Organisation Theory........................................................................................................................1
INTRODUCTION...........................................................................................................................3
2. Classical Approach..................................................................................................................3
3. Neo-classical Approach-..........................................................................................................5
4. Forces that will shape Organisation and their structure and its future.....................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Organisational theory is made up of many approaches which are used to analyse
organisations. Approaches of organisation are divided in many parts and this report includes
discussion over classical approach and neo-classical approach of organisation. Classical
approach includes Scientific management, principles of management and bureaucracy whereas
neoclassical approach includes theories of Human relation school, Elton Mayo and contingency
theory. There are various forces that shape organisation structure which are nature and size of
organisation, customer orientation and the Japanese approach and organisation learning
discussion over this have also been included in this report which have been followed by recent
developments in organisational theory like modernist, post modernist and realist and complexity
perspective and importance of technology.
2. Classical Approach
This approach of management suggests that employees have only physical and
economical needs. Social and needs like job satisfaction does not exist and if they exist then they
are not important (Tella, 2018). This theory of management focuses on factors like specialized
employees, profit maximization and decision-making should be centralized. Theories which are
included in this approach are-
Scientific Management theory- Proposed by FW Tailor, this theory of management stagtes that
employees are required to treated as assets and company can make them work by offering them
more monetary rewards. Employees have only need which is economical and this can be fulfilled
by organisation to motivate employees. Tailor have also proposed principles which are-
 Science, not the rule of the thumb.
 Harmony, not discord.
 Co-operation, not individualism.
 Maximum production, in place of restricted production.
 Development of each person to the greatest of his capabilities.
 A more equal division of responsibility between management and workers.
 Mental revolution on the part of management and workers.
Principles of Management- These are principles of organisation have been proposed by Henry
fayol with the year 1841-1925. Mention below some principles purposed by the Henry such as

Division of work- When staff members are differentiated than the end product can enhance due
to the enhancing skills.
Authority- Managers of the firm must have the authority to give delegate tasks to the
employees .
Discipline- Management consider all about obedience ,it is considered as a part of the mission as
well as values with more respectful interactions.
Unity regarding command- Means the staff members must receive orders from the managers and
also answerable to the manager (Berry Brangwynne and Haataja, 2018).
Unity of direction- Focuses that the all the staff members follow the same objectives also
working under the one plan ,one manager,it will assure that the action can be coordinated
properly.
Subordinate regarding individual interest- Such as one staff member must not enabled to become
more crucial than others within the group.
Max Weber Bureaucracy
As per the Weber power can be listed within three types within any firm such as legal
power,charismatic power ans traditional power. It is used to assure the economic effectiveness
and efficiency within a firm. Mention below some principles
Rule based management- firms uses rules to control, thus lower level of the workforce follows
the decisions of the higher level.
Up focused mission or in focused mission- If the firm serves board,stockholders or other agency
than falls under up focused while to serve firm itself such as generating profit than called as in
focused (Dolan and Rosenbloom, 2016).
Function specialized firm- Divided the staff members to do work as per their skills and talent and
also type of work they can do within the firm.
Employment regarding technical qualification- Selection as well as recruiting is done on the
basis of the qualification regarding technical skills.
3. Neo-classical Approach-
Neo Classical theory is defined as the approach towards incorporating science of
behaviour into management in context to resolve the issues raised by the practice of classical
theory. In this premise of including the classing theory which was in terms of the organisation