Organisational Theory

ORGANISATIONAL
THEORY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
An organisation is a composition of people who work together for a purpose or goal to
generate revenue and earn profits. It states the responsibilities and duties of personnel employed
in the business so that they can perform their assigned functions effectively. There are many
organisational theories developed to study the behaviour of organisation and the environment
under which it operates (Yasir and Majid, 2017). There are also many approaches to these
organisational theories that states the results of the research conducted by experts about the
reaction and action of employees in respect of their work environment. This essay will cover the
classical and neoclassical approaches to organisational theory and further it will deal with forces
that helps in shaping the organisation and its structure in future.
MAIN BODY
There are many approaches to the organisational theories that has developed with the
time to understand the organisational behaviour of the employees towards the success of the
company. The first approach was developed in 19th century, known as classical approach which
was supported on the belief that the efficiency of employees and organisation has increased
according to the management practice. The three classical approaches are scientific,
administrative and bureaucratic management. The neoclassical approach was developed to
modify the classical approach with changing time which is a human oriented approach which
focuses on the attitude and behaviour of employees .
The classical approach is based on four principles which includes the division of labour,
structured line and staff, span of control and scalar and functional process. The main contributors
of this approach are Henri Fayol, Frederick Taylor and Max Weber. The three classical
approaches are-
Scientific management is a theory that is based on improving the labour productivity.
This approach was developed by Frederick Taylor who emphasized on change of management
which can be determined only through scientific study and through this approach the scientific