Organisation Theory: Classical and Neo Classical Approaches

This report assesses the classical and neo classical approaches to organisational theory and identifies the forces that shape organisations and their structures. It discusses the various approaches and factors that influence organisational structure and design. The case study on Samsung highlights how the company manages dynamic processes to shape its growth.

ORGANISATION THEORY

Table of Contents
ASSESSMENT 1 – ESSAY............................................................................................................3
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Various classical and neo classical approaches to organisational theory ...................................3
Forces that shape organisation and there structure......................................................................6
CONCLUSION................................................................................................................................8
ASSESSMENT2 CASE STUDY ( SAMSUNG)............................................................................8
INTRODUCTION...........................................................................................................................8
MAIN BODY...................................................................................................................................9
Factors that influences organisational Structure and design........................................................9
Evaluation of dynamic process of business ..............................................................................11
REFERENCES..............................................................................................................................13

ASSESSMENT 1 – ESSAY
INTRODUCTION
Organisation theory refers to study of organisational design, structures and relationships.
It focuses on dimensions such as areas where it formalises, standardise, specialise , hierarchy of
authority, size, complexity of its structure, goals and strategy of company and various other
things. It consists of many approaches to organisational analysis where it defines unit of people
that are managed and structured to meet the needs and to pursue collective goals of company.
Present report will assess to classical and neo classical approaches to organisational theory and
will identify and assess forces that shape organisation and its structure in the future.
MAIN BODY
Various classical and neo classical approaches to organisational theory
Classical approach is a traditional approach to organisation where it focuses more on
operations of business rather than employees who assist the same for smooth functioning.
According to this approach, organisation is considered as machines and human beings as
different component and parts of same (Bevir,Hall,2020). It lays emphasis in detecting errors and
correcting them immediately once they have been committed and it assumes that employees of
company are relatively stable, in terms of change .
Neo classical approach is a traditional approach and extended version of classical theory
where in it takes into consideration behavioural sciences which studies individual and group
behaviour and relationships which helps in determining productivity level of an organisation
(Girardi, 2017). It refers to organisation as social system where performance of it gets affected
by human actions.
Three classical approaches of organisational theory includes
Administrative approach /Fayol's principles of management
It includes division of work into specialised task and assign responsibility to specific
individual, it lays discipline where employees are required to obey and respect rules governing
(Dhameja,2016). It also lays down unity of command and direction where employees receive
command from one superior and are directed towards achievement of common goals of
company. This approach states that interest of employees should not be more than that of
organisation as whole where compensation should be fair and did not favour profit sharing

among workers. It ensures correct orders to be followed in company. It stated centralisation and
decentralisation should depend on specific company in which it is operating and lays down
communication flow from top to bottom also referred as scalar chain (Ramakrishna,2019).
Approach ensures that equity on part of managers to deal with its employees and to encourage
workers initiative, keep replacements of vacancies and need to promote harmony and peace in
the company.
Bureaucracy approach by Max Weber
It provides to number of features of bureaucratic approach including hierarchy which is
way of ranking positions which is from top to bottom in company, lays rules, procedure and
regulation where behaviour of individual is governed by set of rules which are required to be
followed strictly. Includes records where files have to be maintained to record activities and
decision on daily basis. This approach accounts to impersonal relationships where it states to no
room for emotions, sentiments and personal involvement, Bureaucracies approach focuses on
administrative class responsible for coordinating work by officials who are appointed on basis of
certain skills and experiences. It represents that each member is assigned to a specific task and is
able to deliver specific performance, where judgements brings rationality to company as they are
in accordance with objectives which are generally being agreed upon, but certainly turns out to
be rigid which states it to be static and inflexible because of so much of restrictions (Ferdous,
2016).
Scientific management approach by F.W. Taylor
It lays down principle where it describes each task to be scientifically designed where it
can replace old methods if required. Selecting workers and training them scientifically so that
they can be more productive in there jobs, matching jobs requirements with that of workers in
order to ensure match between them. It lays down division of labour and ensure to make co-
operation between management and workers where the expert addressed to employees welfare
by also taking into consideration production efficiency. Its main emphasis was on maximising
output level with minimum efforts and through elimination of wastage and inefficiency at floor
level (Taska,2017). It laid down various scientific techniques some of which are Scientific task
planning which refers to amount of work which average worker can perform in a day in normal
working condition, time and motion study which viewed in isolating the wasteful and

unproductive motion in job and laid focus on time period that an average employee should take
to complete a job
Three Neo classical approach to organisation theory includes
As this theory focuses on studying behaviour of individual and there attention to achieve
common goals of business it takes into consideration approach which increases there level
productivity, it includes
Hawthorne experiments approach
It is based on the concept that people work performances in organisation is dependent on
social issues and job satisfaction. It discovered that workers are highly responsive to additional
attention received from there managers and they derive feeling that there managers actually care
for its employees. This approach states that although financial motives are important, social
issues such as deriving motivation, effective communication, building relationships are equally
important as these factors helps in increasing productivity level of workers. It considered
experiments such as illuminations to study the varying levels of illumination such as lighting
which affects level of productivity of employees, also undertook relay assembly test room
experiments that were designed to understand effects of changes in various job condition on
group productivity (Mannevuo, 2018).
Human relation movements
This approach states that workers respond primarily to social context in workplace,
including social conditions which focuses on what motivates employees at workplace and
cultivate there achievement in work setting. It revolves around what leads in socialising and
motivating teams and individuals to facilitate effective communication and dynamic leadership.
It leads to employees in increasing employees positive attitude towards work which became
important for success of company (Yakubu, 2018). It helps in establishing link between
employees well being/satisfaction and workplace productivity. This approach helps in
determining ultimate value for employees by producing quality and higher outputs.
Organisational behaviour
This approach relates study of attitudes, behaviours and performance of individuals and
groups in organisational setting. It is also known as behavioural approach. It studies and
examines human behaviour in working environment and determines its impact on job structure
communication, leadership, motivation and various other things of employees. It studies

behaviour of individual primarily in there roles(Kanfer,Chen,2016) . It lays down how people in
company act in groups that attempts to make business operates more effectively which in turn
helps in increasing job satisfaction, job performance, promotes innovation and creativity and
encourages leadership for employees of company.
Forces that shape organisation and there structure
There are various factors and forces that affect and shape the business operations in
present as well as future. Some forces which needs to be considered by companies in ensuring
smooth flow of business operations are
Strategy's- It ensures how company position itself in marketplace in terms of its products and
services which serves to be its primary strategy. Company should always come up with new and
innovative strategies where it comes with the best products and services which can serves as a
part of differentiation strategy, cost leadership and others or can decide upon improvements in
existing products and services to capture huge market base in terms of sales, revenues,
profitability and various others to generate competitive advantage which will ensure to shape
organisation in more flexible manner and helps in building organisation structure more efficient.
This force serves to provide direction to whole organisation of what needs to be done so that
goals of company are meet effectively and efficiently.
Technology- The word technology defines how effectively organisation transfers its inputs
received in form outputs produced. By the use of technology most companies have ensures that
its operations are meet effectively and efficiently. Technology give rise to opportunities for
business where they can create new products and services, thereby creating entirely new market
for business by increasing productivity and reducing cost (Shaw,2019). By implementing
technology businesses ensures that work is being done fast with limited flaws in business
operation. It plays a big role in making business grow which helps in boosting sales and
generating more revenues.
Environment- It is no exception that environment plays major and vital role in affecting
business and its operation. This can be internal as well as external which affects and shape
organisational structure in future to meet its desired goals. External environment that affect the
business include political and legal factors by which company is abide to follow and non
compliance to which may lead to certain restriction which affects companies operations. It also
explains how business contributes in economic environment such as GDP, per capita income and

also determines social environment which describes how business maintain relationships and
lastly what measures dose it takes to protect the society and ensures that its operations are eco-
friendly and in interest of environment.
Business Presence/ Location
It defines how easily customer/clients reach to business which serves as major part for
business success . It states that businesses needs to be located conveniently at best place which
will help in attracting large customer base which is certain for business growth and which helps
in increasing sales and brand visibility. Location helps in influencing business ability to market
itself. Effective location helps in easy access of business products which ensures in building
positive reputation in minds of customers (Golenko, 2017). It not only help customers but make
it easy for its employees coming for work on time. It also ensures suppliers to reach at location
with ease and deliver the product/ services efficiently where companies ensures that goods are
arrived on time which helps in shaping a business and it structures to meet future needs.
Culture
This defines for an organisation what employees think or feel when they come to work. It
serves as huge motivational force for its employees. Talented employees often choose companies
which is based on favourable culture as it results in increasing productivity of employees to
deliver desired output and helps in ensuring on part of employees that business operations are
effective in nature which derive there higher level of job satisfaction. It has major impact on
employees behaviour and turnover, with ovwerall effect on growth, productivity and
performance level oemployees an organisation as whole. It encourages living by values and
produces employees with well tunned sense of direction, helping in creating common defination
of success for organisation.
Change management
Companies succeed if they are constant with change process in there operations as it is
key for every business to survive otherwise it results in scenario where companies business
operations suffers heavily which can be in terms of low market share, decline in customer base,
sales and many other criteria. It can be understood by an example where Nokia leading brand
affected its business opeartions as it was not being able to counter and match up with the pace of
changing environment of introducing smart phones where its competitors like Samsung and
others came into picture and regain the market of Nokia what it left. Company need to

understand that needs and wants of its customers are changing frequently where it also need to
design and implement structure which is flexible enough that it can incorporate change in
effctive way and results in meeting the goals of company.
CONCLUSION
From the above assessment it is being understood that business is growing with certain
pace and is opting out to shift from traditional or classical approach to approach that is modern
or neo classical in nature where it has realised the worth of its employees who are one and only
major resources in achieving the desired goals of business. The former approach deals with
various aspects where it does not focuses much on employees and authorities in company
making there way and competing work with use of power with strict follow up of rules which
does not helps in deriving job satisfaction of employees, whereas later approach focuses on
various theories and experiments on employees which helps in deriving there motivation,
effective communication, dynamic leadership in various business situation which accounts to
there better perfromance. It is also understood that there are various factors and forces that affect
the business operation which are to be taken into consideration by company and needs to be
monitored closely to ensure smooth functioning of same.
ASSESSMENT2 CASE STUDY ( SAMSUNG)
INTRODUCTION
Organisational size is defined by number of employees which are at given location of
business which determines how the task are divided into various jobs that are need to be
undertaken by a company to determine more specialisation at workplace. Technology and global
presence helps in ensuring the businesss operation are smooth and efficient where culture also
helps in improving the productivity level of employees. Samsung is multinational firm based out
of South korea that comprises of serving wide variety of products and service such as
Smartphone, TV,m washing machines, refrigerators and many others. Present assessment will
encounter to factors that influence company structure and design and will give brief on how
company manages dynamic processes to shape its growth.

MAIN BODY
Factors that influences organisational Structure and design
There are various factor that influences organisational structure and design some of which are
Organisational size
The number of people in Samsung that belong to the same has major impact and plays a
vital role in influencing design and structure of company which helps in determining success and
efficiency of company as they are the most important resources of company which accounts to
productive flow of business operation. The typical structure of big companies like Samsung is
tall enough which serves with several management layers or vertical layers which represent more
complexity in business. This factor in Samsung laid foundation for communication, tasks and
responsibility to be allocated to each individuals to perform specialised task which laid focus of
its structure on divisions that support product innovation for consumer electronics with high use
of technology and helps in providing various solution and building market for Samsung (Mutebi,
2020).
It lays emphasis on management layers at Samsung of how its business is divided into
groups to perform task and what is its reporting structure that supports overall functioning of its
business, As its business expands, it follows more formal chain of command which is also
needed generally to manage it opetaion and its employees for effectively which helps in serving
and implementing strategies of Samsung growth (Baregheh, RowleyHemsworth2016.). This
factor in company helps in work specialisation which helps in ensuring how tasks are sub
divided into various jobs, more it results in divison of work more specialisation it requires on end
of employees. It also helps in affecting departmentalization which states that grouping of jobs
together where Samsung implement departmentalization at high degree in defining jobs as they
provide clear description of tasks to make smooth functioning of operations to its workforce
which provides company to derive market development and support its structure in flerxible
manner. It also helps in empowering and winning over its competition to support its businees
continuity.
Technology & Global presence
Technology serves as key for the survival of Samsung business and to match up with
customers needs and requirements and to meet up its desired target that is to win in marketplace
and beat up its competitors and capture there customer segment. It helps in ensuring proper flow

of work where it ensures its employees to get there work faster and derive outputs which create
valuer proposition for Samsung (Lee, 2019). Technology has changed fuctioning of workplace
completely where concept of automation came which refers to how machines has took over the
work of humans where companies like Samsung believes in using technology rather than
additional hiring of employees. By this it enable company structure to have an easy flow of
business information, save times and lot of cost. It facilitate smooth flow of communication at all
level of company whuich in turn helps in streamline of operations and defining of product
categorization structure of Samsung that ensure resources and business operations belong to
certain group and represent category of product.
Global presence of company plays a major role in influencing decision of company
where it lays down various oppportunities to attract large customer base all across the world
which in turn helps in higher generation of revenues and profitability to company. Being globally
present help in positioning in minds of its target customers which helps in deriving there loyalty
towards companies product and services. It helps in building brand image where it also accounts
to spread of business risks and can dominate the market by understanding trends prevailing in
various places and which in turn helps in satisfying needs and wants of customers. It helps in
ensurting corporate growth beyond national boundaries which serves as Samsung Centalised
Corporate hierarchy design where it ensures its conglomerate operations are designed effectively
and unified in process of companies growth (Tallman,Luo,Buckley2018).
Availability of skilled manpower.
Talented and skilled workforce at Samsung are the most viable resources which
companies retain and make full utilisation in order to ensure that its operation are well built and
designed with limited or no flaws to achieve objectives of business. Skilled manpower helps in
ensuring the outputs produced are efficient enough and are valuable for its customers. They lead
to increase business productivity as there focus is more on work and less on wasting valuable
hours of company. They account to innovation and creativity as there minds are filled with ideas,
opinions which support actions and decision are worth taking on part of companies where they
provide with extensive support to product development, which is especially in terms of
innovation and technology and lead a company with fine- tune strategies. They have skills and
expertise to deliver jobs that are properly executed which helps in keeping customers satisfied
and saving cost of company (Spaulding,2016). Skilled manpower in Samsung helps in increasing

reputaion and profitability and helps in ensuring business is on track to ensure growth that is
strong enough and support structure of Samsung that is based on geographical grouping which
are generallt on basis of product type division which in turn help company to fight against
competition more productively by challenging in expanding the business in various regional and
international markets. Availability of skilled manforce helps in ensuring Samsung to reduce
labour turnover or fluctuation where it will benefit company by providing employess who will
not be absent for longer duration as they are more dedicated and focus on there work and will
ensures fluctuating workloads are maintained in effective ways where when demand is high they
enables effective performance tio manage with the same.
Evaluation of dynamic process of business
It refers to the process in company which is subject to constant change and which needs
to be closely considered and evaluated which determine success of Samsung. It includes
Organisational Culture
It refers to beliefs, attitudes, values and many others that inform and guide action and
decision of individul and team in Samsung for effective achievement of objectives of company.
Positive culture in company encompasses job satisfaction for its employees which boost up there
level of morale, confidence and increases there productivity level. Culture at Samsung is mainly
focused development of human resource strategies that serve for innovative business which is
based out of technology and which culture which helps in deriving competitive advantage in
market for comsumer electronics and industry of semi conductors. It includes core values,
customs and traditions practiced in company by its employees (Laforet, 2016.). It helps in
moving forward performance of team and achieve goals of Samsung.
It serves as foundation for every busuiness where it culture that is strong enough states
that its employees are most valuable and critical asset of company which needs to be hold/ retain
and protected in manner to derive business success win in competitive world. It states down sign
of repect to company which practice culture in favourable manner and foster effective
communication. In samsung it provides fun and positive ways to employees to get through with
flexibility both in there personal and professional development (Carvalho,2019). It is largely
innovation centered as it emphasis more on its people skills, knowledge and abilities for
innovating products that are highly technology focused. Organisational culture at Samsung

support its Mission and Vision statement which lays delivering superior products that improves
life and society.
Culture at Samsung is highly focused on achieving long term business strategies by
providing development opportunities and prosperity to its employess, motivating employees for
better performance by which it can claim its competitive advantage and can be at domination for
other firms & can capture multinational markets for consumer electronic and related
technologies.
Ethical values
It includes Samsung's business ethics which are honesty, responsibility, respect, trust,
teamwork, leadership, fairness, integrity and various others in its business operation wich serves
as companies vision to inspire the world with products that are innovative and enrich lives of
people by creating better future. Based on ethical values of company, it develop products that
inspire people which shape the growth perpsective of organisation and serves as its business
strength of fair dealing operations. It helps in guiding and providing pathway to deal business
operation's more effectively.
Ethics helps Samsung in playing vital role as they help in maintaing goodwill, and avoid
companies to face losses which can be in terms of legal, financial and various others, and
ultimately benefit everyone who are invoved in smooth functioning of operation's. It enhances
and build the corporate image in positive manner as it reflects the actions of employees working
in organisation. It refers to standards of behaviour laid down by business which helps in
promoting human welfare. This are highly required to be monitored and control in order to
ensure that there is no inadequacies in human resource and makes customers aware that its
business is invoved in fair dealing and does not adopt to practices that are fraudulent and
accounts to inappropriatness (O'Connor, Myers, 2018). This are incorporated into culture of
Samsung which helps in minimising problems of firm and encompasses to build brand image in
favourable manner and its competitiveness. Ethical standard helps samsung in promoting culture
with fairness, transperency and various others. This helps in serving how conflicts can be
minimised and reduced which helps in avoiding misunderstanding at workplace and lays down
measure and areas to improve upon employees productivity which in turn support organisation
functioning. It simply act as guide for business and help in judging areas where it can improve
upon to sustain growth.

Innovation and decision making process
Innovation is key which decides that business will survive in future or not. Samsung keep
constant pace with the same to be competitive in market place and to dominate other market
players and capture there target base of customers, in order to regain position where its consumer
electronic products and various others are highly prefarable by society as whole.
It helps and motivate employees to think ways on how to use Samsung technologies and
its products to assist for help for its stakeholders. It facilitatesd change that benefits business
where its culture puts innovation at center which assist that change is highly important when it
comes to Samsung in terms of technological innovation. It helps company in gaining more
customers and grabbing a big share in marketplace (Ortiz-Villajos,Sotoca, 2018). Effective
decision making in terms innovation helps Samsung to reduce unneccesary cost and helps in
boosting overall performance level of organisation. Innovation supports in building customer
relationships more efficient and failing to improve on areas of various services and product can
lead to Samsung loosing its customers to its more innovative competitors such as Apple, redmi
and various others. Innovation is nothing but exploitation and creastion of new ideas which helps
company in improving processes by bringing new product and services and can be improving
upon the same which can not only lead Samsung to improve upon its productivity but also
provides with suffient profitability.
Innovation in business is only successful when it finds its way to satisfy needs and wants
of it customers which they find it to be worth paying and from which they can dderive high level
of satisfaction (Innovation Areas,2019). It helps in increasing chance to generate high level of
opportunities where business can grow subsequently, fostering competitive advantage and
building products and services that are the best for its customers.
CONCLUSION
From the above assessment of case study it is understood that there are various factors
which affect design and structure of business such as organisational size which counts to how big
an organisation is in terms of resources such as employees as they ensure efficient functioning of
company. It alsio laid emphasis on how technology attracts large number of customers and beats
market of competitors and also understood that how global presence make ease to reach for its
customers, suppliers, employees and others to company products. It also assessed how culture
increase productivity of employees and how company responds & implememt various ethical

practises. Lastly understood that innovation is essential to build product and services that satisfy
needs of customers which keeps on changing.

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