Organisation Theory: Classical and Neo Classical Approaches

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