Organisation Theory: Classical and Neo-Classical Origins and Future Forces Shaping Organisational Structures

Essay

Contents
Topic: Organisation theory from its classical and neo-classical origins and forces that will..........1
shape organizational structures in the future..................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

Topic: Organisation theory from its classical and neo-classical origins and
forces that will shape organisational structures in the future
INTRODUCTION
Classical approach is concerned with basic assumption which only prioritises profit
maximisation, labour specialisation and centralized authority in an organization (Al Lily,
Alhazmi, and Alzahrani, 2017. It works on a basic assumption that employees perform because
of their economic needs rather instead of job satisfaction. The neo-classical approach is mainly
concerned with informal organizations, shorter hierarchal levels, and decentralization of
authority as well as a responsibility to employees (Beynon-Davies, 2021). For developing
organizational structures effectively traditional hierarchal levels should be changed with
horizontal networks in the organization. Technological advancements, business strategies,
managerial perceptions, etc. are the main forces that influence organizational structures in the
future (Biehl, , 2017). This project highlights the discussion of all the above concepts in the
following assessment.
MAIN BODY
Scientific management theory profounded by Fredrick Taylor is based on the objective of
increasing productivity in business operations as well as identifying inefficient employees
(Dessers and Vrijhoef, 2017). He suggested that all the tasks should be performed in a
standardized way in order to gain more profits. He also introduced a reward system for efficient
employees and punishments for inefficient ones. He states that monetary incentives can increase
an employee's productivity. There should be proper distribution of responsibilities between
employee and employer. He suggests that there should be scientific methods for performing each
task rather than making assumptions. Henry Fayol had given the theory of principles of
management describing fourteen different aspects in order to understand business operations
strategically. He suggests that work should be divided strategically in order to gain the
specialization which further helps in improving profitability and productivity in business
operations. Fayol suggested that employees should follow organizational rules and regulations as
well as be self-disciplined. He also proposed that there should be unity of command which states
that an employee should take orders from only one superior at one time. This can reduce
confusion and ambiguity in organisation. He recommended that employees should be given fair
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