Organisation Theory from Classical and Neo-Classical Origins and Forces that Shape Organizational Structure

ORGANISATION
THEORY

Table of Contents
Organisation theory from its classical and neo-classical origins and forces that willl shape
organizational structure in the future...............................................................................................1
REFERENCES................................................................................................................................6

Organisation theory from its classical and neo-classical origins and forces that willl shape
organizational structure in the future
To enhance performance of employees and to increase their productivity along with operational
efficiency it ids very important for companies to execute effective management policies as well
as procedures as they assist in supporting business. In the late 19th century and over 20th century
the classical theory is emerging which is defined as an approach to management in business. On
the other hand neo-classical theory of management is defined as extension, modified and
improved form of classical theory that mainly focus on human resources of the company. This
theory is also described as behavioural theory of organisation or human resources (Olsen, 2019).
There are various forces that helps in shaping structure of organisation such as industrial,
technological, automation, complexity, business strategies, resource distribution, culture,
industrial, innovation and many others. The following essay will provide description about
classical and neo-classical approaches of management in detail along with various forces that
helps in shaping structure of organisation for an organisation.
Classical organisation theory defines companies as machine and employees are described
as factors of that machine. This mainly focus on labour specialization, centralized authority and
incentives that assist in optimizing productivity as well as in enhancing profits. There are various
personalities who put their initial contribution of classical management which include Henri
Fayol, Max Weber and F.W. Taylor. There are three main factors on which classical
management theory is based on that involves hierarchical structure, incentives and specialization.
This theory of management assist in implementing clear structure by which the company could
be able to perform each functions and operations effectively that will help the organisation in
accomplishing their organisational objectives. Therefore, these theories are very useful in
streamlining operations along with enhancing productivity of workers and overall organisation.
F.W. Taylor purposed the scientific theory of management that mainly focus on productivity and
efficiency of people. The main purpose of this theory is to increase production of an organisation
that will support in enhancing efficiency of an individual (Hatch, 2018). The scientific theory of
management states that the motivation among employees could help companies in enhancing
their efficiency along with achieving competitive advantage in the market. This theory also assist
in improving management approaches by which employees productivity could be increased and
this will enhance their abilities to accomplish organisational objectives effectively. This theory
also assist in standardizing the procedures, cost and time across overall procedures along with
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