Organisation Theory: Classical and Neoclassical Approaches, Contemporary Marketing, Japanese Approach, Organizational Learning and Culture Excellence

This essay discusses classical and neoclassical approaches, contemporary marketing, Japanese approach, organizational learning and culture excellence in shaping organizational structure. It also highlights the impact of each concept on the performance of management and ventures in generating profits.

ORGANIZATION
THEORY

Table of Contents
ESSAY.............................................................................................................................................1
REFERENCES................................................................................................................................6

ESSAY
Classical approach is defined as management practices and their focuses on centralized
authority, specialization and incentives to obtain productivity in a company, even better than
other companies (Baboshkin and et.al., 2021). Neoclassical theory or approach refer to an
extended version of classical management concept that may arose out of the critique of classical
model (Ashourvan and et.al., 2018). There are different forms of forces accessible in the business
world that will shape organizational structure further and these forces are contemporary
marketing, culture, excellent approach, Japanese approach and organizational learning. The
current assignment will justify each concept in detail in the rest of analysis.
The Scientific Management Theory provided by Taylor is based on the idea that there is
one right way for doing something. It is based on four principles, first of which is to use
scientific method to study work rather than working by rule of thumb. This helps in determining
the most efficient way of performing a specific task (Ashkanasy, Humphrey and Huy, 2017).
Second principle states that the work should be assigned in a manner that it matches the
capability of the workers. Following it, they can be trained to work at maximum efficiency.
According to the third principle, worker’s performance need to be monitored along with
provision of instruction and supervision. This will assist in ensuring that the most efficient ways
of working are being used by them. As per the last principle, the work should be allotted between
the workers and managers so that proper planning and training is done by the managers. The five
principles of management were described by Henry Fayol. These include planning, organizing,
control, coordination and command. According to Fayol, the concept of management is
comprised of these 5 functions. As per the Fayol’s theory, every part of the business process
should be planned. This should be followed by organizing the resources and raw materials. For
commanding, the management must ensure that it encourages and directs the personnel activity
(Tuczek, Castka and Wakolbinger, 2018). According to the management theory, coordination
should be fostered by the management, it must ensure that the personnel work together in a
cooperative fashion. Controlling is the final management activity. According to henry Fayol, this
requires the manager to evaluate and ensure that the management’s commands are followed by
the employees. According to Max Weber bureaucracy is defined as a highly structured and
formalized organization. The bureaucratic theory of Max Weber forms the basis for systematic
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formation of any organization. This is designed to ensure that the organization has economic
effectiveness and efficiency. The theory by Max Weber is considered to be an ideal model for
management. This brings the power structure of the organization into focus. Weber provided five
characteristics of bureaucracy. These include hierarchy of authority, specialization, technical;
qualification, written rules and salaried careers. According to Weber, there should be
specialization of labor. This requires the organization to divide the employees into units based
ion the skills possessed by them (Hatch, 2018). This will help in enabling the organization to
allot work to employees in the area in which they specialize. Also, the organization should have
a formal set of rules and regulations. Weber insisted that there should be presence of a well-
defined hierarchy within the organization. In a bureaucratic organization, every level is
controlled by the level above it. This formal hierarchy forms the basis of central planning as well
as decision making in a centralized manner (Daft, 2020). In addition to it, he said that there
should be impersonality in the application of rules. All the employees should be treated equally.
Individual differences should not come to influence the work.
Neo classical approach is one of those concepts that reflects a slight chance over the
classical approach, as it identified the significance of physiological and social key aspects of
employees as an individual and their relation within group of company. There are three different
examples as element of neoclassical theory of administration accessible that defines in several
terms such as Hawthorne experiment (Afolabi and et.al., 2020). It can be said that this element
brought out that individual candidate productivity is not function of only physical situation of
work & money wage paid to them. It is fact that the productivity of workers may depend heavily
upon their satisfaction level in the companies, whether they are public or private, small or large.
The Hawthorne research were a series of experiments conducted at Wester electric organization
between 1927 and 1932 that offers new details into individual person and team behavior or
attribute that drive their performance toward aim achievement. Hierarchy of needs is another
component that has been covered under neo-classical theory (Hale and et.al., 2019). Abraham
Maslow is the founder or developer of this concept that enable management and other
managerial role to focus on retaining and motivating employees in form of conducting several
practices. Abraham Maslow’s hierarchy of needs is one of those effective and useful concepts of
motivation that apply in the context of varied companies. This states that the actions and
practices of administration motivate people in certain manners. For example, it may drive their
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attention toward fulfilling individual’s basis and essential needs. Another element that relate to
neo-classical theory is McGregor’s theory X and theory Y. In 1960, this concept suggesting
two key aspect of human behavior relate to work or in the workplace (Madero-Gómez and
Rodríguez-Delgado, 2018). The X theory assume that an average of candidates intrinsically does
not prefer work and attempt to escape it whenever possible, since each candidate does not tend to
work and they should be compelled, persuaded or warned with punishment so as to reach
organizational aims and objectives. According to the assumption of theory Y, workers may
perceive their role as normal and relaxing, as they exercise their mental as well as physical
attempts in an inherent term in their professions. Individuals in the workplace may not need only
threat, coercion to work and external form of control, but they tend to utilize self-direction and
control when employees are highly dedicated, which enable them to achieve target aim of a
company.
Contemporary marketing orientation will shape companies and their structure in the
future, in term of driving management attention toward designing and introducing products that
gain the attention of potential customers. this practice in return contribute to increase profitability
and productivity, which is quite essential for companies to do so (Cletus and et.al., 2018). It will
shape firms in form of driving attention and concentration toward adding more value in exiting
products that help to enhance customer satisfaction and increase target audience base that is one
of the biggest challenging task for any company to do that. It will also shape its structure in the
future in form of selecting skilled people and developing more sections, where individual can
perform their roles in appropriate manner for purpose of achieving target aims. It will shape
organizations and their structures that in turn provide desire outcomes to high authority in form
of increasing profitability, productivity and performance level of an organization that tend to
grow in the market, even better than rivals that operates in the same market. It can be said that by
using the concept of contemporary marketing orientation, companies will take pleasure of
generating more revenue that shape ventures in form of market expansion that enlarge their
market size. In the corporate world modern marketing orientation will share companies in
positive manner as it is a kind of venture philosophy where the concentration is on determining
consumer need.
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The culture excellent approach is people oriented concepts that may concentrate on
candidates who are working in a company, where they may have set of accountabilities (Meng
and Berger, 2019). The current concept will shape companies and their effective structures in the
future in form of driving management concentration toward fulfilling employee’s needs, which
play significant role in the context of organizational growth and success. This approach will
enable companies to create a positive organizational culture that shape firms and structure that
has been formed with support of employees. It will impact the structure of companies in form of
shaping effectively and appropriately as well as successfully. In the recent time, management
may usually focus on building a culture of excellence that mean individual aim for excellence
and may not settle for mediocre outcomes. It will shape structure of firms, either small or large in
form of creating the environment where candidates will perform in positive and productive
manner. Individual candidate recently prefers to work within positive working environment,
which management will create with implication and consideration of culture excellence
approach. The culture approach will provide companies opportunities to survive and grow in the
market by shaping or creating their structure and managerial style. It is important for them to do
so systematically and effectively.
Japanese approach is also considered as one of those external forces or factors that focuses
on quality of control in form of building superior quality in manufacturing procedure through
development of group oriented human resource administration practices. This force will drive the
attention of administration toward shaping organizations and structures that they follow. For
examples, it will shape firms in form of improving production operation that affect positive upon
productivity and performance level (Sugimoto and et.al., 2021). Japanese approach always
focusses on quality control practices, for which companies conduct practice of hire and select
skilled people, who shape structure in form enlarging venture and enabling management to
expand across national boundary. There are different types of quality management approaches
accessible in the corporate world, but the current one is appropriate as it specify the action and
practice that will shape companies to grow and succeed in the future by grabbing growth
opportunities. The current concept emphasizes the actual need for information to flow from high
to low of a venture, where individual candidate performs their role according to given
accountability. It will contribute to shape both concepts in term of increasing the requirement for
more space that play important role to achieve further aims and objectives.
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Organizational learning is process of creating, retaining, transferring value and set of
knowledge within the workplace, this is important process that allow company to improve their
internally stability and shape their future structure. Sometimes failure push company to learn and
gain max. Knowledge, there are many cases where company use knowledge gained from failing
and put it into new plan so that they can become successful (Roy, Silvestre and Singh, 2020).
The concept of organizational learning is broad that include experience and knowledge of
company in management and structural change. Many company use learning curve in the process
that allow them to cover important topic in the business for example if company increase level of
production then future structure of manufacturing will be impacted. Learning through practice
help business to gain that knowledge’s which remain beneficial, learning is process in which
productivity, efficiency, reliability and other element are measured by the company. It comes
challenging addressing and covert effective learning into an idea. There are many cases where
company gain competitive advantage due to organizational learning, learning curve.
Organizational learning to happen with experience company gain from different operation.
Performance of each operation decide where future structure of organization will be effective or
it has to face challenges in highly competitive market, learning will go to remain continuous
process.
On the basis of above discussion, it has been summarized that contemporary marketing,
Japanese approach, organizational learning and other forces accessible in the world of corporate
has shaped organizational structure. It has enhanced the performance of management and
ventures in term of generating profits. Furthermore, from above analysis, it has been concluded
that application and utilization of neo-classical and classical approaches enabled companies to
achieved target aims and objectives. The existence of each force has shaped organizations and
their structures in appropriate manner that has contributed to achieved target aims, which is
important and beneficial for company’s success successfully and appropriately.
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REFERENCES
Journals and Books
Afolabi, O. M and et.al., 2020. Impact of Work Environment on Employees’ Performance in
Federal Polytechnic, Offa, Kwara State, Nigeria. KIU Journal of Social Sciences. 6(1).
pp.217-222.
Ashkanasy, N.M., Humphrey, R.H. and Huy, Q.N., 2017. Integrating emotions and affect in
theories of management. Academy of Management Review. 42(2). pp.175-189.
Ashourvan, A and et.al., 2018. Validation of the kinetic-turbulent-neoclassical theory for edge
intrinsic rotation in DIII-D. Physics of Plasmas. 25(5). p.056114.
Baboshkin, P and et.al., 2021. Non-Classical approach to identifying groups of countries based
on open innovation indicators. Journal of Open Innovation: Technology, Market, and
Complexity. 7(1). p.77.
Cletus, H. E and et.al., 2018. Prospects and challenges of workplace diversity in modern day
organizations: A critical review. HOLISTICA–Journal of Business and Public
Administration. 9(2). pp.35-52.
Daft, R.L., 2020. Organization theory & design. Cengage learning.
Hale, A. J and et.al., 2019. Adapting Maslow's hierarchy of needs as a framework for resident
wellness. Teaching and learning in medicine. 31(1). pp.109-118.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Madero-Gómez, S. M. and Rodríguez-Delgado, D. R., 2018. Relación entre las teorías X y Y de
McGregor, las formas de retribuir y la satisfacción de las personas en su trabajo.
CienciaUAT. 13(1). pp.95-107.
Meng, J. and Berger, B. K., 2019. The impact of organizational culture and leadership
performance on PR professionals’ job satisfaction: Testing the joint mediating effects of
engagement and trust. Public Relations Review. 45(1). pp.64-75.
Roy, V., Silvestre, B. S. and Singh, S., 2020. Reactive and proactive pathways to sustainable
apparel supply chains: Manufacturer's perspective on stakeholder salience and
organizational learning toward responsible management. International Journal of
Production Economics. 227. p.107672.
Sugimoto, S and et.al., 2021. Japanese Approach to Validation. In Handbook of Validation in
Pharmaceutical Processes. pp. 983-995.
Tuczek, F., Castka, P. and Wakolbinger, T., 2018. A review of management theories in the
context of quality, environmental and social responsibility voluntary standards. Journal
of cleaner production. 176. pp.399-416.
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