Organisation Theory/ Classical and Neo-Classical Origins-Present

This report discusses the classical and neoclassical theories of organisational management, including scientific management, principles of administrative theory, and bureaucratic theory. It also covers contemporary marketing orientations, culture excellence approach, Japanese approach of managing quality, and organisational learning.

Organisational Theory

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERNCES:..................................................................................................................................7
Books and Journals:....................................................................................................................7

INTRODUCTION
The term organisational theory can be understood as a set of interconnected definitions
and concepts that demonstrate the act and behaviour of individuals and group of people who
interacts with each other in a business. The main agenda is to attain shared goals by performing
several tasks and activities in an organisation (Colsen, 2020). Classical approach of organisation
defines that a business efficiency can be increased when humans are competent and efficient to
attain common goals. While, neoclassical theory refers an extensive version of classical theory.
Additionally, it comprises behavioural science in management of organisation. The following
report is based upon the discussion of different theories of classical and neoclassical approach.
Apart from this, the report covers the key transactions which are being utilised for the cause of
business management and the structures of organisation.
MAIN BODY
Organisational theory is based on the study of social science of the business operations
and structures. This theory covers an evaluation of the productivity and results of the business. It
also analyses the employees' behaviour and action in the business.
Classical theory defines the main aspects of formal organisational structure. This theory
refers how to allocate tasks and activities effectively and efficiently. It views a company as
machine and humans as the several parts of that machine. There are various branches of classical
theory. Scientific management theory was developed by Frederick W. Taylor who was popular
as the father of scientific management. This theory suggests that employees must be given with
tasks and projects as per their specialised skills and knowledge. Employers make plans, provide
relevant training and evaluate employees' performance and workers perform their assigned roles
and duties (Fried and Walgenbach, 2020). Taylor believed that scientific method should be
utilised to do work in an organisation. He suggested that forcing employees to work hard would
not result in best results, instead, he believed that simplifying tasks and jobs to boost productivity
of workplace. It is the traditional way of managing people which is not so much applicable in
today's time. Principles of administrative theory is also a branch of classical theory. This was
developed by Henry Fayol. The scholar believed that leaders had mainly six functions to perform
such as to forcast, strategise, coordinate, direct and control. Henry created principles that
represented how leaders should direct and interact with their followers. With such roles and

responsibilities in mind, the scholar created fourteen principles of administration that direct how
managers should lead their followers. The principles are initiative, equity, scaler chain,
discipline, remuneration of personnel, unity of direction, unity of command, authority and
responsibilities, division of work, order, centralisation, espirit de corps, stability of tenure and
subordination of individual interest to general interests. Bureaucratic theory of management
was announced by Max Weber (Jacobsen, 2021). This theory mainly focuses on hierarchical
structure of the business in order to have clear rules and guidelines of governance. The main
principles which Weber declared are chain of command, separation of personal and business
assets of the owner, clear division of labour, strict rules and regulations, record keeping and
many more. In present times, the bureaucratic management is very beneficial for the new
organisations that are in need of structures, procedures and standards.
Neoclassical theory, it is based on the classical theory. It has added, altered and in some
way extend the version of classical theory. The general assumption of this theory is that social
and physiological aspects of an employee as a person and his team ought to be focused on. In
classical theory of management, the company is more focused on order, economic factors,
structure, formal organisation and more. While, in neoclassical theory, it is mainly focused on
emotional and social factors at work. Human relations theory was founded by Elton Mayo. The
scholar conducted experiments with an intent to enhance productivity that arranged the
foundation for the human relations motion (Karmakar, 2020). The main focus was on the
changing working environment such as length of the workday, break times, lightings. Whatever
change is experimented was met with an enhancement in performance. This theory emphasised
that employees are more motivated in the company when they are provided with personal
attention and interconnect in the team than those monetary rewards, prizes or working
conditions. Maslow' hierarchy of needs, was introduced by the Abraham Maslow. The scholar
believed that human are motivated at workplace when they fulfil five common needs of
motivation. Physiological needs included food, air, water, sleep and more. Safety needs covers
security, protection against danger, theft and more. Social and belonging needs includes
appreciation at workplace, recognition or self-confidence. Lastly, self-actualisation needs
contains becoming the best version of own-self. Theory X and Y, was founded by American
scholar, Douglas McGregar. He wrote a book named “The Human Side of Enterprise” where
he said that two separate management styles are directed by their perceptions of the followers

motivation. Manager or leader who predict that employees are uninterested and disfavour the
work use theory X which is authoritarian. While theory Y is exploited by leaders who think that
workers are committed, responsible and self-motivated (Modeste and et.al., 2020). It emphasis
on the participative style of leadership that offers a rise to a more positive and collaborative work
environment while theory X leads to small managing of employees. It is seen that many of the
larger organisations such as Tesco, Marks and Spencer and more rely on theory X in order to
maintain everyone more focused on attaining the organisational goals. While, small
organisations such as coffee shops named Foxes cafe lounge promotes employees to be part of
the decision-making process. Hence, they encourage creativity and innovation in the work.
Contemporary marketing orientations means as an approach that helps in offering the
best design of goods as per the needs and wants of customers. The main agenda behind this
approach is to acquire new customers for the organisation. Contemporary marketing is also
regard as an useful tool to analyse the target customers. It plays a fundamental role in smoothing
the business functions and also beneficial in shaping the near future. It assist in increasing the
demand of goods and services which affects positively on the business revenue. Therefore, with
the use of contemporary marketing orientations, a company is able to boost its products' demands
which will support in rising company's profit (Ramus and Lee, M., 2021). This approach also
helps in satisfying valuable customers and makes them loyal towards brand. Overall, the
approach of contemporary marketing will help brand in increasing customer base which may
result in moulding the shape of company in near future.
Culture excellence approach can be understood as the objective of excellence which
have increased potential to attain higher and excellent result. Now a days, it is very important for
the business organisations to create a culture excellence approach in their business in order to set
a culture of business. Through this culture excellence, the leaders and managers must try to
increase strengths and capabilities and endows workers to attain the desired results. With aim of
developing this culture in an organisation, the management is need to move to the developing
change and growth culture from the culture of resolving conflicts and problems (Sun, Hall and
Cegielski, 2020). A company is also desired to have qualified and skills employees in the
business so that change can be easily adopted. Hence, this will shape the organisation in near
time by getting extraordinary results and improved progress.

Japanese approach of managing quality emphasis on the creation of top quality in the
production of products and services. It is different from the classical approach of quality
management. It is possible by doing the HRM practices of development. This will help in the
shaping of organisational structure as it sets a standards of product quality (Teixeir and et.al.,
2019). Apart from this, it also assists in generating more ideas through workers can work on to
raise the productivity. Therefore, the Japanese approach primarily demonstrates all such views
which supports businesses to keep its operational and production skills in hand.
Organisational learning is meant by the procedure of bringing betterment in the
corporate companies which also helps in managing the acquired knowledge while using it
effectively. It mainly focuses on the creation and execution of knowledge in the organisation
which will support in enhancing the work performance on overall basis. Through this approach,
employees are getting training and developing sessions from their seniors to learn new concepts
of using technology and systems. It will better support in the accomplishment of goals of
business (Williams, Heucher and Whiteman, 2021). Organisational learning possesses a vital role
in shaping the businesses as it make the workers to face challenges and complexities which will
simultaneously help in the growth of business. It has been seen that all the organisations,
provides learning to lead the employee's performance. It will also help in the development and
improvement of skills and knowledge of employees.
CONCLUSION
From the above discussion, it can be said that organisational theory are mainly considered
as the application of concepts and laws which may offer a positive result in the usual workings of
the business. The theories of classical and neoclassical are discussed in the report. Classical
theory is dependent upon creating efficiency in the business by giving tasks as per the skills and
expertise of the employees while neoclassical theory is the extended version of classical theory
which mainly added social and emotional factors. In the end of the essay, there are certain
approaches are discussed which help in creating efficiencies in the business.

REFERNCES:
Books and Journals:
Colsen, W.A., 2020. Teacher Preparation at a Small Denominational College: Origins and an
Organizational Analysis (Doctoral dissertation, Eastern Michigan University).
Fried, A. and Walgenbach, P., 2020. Structurationist framework to explore organizational
deviance from standards.
Jacobsen, D.I., 2021. Organizational change and change management. Vigmostad & Bjørke.
Karmakar, R., 2020. Redefining Organizational Commitment: Theory and Applications in
Today's Organization. ITIHAS-The Journal of Indian Management, 10(2).
Modeste, M.E. and et.al., 2020. School leadership practice across international policy contexts:
Organizational roles and distributed leadership in Denmark and the United States.
Educational management administration & leadership, 48(2), pp.324-352.
Ramus, T. and Lee, M., 2021. Strategic Drift: Institutional pluralism, specialization and
organizational growth. In Academy of Management Proceedings (Vol. 2021, No. 1, p.
11517). Briarcliff Manor, NY 10510: Academy of Management.
Sun, S., Hall, D.J. and Cegielski, C.G., 2020. Organizational intention to adopt big data in the
B2B context: An integrated view. Industrial Marketing Management, 86, pp.109-121.
Teixeira, J.E. and et.al., 2019. Resource orchestration in a context of organizational decline.
Management Research: Journal of the Iberoamerican Academy of Management.
Williams, A., Heucher, K. and Whiteman, G., 2021. Planetary emergency and paradox. In
Interdisciplinary Dialogues on Organizational Paradox: Learning from Belief and
Science, Part A. Emerald Publishing Limited.