Organisation Theory/ Classical and Neo-Classical Origins-Present

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