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

Organisation theory
from its classical and
neo-classical origins
and forces that will
shape organisational
structures in the future

Table of Contents
INTRODUCTION ..........................................................................................................................3
CLASSICAL APPROACH.............................................................................................................3
NEO-CLASSICAL APPROACH....................................................................................................4
FORCES THAT WILL SHAPE ORGANISATIONS AND THEIR STRUCTURE IN THE
FUTURE .........................................................................................................................................5
Contemporary marketing orientations.........................................................................................5
The culture - excellence approaches...........................................................................................6
The Japanese approaches............................................................................................................6
Organisational learning ..............................................................................................................7
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8
Books and Journal.......................................................................................................................8

INTRODUCTION
According to Classical Approach it can be said that it focuses on work force's physical
and financial needs only rather than cultural needs or self esteem of theirs(Bidard and Erreygers
2020). Whereas Neo-Classical theory focuses on inculcating measures of behavioural sciences in
organisation which results in solving problems caused by Classical Approach(Abdulwahab,
OMEDE and JACOB 2020). Several forces which will construct organisational structures in
coming future can be technical know how, advancement in analytics, accessing to relevant facts
and figures and dealing all the complex hurdles with an easy method(Van Buren, Syed and Mir
2020). In the report, focus is detailed on the theories and how they can change the structure of
organisation.
CLASSICAL APPROACH
Fredrick Winslow Taylor, Henri Fayol, Max Weber gave different theories and proposed
several principles which explained classical approach with varied perceptions. The one of first
management consultant, Fredrick Winslow Taylor also recognised as the father of scientific
management is known for his outstanding methods that can enhance efficiency of operations. He
also proposed four principles of management which are Science Not Rule of Thumb, Harmony
Not Discord, Cooperation Not Individualism and Development of Each and Every Person to His
Greatest Efficiency and Prosperity. These mainly focused on creating cooperation and mutual
understanding among workers. Also aimed on working towards the betterment of work forces
which will ease the job process and enhance productive efficiency of operations performed. On
the other hand, Henri Fayol an another leader of classical theory also focused on increasing
productivity of work force but with a managerial perception. 14 principles which were proposed
by Fayol can be mentioned as Division of Work, authority and Responsibility, Discipline, Unity
of Command, Unity of Direction, Subordination of Individual Interest, Remuneration,
Centralisation, Scalar Chain, Order, Equity, Stability, Initiative, Esprit de Corps. With above
mentioned principles, emphasis was on improving the managerial efficiency rather than of
individual's efficiency which would solve the challenges that arise in an effective manner. When
whole organisational management is improved it will create an absolute change in whole
organisation which would reduce the efforts of management team thus raising the productivity of
business association and sustaining in market economy. Another leader who proposed his claims