Organisation Theory: Analysis of Classical and Neo-classical Approaches

This report provides an analysis of classical and neo-classical approaches in organisation theory. It covers the theories of Frederick Taylor, Henry Fayol, Max Weber, Elton Mayo, Abraham Maslow, and Douglas McGregor. The report also discusses the forces that contribute to shaping an organisation, such as customer orientation, culture excellence, the Japanese approach, organisational learning, power-politics perspectives, modernist postmodernist approach, and the importance of technology.

Organisation Theory-
Project 1

Table of Contents
INTRODUCTION...........................................................................................................................1
Analysis of Classical Approaches...............................................................................................1
Analysis of Neo-classical Approaches........................................................................................2
Forces that contribute to shaping of organisation.......................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Organisation theory refers to the elements of design, relationship and structures of the
entity. It comprises of numerous theories and concepts which are significant for entities in order
to operate effectively. The theory helps in guiding the behaviour of individuals and groups
(Byrkjeflot, 2018). This report is based on Marks & Spencer which is located in United
Kingdom. It deals in premium quality clothing, food and home products. Furthermore, it covers
analysis of classical, neo-classical approaches and forces responsible for shaping the business.
Along with this, the appropriate business structure that can be opted in future is also mentioned
in this report.
Analysis of Classical Approaches
The approaches cover under this head are traditional and authentic which have been
developed by taking into consideration the physical and economic needs of the people. There is
no inclusion of social needs, job satisfaction etc. Some of these have been elaborated below:
Frederick Taylor (1856-1915) – Scientific Management
Scientific management theory was given by F. W. Taylor who is known as Father of
Scientific Management. The alternative name of this theory is Taylorism which is focused on
making the efficiency particularly labour productivity with its application. The motive is to
increase their prosperity with the help of training in order to create a balance between the
interests of employees and employers. It has transformed by adding more focus on technological
aspects in order to compete with the current scenario. This has supplemented the traditional
approach by making the contribution of employees count in the efforts of the company. People
working in the entity are important for completion of the tasks on time. Also, digital and other
technological transformations are taking place rapidly therefore, the scientific management has
been extended to this aspect (Young and Ghoshal, 2016).
Henry Fayol (1841-1925)- Principles of Organisation
Henry Fayol developed 14 principles of management which can be used by the managers
for desired results. These guide the managers to have effective interaction with the workforce.
Apart from this, there are six functions which start from forecasting and complete with
controlling the actual output. The main aims of this classical theory is to enable the management
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incorporate change within the organisation followed by the decision-making. On analysing this
theory, it has been concluded that these theory has transformed by including the importance of
employees. Every individual holds some rights which can be exercised in the organisation. Also,
they are not just bound to follow the orders. There should be certain amount of authority give to
every employee for doing the tasks according to their way. This provides higher satisfaction to
the them. Since, these are the basis of the whole business, only more points can be added as the
existing principles are adequate and effective.
Max Weber (1864-1920)- Bureaucracy
This theory was given by a German sociologist Max Weber who propounded the theory
of bureaucracy. According to this theory, the individuals are assigned separate tasks by forming
an effective co-ordination between different units (Alvesson, 2018). The powers of the
organisation is categorised into three categories viz. Traditional, charismatic and bureaucratic.
This theory has been evolved with the time, and many new aspects have been added for meeting
the goals and objectives. Enhanced emphasise has been given on the bureaucratic goals by being
within the costs to attain them. In nut shell, cost of administration can be an important element
which should not provide any burden on hiring additional employees.
Analysis of Neo-classical Approaches
Neoclassical theory is the extended version of classical theory which combines
behavioural sciences with the management. The underlying factor of this theory provides that,
efficiency of the organisation is affected with the activities of individuals working in the
organisation. The same are as follows:
The Human Relations School (1930s Onward)- Elton Mayo-
This management theory was developed in early 1920s when the industrial revolution
was going on. It is based on the perception of the workforce which states that every individual
has a desire to become a part of the supportive team. This is to help the business to grow and
develop with the time (Wang and et. Al., 2019). Every employee wish to get special attention
which can help them motivated in their work. The transformation brought to this theory that
prosperity of employers and employees should be maximum. The scope which was limited to the
betterment of the workforce has changed and increase of the efficiency of employer has been
included. Furthermore, there can be different reasons for the motivation of every employee.
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Maslow Theory of Motivation-
This theory was given by Abraham Maslow which focuses on the human needs which are
responsible for their motivation. It is categorised into different segments by allotting the
sequence in a pyramid shaped form. This helps in determining those needs which should be there
in an increased manner. These includes physiological, safety, social, esteem and self-
actualisations needs. This theory has been transformed according to the changes in the business
environment, and it can be gathered that organisation should not put aside the self-actualisation
needs aside in order to meet the organisational goals and objectives. An entity should not avoid
motivating its employees in fulfilling their personal goals and objectives. These are the important
elements in keeping their motivation high and stable. Furthermore, it a continuous process which
should be there in the organisation (Cornelis and et. al., 2019).
McGregor Contingency Theory-
In the 1960s, Douglas McGregor developed theories which were named as Theory X and
Theory Y. These comprise of authoritarian and participative which are two styles of management
that are applicable within the workplace. This theory provides a balance between the systems and
freedom for achieving the goals and objectives within the organisation. It is important for the
employees to be motivated in order to carry their work. This theory has undergone number of
changes which are inconsistent with the requirements of the globalisation. Some additional
issues and areas are added in this theory which covers contemporary issues that are connected
with the society. In this way, the scope has been widened with the time because of the extended
scope for the same.
Forces that contribute to shaping of organisation
Customer orientated- This approach is about the customers who are the most important
part of the company. Organisation makes strategies for fulfilling the needs and requirements of
its target customers (Beckford, 2019). They are the central, vital and valuable part of the
company who are responsible for providing the high satisfaction to them. It comprises of four
steps such as develop, manufacture, market and deliver. Marks & Spencer targets the females
who are young and like to experiment with their clothes. On considering the food and home
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products the scope of the customers get increased. This can help the business to grow in future
that will lead to higher profit and sales.
Culture-excellence approach- This approach is based on the organisational culture that
exist within a company. A company consists of number of employees belonging to different
backgrounds, this may create issues as there will be variety of practices. Therefore, culture
excellence approach helps in making the people understand the environment at the workplace.
Many strategies are formed in order to make good atmosphere for the employees. Also, there
should be such a culture which does not promote discrimination or such practices (Waldman and
Jensen, 2016). This is the job of the managers. This can be beneficial for companies for the
development of the employees. This can contribute to their satisfaction which is an important
element in retaining them in the organisation. With the application of this approach, Marks &
Spencer can retain good performing employees within the company for a long time.
The Japanese Approach- This approach is specifically for the quality of the production
process. According to this approach, there should be good control on the quality on the products
being manufactured by the company. This helps in achieving the goals and objectives by
maintaining the quality standards. Under this, there are some functions which should be
exercised by the managers for carrying the changes within the organisation. Marks & Spencer is
an international company operating in many countries because of globalisation. Therefore, it
becomes imperative for it to incorporate measures of the control so that desired quality can
attained (Antonsen, 2017).
Organisational learning- This is the way through which the management comes to
know about the organisation and its efficiency. It helps in obtaining the knowledge which can be
improved with the time and requirement. Under this, the management should apply the existing
knowledge and tactics for filling the gap between the working conditions and innovation. There
are three actions such as conceive, act and reflect (Murphy, Willmott and Daft, 2017). Every
work starts with an idea which is then executed with the formulation of a plan. It is then followed
by a reflection. Marks & Spencer can learn about its mechanism in order to know the strengths
and weaknesses of the company. This is to improve them with appropriate concepts and theories.
Also, leadership styles can be implemented within the organisation for guiding the employees in
order to achieve their goals and objectives.
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Power-politics perspectives- This is related to the division of the power within the
organisation. There are three layers in the hierarchy which should have powers for making
decisions which can be implemented within the company. On the other hand, politics is about the
behaviours of the people working in the entity. This can be positive as well as negative. The
management should always try to make efforts for bringing the positive organisational politics.
Marks & Spencer can create a favourable environment at the workplace in order to achieve the
goals and objectives without any hurdle. This can help it survive for a long time even in the
fierce competition. There should be a balance between the politics and power (Reynolds and
Vince, 2017).
Modernist postmodernist- The word postmodernist is a phenomenon which emerged
during 1920s. This is about the socio-economic climate which exists in the organisation. This
approach takes into account the interest which is connected with the diversity and creativity.
These form rules for the employees which should be followed by them. This is about the
managerial approaches which should be adopted by the people working in the organisation. It is
the developed version of postmodernist management. This takes into account the modern
approaches which should be implemented within the organisation. Hence, this is the new version
of the approach that can make the entities achieve the goals and objectives within time.
Importance of technology- Technology is am important part of the company which
includes emergence of new technology that can be used in the organisation. There should be
implementation of the latest technology in at the workplace. Furthermore, the management
should understand the needs of this aspect in order to reduce the losses or differences.
Furthermore, without appropriate technology, there are high chances that company can suffer
from losses (Bishop and Connors, 2018).
CONCLUSION
From the above report, it has been concluded that organisational theories are there which
have been developed by different kinds of authors from their experiences and experiments. There
are pros and cons of the same, which should be taken into account before the implementation of
one single theory. Along with this, the traditional approaches have been transformed with the
time and such changes should be taken into account. This removes the complexities in the entity
which increases the efficiencies and productivity of the workplace. Together with this,
employees should be effective enough to understand and carry the changes.
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REFERENCES
Books & Journals:
Byrkjeflot, H., 2018. The Impact and Interpretation of Weber’s Bureaucratic Ideal Type in
Organisation Theory and Public Administration', Bureaucracy and Society in Transition
(Comparative Social Research, Volume 33).
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
Springer.
Alvesson, M., 2018. Organization theory and technocratic consciousness: Rationality, ideology
and quality of work (Vol. 8). Walter de Gruyter GmbH & Co KG.
Wang, C., and et. Al., 2019. Effects of celebrity endorsement on firms’ competition: from
industrial organisation perspective. Economic Research-Ekonomska Istraživanja. 32(1).
pp.3224-3246.
Cornelis, T., and et. al., 2019, July. Organisation design seen through systematic design.
In Proceedings of the Design Society: International Conference on Engineering
Design (Vol. 1, No. 1, pp. 1553-1562). Cambridge University Press.
Beckford, J., 2019. The Intelligent Organisation: Realising the value of information. Routledge.
Waldman, D.E. and Jensen, E.J., 2016. Industrial organization: theory and practice. Routledge.
Murphy, J., Willmott, H. and Daft, R., 2017. Organisation Theory and Design. Cengage.
Reynolds, M. and Vince, R., 2017. Organizing reflection: An introduction. In Organizing
reflection (pp. 15-28). Routledge.
Bishop, P. and Connors, C., 2018. Management, organisation, and ethics in the public sector.
Routledge.
Antonsen, S., 2017. Safety culture: theory, method and improvement. CRC Press.
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