Organisation Theory: Classical and Neoclassical Approaches

Organisation
Theory

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Classical Approach .....................................................................................................................3
Emergence of Neoclassical Approach .......................................................................................6
Forces that will shape the organisations and their structure.......................................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Organisation Theory consider as a set of associated and interrelated concepts that mainly
determine the behaviour of individuals and group members of the organisations. Through
classical and neo-classical approach organisation can get more success. Classical approach
mainly focus on the work and economic need of the employees and this approach viewed
organisation like a machine and employees as a components of that machine (Bratton and Gold,
2017). Neoclassical approach is a extended version of classical approach in which behavioural
science included. On the basis of this approach, organisation is a social system and its
performance affected by the each and every human actions. This approach also known as “
behavioural theory of organisation” or “Human Relation Approach” (Storey, 2016).
Organisational structure is a systematic outline that control all the organisational activities and to
apply a effective organisational structure is necessary for the future growth (Sandhu and Kulik,
2019). The main motive of this report is to cover classical, Neo-classical approach and
organisation can shape their structure so that organisation can take more advantage in future.
MAIN BODY
Classical Approach
The organisation refer to the group of people working together to achieve the common
goals. There are various organisational theories designed which explain the organisation and its
structure, functions, operations and individual and group behaviour. In early twentieth century,
the classical theory have emerged with development of the industry. The Classical theorist
considered the organisation as machine and the workforce as its components. The were in view
that efficiency of the organisation is directly dependent on the efficiency and performance level
of members of an organisation. Their emphasis was on division of specialisation and
coordination of activities.
Scientific Management
The Frederick W. Taylor developed the scientific theory of management approach which
emphasised on improving the efficiency of each individual in the organisation. The main
objective was to increase the economic efficiency and increase the productivity of workforce.
According to this theory, the production processes being done by workers are repetitive in nature
and workers performing the same activity on daily basis becoming specialised in performing