Classical, Neo-Classical, and Modern Approaches to Organization Theory

This essay provides a comprehensive overview of organization theory, examining classical, neo-classical, and modern approaches. It discusses classical theory's focus on efficiency and its potential drawbacks, contrasting it with neo-classical theory's emphasis on employee well-being and human relations. The essay also explores present-day organization theory, including quantitative and contingency approaches, and analyzes forces shaping future organizational structures such as contemporary market orientation, cultural excellence, the Japanese approach, and organizational learning. The conclusion highlights the importance of organization theory in establishing effective rules, communication, and coordination within organizations, ultimately enhancing employee skills and organizational performance. Desklib offers a platform for students to access similar solved assignments and study resources.

Organization Theory

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Classical theory............................................................................................................................3
New classical theory....................................................................................................................4
Present day organization theory...................................................................................................5
Forces that will shape organization structure in future................................................................6
CONCLUTION...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organization theory refers to concept which is followed by many organizations for
maintain effective and positive relationship between employee and employer. Effective
relationship is mandatory for management because with help of good relationship productivity
and work efficiency are easily increased for long time. Due to maintaining good relationship
various types of works are done in systematic and fast manner (Cheng, 2018). This essay will be
prepared on the basis of using secondary data which includes magazines, newspapers and others.
This essay will be covered understanding a classical and neo-classical approaches to organization
theory, factors which influenced the design and structure of specific organizations. It also covers
in which way organization manage the dynamic process that shapes the evaluation and growth.
This essay will also have covered the different types of theories which comes under neo
classical, classical and modern approaches. Therefore, all these approaches and theories are very
essential for run the organizational activities and managing employees smoothly.
TASK
The main function of organization is to manage the whole activities and workers in effective
manner. Management used various organizational theories for maintaining the structure of all
levels of departments effectively. Due to the use of various theories various types of work within
organization are done in systematic manner. The theories which are followed by organization are
described below -
Classical theory
Classical approaches refer to the process where the firm is highly focused on overall
output, work efficiency of employees in workplace area (Cnossen, de Vaujany, and Haefliger,
2021). But due to high focus on efficiency chances are easily increased for damaging the
relationship between the employee and employer. It leads to decrease the portfolio of
organization at high rate for long time. In this approach the basic needs of employees are not
considered in effective manner which leads to decrease the job satisfaction level of employees
easily. In this approach orders are strictly given to the employees from top level management.
Due to this this theory work load are highly increased on the lower level workers which create
negative impact on their physical and mental health.
Types of classical approaches -

Scientific management – It refers to focusing on scientific method by the management for
running departmental activities and also for completing the various task (Dupouët and Barlatier,
2019). Before designing the product or completing the task different type research are made by
the employees within the organization. The main motive of doing research is to understand that
in which extent product are durable and successful for customers. For doing research
organization firstly display the prototype of particular product then according to that analyse the
feedback which was received by clients.
Administrative management – In this stage organization mostly focused on increasing the
productivity of employees for facilitating better service to the customers. For improving the work
efficiency of employees assigned the difficult assignments and case studies to employees in the
form of training. With help of these strategies the practice by the employees are highly increased
in their job role. After the effective training employees done the work in smart way in long run.
Bureaucratic management – In this stage management mostly focused on the rules and
regulations for managing the whole organization and employees in systematic manner (Gandolfi
and Stone, 2018). In this process the activities and functions are run in the form of hierarchical
structure, it means powers and responsibilities are mainly divided in three ways which includes
top level, middle level and lower level department.
New classical theory
This approach is basically the another version of classical approach and in this approach
management consider the employees in all aspects. It includes employee’s productivity, job
satisfaction, work life balance, employee health and so on. According to this approach
productivity and performance of the employees are not effected on human behaviour. This
approach is the combination of informal and formal type of organization structure. In this type of
structure, the social interactions between the employees are highly increased which is essential
for built positive relationship for long time. With help of this approach management easily
maintained eco-friendly atmosphere for employees. Because in positive atmosphere lower level
workers easily share their problems to seniors in any time.
Types of new classical approaches -
Human relation approach – In this stage management highly give importance to the
relations between the workers. Due to giving importance to relations flexibility are easily

maintained for all levels of employees within the organization. With help of flexibility worker
also do their job with interest and passion for long time. In this way organization easily gained
the effective result which is essential for maintaining their vision mission and objectives in front
of customers for long time.
Behaviour science approach – It is the another part of human relation but here little bit
difference is that behaviour and relations of humans are unlimited. Because in this stage roles
and responsibilities are distributed at global level or in society (Johnsen, Berg Johansen and
Toyoki, 2019). Due to wide coverage of roles and responsibilities employees also face lot of
difficulties in their job. Because at that time work are highly increased from the side of
customers and from senior management. It also refers to in which way employee maintain their
behaviour towards the customers at the time facilitating services. Because good behaviour is
highly essential for receiving positive word of mouth from customers for long time.
Present day organization theory
It basically refers to the open social system which is used for measuring the long term
growth and sustainability of organization (Marshall, 2018). This open system is also used to
analyse the change in the internal or external environment. In this theory management are highly
focused on managing all general assessment and subsystem effectively. Because subsystem is an
essential part in organization for generating positive output, productivity and work efficiency in
long run. The structure of this theory are made with the help of analytical methods which
includes research data and so on. According to this theory management used various elements to
run their activities and services in smooth manner. Elements includes output, input, feedback,
process, transformation and so on.
Types of present day organization theory –
Quantitative approach – In this approach management focused on mathematical methods
for solving the difficult problems in manner on daily basis. Management also used the other
techniques which is based on computers for solving problems digitally and also for increasing
the company performance at high rate. The technique which is used by firm through digital way
are simulations, analytical programs and so on. This type of analysis helped the managers to
determine or understand that in which way in which way risk are reduced in business which
leads to develop the economic growth of organization.

Contingency approach - In this approach management mostly on the style of the leader for
handling the employees in effective manner (Palframan and Lancaster, 2019). With help of using
different types of styles by management and leader internal and external situations easily handled
which is created by employees and customers. Due to using various styles the internal skills of
the leader are also developed which is useful to ensure that lower level employees are doing their
work in smart manner and completed the work in time. This approach also highlights the three
main variables which includes organization size and leadership styles.
Forces that will shape organization structure in future
Contemporary market orientation – In this method management mostly focused on
targeting various customer segments according to the demand and supply. It also refers to
understanding needs and desires of all customer segments then, according to that products and
services are delivered to them in effective and fast manner. The main reason for targeting various
customer segments by various organizations is to develop new and unique product which is
totally different from others. In this way consumers buy the various products at large number. In
this way the relation between the customer and organization are developed positively for long
time. Cultural excellence approach refers to maintaining the best culture within organization by
using maximum potential level and due to this positive result are also maintained for long time.
The culture excellence approach – It refers to build an effective and eco-friendly best
corporate culture within the organization. In this culture management mainly focused on
developing their capabilities and strength effectively (Peltokorpi, Bader and Froese, 2019). It is
highly essential for encouraging the employees to achieve the organization’s vision, mission and
objectives in long run. For developing this culture effectively management need to remove the
problem solving culture and then establish the friendly and enjoyable culture for employees. In
this way the stress of the employees regarding their work are reduced and easily do their work in
passionate way which leads to increase the work efficiency of organization in for long duration.
For gaining excellence talented employees with strong team is required by the management.
Because with help of talented team potentiality of employees are effectively utilized by the
organization for increasing their performance at high rate. Due to the effective performance of
worker’s management also facilitates the rewards for motivating them.

Japanese approach – In this approach management mainly focused on maintaining best
quality in the production process for sell their product successfully. For maintaining quality
management used the high tech equipment’s in work place area (Vidaillet and Bousalham,
2020). Due to this the services and products are delivered by the employees to customers in time
which leads to increase the profit and productivity of company in long run. In this approach
employees received new ideas and also understand that in which way achievement are captured
and increase the production of their product. For maintaining superior quality in their production
management of japan initiated various types of rules and regulation in the workplace. Due to
these rules and regulations employees completed their work in time and also able to run their
operational activities smoothly.
Organizational learning – It mainly refer to the development process employee within the
organization. In this process employees easily gained experience and knowledge about the work
of various departments in effective way (Walsh, Lee and Tang, 2019). In this process the
creativity and ideas of the employees is highly considered by the management which is highly
essential for managing the trust of employees towards organization for long time. According to
this theory management must assign challenging task to each employees of department. Because
due to analysing challenging task skills, talents and potentiality of the employees are easily
increased for long time. In this way employees are highly capable for handling any type of
situation and customer easily. With the help of effective knowledge and training employees are
also able to handle the multiple works easily at one time.

CONCLUTION
After the analysis of above information, it is concluded that organization theory is an essential
aspect for any organization. Because according to the theory management initiate various
regulations, norms and rules are initiated for control the employees effectively. With help of
effective rules good communication and coordination are maintained between all levels of
employees for doing the work smartly and in low time. Due to the effective use of organization
theories the skills, talent and capability of the employees are highly increased which is essential
for generate the portfolio of organization effectively. With help of using various theories positive
behaviour of lower level employees towards organization and customers are effectively
maintained for long time. It means when employee facilitates services and products to consumers
in good way then only the popularity of the organization gets increased. In this way the positive
word of mouth is highly spread from customers in long run.

REFERENCES
Books and Journals
Cheng, Y., 2018. Looking back, moving forward: A review and reflection of the organization-
public relationship (OPR) research. Public Relations Review, 44(1), pp.120-130.
Cnossen, B., de Vaujany, F. X. and Haefliger, S., 2021. The street and organization
studies. Organization Studies, 42(8), pp.1337-1349.
Dupouët, O. and Barlatier, P.J., 2019. Environmental shifts and change strategies. Strategic
Organization, 17(4), pp.405-424.
Gandolfi, F. and Stone, S., 2018. Leadership, leadership styles, and servant leadership. Journal of
Management Research, 18(4), pp.261-269.
Johnsen, R., Berg Johansen, C. and Toyoki, S., 2019. Serving time: Organization and the
affective dimension of time. Organization, 26(1), pp.3-19.
Marshall, G., 2018. Making use of an enduring public administration myth: Refusal, subjective
identification and the public interest. International Journal of Organization Theory &
Behavior.
Palframan, J. T. and Lancaster, B. L., 2019. Workplace Spirituality and Person–Organization Fit
Theory: Development of a Theoretical Model. Journal of Human Values, 25(3), pp.133-
149.
Peltokorpi, V., Bader, A .K. and Froese, F. J., 2019. Foreign and domestic company
attractiveness to host national employees in Japan: A person–organization fit and image
theory perspective. International Journal of Selection and Assessment, 27(4), pp.392-
405.
Vidaillet, B. and Bousalham, Y., 2020. Coworking spaces as places where economic diversity
can be articulated: Towards a theory of syntopia. Organization, 27(1). pp.60-87.
Walsh, J. P., Lee, Y. N. and Tang, L., 2019. Pathogenic organization in science: Division of
labor and retractions. Research Policy, 48(2). pp.444-461.
Will, M .G. and Mueller, J., 2019. Change Management: The Organization as a Micro–Macro
System. In Management for Scientists. Emerald Publishing Limited.