Essay: Classical and Neoclassical Management Theories and Forces

This essay provides a comprehensive overview of classical and neoclassical management theories. It begins by examining the classical approach, focusing on Henri Fayol's principles of management, including planning, organizing, commanding, coordinating, and controlling, and how these principles can be applied to improve productivity within an organization. The essay then transitions to the neoclassical approach, highlighting McGregor's Theory X and Theory Y, which explores the impact of social factors and employee motivation on organizational performance. The essay also identifies and assesses the forces that will shape organizational structure in the future, such as governance, rules and regulations, and division of work. The conclusion emphasizes the importance of management theory in enhancing productivity and profitability and suggests the practical application of Fayol's classical theory in organizational structures. This essay is contributed by a student and published on Desklib, a platform offering AI-based study tools for students.

Essay on management theory

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
1. Essay on classical and neoclassical approaches to organisation using relevant theory..........1
2. Identify and assess the forces that will shape organization structure in the future.................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management is base on the theories because that are plays an effective role in
organisation to develop its structure for future growth (Chowhan and Shekhwat, 2015). Report
will divide into two theories that are classical and neo classical theory. Both theories will help to
growth of company. Classical includes the henri fayol's and neo classical includes the
McGregor's theory. It is also highlighted by the forces which are help to future growth of the
company.
Main body
1. Essay on classical and neoclassical approaches to organisation using relevant theory.
Classical management theory is based on that belief workers only has physical and
economic needs. It centralized the leadership and decision making, its profit maximization (Daft,
2015). Classical theory include the Henri fayol's management theory is simple model of
management to interact with personnel. This theory help to manage the productivity of business.
This theory can apply in all the businesses can apply this theory to increase their productivity
through production. That include the 14 principles of management. That are division of work,
authority, discipline, unity of command, unity of direction, subordinate of individual,
remuneration etc. These principles help to M&S in five basic ways in order to control and plan
production.
Planning
Planning is important part of the organisations. This help for making effective plan and
schedule for every days and part of industrial process. By planning management id able to make
effective plan for work. It can reduce the wastage of time and help to improve productivity.
Organizing
Planning a manufacturing process, management also organise their uses of resources
(Fayol, 2016). Planning help to organizing the resources like raw material, human resource and
other, this will help to management effectively uses of resources and come together at the
appropriate time of production. Company uses the resources properly then they can improve their
productivity of goods.
Commanding
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Organising help to motivate the employees. Commanding is important to encourage the
people and direct related to personnel activity (Ferdous, 2016). This is effective and useful for
the managements to achieve their work goal and profits. Management can use this theory to
motivate and encourage the employees towards hard contribution. This help to management
improve their productivity. But most the time it gives negative impact on the employees.
Coordinating
Commanding encourage team work in every organisation. Management makes certain
group work for employees. This help to make group work because group work help to improve
their team trust and learning from other team member. But most of the time employees are not
able to do work in team because of misunderstanding. It is effective and good for the
organisations to work together. Team work always help to improve productivity.
Controlling
It is the final management activity to ensure that personnel command. Controlling is
important factor to improve productivity. This help to management for evaluating and ensureing
about the follower work (Lawter, Kopelman and Prottas, 2015). Command on their individuals is
important because they are working for improve their productivity and profit. It is effective and
good for the management.
Planning, organising, commanding, coordinating and controlling these are focus on the
building a better stronger, faster and more productive group for improving productivity and
profit. Companies can use this theory for improving their productivity. This theory effective and
easy to use at workplace. Most of the time it gives negative impact on the organisations because
individuals are not able to perform task in proper manner.
However, it had been critically that Neo classical theory is extended version of classical
theory. According to this theory social factor has affect to performance of human resource. It is
points that the formal and informal forms of organisation. In that includes the McGregor's X
and Y Theory it is about management and organisation in which two opposing views and
perceptions of employees within organisation are explained. There are two different aspects and
behaviour of individuals in which negative aspects is called theory X and positive aspect is
called theory Y. Perception and behaviour of leaders or managers influences on various
assumptions. Company uses this theory to provide motivation to employees and also to analyse
behaviour of employees and results in overall development within organisations (Madero-Gómez
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and Rodríguez-Delgado, 2018). It explains and describes different attitudes of workforce
motivation considers one of these approaches.
Theory X
According to this theory, leaders and managers are assumes that employees are lazy and
will avoid doing it if they can. Therefore, manager aims at supervising work of peoples and also
puts comprehensive control. Manager influenced by X theory assumes that employees blames
someone in the end, and sole interest of employees is to earn money. Therefore, aims provide
complete satisfaction and motivation to employees using both intrinsic and extrinsic methods.
Managers needs to properly guide and direct employees that they do not avoid taking
responsibilities and also adopts to changes effectively. Managers can adopts to controlling style
for directing employees bringing effective results and outcomes. But it can be negative impact on
the organisation's growth because most the employees and individuals are lacy to do work.
Theory Y
According to Y theory, managers assumes that workers or employees take work as
natural activity or recreation activity. Individuals are ready to accept greater duties and
responsibilities as they are self-motivated and ambitious according to assumptions of theory Y.
Management can believes that employees exercise empowerment and self-direction which makes
them to be more creative and innovative (Morden, 2017). Managers with theory Y believes that
employees are ready to put their efforts in accomplishment of overall goals and objectives. Right
conditions provided to employees and satisfaction regarding doing good job acts as a motivation
factors in itself. Theory Y managers tries to reducing and removing the barriers which prevents
employees to fully actualizing themselves.
Managers operating on assumptions of theory Y, aims at recognizing individual
differences and motivates employees for learning and developing their skills. For eg.
Administration assistant will be provided with the responsibility of generating the monthly report
of sales in order to develop his skills and knowledge. Special training and development programs
are arranged to enhance various interpersonal or technical skills of employees. Rewards and
recognition are provided to employees for improving their skills and for their improved
performances.
Theory X approach encourages and motivates to peoples for getting more engaged in the
business activities and operations (Peaucelle and Guthrie, 2015). This theory states that
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employees needs to be encouraged for accepting the changes happening within the organisation.
Employees are to be provided with proper direction and guidance and also requires full control
which makes them engage in business activities. Effective participation of employees in
operations of Marks and Spencer will lead to bring effective results and outcomes. It is help to
improve productivity and profit of the company. But not in the right ways.
2. Identify and assess the forces that will shape organization structure in the future.
Organisations structure is a framework where people work together to achieve goal of
company and successfully meet with business objective. It is important to develop their
organisation structure for future growth and goodwill of firm in the market place for long run.
Structure give clear direction to members for maintain order and resolve problem. It also focuses
on group of people and team member.
It is the best to give shape of organisation. It is important to deal with structure early to
development of organisation for perfect future of every business (Forces of organisation
structure in the future, 2017). Its development can be occur by proportion to other work the
organizations doing. That's simply means think about the structure from the beginning. As group
grow and changes, so think on the group structure.
There is need to clear structure, the best structure help to identify and assess the negative
factor that are affect to company. Its depends upon the member, employees and setting of
company. Some elements are helps to give shape of organization. That are some governance
elements, rules and regulations of organizations which operate by itself and division of work.
Description of each elements are as follows:
Governance: it is the first elements which is help to give shape to firms. In that group
and persons are make decisions within the company (Shafritz and Jang, 2015). For its growth
and future work.
Rules and regulations: its means rules and regulations of company which are made by
peoples of firm for its perfect future. It is important part of the organisations is having rules and
polices.
Division of work: organisation structure also depends upon distribution of work perfectly
in their employees and group members. It can be formal and informal, temporary and enduring,
but its depends on employer who is divide work in employees. In that have four tasks which are
help to proper division of work. That includes envisioning desired changes, transforming the
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community, planning and integration and supporting the efforts of working employees to
promote the changes.
That all are support organisational structures for highly growth of company's and make
future goodwill. There are some common goals which are help to follows the rules and
regulations of the company (Thenmozhi, 2015). Every group is different and each have their
different terms a for roles playing in group. That includes:
Coordination of every group member to achieve goal of company. Initials steering
committee the group of people they get things which are help to start, create plans for funding
and board development. Last is task forces are made for group members who are work together
around the business objective and achieve it. It is the best way to give proper shape for their
perfect future. For example: when managements are make proper planning for governance the
rules and regulations and proper division of work in employees according to their scope and
education. It will surly help to develop future growth of company.
Organisational structures is best decided upon internally, through critically thinking and
discussion by the group members. From the above discussion, in report critically evaluate the
between two theories. That are classical and neo classical theory. After concluded that, company
will use Henri fayol's classical theory in their organization structures. That will surely help to
organisation development and its future growth.
Classical theory refer the leadership and management of decision making for growth and
maximize the profit. In that include the Henri fayol's theory which is best and simple to apply in
organisation to take good decisions for the working, planning, organising, controlling,
commanding and coordinating with people (Chowhan, 2015). By this theory company's are able
create effective planning for work division.
Organising help to proper uses of resources in workplace. Controlling is important part of
every production to develop its productivity. This makes proper controlling on uses of resources.
Commanding is also necessary element. It is used for give proper direction or guidance to
employees. By this management can coordinate with their team member effectively. At the end,
fayol's management theory is best for uses and develop future growth. Company should use this
theory in their organisational structure for improve their productivity.
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CONCLUSION
From the above study it had been concluded that management theory played an important
role in organisation. That theories helped to improve productivity and profit of company. Report
had been covered by two theories that has affect to organisational structure which were classical
and neo classical management theory. Henri fayol's theory included in classical theory and
McGregor's theory included in neo classical theory. That theory played important roles in
structure. Report is also covered by the forces has help to give proper shape to organisations
perfect future. Henri fayol's theory was best to implemented at workplace. That helped in proper
planning, organising, controlling, coordinating and commanding on the resources.
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REFERENCES
Books and journal's
Chowhan, S. S. and Shekhwat, N., 2015. Business and management. Lulu. Com.
Daft, R.L., 2015. Organization theory and design. Cengage learning.
Fayol, H., 2016. General and industrial management. Ravenio Books.
Ferdous, J., 2016. Organization theories: from classical perspective. International Journal of
Business, Economics and Law. 9(2). pp.1-6.
Lawter, L., Kopelman, R. E. and Prottas, D. J., 2015. McGregor's theory X/Y and job
performance: A multilevel, multi-source analysis. Journal of managerial issues. pp.84-
101.
Madero-Gómez and Rodríguez-Delgado, 2018. Relationships between McGregor’s X and Y
theory, compensation form, and job satisfaction. CienciaUAT. 13(1). p.95.
Morden, T., 2017. Principles of management. Routledge.
Peaucelle, J. L. and Guthrie, C., 2015. Henri Fayol. In The Oxford Handbook of Management
Theorists.
Shafritz, J. M., Ott, J. S. and Jang, Y. S., 2015. Classics of organization theory. Cengage
Learning.
Thenmozhi, M., 2015. Evolution of management theory.
ONLINE
Forces of organisation structure in the future. 2017. [Online]. Available thorough.
<https://www.mckinsey.com/business-functions/organization/our-insights/organizing-
for-the-future>
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