Organisation Theory: Classical, Neo-Classical, and Future Trends

This essay provides a comprehensive analysis of the evolution of organization theory, tracing its roots from classical and neo-classical approaches to contemporary perspectives. It begins by defining the classical theory, which emphasizes organizational structure over employee needs, and the neo-classical approach, which extends the classical model by incorporating human factors and social systems. The essay then delves into the key figures and principles of the classical approach, including Frederick Taylor's scientific management, Henri Fayol's principles of organization, and Max Weber's theory of bureaucracy. It then explores the neo-classical approach, covering the human relations school with its focus on employee motivation and group dynamics, and the contingency theory, which emphasizes the importance of situational factors in organizational design. The essay concludes by examining the forces shaping future organizational structures, including contemporary market orientations, cultural excellence approaches, the Japanese approach to management, and organizational learning, providing insights into how these factors will influence the design and operation of organizations in the years to come.

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

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Classical Approach......................................................................................................................3
Neo-classical Approach...............................................................................................................4
Forces that shape organizations and their structure in the future.....................................................5
Contemporary market orientations..............................................................................................5
Cultural excellence approach.....................................................................................................6
Japanese approach........................................................................................................................7
Organization learning .................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The classical theory is the organizational theory which puts emphasis on the organization
instead of employees working therein while the neo-classical approach is the extended version of
classical approach as it defines organization as the social system and its performance and
productivity is influenced by the actions of the humans. There are various forces having an
impact of shaping the organisational structure such as the culture, Japanese approach,
contemporary marketing orientations and the organizational learnings. In this report, detailed
analysis of the various organizational theories will be carried from classical to the present day
along with the forces affecting the shape of the organization.
MAIN BODY
Classical Approach
Frederick Taylor (1856–1915) ─Scientific Management
This theory is related to systematic study of the relation among the people and task being
allocated for the purpose of redesigning the work and increasing the efficiency. It is based on the
four principles, first is scientific job analysis which replaces common sense with the scientific
method to work and provides efficient way to perform the task (Dalcher, 2017). Second,
selection of personnel, in this, workers are assigned work based on their capabilities and
motivation along with providing training to them in maximizing the efficiency. Third is
management cooperation which refers to monitoring the performance of the worker and offering
instruction and supervision for ensuring the most efficient way of working. Fourth is functional
supervising, in which work is allocated among the managers and the workers so that mangers can
handle the planning and training of the employees.
Henri Fayol (1841–1925) ─Principles of Organisation
Henry Fayol has proposed 14 principles of organization which accounts for the division
of work which results into improving the efficiency which will help in reducing wastage and
enhancing the output. Another is authority and responsibility which refers to the rights and
power given to the worker for completing the task in given time (Edwards, 2018). Discipline is
the another principle accounts for the rules that the organization requires governing. Unity of
command in which employee should be given command by one superior and in unity of
direction, a group of similar activities with same end goal is done under one manager.
Subordination of interest and remuneration of the personnel principles meant for aligning the

interest of the worker and organisation and payment should be fair and satisfactory. Other
principles are line of authority, order, equity, Esprit de Corps which accounts for fair treatment
of the employees and fostering the task done as the teamwork. Along with this, the employees
are encouraged to take initiative in their development and improvement plans.
Max Weber (1864–1920) -─Bureaucracy
This theory accounts for how the organizational structure results into meeting the higher
efficiency and the effectiveness. It is based on the certain principles such as the manager's formal
authority flows from the position he holds within the organization. The individuals required to
hold the position based upon their performance and not because of their social standing (Alatas,
2017). Along with this, the authority and responsibility of the individual should be clearly
specified and communicated. This can be only possible when the position of the employees are
arranged in hierarchically way which makes it easy for the employees in making it clear
pertaining to, to whom employees have to report and who will report them. This theory is
focussed on the efficiency and clearing roles in an organization with little bureaucracy as
possible.
Neo-classical Approach
The Human Relations School -(1930s onward)
The central proposition of this theory is that humans have emotional needs and the
organization is a social system and having some informal structures. It incorporates three
theories provided by Elton Mayo, Abraham Maslow and Douglas McGregor which is based on
human needs and motivation. In this theory it is stated that the workers should accept the
authority and along with this, managers should act impartially and more emphasis is put on the
group work rather than individual. In Mayo -Hawthorne experiments which defines that the
informal groups is having a positive impact over the performance and humans are needed to have
security and belonging (Oyerinde, 2017). Thus, social factors are more crucial than the economic
factors. The Maslows theory of motivation also accounts for the various needs of the workers
which motivates them to perform better. Also, McGregor’s Theory X and Theory Y refers to the
likes and dislikes of the person which has an impact over the performance. The Human relations
also states that the job design operationalize the human relation and disproves the Tayloristic
basis of job and highlights that the job design can be useful in satisfying the human needs along

with meeting with the organizational objectives. This also helps in job satisfaction and enhancing
the performance.
Thus, this theory refuses the classical theory considering it too scientific and it emphasizes on the
managerial leadership, motivation, maximum participation and effective communication. But
this theory is criticized on account of the view that the intrinsic rewards are weak and also
portrays that the people are irrational and emotionally immature and manipulative. There is no
support of the Maslow's theory and does not take into consideration the outside world.
Contingency Theory
According to this, the success of the organization is not just dependent upon the
management and leadership style implemented within the organization but also other
contingencies as well. The major contingencies that comes across are — environment
uncertainty and dependency, technology and the size. As per this theory, there is no such specific
managerial action that can be considered to be appropriate in all the situations (McAdam, Miller
and McSorley, 2019). It is important to understand that the organizational design and the
managerial decision is dependent upon the situation or contingent upon the situation which is
why contingent theory is sometimes also called the situational theory. But on the other hand, this
theory is also being criticized as there is no such agreed definition of the performance and there
can be conflicting and multiple contingencies. Along with that, the contingencies can be
manipulated. Therefore, it is an open system and the organizational structure is required to meet
or match with the situational variables.
Forces that shape organizations and their structure in the future
Contemporary market orientations
The contemporary marketing orientation refers to focus on importance of customer
market orientation versus traditional market orientation domains, where there are strategies that
when implemented offer greater support for clients based with product range. This varies
depending on what target market desires, and also to functionally focus on varied determinants
for new scale efficacy towards new directive parameters for wider run. Contemporary
marketing orientation focuses on new dimensions for consumers oriented services to generate
new scale advanced functional positioning, wider determinant fundamental orientation into new
target consumer markets. Amazon is one of the best company whose working as contemporary
market oriented approach has enabled brand to evolve on wider work goal targets, yielding

within competitive global industry. There is also functional focus towards new quest goals for
harnessing keen informative advanced consumers oriented strategies, where there is specific
focus on larger vision oriented targets actively.
Contemporary market orientations also generate new diversity among work goal targets
where there is varied scale operational efficacy, to promote scale growth for generating new
competent advancement towards new consumer oriented targets. Globally there are various
companies which are following contemporary marketing theories to evolve on new targets
within functional reach and towards new advanced specific diverse growth as per consumers
oriented scale advancement. Production orientation, product orientation, sales orientation,
marketing orientation, societal marketing orientation are the factors within contemporary market
orientations which generate advanced functional scale growth towards productive domains
(Yang,and et.al 2020).
Cultural excellence approach
The culture of excellence is people oriented which are focused on employees and are
based on highlighting importance of empowering vision oriented goals actively towards new
changes, actively engaging people in companies towards new decisions. There has been also
specific competent scale determinants developed on higher efficacy in order to face challenges
induced by change. Peter and waterman theory sought to integrate management theories
practically within management theories which plays important role in profound diverse growth.
There is varied scale efficacy on varied stringent efficacy on larger informative goals actively
towards excellence on constant profound role to evolve on varied parameters for longer scale
informative usage.
Charles handy model is also one of the widely known cultural excellence approach
model which enables culture to be framed into diverse phenomenons and also raise quest goals.
Power, role, task and person are the main factors of Charles Handy cultural model where the
culture of company enables to generate specific scale informative scale connectivity towards new
decisions for wider technical decisions. Cultural excellence approaches have profound role for
effective diverse growth of cultural domains into innovation goals and to evocatively generate
varied scale targets, towards long run for specific scale revenue targets The approaches of
cultural excellence specifically generate new advanced determinants of advanced functional
scale innovation and best skilled employees strength into workforce (Mishra and Rane, 2020).

Japanese approach
Unlike the traditional approach connected to quality control that is administrated by
quality inspectors at end of production procedures, Japanese approach by quality inspectors
focuses on quality control that focuses on building superior quality in production procedures.
The production procedures through development of team oriented HRM practices for best
effective new advanced aspects, for generating higher revenue oriented targets and developed
fundamental scale efficacy (Martínez-Caro, Cegarra-Navarro and Alfonso-Ruiz., 2020). The
Japanese management of approach also specifically focuses on wider domains of innovative
work goal diversity at business where company leaders generate new advanced strengthened
vision oriented goals and to organize range of responsibility and power efficacy widely. Japanese
management organization theory can be characterized by lifetime employment aspects, effective
motivated wage systems and vague job classifications which means unspecified range of
responsibilities. Training and core employee evolving efficacy and involvement towards
new edged innovation generates new functional scale efficacy towards wider goal formulation.
Japanese approach has been also evolving towards diverse range of dynamic working
performance oriented scaled efficacy, in companies where there is competitive focus towards
new scale efficacy for generating specific work role diversity among employees. Japanese
approach of management also evolves on broader framework for primitive new horizons and
identifying new scale domains of functional goals among human resources into longer time
frame.
Organization learning
` The organization learning can be understood as the process of creating, retaining, and
transferring knowledge within varied scaled long term targets among performance parameters.
Planning, doing, checking and acting are the factors within organization learning which
generates specific profound scale informative work goal targets and gives practical boost to
organisation learning aspects effectively. The dynamic vision oriented scaled targets into new
employees strengths, scaled up keen performance parameters imperatively towards wider scale
aspects which motivate employees. Organization learning are the widely implemented scenarios
where there is technical shift on primitive scale efficacy on longer scale innovation, also to
enhance companies work related profound quest growth towards dynamic learning opportunities.
Companies often focus towards new training strategies among employees where leaders focus on

organization learning to evolve on wider scale efficacy and informative new key decision-
making goals towards which there are varied scope enhanced. It can be also analysed that
companies evolve on organisation learning by heading towards dynamic key decisions
competitively and stable work growth evolving synergies for further profitability into new
horizons. Organisation learning also generates varied scale targets among keen work growth
scenarios into new domains of quest imperative performance measures, for competent
performance growth towards wider targets reach (Gitling, 2020).
CONCLUSION
The report has concluded classical approaches such as scientific management,
principles of organizations and bureaucracy theories where there is profound focus on work
goal diversity towards new keen decisions into longer run work functional scale efficacy.
Report has concluded further human relations theory and contingency theory where there are
varied scale grounds identified to evolve on varied work goal targets. The research has also
concluded further contemporary marketing orientation approaches, culture excellence approach,
Japanese approach and organization learning which have varied scope towards productive scale
keen growth.

REFERENCES
Books and Journals
Alatas, S. F., 2017. Max Weber (1864–1920). In Sociological Theory Beyond the Canon (pp.
113-142). Palgrave Macmillan, London.
Dalcher, D., 2017. What has Taylor ever done for us?:: Scientific and humane management
reconsidered. PM World Journal. 6.
Edwards, R., 2018. An Elaboration of the Administrative Theory of the 14 Principles of
Management by Henri Fayol. International Journal for Empirical Education and
Research. 1(1). pp.41-51.
Gitling, M., 2020. The Significance of Organisational Culture in the Development of Human
Capital. Zeszyty Naukowe. Organizacja i Zarządzanie/Politechnika Śląska, (148
Contemporary management), pp.189-201.
Martínez-Caro, E., Cegarra-Navarro, J.G. and Alfonso-Ruiz, F. J., 2020. Digital technologies and
firm performance: The role of digital organisational culture. Technological
Forecasting and Social Change, 154(C).
McAdam, R., Miller, K. and McSorley, C., 2019. Towards a contingency theory perspective of
quality management in enabling strategic alignment. International Journal of
Production Economics. 207. pp.195-209.
Mishra, N. and Rane, S .B., 2020. Development and deployment of organisational culture
maturity model (TMKC) for the business excellence success. International Journal of
Business Excellence. 21(2). pp.153-169.
Oyerinde, O. F., 2017. Team management in the 21 st century: A human relations theory
angle. Nigerian School Library Journal. 16. pp.125-136.
Yang, F.,and et.al 2020. Impacts of external involvement on new product development
performance: moderating role of organisational culture. Technology Analysis &
Strategic Management, pp.1-14.