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It will explain the Classical Organization Theory and Neo-classical Organization Theory.
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Assistant Professor Deptt. of Social Work Mahatma Gandhi Central University, Motihari, Bihar
Dated: 07 April 2020 (Covid-19 Period)
CONTENTS
Organization Theory: Objectives
The basic objective of organization theory is to –
explaining behaviour patterns in organizations, and
with predicting, controlling and influencing these behaviours, with a view to improve organizational effectiveness
happening in the organization
competent and more influential. Understanding how and why organizations act, lets managers know how to react.
Key Pillars or Characteristics of
Organisation Theory
Classical Organisation Theory
Criticisms of the Classical Theory
Lack of Universality
Unrealistic Assumptions
Organisation as a closed system, which once created will work smoothly Static view of organisation Considers human beings as inert machines People at work can be motivated only through economic rewards
Excessive reliance on the strength of key pillars ( excessive division of work leads to de-personalisation )
Bureaucratic Behaviour (mindless and strict adherence to rules & regulations)
Neglect of Human Factor (no room for emotions & no consideration of the informal relations or influence of informal groups on performance)
Little scope for integration (of people with organisation – decision-making is done by the top without consultation with the subordinates)
Difference between Classical & Neo-classical Theory
BASIS CLASSICAL NEO-CLASSICAL
Structure Impersonal, Mechanical Organisation is a social system
Focus Focus is on work and economic needs of workers
Focus is on small groups, on emotional and human qualities of employees Emphasis Emphasis is on order & rationality
Emphasis is on personal, security & social needs of workers while achieving objectives of the organisation Behaviour Organisational behaviour is a product of rules and regulations
Behaviour is a product of feelings, sentiments and attitudes
Practices Authoritarian practices , elaborate rules & regulations to obtain results
Democratic practices. Participatory decision-making; recognizes the importance of human dignity and values Results Work alienation; dissatisfaction Happy & satisfied employees trying to increase production
Propositions of the Neo-classical Theory
Modern Organisation Theory: Concept
Modern Organisation Theory is of recent origin having developed in the sixties and flourished in the seventies.
This theory has an analytical base, and relies on empirical research and above all has integrating nature. It is highly constructive.
It views the organisation as a system and studies it in its totality as a complex system of human relationships.
The theory gives answers to many complex questions ignored by classical or neo-classical theorists. The important questions are – a) What are strategic parts of the system? b) What is the nature of their inter-dependency? c) What are the processes which link various parts of the system and facilitate their adjustment to each other? d) What are the goals of the system?
Modern Organisation Theory Organization as a Social System
1. What are strategic parts of the system?
Individual Formal organisation Informal organisation Status and roles Physical setting & environment
2. What is the nature of their inter-dependency?
All the parts function unitedly, cooperatively, and in collaboration with each other
3. Linking Process
Communication Decision-making Balance
4. Goals
Features of a Mechanistic Organisation
Features of an Organic Organisation
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