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    1. CONCEPT OF ORGANISATION & ORGANISING.

    2. CONCEPT OF ORGANISATION THEORY.

    CLASSICAL ORGANISATION THEORY

    NEO-CLASSICAL ORGANISATION THEORY

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    OrganisationOrg

    anisation:-:-

    Organisations are collectivities of people that havebeen established for the pursuit of relatively specificobjectives on a more or less on continuous basis.

    -William Scott

    Organisation is a structure managed by a group of

    individual who are working together towards a commongoal.

    OrganisingOrg

    anising:-:-

    Organising can be defined as the process of identifyingand grouping work to be performed, defining anddelegating responsibility and authority and establishingrelation for the purpose of enabling people to workefficiently together in accomplishing objectives.

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    1) AS ENTITY

    2) AS GROUP OF PEPLE

    3) AS STRUCTURE

    4) AS PROCESS

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    Identifiable aggregation of human being Deliberate and conscious creation

    Purposive creation Co-ordination of activities Structure Rationality

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    Social Needs

    Formal and Informal Group

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    Organisation is also referred toin the context of structure whichprescribes the relationships amongindividuals and positions that they hold.

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    Classical theorists have usedthe term organisation in the form of

    process of organising through whichorganisation structure is created. Becauseof the use of the term organisation as aprocess, more confusion has been created

    in management literature.

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    Organising, being a process, consists of the

    following elements:1.Departmentation. Creating various departments

    Divisions

    Sections

    2.Linking Departments.

    3.Defining Authority And Responsibility.

    4.Prescribing Authority Relationships.

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    DEFINITION:-DEFINITION:-

    Theory is a systematicallyrelated set of statements, including some

    law like generalisation that is empiricallytestable and the sort of systematicrelatedness is deductive relatedness.

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    Applying the concept of theory in

    organisation theory, it can be defined asthe study of:Study of Structure and Design

    Improve Effectiveness

    Study of Human Behaviour in InterrelationsIndividual

    Group

    Subgroup

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    1) It contains various formulations dealingwith organisation phenomena.

    2) It can be treated as a macro examination

    of organisation.3) It prescribes relationship among variables

    in the organisation.

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    1. Classical Organisation Theory.

    2. Neo Classical Organisation Theory.3. Modern Organisation Theory.

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    CLASSICAL: Traditionally. THEORY: Systematic study.

    CLASSICAL ORGANISATION THEORY:

    Systematic study of organisation. MACHINE Theory.

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    Accounting model. Control. Emphasis on the detection of errors.

    Extra pair of hands concept. Assumes man. Stability of the employees. Character Centralized.

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    1. Division of labour.

    2. Scalar & functional processes.

    Departmentation

    Co-ordination by hierarchy

    Unity of command

    Delegation of authority

    Line & staff relationship

    3. Structure.

    4. Span of control.

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    Important Concept:-

    Design Of Organization.

    Fragmented thoughts.

    Consolidated discipline

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    Motivational Assumptions Complex Information Processing Information Role of cognition in Identification &

    Classification Little emphasis on elaborated Programme Close System Assumption Static View Of OrganizationToo Much reliance on classical pillars

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    Lack Of Universality

    Lack of empirical Research

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    It started its development from thefindings of famous HAWTHTRONE

    EXPERIMENT and than later on manycontribution was made in it

    Essence of neoclassical theory

    contained in two points:Organizational situation should be viewed insocial as well as in economic and technical terms.

    The social process of group behavior can beunderstood in terms of clinical method.

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    Organization is a social system. Social environment of the job affects people andis also affected by them.

    Informal organization also exist within the formalorganization.

    Human being is not totally rational. Human being has diverse motivational pattern Often there is a conflict between individual and

    organizational objectives which increases theimportance of integration.

    Communication is necessary as it carriesinformation necessary for organizationalfunctioning.

    Team work is essential for cooperation amongpeople.

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    1. Flat structure:Neoclassicists fell that tall structure suffers from

    the following problem.Communication problem because of the increased

    differentiation between decision makers andimplementers.

    Lack of motivation to people.

    Being expensive because too many levels areadded in the organization.

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    2. Decentralization:It is in accordance with the various

    characteristics of human beings as identified bythe neoclassicists.

    3. Informal organization :a)Formal organization.

    b)Informal organization.

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    Important Concept:

    New Dimension to design Organization.Consideration of important factor.

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    Lack Of Unified Approach.

    Unrealistic Assumptions.

    Not suitable to all situation.

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