1. CONCEPT OF ORGANISATION & ORGANISING.

2. CONCEPT OF ORGANISATION THEORY.

 CLASSICAL ORGANISATION THEORY
 NEO-CLASSICAL ORGANISATION THEORY
Organisation:-
“Organisations are collectivities of people that have
been established for the pursuit of relatively specific
objectives 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 common
goal.”

Organising:-
Organising can be defined as the process of identifying
and grouping work to be performed, defining and
delegating responsibility and authority and establishing
relation for the purpose of enabling people to work
efficiently together in accomplishing objectives.
1) AS ENTITY
2) AS GROUP OF PEPLE
3) AS STRUCTURE
4) AS PROCESS
 Identifiable aggregation of human being
 Deliberate and conscious creation
 Purposive creation
 Co-ordination of activities
 Structure
 Rationality
 Social Needs
 Formal and Informal Group
 Organisation is also referred to
in the context of structure which
prescribes the relationships among
individuals and positions that they hold.
 Classical theorists have used
the term organisation in the form of
process of organising through which
organisation structure is created. Because
of the use of the term organisation as a
process, more confusion has been created
in management literature.
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.
DEFINITION:-

Theory is a systematically
related set of statements, including some
law like generalisation that is empirically
testable and the sort of systematic
relatedness is deductive relatedness.
 Applying the concept of theory in
organisation theory, it can be defined as
the study of:
Study of Structure and Design
Improve Effectiveness
Study of Human Behaviour in Interrelations
Individual
Group
Subgroup
1) It contains various formulations dealing
with organisation phenomena.
2) It can be treated as a macro examination
of organisation.
3) It prescribes relationship among variables
in the organisation.
1. Classical Organisation Theory.
2. Neo Classical Organisation Theory.
3. Modern Organisation Theory.
 CLASSICAL: Traditionally.
 THEORY: Systematic study.
 CLASSICAL ORGANISATION THEORY:
Systematic study of organisation.
 MACHINE Theory.
 Accounting model.
 Control.
 Emphasis on the detection of errors.
 Extra pair of hands concept.
 Assumes man.
 Stability of the employees.
 Character Centralized.
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.
Important Concept:-

Design Of Organization.
Fragmented thoughts.
Consolidated discipline
 Motivational Assumptions
 Complex Information Processing Information
 Role of cognition in Identification &
Classification
 Little emphasis on elaborated Programme
 Close System Assumption
 Static View Of Organization
 Too Much reliance on classical pillars
 Lack Of Universality
 Lack of empirical Research
 It started its development from the
findings of famous HAWTHTRONE
EXPERIMENT and than later on many
contribution was made in it
 Essence of neoclassical theory

contained in two points:

Organizational situation should be viewed in
social as well as in economic and technical terms.
The social process of group behavior can be
understood in terms of clinical method.
 Organization is a social system.
 Social environment of the job affects people and
is also affected by them.
 Informal organization also exist within the formal
organization.
 Human being is not totally rational.
 Human being has diverse motivational pattern
 Often there is a conflict between individual and
organizational objectives which increases the
importance of integration.
 Communication is necessary as it carries
information necessary for organizational
functioning.
 Team work is essential for cooperation among
people.
1. Flat structure:
Neoclassicists fell that tall structure suffers from
the following problem.
Communication problem because of the increased
differentiation between decision makers and
implementers.
Lack of motivation to people.
Being expensive because too many levels are
added in the organization.
2. Decentralization:
 It is in accordance with the various
characteristics of human beings as identified by
the neoclassicists.

3. Informal organization :
a)Formal organization.
b)Informal organization.
Important Concept:

 New Dimension to design Organization.

 Consideration of important factor.
 Lack Of Unified Approach.

 Unrealistic Assumptions.

 Not suitable to all situation.