Hazara university

Mansehra

Assignment

Topic: Evolution of organization theory

Submitted to: Sir Rehmatullah

Submitted by: Syed jan sheer shah

Subject: OTB

Semester: BBA 7th

Roll no: 47343

Evolution of organization theory:

The evolution of organisation theory can be divided into three

broad classifications as follows:

1. Classical Organisation Theory:

The classical theory represents the traditionally accepted
views about organisations i.e. organisation was viewed as
machine and human beings as components of that machine.
The classical theory is the beginning of the systematic study of
the organisations.

The classical theorists concentrated on organisation structure

for the achievement of organisational goals, thus, focusing on
input-output mediators and giving less or no attention to
facilitating and constraining factors in the external
environment. Many of the classical concepts and principles
hold good even today. The writers in this thought have dwelt
on human behaviour only in rudimentary manner. The
classical theory can be identified into three streams of
thoughts.

These are:
(i) Scientific Management introduced by F.W. Taylor

(ii) Administrative or Process management introduced by

Henry Fayol and

(iii) Bureaucratic model introduced by Max Weber.

The scientific management group was mainly concerned with
the tasks to be performed at the operative levels. Henry Fayol
studied for the first time the principles and functions of
management. Max Weber introduced bureaucracy as a form of
rational organisation.

2. Neo-Classical Organisation Theory:

The classical theory of organisation focused its main attention
on physiological and mechanical variables of organisational
functioning. The testing of these variables does not show
positive results. The Neo-classical writers tried to remove the
deficiencies of the classical school.

This theory consists of two schools of thought viz:

(i) Human Relations propounded by Elton Mayo and
Roethlisberger

(ii) Behavioural Science Approach introduced by A. Maslow,

D. McGregor, F. Herzberg and V. Vroom.

The Hawthorne studies conducted by Elton Mayo and

associates discovered that real cause of human behaviour was
somewhat more than mere physiological variables. These
studies revealed the importance of social and psychological
factors in determining workers’ productivity and satisfaction.
The pioneers of Behavioural Approach reasoned that in as
much as managing involves getting things done with and
through people the study of management must be cantered
around people and their inter-personal relations. The
advocates of this theory concentrated on motivation,
individual drives, group relations, leadership, group dynamics
and so forth.

3. Modern Organisation Theory:

Modern organisation theory is of recent origin, having
developed in early 1960s. This theory has tried to overcome
the drawbacks of earlier theories.

They theory may be understood in two approaches:

(i) Systems Approach and

(ii) Contingency Approach.

The systems approach studies the organisation in its totality.

The mutually dependent variables are properly analysed. Both
internal and external variables are studied in analysing the
nature of organisation. The contingency approach suggests
that there is no best way to handle all the management
problems and there is no organisational structure to suit all
the situations. A structure will be suitable only if it is trailer
made for an enterprise. This approach suggests that needs,
requirements, situations of a concern should be considered
while designing an organisational structure. The influence of
both internal and external factors should be considered in this
context.