Classical approach to organisation has concepts that are commonly known as classical concepts or classical theories of an organisation. An organisation is the structure of power, relationships, objectives, roles, activities, communication and other factors that exist when a person works together with someone. The streams of concepts in the “classical” mould are based on the same assumptions, but are developed rather independently. Bureaucracy as a concept, first developed by Max Weber, presents a descriptive, detached, scholarly point of view.
The neoclassical approach to organisation also referred to as the human relations school of thought reflects a modification to and improves over the classical theories. While classical theories focused more on structure and physical aspects of work the neoclassical theory recognizes the primary of psychological and social aspects of the worker as an individual and his relations within and among groups and the organisation. Though neoclassical philosophy could be traced to ancient times, it gained currency only after the World War I. The neoclassical viewpoint thus gave birth to human relations movement and provided the thrust toward democratisation of organisational power structures and participative management. The emerging changes in social, economic, political and technical environment of organisations also seems to have provided the rationale for such shift in emphasis. The neoclassical viewpoint does not replace classical concepts. The need for order, rationality, structure, etc. have been modified to highlight the importance of relaxing the rigid and impersonal structures and consider each person as an individual with feelings and social influences that effect performance on the job.
The modern approach to organisation and
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