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NEOCLASSICAL ORGANISATION THEORY






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Implications or Contingency Approach

Contingency approach is a most powerful orientation today in management. 'It emphasise the multivariate nature of organizations and attempts to understand how organisations operate under varying conditions in specific circumstances.

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Relationship Between Contingency and System Approaches

The contingency approach has emerged out of systems approach, consequently both are inter-related. Their inter-relationship has been described by Scott and Mitchell as such.

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Contingency or Situational Approach

Systems approach leads to development of contingency or situational approach. The basic idea of the contingency approach is that there cannot be a particular management action or design which will be appropriate for all situations.

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Shortcoming of Systems Approach

Though systems approach possesses conceptual framework of much higher order as compared to other approaches, it may be emphasised that it is in no way a unified theory of organisation.

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Cybernatics of Systems Approach

Cybernatics is a crucial aspect of systems theory. Cybernatics is related to both communication and control. It integrates the linking processes and generalises them to a variety of systems.

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Modern Organizational Models

System approach of modern organisation theory suggests a number of reformation in old Organizational designs and suggests new Organizational models.

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Implications of systems approach

Systems approach of orgnaisation theory places emphasis on studying organisation as a system in its totality.

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Overlapping Role Set Model

Kahn and his associates have emphasised that individuals have to engage in roles in the organisation. The role is the expected behaviour of an individual as a position holder.

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Likert's Linking Pin Model

Likert have given the idea of linking pin model for connecting various parts of the organisation.

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Linking Processes

Organisation as a system has many subsystems and each subsystem is interrelated and interrelated and interconnected with others.

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Interrelationship and Emergent Behaviour

The distinctions made among technical, social and power subsystems are not clearly identifiable in fact.

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Subsystems In The Organisation

As discussed earlier, every system has subsystem has subsystems which are interrelated to constitute system as entity. Since the organisation is a system, it contains various subsystems.

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Organisation as Input-Output System

The input-output model was originally developed by Leontief in 1930's. It is a means to study overall economy providing an approach to analyzing relationship in large, complex system.

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Organisation And Its Environment

Organisation is an open system interacting continuously with its environment. Therefore, to understand organisation, it must be separated from its environment by prescribing its boundary.

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Organisation As Complex Dynamic System

As pointed out earlier, organisation can be treated as a complex dynamic system.

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Similarities and difference between Organisation and biological systems

The major similarities and difference between the two systems are as follows

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Organisation and biological systems

There are many levels of systems, ranging form simple static system to dynamic complex system. The basic characteristics of system are found in all such systems.

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Definition and Characteristics of System

A system is the assemblage of things connected or interdependent, so as to form a complex unity; a whole composed of parts in orderly arrangement according to some scheme or plan.

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Modern organisation theory

Modern organisation theory is of recent origin, having developed in early 1960's. Modern organisation theory can be understood in two approaches, though both these approaches are quite inter-related.

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Appraisal of Neoclassical Theory

Neoclassical organisation theory born out of reaction of classical theory, offers certain improvement over the latter. It has tried to overcome the limitations of classical theory by modifying it and making it more humanistic.

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