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UNIT 2
Structure
2.0 1.1 1.2
ORGANISATION THEORY
Objectives Introduction Concept of Organisation
1.1.1 1.1.2 Importance of Organisation Steps in the Organisation Process
2.3 2.4
1.1.1 1.1.2 1.1.3
Principles of Organisation Classical Theory of Organisation
Bureaucracy Administrative Theory Scientific Management
2.5 2.6
2.6.1 2.6.2
Neo-Classical Theory of Organisation Modern Theory of Organisation
Systems Theory Contingency Theory
2.7 2.8 9.9 9.10
Contemporary Issues in Organisation Theory Let Us Sum Up Key Words Terminal Questions
2.0
OBJECTIVES
After studying this unit, you should be able to:
· · · · · ·
discuss the concept and importance of organisation; explain the principles of organisation; describe the classical theory of organisation; discuss the neo-classical theory of organisation; explain the modern theory of organisation; and analyse the contemporary issues in organisation.
1.1 INTRODUCTION
We are born in organisation, educated by organisations and most of us spend much of our lives working for organisations. An organisation is a coordinated social entity, grouped together and interact for the achievement of the common goal. It refers to the process of identification and grouping of activities, defining and establishing the authority responsibility relationship and determining the manner in which the organisational activities are interrelated. Thus the organisation consists of a group of people working together for the achievement of the organisational goal. Various theories have been propounded which explain the organisation in terms of closed, open and dynamic system. Traditionally organisation is viewed
as a closed system which does not get affected by external environment . Here the focus is for designing sound organisational structure which facilitates people to accomplish its objectives smoothly. Contrarily the modern view of organisation accepts the environment as an integral part of...