The Shortcomings Of Neo-Classical And Classical Organizational Theory

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Even though Neo Classical organization theory is far better than Classical Organization Theory, but it is not free from various shortcomings such as it suffered from incompetency, a short-sighted perspective and lack of integration among many facts of human behavior. Neo-classical theory is only a modification of classical organization theory. It suffers from nearly same drawbacks from which classical theory suffered. • Modern Organization Theory : Since there were several criticisms regarding Classical as well as Neo Classical organization theory, the Modern Organization Theory is developed in early 1960’s. Modernization theorist Frank Dobbin states "modern institutions are transparently purposive and that we are in the midst an evolutionary progression towards more efficient forms". The Modern theory is constructive in nature and views an organization as a system. IT has nature of interdependency. The Modern Theory is the integration of valuable concepts of the classical models with the social and behavioral sciences. This theory posits that an organization is a system that changes with the change in its environment, both internal and external. • Organization as a system ,woks as per considering various sub-systems within it, each of which has its own set of processes, roles, structures and norms of conduct. In this, an organization is being studied in its totality and both its internal and external variables are analyzed. According to Seiler, there can be four
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