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    Understanding of Classical and Neoclassical Method to Organisation Theory

    University: University of CHESTER

    • Unit No: 5
    • Level: High school
    • Pages: 10 / Words 2392
    • Paper Type: Essay
    • Course Code: LSME403
    • Downloads: 312
    Question :

    Learning Outcomes

    • Discuss an understanding of classical and neoclassical method to organisation theory.
    • Evaluate and identify the factors that have influenced the structure and design of specific organisations.
    • Examine how organisations manage the dynamic processes that shape their growth and evolution.
    • Explain and analyse the factors that will shape organisations and their structure in the future.

    Module Information

    Modern economies could not function without organisations. Whether formal or informal, their efficiency and effectiveness has a major impact on innovation, employment and standards of living. After examining early theories of how organisations evolved, the module analyses different organisational structures in the context of their environment, and how, over time, changes in the environment can change the nature and function of organisations. The module concludes by considering how technological advances are forcing organisations to become less hierarchical and more flexible.

    Assessment Tasks

    It includes two task which is to be completed in this module :

    • Essay – 2000 words LO1 and LO4.
    • Case Study – 2000 words LO2 and LO3

    1. Essay (2000 words)

    Examine the development of organisation theory from its classical and neoclassical origins to the present day. As part of your analysis, examine and analyse the forces that will shape organisations and their structures in the future.

    Case Study (2,000 words)

    The case study is taken from “Google’s Organisational Structure & Its Characteristics (A critical Analysis) and Google’s Organisational Culture Type and Its Characteristics”. The full case study is available at: http://panmore.com/google-organisational-culture-characteristicsanalysis
    For further details: Google Diversity Annual Report 2019 available at https://static.googleusercontent.com/media/diversity.google/en//static/pdf/Google_diversi ty_annual_report_2019.pdf

    Google’s Organisational Structure & Its Characteristics (An Analysis)

    Google organisational structure facilitate internal communications and idea sharing in the online advertising, information technology, and consumer electronics business. Google organisational structure is based on fundamental factors that contribute to the success of the information technology business. A company’s organisational structure or corporate structure is defined as anatomy and arrangement of the various components of the business, majorly in terms of its processes and resources. In this business case of Google, the corporate structure is formed to meet the need for innovation and creative ideas. Innovation is a unique feature of Google’s corporate culture. In relation, the company’s organisational structure encourage product development to maintain high performance and competitiveness in the Internet services industry. Product development is based on four approaches in order to grow and expand business, as identified in Google’s generic competitive strategy and extreme growth strategies. In this way, the organisational structure contributes to business optimization to deal with the competitors, such as Apple, Amazon.com, Facebook, IBM, Intel, Microsoft, Snap Inc. (Snapchat), and Twitter. These firms are stiff competitors, but Google’s corporate structure strengthens business competencies to deal with competitive market.

    In 2015, the conglomerate Alphabet Inc. was founded, with Larry Page as CEO and Sergey Brin as President, and became the parent company of Google, after re-establishing the business. In 2017, upon further restructuring, it became Google LLC. Despite such restructuring, the company remains its organisational structure, as it consider core business processes remain largely the same, including online advertising, cloud computing, digital content distribution, and consumer electronics. Due to multinational involvement, the business forms its corporate structure to deal with the complexity of its operations expanding different regional markets. As rapid technological development involved in the industry and the involvement of competitors, Google’s corporate structure is assumed to continue changing as a way of establishing the company’s global market position.

    Google’s Organisational Structure Type and Characteristics

    Google is dealing with cross-functional organisational structure. This structure is based on matrix type. However, the company maintains flatness as a main factor that impact functions throughout the structure of corporate. The following are the main features of Google’s corporate structure which includes:
    • Function-based approach
    • Product-based approach
    • Flatness

    Function-based approach: This structural characteristic consist of various resources and processes based method. For instance, Google’s organisational structure includes a group of Global Marketing, and another group deals with Finance. This function-based grouping is entitled for developing strategic decisions and direction. For example, Google’s operations management approaches which are used and based on function-based groups at the corporate headquarters. This feature of the company’s corporate structure impact business processes, including communication among the members, as well as strategic management to resolve issues faced at various levels in the Google organisation.

    Product-based approach: Google’s products are made through the use of product based groups in the company’s corporate structure. This structural characteristics covers the requirements to innovate and deal with competitive products, such as the ones enumerated in Google’s marketing mix or 4Ps. For example, the company has a group for Cloud operations and other group for Artificial Intelligence operations. An executive heads headed the groups. With this characteristic of the organisational structure, the business fulfils contemporary and future market demand and consumer preferences pertaining to information technology and consumer electronics products, such as Search, mobile apps, and mobile devices. This will help to meet vision and mission statements of the Google’s corporate. The company’s product lines aims to enhance people’s access to gain information, mainly an information from the online sources.

    Flatness: This structural features includes the minimization of vertical hierarchical lines of communication and authority, despite Google’s function-based groups. For instance, using flatness, the organisational structure of the company enables employees, teams, and groups to improve management and communicate directly with upper management. Also, in this way, Google’s corporate structure conducts meetings and communicate information among employees and teams several functional areas of the organization. This structural component is a main contribution to innovation for novel products that help in diversification of the business, that strengthen and outlined in the SWOT analysis of Google LLC. This fundamental features of the organisational structure manages Google’s corporate social responsibility strategy and stakeholder management, especially in terms of boosting employee morale, motivation, and satisfaction in their work as main part of the company’s business and long-term success.

    Google’s Corporate Structure – Recommendation

    The flatness of organisational structure of the Google company has the advantages of encouraging innovation and creative ideas, based on the development of knowledge within the business organization. In relation, the company’s corporate structure has the benefit of facilitating innovation specific to product development. Google’s product-based groups are designed for this purpose. These benefits arises due to function-based groups that improve coherence throughout the business. Apart from this, Google’s corporate structure has opportunity for improvement which brings flexibility in the working system.

    A recommendation to improve Google’s corporate structure is used to deal with possible flexibility issues. The corporation’s current structural features are effective in facilitating flexibility in human resources. For instance, the organisational structure’s flatness optimizes flexibility in how Google’s employees develop different knowledge and formed products. These business use various corporate standards which brings more flexibility in customizing products in order to meet the demand of the regional and local consumers. With this, the strategic issue is can boost the level of flexibility of product-based groups through policies and strategies in the company’s corporate structure. For example, additional positions within teams or groups can add to such flexibility. This recommendation is aimed to raise concerns regarding how Google’s organisational structure fulfils the demand and need of the potential consume and deal with the competitive market.

    Google’s Organisational Culture & Its features (An Analysis)

    Google’s organisational culture is based on driving force that boost the company to continue its leadership in the information technology and online advertising industries. A company’s organisational culture, which in this business case is the corporate culture define as traditions, customs, and behavioural ideals that predominantly influence employees’ behaviours. Google’s corporate culture inspire employees to share information for the purpose of supporting innovation. Innovation is a factor that enables the company to maintain its competitiveness against other technology businesses, such as Apple, Facebook, IBM, Amazon.com, Microsoft, Intel, Twitter, and Snap Inc. (Snapchat). Through its corporate culture, Google LLC ensures that its workforce is competent in addressing business needs linked to the external forces generated by these competitors. The corporation actively develops its cultural strengths through institutional measures, like training, and through informal approaches, such as personalized leadership and management support. Efforts to continuously improve the characteristics of Google’s organisational culture are applied to maintain creativity and innovation.

    Google’s cultural features are focused on enhancing employee performance. The company expects effective motivation through its organisational culture. For example, in developing solutions to target customers’ everyday problems, Google’s corporate culture motivates workers to think outside the box and aim for novel ideas. In this way, the organisational culture facilitates human resource support for various strategies, such as Google’s generic strategy and intensive growth strategies. This cultural support is a success factor in the international market for Internet services, digital advertising, cloud computing services, hardware and software, and consumer electronics.

    Google’s Organisational Culture Type and Its Characteristics

    Google has innovative organisational culture. The company always emphasizes the significance of openness among employees, as a way of motivating innovative minds. The resulting innovation is applicable on Google’s ideology in dealing with various industries. For example, the company innovates its technological means and services provided to customers in the online advertising industry. The following characteristics define Google’s corporate culture:

    • Openness Innovation
    • Excellence that comes with smartness
    • Hands-on approach
    • Small-company-family rapport

    Openness: This kind of culture allows the employees to share the information among the employees of the Google. It aims to promote openness which helps them to disseminate valuable knowledge that further support innovation. For instance, the corporate culture motivates individual employees to make better interaction with others which helps them to create healthy relation in the organisation. Google’s operations management strategy supports this cultural trait through appropriate workplace layouts that improves such interaction.
    Innovation. Innovation is an important elements used for achieving success in Google’s business. The company’s organisational culture encourages employees to contribute to the innovation of the business and in product they supplied. For instance, this cultural characteristic promotes employees’ to go out of the box for bringing change and think to discover or invent new solutions to deal with current and emerging needs in the multinational market. Innovation contributes brings transparency in the working system of the organisation. This condition also means that the company’s types and level of innovation changes pertaining to relevant needs identified in the information technology and services market.

    Excellence: This cultural characteristic focuses on achieving goal and objective in every business of the Google. This feature of the organisational culture deals with human resource development programs to appreciate efforts and excellence work of the employees. For instance, training programs are conducted to motivate workers so that they can achieve desired outcome. In this regard, Google’s corporate culture promotes uniqueness and creativity in the workforce, and direct employees to strive for outstanding work.

    Hands-on Approach: Google applies a hands-on approach to human resource development through this culture approach. This cultural primarily focuses on using experiential learning as an effective mechanism of improving employees’ knowledge, skills, abilities and capabilities. Theoretical knowledge is not sufficient for Google LLC. Employees are required to learn as they continue in their journey as part of the company’s organization. In general, this core element of the organisational culture is followed through policies that support employees’ involvement in projects and experiments. Such experiments is based on various new ideas, supporting innovation in product development that affect Google’s marketing mix or 4P. Therefore, the company’s corporate culture increases employees’ experience, including on-the-job learning and training that contribute to human resource competencies.

    Small-Company-Family Rapport: Google LLC is well-known for its supporting for small-company family rapport in its workspaces. This cultural characteristic focuses on the social interactions among workers. For instance, Google maintains harmony and positive work environment where employees are free to share their ideas and views with each other. The main purpose of this case study is corporate culture as it is a medium of optimizing internal communications and generating new idea. This feature of organisational culture also helps Google in promoting employee morale. In theory, this kind of social relations in the workplace brings employee satisfaction in their jobs.

    Google’s Corporate Culture – Recommendations

    Google’s organisational culture addresses the requirement of IT an digital marketing. For instance, considering cultural trait of innovation, the company presumes that its products satisfy industry standards and are at the competitive edge of technological development. Such factors contribute in analysing the SWOT analysis of Google LLC. As Google is one of the biggest technology businesses in the global market, the organisation is an example of effective organisational design and human resource development.
    A necessary improvement to Google’s organisational culture is the further used to facilitate information sharing. Presently, company’s cultural characteristics manages communications and information sharing, such sharing happens in a controlled manner. They can enhance employees involvement to take part in the important decision making process of the organisation. This recommendation purposes to increase the number of innovation in the company’s product development processes. Also, Google can improve its working environment through additional various programs that are developed to support specialized functions among individual employees. It aims to increase employees’ knowledge, skills, and abilities to innovate.

    Answer the following question:
    1. Evaluate the factors such as technology, size of the organisation, global presence and availability of skilled manpower that would have influenced Google’s Corporate Structure and design.
    2. Examine how Google supervises the dynamic processes such as organisational culture, ethical values, innovation and decision making processes to achieve growth and evolution.

    Answer :


    Organizational theory are considered to be the concepts which are interrelated to the behaviours of the different level of individuals along with groups or subgroups. They all have the interaction and performance of various activities which is considered to be intended towards accomplishment of common goal. This study have large level of identification which is majorly focusing in the different level dimension such as formulation, standardized along with complexity of hierarchy and strategy towards goal. In this report there will be clear level of discussion on classical and Neo classical approach along with forces which will help in shaping the companies along with structure for having future development of organization is a significant way.


    1. Classical approach.

    The classical approach to management have the process of management body which is actually based on the economical and physical needs of employees. In addition to that social and job satisfaction needs are not considered as important. It has major level of avocation in term of high specialization of labor along with centralized level of decision-making and maximization of profit in more effective and efficient way.

    This is the oldest form of approach which have major level of concern in way of increasing efficient of workers actuality based of practices of management by having careful observation on outcome. They mainly look for the universal principles of operation which is striving for economic efficiency. This approach have inclusions of the scientific, administrative and bureaucratic management.

    Scientific Management is theory of management which is analysing the workflows along with objectives in more order to have improvisation of labour productivity. Fredrick Winslow Taylor is considered is father of scientific management as he has suggested that the decisions which are based on rule of thumb along with tradition can be replaced with having precise level of procedure which is actually developed by careful study towards individual section. The 4 principle are replacing the rule of thumb work methods, scientifically have providences of selection training to develop each worker. There should be proper corporations along with workers. There should be proper dividing of work equally between managers and worker to gave application of scientific planning.

    Principles Of Organization is being developed by the mining engineer who has views the management as professions that can be trained and developed in order to have analysis to functions of management. As per the fayol, a company can be grouped in six level of categories that is technical, commercial, financial, security along with accounting ans managerial section. The management has the five immutable elements that are planning, organizing, commending, coordination and controlling. The principle of fayol are Division of Work, Balancing Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interests to the General Interest, Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure of Personnel, Initiative, Esprit De Corps.

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    Bureaucracy theory is being developed by German sociologist and political economist who have considered bureaucracy is considered to most efficient organizational form. It has clear standard rules and regulations which is actually followed. There is specialized systems along with maintaining process of uniformity with inn companies which is common among large level of organization and government. The principles of the bureaucratic theory are such as the job specialization, authority hierarchy, formals selection, formulation of rue and regulations, imperturbability along with career level of orientation.

    On of the major level of criticism of classical approach is that it has given little level of control over employee are their respective working lives along with making them very dependent and passive. This made employees working condition more level of conducive to have psychological failure.

    2. Neo-classical approach.

    The terms classical have the easy way of references of the work which is done by the economist in the 18th and 19th century. By adding the word Neo is about doing something new. The classical economist were not well-known about the happiness along with optimistic bunch the economist. There are having the believed that the growth of population is considered to be rapid in accentuation of successor. The Neo-classical approach recognizes the primacy of psychological and social aspects of the workers as an individual and his relations within and among groups and the organization. The theory has been attempt to have the incorporation with behavioral sciences into thought of management which is considered in order to have the solution of problems which are actually asides by theory practices.

    The Human Relations School is being developed by medical student who have developed the interest in psychology as he is considering the human being is more focussing towards stage-management action. The Elton Mayo is founder of human relation movements. There is conduction various level of experiment such as the-

    Hawthorne experiments which have the objective to have examination of the effects fatigue on worker. This has been extended to be more level of evaluation towards attitude and parapsychological reaction at workplace.

    Illumination experiment which is conducted to ave the observing the effects of illumination among to group that is test group and control group. The former have experience the change in intensity of light whereas latter have constant light. There is reduction in productivity of test group as there are other factors which can be considered as reprehensible for level of productivity.

    The last is interviewing programmes which last for 3 years covering more than 21000 employees with objective to have exploration of implementation which can be used to have improvisation in supervisory training. The experiment has been concluded that the productivity can be increased if the worker can have proper level of allowances to talk freely about the matters which are considered important to them.

    Contingency Theory is the behavioral theory which is actually based on respective view that there are no existences of the best ways to have respective level of lead in company. There is need to have better level of corporation and accurate level of decision-making as the action are dependents to the internal and external factor to have effective developmental of company. The internal level of contingency factor are technology, people, task, purpose along with structure. On the other hand the external factor are social cultural factor's, economist factor, legals along with technological factor one. It has been analysis that the companies which have major level of operation is less structure are consider to be more level of successful along with flexible level of approach. The companies should have stable level of management style in operation in order to regain more level of productivity.

    3. Forces that will shape the companies along with structure in upcoming future.

    Technological and digital level of productivity

    There is major level of changing terms that is the automation along with developmental of data statistical which is tuning court to have major impacts s overall resolution of company developmental. There is major level of interrogation towards the directive technology which have major intergeneration d to tools which is optimizing the informativeness and ideas to decrease level of separation.

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    Shift in ways to have generation in business value

    The development of simplicity in complexity in considered to have development of lean level of methodologies along with evaluation of silos to move organization from holistic approach by specification and complicatedness. The companies will have facing of acceleration level of changes along with increase in level of uncertainty and digital level of stake. The company sill shape new customer strategies which have professionalization of premium product's development which have sharing of economic data s along with ethic and environment.

    Shift in resources level of distribution

    There will be demographic dividend which have inclusion of following distribution such as the ageing population with experiences and expertise per along with multiple generation in workforces and talent level of imbalances. The development of skill imbalances and shifting of geopolitical and power of economies will make disparity in wages in economic growth development. This has the rise in middle class people in developing countries along with urbanization and resources depletion.

    Changing of workforce culture and values

    This has the level of inclusion in term of promotion equality and diversity in company by having development of concept of multiculturalism gender equality along with value pluralism. The companies should have proper level of equatable level of development in economics. The companies will have changing in promoting the individualism an entrepreneurship which will increase loyalty of employees risk taking interpretation along with talent renting and individuals level id aspiration.

    4. Theories that will shape the companies along with structure in upcoming future.

    Customer orientated approach is being defined as the approach of sales along with retention of customer through there are been proper maintaining of focus for helping customer in order to have the meetup of long term needs and wants. In this approach the management and employee have the signaling of the individuation along with objectives of teams which is actually revolving around the satisfactions and retention of employees.

    The culture-excellence approach is considered to be the elements for the people orientations which is paying major focus on employees along with highlighting the impatience of the empowering the actively engaging all the employee of the organization in order to have the power level of facing of challenges which have been occupied due to changes. In this theory there is Creation of such as culture which have major level of requirements to have the vision which s possible along with panning in motions and the practices which is germinating to have the ongoing level of brassiness.

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    The Japanese approach is considered to be unlike to the traditional approach which have the proper level of quality control which sues to have the administration by inspector of quality at the end of process of production. The approach has the proper control over focusing the quality in more of building the quality at superior level. This can be developed through have the proper level developmental of terms in term of hum resources management precipices. The approach is having more improvisational in standard level of quality propositioned which can be achieved with peeress of the productivity operation estrangement of quality of their word count.

    Modernist & postmodernist approach as the former is considered to be philosophical movement intern of art along with keeping in minds the cultural level of trends which have farseeing the wide level of scales along with far increasing transformation in consideration of western solidity. On the other hand the post-modernism is considered to better approach which is casually being considered as the departure of modernism along with having the refutes of the basic level of assumption. The key principles of the having the major level of inclusion objective reality, morality, truth, human nature, reason, language, and social progress. On the other hand the characteristic of the modernization are astutely being marked up with string and intentional level is break in term of tradition. This has major inclinations of strange level of retractions which is actually established against the regression political, and social views. Belief that the world is created in the act of perceiving it; that is, the world is what we say it is. The companies should have stable level of management style in operation in order to regain more level of productivity.


    From the above file it can be concluded that interaction and performance of various activities with groups or subgroups is considered to be Organizational theory. The classical approach to management has major level of avocation in term of high specialization of labor along with centralized level of decision-making and maximization of profit in more effective and efficient way. The existence of specialized systems along with maintaining process of uniformity with inn companies which is common among large level of organization and government. The Neo-classical approach recognizes the primacy of psychological and social aspects of the workers as an individual and his relations within and among groups and the organization. There has been analysis that the companies which have major level of operation is less structure are consider to be more level of successful along with flexible level of approach. In culture-excellence theory the major level of requirements to have the vision which s possible along with panning in motions and the practices which is germinating to have the ongoing level of brassiness.

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    Kitana, A., 2016. Overview of the managerial thoughts and theories from the history: classical management theory to modern management theory. Indian Journal of Management Science, 6(1). p.16.

    Haliidu, S.G., Ibrahim, H. and Labaran, F.A., 2017. Neoclassical Management Paradigm: A Synthesis for Staff Motivation and Managerial Implications. Review of Public Administration and Management, 400(6016). pp.1-9.

    Kovalev, V.V. and Kovalev, V.V., 2019, November. Accounting in modern economics: influence of neoclassical tradition. In Third International Economic Symposium (IES 2018). Atlantis Press.

    Sredojević, D., Cvetanović, S. and Bošković, G., 2016. Technological changes in economic growth theory: Neoclassical, endogenous, and evolutionary-institutional approach. Economic Themes, 54(2).pp.177-194.

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