Question 1: Discuss each of the following theories of organisational design
1.1 Classical Organisational theory
1.2 Neoclassical Organisation Theory.
1.3 Systems Theory
1.1 Classical Organisational Theory.
One of the leading proponents of classical organisation theory was Max Weber a leading German sociologist. Weber ( 1947:7) argued that power is principally exemplified within organisations by the process of control. He further distinguished between authority and power by defining power as any relationship within which one person could impose his will, regardless of any resistance from the other, whereas authority existed when there was a belief in the legitimacy of that power. Weber classified organisations according to the nature of that legitimacy as hereunder;
?X Charismatic authority, which is based on the sacred or outstanding characteristic of the individual.
?X Traditional authority which is essentially a respect for custom
?X Rational legal authority which is based on a code or set of rules.
Rational legal authority developed into the most predominant form of authority of the three. Weber (1947:9) contested that rational legal authority is attained through the most efficient form of organisation, bureaucracy. He further argued that managers should not rule through arbitrary personal whim but by a formal system of rules.
Weber believed that bureaucracy is the most efficient form of an organisation, and based on his ideas concerning the legitimacy of power Weber outlined the characteristics of bureaucracy in its purest form and includes,
?X An organisation having clearly defined and documented set of rules such as a company handbook and other written instruments of company policy.
?X S ...