Organisation is a cooperative interaction dynamic in social system with the purpose of satisfying individual needs (Barnard, 1938). This is not a sole definition about organisation, there are many other terms about organisation such as, Mintzberg (1983) Organisation is "Every organized human activity -- from the making of pots to the placing of a man on the moon -- gives rise to two fundamental and opposing requirements: The division of labor into various tasks to be performed, and the coordination of these tasks to accomplish the activity".
Organisational behaviour focuses on the study of the people behaviour within the organisation (Luthans, 1995). The Organisational Behaviour commonly known as the study and understanding of individual and group behaviour, and the path of structure towards improvement of organizational performance and effectiveness (Robbins, 1998). Another term of Organisational behaviour is a major discipline towards description, understanding, and prediction of human behaviour within formal organisation. Organisational behaviour as discipline is the clear recognition that organisations make internal settings that influence the behaviour of people within it and to some point the internal condition of an organisation is influenced by the large components such as economic, politic, social, and technology which support the organisation (Owen, 1987). Based on these definitions we can see that organisation consists of many elements which built it. From the people, the system, and the goals, these 3 elements have to be integrated towards the organisation improvement and better performance. This paper will discuss about the two theories about management. The comparison, the nature, and the origin of these theories will be presented in this paper.
2.The Theories of Organisation Studies
-The Classical Approach-
The origin of Classical Approach carried out initially in the early part of the century, by such scientist as Frederick W. Taylor, Henri Fayol, Urwick, etc. Most of them were laying the fundamental for a comprehensive theory of management (Mullins, 2005). Frederick W. Taylor came up with the so-called Scientific Management through his book The Principle of Scientific Management on 1911. His theory emphasizes in obtaining increased productivity from each worker through structuring the technical work organization and providing monetary incentives as the motivator for higher results. He believed there is a most efficient working method by which employee should do their jobs. He argued that all jobs processes can be determined into discrete tasks, so that tasks, by scientific method, was able to find the best way to undertake each task, these terms recognized as division of labour. Taylor found out the major cause of inefficient work is lack of employee initiatives on his job. This issue obtain another negative impacts for company such as waste of human effort, waste of material things, waste of time, etc(Freedman, 1992). In other words, Taylor thought the basic cause of these waste was because company focused too much on the output of job rather than focusing on every single process by which the work was finished. This condition was normally happened in that time because most of company used predetermined results, usually throughout the number of finished product, to measure appropriate salary or incentives for the workers. Having said that, Taylor saw initiatives and incentives system are major problem for company in order to improve their performance. Therefore, he argued that the only way to increase performance is by giving special incentive so the company can hope to get a lot of initiatives from his employee (Owens, 1987). The other contributor of Classical Theory is Henri Fayol. Henri Fayol has different perspective than Taylor, he was focusing on the manager rather than the employee and he emphasized in administrative aspects in the...