Organisation models are classified in to two types, There are Closed and Open Models
1. Closed Model
Henry has pointed out that the closed model organisations have the following features:
- It is believed that in closed models organisation’s internal functioning or conditions do not frequently and rapidly change. In these models mainly routine works are- found and internal conditions are stable.
- There is some sort of specialization but it is found in the centre of organisation.
- To transact a job certain means are required and these means are emphasised.
- Conflicts may (in regard to many matters) crop up at any level, but these are settled at the central level. This means that there is some sort of centralization.
- Responsibility of each employee is clearly stated and it is also emphasized that they cannot avoid their responsibility.
- An important characteristic of closed model organisations is there is hierarchical system of organisation and each stage is headed by an officer who enjoys some authority. The hierarchy looks like a pyramid. In the organisations that fall under the category of closed model the hierarchical character resembles the Weberian bureaucracy.
- In the closed model organisations only few persons have monopolized the management knowledge and particularly the chief executive knows everything.
- The interaction among the people in such organisation is vertical and never horizontal.
- In such organisation it is found that the workers are loyal to the organisation and one man.
- An interesting feature is in every sphere of the organisation there reigns obedience, command and loyalty.
Scientific Management theory of public administration is also a part of closed model. Henry says: “Scientific management refers to what is more popularly known as time and motion studies”. At the beginning of the twentieth century some famous administrators propagated the basic ideas of this theory. It is said that the business and engineering schools and factories were the home of this theory.
2. Open Model
Opposite to the closed model of organisation is the open model. It is known by different names such as collegial model, competitive model, or free market model. The very names clearly indicate that openness is its central theme and features. There are some theories which fall in the name of open model and these are human relations, organisation development etc.
The principal features of the open model can be stated in the following way:
- The organisation of OM are of fluidic structure or nature. It is like an amoeba.
- In OM organisations objectives or purposes always get priority, means are not so important.
- In OM organisations there are very little that can be called stable. Most of the things are in fluid situation. As a result, the organisation is capable of adjusting with the changes. Orthodox attitude has practically no place in open models.
- An important character of such models is specialised knowledge is not confined within limited circle or it is not the property of a particular person. The specialised knowledge is spread among all sections and its purpose is to augment general improvement.
- In OM organisations, knowledge is spread among all sections of management so that the whole body can get benefit.
- A person is respected not for his status in the organisation but for his knowledge, ability to manage, and professional capacity.
- OM organisations always try to adapt themselves with the changed situations.