0TPR

Session 1: Theories, Concepts, Existence

COORDINATOR & FACILITATOR

Prof. Manoj Ghadge

A FEW requests
Regular attendance

Be punctual to all classes

Respect others & others opinions
Mobile phones (in classrooms are to be switched off)
Participate wholeheartedly in all course related activities to
enable outstanding learning process

Scrutinize suggested readings / seminar material beforehand so as

to have a better understanding of the classroom learning
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INTRODUCTION
Course Content
[3 Credits, 24 Sessions, 1 Session = 75 minutes]
Module(s)

Sessions

1. Fundamentals of Organization

2. Organizational Structure and Strategy

3. Contextual Dimensions of Organizational Structure

4. Open and Close System Approaches to Organizing

5. Dynamic Processes in Organizations

6. Group Presentation

7. Group Presentation

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INTRODUCTION
Course Objectives
1. To develop a critical appreciation of central theoretical
themes

2. To develop abilities to assess and describe organization

3. To analyze complex and

complicated situations in

organization
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INTRODUCTION
Course Outcomes
At the end of the course, you should be able to;

Appreciate the importance of organizational structure

Explain the role of culture, technology, and environment in

designing organizations
Conduct a SWOT analysis

Explain the role of strategic fit

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INTRODUCTION
Course Pedagogy
1. Class lectures
2. Case discussion
3. Group assignments

4. Students presentations

Experiential learning & Participative approach

INTRODUCTION
Details of Evaluation components
(other than mid-term & end term)
Sr. No.

Type of Assessment

Weightage

Schedule in the session plan

Mid-term exam
(Close Book)

25

After 12 session

End-term exam
(Close Book)

25

After 24 session

Review of a research
paper

10

At the end of 10th session

Report on group
project

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15 -Report
5- Presentation

At the end of 22nd session

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Surprise quiz. There will be at least 4

quizzes; two of them will be before the
mid-term and remaining will be post
mid-term.

Presentation on
group project

Quiz

23rd and 24th session

INTRODUCTION
Assignments
Review of research paper
Work in working group
Last date of submission : 1st day of mid-term examination
Submit both soft and hard copies

Group Project
Work in working group
Last date of submission : 1st day of end-term examination
Submit both soft and hard copies

DISCUSSION POINTS
1. Concept of Organization
2. Why do organizations exist?
3. Why organize at all?

What is a Theory
Theory:
Set of ideas - Assumptions proved logically
Proven proposition(s) - Based on experience
Reality for someone - Context specific

A theory is a statement predicting which action will

lead to which results and why.

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Definition
Theory : Is a plan or scheme existing in the mind only, but

based on principles verifiable by experiment or

observation (Funk & Wagnalls, pg. 1302)

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Organization - Meaning!
ORGANIZATION - is a consciously coordinated social entity, with relatively

identifiable boundary, that functions on a relatively continuous

basis to achieve a common goal or set of goals.
1.

CONSCIOUSLY COORDINATED

imply management (decision making and

problem solving with optimization of resources)

2.

soCIAL ENTITY means people/group of people who interact with each

other

3.

RELATIVELY IDENTIFIABLE BOUNDARY

every organization has a boundary that

must differentiates who is and who is not a part of that organization

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What are Organizations

Definition:
Social entities, that are goal-directed, are designed as
deliberately structured and coordinated activity systems,

and are linked to external environment; are made up of

people and their relationships with one another to perform
essential functions that help attain goals (Daft 2013, pg. 12)

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What is Organization Theory?

Definition:
It is the discipline that studies the structure and design of
organizations. It refers to both the descriptive and

prescriptive aspects of the discipline. It describes how

organizations are actually structured and offers suggestion
on how they can be constructed to improve their
effectiveness (Robbins 2013, pg. 6)

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Why to study Organization Theory

Organization Theory (OT) has developed from systematic study

of organizations by scholars and has a practical application.

OT helps us :
To explain what happened in the past, as well as what may
happen in the future, so that we can manage organizations
more effectively.

To understand, diagnose, and respond to emerging

organizational needs and problems.
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Organization Theories
3 Major Classical Theories
Theme: Focus on Task and Performance
1. Scientific Management Theory - Fredrick W. Taylor
2. Bureaucratic Theory - Max Weber
3. Administrative Theory - Henry Fayol

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Scientific Management Theory

- Fredrick W. Taylor : 4 fundamental principles

Advocated application of scientific methods to improve productivity;

Work methods can be scientifically designed for efficiency, which results
in the one best method for doing a job, optimization of performance of

work to achieve one best method

The best workers should be selected and trained in the new one best
method

There should be a spirit of cooperation between management and

workers; management and worker must share responsibility for the

design and conduct of work

Motivation results from monetary gain

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Administrative Theory
- Henry Fayol: 14 Principles
Division of work Specialization
increases output
Authority Managers responsibility
through execution of authority
Discipline Follow organizational code
of conduct (rules)
Unity of Command Every employee
should receive order from one superior
Unity of Direction One manager one
plan one group for performing of
organizational activities
Subordination of Individual Interests
Organizations goals important than
that of individual/group of individuals
Remuneration Fair wages to workers

Centralization Degree to which

subordinates are involved in decision
making
Scalar Chain Line of authority from top
to bottom
Order People and materials should be in
the right place at right time
Equity Managers should be kind and fair
to subordinates
Stability of Tenure of Personnel Orderly
personnel planning and replacements to
fill vacancies
Initiative Employees involved in
originating and carrying out plans should
exert high levels of efforts
Esprit de Corps Promote teamwork

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Bureaucratic Theory

- Max Weber
Bureaucracy became the design prototype (model, example) for the

structure of most of todays large organizations.

SYSTEMS dominated the functioning of organization

Division of labour

Clear authority hierarchy

Formal selection procedures

Detailed rules and regulations

Impersonal relationships
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2. WHY DO ORGANIZATIONS EXISTS?

Every individual is enriched with knowledge either in the form of

information or in the form of skill-sets that, which is limited

to perform specific tasks.
Thus, organizations exist because synergy can be achieved by
combining human resources. Together, those in an
organization can produce more than the sum total output of
individuals working alone.

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3. WHY ORGANIZE AT ALL?

Bring together resources to achieve desired goals

Produce goods and services efficiently

Accommodate challenges of diversity, ethics, and
coordination
Create value for owners, customers, employees

Adapt to and influence a rapidly changing environment

Use modern manufacturing and information technologies
Facilitate innovation
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E.g. The Division of Labour in a pin factory

to describe benefits of specialization
One man draws out the wire, another straights it, a third cuts it, a

fourth points it at the top for receiving the head: to make the head
requires two or three distinct operations: to put it on is a particular
business, to whiten the pins is another and the important
business of making a pin is, in this manner, divided into about

eighteen distinct operations, which in some manufactories are all

performed by distinct hands, though in others the same man will
sometime perform two or three of them. (The Wealth of Nations,
1776)
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