Organizational Theory

Organizations are social entities that are goaloriented; are designed as deliberately structured and coordinated activity systems, and are linked to the external environment (Daft, 2004).

 Organization theory: is the set of propositions (body of knowledge) stemming from a definable field of study which can be termed organizations science (Kast&Rosenzweig1970).

 Knowledge generated by practical experience and scientific research Solving problems & managing resources (Kast&Rosenzweig1970).

Systematic Management
Systematized manufacturing operations Coordination of procedures and processes built into internal operations Emphasis on economical operations, inventory management, and cost control Beginning of formal management in the United States

 Promotion of efficient, uninterrupted production Ignored relationship between an organization and it environment Ignored differences in managers and workers views

Scientific Management (The Classical Organization Theory)

 Personalities
Frederick W. Taylor Frank and Lillian Gilbreth

Henry Gantt

 Four principles
develop a scientific approach for each element of ones work scientifically select, train, teach and develop each worker cooperate with workers to ensure that jobs match plans and principles ensure appropriate division of labor

 Used scientific methods to determine the one best way Emphasized study of tasks, selection and training of workers, and cooperation between workers and management Improved factory productivity and efficiency Introduced scientific analysis to the workplace system equated worker rewards and performance

Limitations
Simplistic motivational assumptions Workers viewed as parts of a machine Potential for exploitation of labor Excluded senior management tasks

 Weber's bureaucratic approach

principles
Structure Specialization Predictability and stability Rationality Democracy

characteristics
Structured network of relationships among specialized positions Rules and regulations standardize behavior Jobs staffed by trained specialists who follow rules Hierarchy defines the relationship among jobs

 Promotes efficient performance of routine operations Eliminates subjective judgment by employees and management Emphasizes position rather than the person

Quantitative Management

Neoclassical theory

Principles of the neoclassical approach

The individual The work group Participative management

Human Relations

 Productivity and employee behavior are influenced by the informal work group Cohesion, status, and group norms determine output Social needs have precedence over economic needs Psychological and social processes influence performance

 Ignored workers rational side and the formal organizations contributions to productivity Research overturned the simplistic belief that happy workers are more productive

Organizational Behavior
Theory X Theory Y

characteristics
Promotes employee effectiveness through understanding of individual, group, and organizational processes Stresses relationships among employees, managers, and work performed Assumes employees want to work and can control themselves

 Increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation Recognized the importance of developing human resources Some approaches ignored situational factors, such as the environment and technology

 Modern theories

characteristics
a systems viewpoint, a dynamic process of interaction, multilevelled and multidimensional multimotivated Probabilistic Multidisciplinary Descriptive Multivariable adaptive.

Modern theories
systems approach socio-technical theory contingency or situational approach

systems approach

 Components Linking processes Goals of organization

characteristics
Organization is viewed as a managed system Management must interact with the environment Organizational goals must address effectiveness and efficiency Organizations contain a series of subsystems

 There are many avenues to the same outcome Synergies enable the whole to be more than the sum of the parts Recognized the importance of the relationship between the organization and the environment

Socio-technical approach

contingency or situational approach

perspectives
Situational contingencies influence the strategies, structures, and processes that result in high performance There is more than one way to reach a goal Managers may adapt their organizations to the situation

 Identified major contingencies Argued against universal principles of management Not all important contingencies have been identified Theory may not be applicable to all managerial issues

 research organization as a social system

Characteristics of the research organization

Complexity Degree of inter-dependence of sub-systems

Openness of the social organization

Balance and the social organization Multiplicity of purpose, functions and objectives

Importance of goal setting

making clear what people have to do; solving specific problems related to the work as they emerge during the process of goal setting; reducing ambivalence in the assigned work and thus encouraging increasing efforts;

 supporting people to find a connection between their work and the achievements of the organization; assisting individuals in allocating their time, efforts and personal resources to important areas; giving a feeling of accomplishment and contentment when specified goals are achieved; and

 providing some control over the people and their work in an organization. Goals are an objective way of assessing performance in the organization.

 integration

 coordination

Achieving integration

Power in the organization

 Communication in the organization