Organizations and Organization Theory

DR. SANIA USMANI

LECTURE 1

SOURCE:
Robbins, S. P. (1983). Organization Theory: Structures, Designs, And Applications, 3/e. Pearson Education India.
Richard, D. (2010, 2012). Organization theory and design. Cengage Learning.
Welcome!!
 Agenda
01 What is an Organization

02 What is an Organization Structure

03 The Systems Perspective

04 Life Cycle Perspective

05 5 Types Of Structures
 What is an Organization

An organization is a consciously coordinated social entity with a relati

vely identifiable boundary, that functions on a relatively continuous b
asis to achieve a common goal or set of goals (Robbins,1997)
What is an Organization Structure

Organization structure can be described as having three c

omponents: complexity, formalization, and centralization

Complexity
• Horizontal Complexity
• Vertical Complexity
• Spatial Complexity
What is Organization Design What is Organization Theory
 It is the discipline that studies
• Organization Design represe the structure and design of or
nt the management side of or ganization
ganization theory
 Refers to both the descriptive
and prescriptive aspects of th
e discipline
 Contrasting OB and OTD
• OB takes a micro view- emphasizing individuals and small groups.

• OTD takes macro perspective.

• Meso theory is the integration of both the macro and micro

 Dimensions of
Organization Design
Structural Dimensions Contextual Dimensions
– Formalization – Size
– Specialization – Organizational technol
– Hierarchy of authority ogy
– Centralization – Environment
– Professionalism
– Goals and strategy
– Personnel Ratios
– Culture

Refer to pg 15-18 of Book: Richard L daft 10th Edition

 Interacting Contextual and Structural Dimensions of Organiz
ation Design Formalization
Specialization
Hierarchy of authority
Centralization
Professionalism
Personnel Ratios

CULTURE

ENVIRON TECHNOL
MENT OGY

STRATEG
SIZE
Y
ORGANIZATION

Source: 2010 Cengage Learning. Book: Richard L daft 10th Edition

Five Basic Parts of an organization
STRATEGIC APEX

TECHNOS
SUPPORT
TRUCTUR
MIDDLE STAFF
E
MANAGEMENT

OPERATING CORE
 Five Basic Parts of an organization

1. The operating core

Encompasses those members – the operators – who perform the basic work rela
ted to the production of products and services
2. The Strategic Apex
Those people who are charged with overall responsibility for the organization – t
he chief executive officer, any other top-level managers whose concerns are glo
bal. Included here are those provide direct support to top managers ( secretarie
s, assistants)
 Five Basic Parts of an organization

3. The Middle Line

The strategic apex is joined to the operating core by a chain of middle-line manag
ers with formal authority. The chain runs from the senior managers just below the
strategic apex to first line supervisors

4. The Techno structure:

Analyst and their supporting staff who serve the organization by affecting the work
of others. These analysts are removed from the operating work flow. They may de
sign it, plan it, or train people who may do it, but do not do it themselves

5. Support staff:
Specialized units, that exist to provide support to the organization outside the ope
rating workflow
The Biological Metaphor

Describing organizations as system and proce

eding through a life-cycle provides an insight i
nto their makeup
 The Systems Perspective
“ A system is a set of interrelated and interdependent parts arranged in a manner
that produces a unitary whole”

They take inputs, transform them, and produce some outputs. Every system is c
haracterized by two diverse forces: differentiation and integration

The classification of supra-system, system and subsystem depends on the unit o

f analysis

Types of Systems
Closed system
Open system
Organizational Subsystems

 Perform five essential functions:

1. Boundary spanning
2. Production
3. Maintenance
4. Adaptation
5. Management
 System Theory

Processing
Inputs Technology Outputs
Systems
procedures

Feedback
 Characteristics of Open Systems

1. Environment awareness
2. Feedback
3. Cyclical character
4. Negative entropy
5. Steady state
6. Movement toward growth and expansion
7. Balance & Holism
8. Hierarchy
9. Internal Elaboration
10. Multiple goal
11. Equifinality
 Life Cycle Perspective

1. Entrepreneurial Stage (Infancy)

2. Collective Stage
3. Formalization Stage
4. Elaboration of Structure Stage
5. Decline Stage
Mitzberg’s Organizational Types
1. Entrepreneurial
2. Machine
3. Professional
4. Diversified
5. Adhocracy
Thank you