2. Evolution of Organizational theory &
Design
FORMING OF THE MECHANISTIC
ORGANIZATION
Scientific Management by Talor
Henry Fayols 14 Principles of Management
3. The Historical Roots of
Organizational Behavior
Scientific Management Era (early 1900s)
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was
an American mechanical engineer who sought to improve industrial
efficiency. He is regarded as the father of scientific management and was
one of the first management consultants
Frederick W. Taylor believed in an org design with the following
attributes:
Studied the efficiency and productivity of individual workers
within manufacturing industries.
Worker training could increase productivity.
Promoted Standardized job performance methods.
Implemented piece-rate based incentive pay systems.
Efficiency could be improved by planning, training and
scheduling jobs.
4. Scientific Management
Positive attributes
1. Facilitated job specialization and mass production.
2. Demonstrated to managers their role in enhancing performance
and productivity.
Negative attributes
1. Labor opposed scientific management because its explicit goal
was to get more output from workers.
2. Critics argued that Taylor's methods and ideas would dehumanize
the workplace and reduce workers to little more than drones.
3. His objective was to make behavior as predictable as possible
so that with the use of sophisticated machinery ,production and
efficiency could be achieved
5. Fayol’s Administrative Theory
Henri Fayol (1841-1925) Henri Fayol was a French mining
engineer and director of mines who developed a general
theory of business administration. He was one of the most
influential contributors to modern concepts of management.
Fayol :
General and Industrial Management
Formulated 14 Principles of Management
Workers are motivated by more than money, Concept Of
“Economic Man”
Five Elements of Management -- Managerial Objectives
Planning
Organizing
Command
Direct
Control
Positioned communication as a necessary ingredient to successful
management
Administrative Management
6.
7. Bureaucratic Organizations
The scientific management and administrative
principles were very powerful and they gave
organization a direction towards establishing
Bureaucratic Organizations
9. The Hawthorne Studies
Studies of how characteristics of the work setting affected
worker fatigue and performance at the Hawthorne Works
of the Western Electric Company from 1924-1932.
Worker productivity was measured at various levels of
light illumination.
Researchers found that regardless of whether the light
levels were raised or lowered, worker productivity
increased.
Human Relations Implications
Hawthorne effect — workers’ attitudes toward their
managers affect the level of workers’ performance
10. The Behavioural Era (1930-1960)
Involved two studies conducted by Elton Mayo at Western Electric’s
plant near Chicago:
1. The Hawthorne Studies-performance
2. The Bank wiring room study- incentives
The studies yielded surprising results:
1. In the lighting study, productivity went up in both focus and control
groups because the workers were singled out for special
treatment.
2. In the incentive system experiment, social pressures caused the
workers to vary their work rates.
As a result of the Hawthorne studies, researchers concluded that the
human element in the workplace was more important than
previously thought.
12. The Modern Era (1960 onwards)
Contingency Approach
“There is no one best way to organize”
The idea that the organizational structures and control
systems manager choose depend on—are contingent
on—characteristics of the external environment in which
the organization operates.
14. Mintzberg Organizational Types
Operating core
Those who perform the basic work related directly to the production of
products and services
Strategic apex
Charged with ensuring that the organization serve its mission in an
effective way, and also that it serve the needs of those people who
control or otherwise have power over the organization
Middle-line managers
Form a chain joining the strategic apex to the operating core by the use
of delegated formal authority
Techno structure
The analysts who serve the organization by affecting the work of others.
They may design it, plan it, change it, or train the people who do it, but
they do not do it themselves
Support staff
Composed of specialized units that exist to provide support to the
organisation outside the operating work flow
15. Mintzberg proposed that the five parts are inter
related There are five generic organization
structures which can be described in terms of the
five-part theory:
1. Simple Structure
2. Machine bureaucracy
3. Professional bureaucracy
4. Diversified form
5. Adhocracy.
16. Mintzberg’s Structures 1
Simple Structure: Entrepreneurial setting;
relies on direct supervision from the
strategic apex; new small government
agencies
(Public) Machine Bureaucracy: Large
organizations; relies on standardization of
work processes by the techno-structure;
agencies with political oversight.
Professional Bureaucracy: The
professional services firm; relies on the
standardization of skills and knowledge in
the operating core.
17. Mintzberg’s Structures 2
Divisionalized Form- Multi-divisional
organization (e.g., manufacturing &
marketing); relies on standardization of
outputs; middle-line managers run
independent divisions.
Adhocracy- Project organizations; highly
organic structure with little formalization;
relies on mutual adjustment as the key
coordinating mechanism within and
between these project teams (e.g. NASA)
18. Structure & Environment
stable dynamic
complex
PROFESSIONAL BUREAUCRACY
decentralized; bureaucratic;
standardized skills (law firm R&D
firm)
ADHOCRACY
decentralized; organic; mutual
adjustment
simple MACHINE BUREAUCRACY
centralized; bureaucratic;
standardized work processes; direct
supervision from strong strategic
apex
(new agencies, start up
entrepreneurial companies
SIMPLE STRUCTURE
centralized; organic; direct supervision
