Theories for an organization

1. Module 2: Organizational Theories
Definition and Types of organization
School as an organization
Organizational bureaucracies
Organizational Theories (Systems theory)

2. Definition and Types of organization
• The term organization has been used since
time immemorial. It is as old as the existence
of human beings. Different writers however
hold different views of organizations.
• According to Allen (1959), an organization is a
mechanism or structure that enables living
things to work effectively together.

3. (Cont…)
• Hicks and Gullet (1981) define organization as
a structured process in which individuals
interact for specific objectives.
• Denyer (in Kumet and Mittal, 2001) consider
organization as the arrangement of work, with
the division of activities and responsibilities.

4. (Cont…)
• Despite variations in definitions, a general
perception is that organizations are vehicles
used to achieve institutional goals.
• Therefore an organization can be considered
as a social system which members use to
achieve organizational goals.

5. Characteristics of organization
• Organizations have the following
characteristics:
a) Organizations consist of a group of
individuals.
b) Organizations are dynamic.
c) Organizations have specific activities which
are conducted under the direction of a leader.
d) Organizational output are the result of
collective effort

6. common features of all organizations.
(a) group behavior
(b) structure
(c) process
(d) relationship
(e) authority and responsibility
(f ) performance.

7. Types of Organizations
• There are two types of organizations.
a. formal organizations
b. informal organizations.

8. a. Formal organizations
• Formal organizations are characterized by
planned structure and represents the patterns
of relationship that exist among the
components of an organization.
Characteristics
• Clearly defined structure of activities
• Permanence/ durable

9. Formal org.. (cont…)
• Well defined rules and regulations
• Determined objectives and policies
• Status symbol
• Strict observance of the principles of co-
ordination
• Messages are communicated through scalar
chain.

10. b. Informal Organizations
• Informal organizations consist of unofficial and
unauthorized relationships that occur
between individuals or groups within the
formal organization.
• Informal organizations occur in order to:
a) Satisfy a social need
b) Create a sense o belonging
c) Perpetuate cultural values of a group
d) Communicate and pass information

11. Characteristics of informal
organizations
i) Develop Standards of behavior; Informal
organizations generally develop its own
laws, taboos and beliefs about what is
right and wrong behavior or conduct.
ii) Pressures to conform; Informal groups tend
to exert pressures upon which its members
conform to.
iii) Informal leadership; Leaders in informal
organizations merge from groups through
persuasion and influence.

12. Influence of informal organizations in
management of formal organizations
• The presence of informal organizations helps
the management of formal organizations in
the following ways;
Informal groups form a channel through which
certain information can be passed to workers
This additional means of communication can
sometimes be very effective.

13. (Cont…)
It may also provide a means of social
satisfaction. It is not possible for organizations
to provide all means of satisfaction
Hence; Informal groups can serve as additional
source of satisfaction for formal group
members

14. EDUCATION INSTITUTIONS AS
ORGANIZATIONS
• Similar to other organizations education
institutions like schools and colleges must be
well organized.
• The management and leadership success
depend largely on how the institution is
organized.

15. Educational Organizations
• Educational organizations refer to a group of
individuals located in a specific place or
institution whose purpose is to impart
knowledge, skills and attitudes to students or
pupils in order to achieve pre-determined
educational objectives or goals.
• Such organizations include schools, colleges,
training institutes and centre’s as well as
universities (Kimani, 2010).

16. School organization and External Environment
16
• The term school has many different meanings,
some consider school as a place where the
students utilize their leisure hours profitably,
some regards it as a seat of learning
• John Dewey defined school as a special
environment where a certain qualify of life and
certain types of activities are provided with the
object of securing child's development along
desirable lines.

17. Cont…….
• School as an organization is a sub system of the
entire education system in the district, region,
country, etc under the support of the Ministry of
education.
• One school is not similar to the other school yet,
they have a shared common principles, by – laws,
rules, regulations and the educational policy of
the super-system.

18. Cont…….
18
• School is constantly observed by the society. And
society has certain expectations from the existing
school as an organization.
• The significance and quality of the school as
organization is interpreted on the basis of the
quality and outcome of its products.
• The external environment includes competitive
labor market, technology, globalization pressure,
employers, etc provide feedback as challenges
towards the school productivity as organization.

19. Cont……
19
• Quality of school productivity includes level of
students’ academic performance in internal and
external examination i.e. mid term, terminal, annual
exams, national examinations (PSEE,CSEE, ACSEE,
etc.)
• Then, these are effectively defined by their
competence outcome experienced by external
environment where we have competitive labor
market, globalization challenges and industrial
demands.

20. Organizational structure
• Organizational structure is the hierarchical
arrangement of lines of authority
communication, rights and duties of an
organization.
• Organizational structure determines how the
roles, power and responsibilities are assigned,
controlled, and coordinated, and how
information flows between the different levels
of management.

21. (Cont…)
• A structure depends on the organization’s
objectives and strategy.
• In a centralized structure, the top layer of
management has most of the decision making
power and has tight control over department
and divisions.

22. (Cont…)
• In a decentralized structure, the decision
making power is distributed and the
departments and divisions may have different
degrees of independence.
• Well designed organizational structures will
produce efficient communication channels
and encourage fast, clean decisions

23. Organizational Chart
• Visual representation of how a firm for
example a school plan authority,
responsibility, and information to flow within
its formal organizational structure.
• It usually depicts different management
functions (finance, human resources and
marketing etc.) and their subdivisions as boxes
linked with lines along which decision making
power travels downwards and answerability
travels upwards.

24. • The following diagram shows an example of
an organizational structure of a private school

25. Activity
Activity; From the above example of an
organizational chart can you attempt to
draw an organizational structure of any
education institution.
And briefly explain its chain of command.
(submit on Monday 11th may)

26. Bureaucratic Theory of Organizations
• Bureaucratic Theory was developed by a
German Sociologist and political economist
Max Weber (1864-1920).
• According to him, bureaucracy is the most
efficient form of organization.
• The organization has a well-defined line of
authority. It has clear rules and regulations
which are strictly followed.

27. Bureaucracy (Cont…)
• According to Max Weber, there are three
types of power in an organization:-
• 1. Traditional Power,
• 2. Charismatic Power, and
• 3. Bureaucratic Power or Legal Power

28. Features of Bureaucratic Organization
• The characteristics or features of Bureaucratic
Organization are as follows: -
i) There is a high degree of Division of Labor and
Specialization
ii) There is a well defined Hierarchy of Authority.
iii) It follows the principle of Rationality,
Objectively and Consistency.
iv) There are Formal and Impersonal relations
among the member of the organization

29. v) Interpersonal relations are based on positions
and not on personalities.
vi) There are well defined Rules and Regulations
where by rules cover all the duties and rights of
the employees. These rules must be strictly
followed.
vii) There are well defined Methods for all types of
work.
viii) Selection and Promotion is based on Technical
qualifications.
ix) Only Bureaucratic or legal power is given
importance.

30. Criticism of Bureaucratic Organization
Although Bureaucratic organization is suitable
for organizations where change is very slow
and it is also appropriate for static
organizations.
Bureaucratic organization is criticized because of
the following reasons:-
i)Too much emphasis on rules and regulations.
The rules and regulations are rigid and
inflexible.

31. Criticisms (Cont…)
ii) No importance is given to informal groups.
Nowadays, informal groups play an important
role in all business organizations.
iii) Bureaucracy involves a lot of paper work.
This results in lot of wastage of time, effort
and money.
iv) Bureaucracy is very rigid and does not give
importance to human relations

32. Criticisms (Cont…)
v) There will be unnecessary delay in decision-
making due to formalities and rules.
v)Too much importance is given to the technical
qualifications of the employees for promotion
and transfers. Dedication and commitment of
the employee is not considered
Vii)There is difficulty in coordination and
communication.

33. Summary
• In this lecture we have covered the concept
organization this includes;
what is an organization, types of organizations,
their characteristics as well as the influence of
informal organizations in management of formal
organizations like schools.
Organizational structure and organizational chart
as they are used in educational institutions have
also been discussed.
• The last part of the lecture gives main ideas
about the bureaucratic theory of organization by
Max Weber.