This document provides an overview of organizational theories and development. It begins with an introduction and definitions of key terms. It then summarizes three main organizational theories: classical theory focuses on economic productivity; humanistic theory emphasizes employee motivation and relationships; and open-system theory uses a feedback loop for continuous improvement. The conclusion discusses using a hybrid approach combining aspects of each theory to optimize corporate effectiveness and encourage employee growth.

1. BASIC CONCEPTS ON
ORGANIZATIONAL
THEORIES AND
DEVELOPMENT
Reporters:
Ababon, Feliciano III
Rodrigo, Jehanne Lorelei
PA 204 (7:30-10:30AM)
CHAPTER 1 – Item A

2. INVOCATION:

3. ENERGIZER: SCRAMBLED WORD
WORD NO.1:
OREYHT

4. ENERGIZER: SCRAMBLED WORD
WORD NO.1: ANSWER
THEORY

5. ENERGIZER: SCRAMBLED WORD
WORD NO.2:
EPCNOTC

6. ENERGIZER: SCRAMBLED WORD
WORD NO.2: ANSWER
CONCEPT

7. ENERGIZER: SCRAMBLED WORD
WORD NO.3:
VLPEDMEOTNE

8. ENERGIZER: SCRAMBLED WORD
WORD NO.3: ANSWER
DEVELOPMENT

9. ENERGIZER: SCRAMBLED WORD
WORD NO.4:
LASCCSLIA

10. ENERGIZER: SCRAMBLED WORD
WORD NO.4: ANSWER
CLASSICAL

11. ENERGIZER: SCRAMBLED WORD
WORD NO.5:
NISMNAHUCIT

12. ENERGIZER: SCRAMBLED WORD
WORD NO.5: ANSWER
HUMANISTIC

13. WORDS OF WISDOM:

14. OBJECTIVES:

15. REPORT CONTENTS:
 What is Organizational Theory and Development?
 Definitions
 Synopsis
 Theories of Organizational Development
 Classical Organizational Theory
 Humanistic Organizational Theory
 Open-System Organizational Theory
 Theory Overview “Cross-Pollinate”

16. “What is Organizational Theory &
Development?”
“Definitions”
 Organization- A group of persons organized for a particular purpose;
an association.
 Theory- The branch of a science or art consisting of its explanatory
statements, accepted principles, and methods of analysis, as opposed
to practice.
 Development-Determination of the best techniques for applying a new
Devise or process to production of goods or services.

17. “What is Organizational Theory &
Development?”
“Synopsis”
Organizational Theory and Development is a professional
deployment of social action and procedural methodologies that target a
given area of scientific study to identify and guide corporate needs.
This activity not only defines who the organization is, but enhances and
builds the capacity to change and achieve greater effectiveness.
Selecting the right organization theory is crucial to define not
only operating methods, but defining a strategical roadmap.

18. Theories of Organizational
Development: Classical Organization Theory
1. Classical Organization Theory
(Shafritz and Ott, 1996)
This is comprised of four tenets:
1) Organizations exist for economic reasons to achieve productivity goals
2) Scientific analysis will devise and orchestrate methods for production
3) Specialization and strategic deployment of labor will maximize
production
4) Both employees and the organization act in accordance with rational
economic principles.

19. Theories of Organizational
Development: Classical Organization Theory
In addition, two (2) particular developments occurred within this theory:
A. Scientific management (Taylor,1900’s)
This considers that workers are more productive if their work is scientifically
designed. The method is specifically designed and refined with application inputs and
results. This aspect of the classical theory is consistent with six-sigma procedures used
throughout many industries today as continuous improvement is driven by a secure and
repeatable method defined in a problem solving application. (See next slide for example).

20. Theories of Organizational
Development: Classical Organization Theory

21. Theories of Organizational
Development: Classical Organization Theory
B. Bureaucracy
(Weber, 1900’s)
This facet of the classical organizational theory is comprised of four major
features. The following considered a mainstay is a bureaucratic organization:
 Division of Labor: Each position is a specialized position with its own set of
responsibilities. This grooms specific skill sets and individuals to deliver each facet
in a product or project life cycle.
 Traditional Organizational Hierarchy: This represents a top-down organizational
structure. This is chain of command driven.
 Delegation of Authority: This is where work is distributed by a leader or manager
and delegated to a defined responsible participant. This makes understanding
employee skill sets crucial for efficient progression.
 Span of Control: This aspect tries to neutralize workforce delegation on an equal
basis for all supervisors. If the span of control is to large, a loss of control occurs
and substandard results are typical.

22. Theories of Organizational
Development: Humanistic Organization Theory
2. Humanistic Organization Theory
Human Relations Movement
(Katz & Kahn, 1978)
The human relations movement was driven in a large degree by the perceived rigidity of
the classical organizational theory. The classical theory was considered to disregard
human capital including employees’ motives, goals, and aspirations. This was
emphasized in the human relations movement. The relationship between supervisor and
subordinate is considered instrumental in this theory. In summary, organizational success
is based on employee motivation and interpersonal relationships that occur enhancing
productivity.

23. Theories of Organizational
Development: Humanistic Organization Theory
Theory X and Theory Y
(McGregor, 1960)
Theory X:
 Management assumes the worst of employees.
 Management treats employees with rigid control and without respect.
 Employees respond negatively to shoddy treatment.
 Employees adapt to managements inaccurate assumptions.
Theory Y:
 Humanistic and developmental orientation to enhance employee growth.
 Managerial commitment and responsibility to provide employee opportunity for
advanced development.
 Opportunity to provide goals and devise an achievable roadmap to accomplishment
with managerial support.

24. Theories of Organizational
Development: Open System Theory
3. Open System Theory
(Katz and Kuhn, 1978)
This is compromised of three basic elements:
1) Inputs: Raw materials, Human resources, Energy, and Machinery
2) Throughputs: Production processes, Service processes, and Training services
3) Outputs: Products, Services, and Knowledge
This theory drives a constant feedback cycle of lessons learned to drive continuous
improvement efforts. This includes product and employee attitude as targets for this
feedback driven system.

25. Theories of Organizational
Development: Theory Overview “Cross-
Pollinate”
4. Theory Overview “Cross-Pollinate”
The optimal situation required for employee and corporate efficiency should be a
hybrid with portions of all three theories previously defined. The Classical Theory offers
“Scientific Management” which is crucial to gain data and weigh against the levels of
acceptance that define your upper and lower specification limits for acceptance. This is your
also known as your BATNA (Best Alternative to Negotiated Agreement). Selecting the right
theory is crucial to optimize corporate performance from a functional standpoint and instill a
positive environment for personal and professional growth. This is a catalyst in the
Humanistic Theory “Y”. And finally, the Classical Theory is driven by a constant feedback
cycle which ultimately harnesses the principles of lessons learned to drive continuous
improvement.
In summary, a compilation of these three key ingredients generates a very effective
approach. These creates the hybrid that is named the Conglomerate Organizational Theory.

26. CONCLUSION:
Organizational Theory and Development is the opportunity the to
optimize corporate effectiveness. This can take place in a new company,
or to modify operations for an existing one. This overview is specifically
cascading the methodology and procedures to implement a TEAM based
structure. This allows employee input with representation from all
departments in the decision making process.
In summary, it is my belief that employee performance and
dedication will be enhanced with this structure. Lateral movement, driven
by a strong organizational theory, a committed managerial schematic, an
understanding of change management, and an appropriate mission and
vision will enhance the bottom line, while encouraging Teamwork and
allowing growth opportunities.

27. END OF REPORT
THANK YOU FOR LISTENING!
Reporters:
Ababon, Feliciano III
Rodrigo, Jehanne Lorelei
PA 204 (7:30-10:30AM)
CHAPTER 1 – Item A
Source:
Organizational Theory and Development
Siena Heights University
Dr. Patricia McDonald
LDR621 “Organizational Psychology”
By: Daniel L. Heady