This document summarizes several theories of organizational control and management. It describes classical theories from Taylor, Fayol and Weber that focused on scientific management and bureaucracy. It then discusses transitional theories from Follett and Barnard that emphasized human factors. Next, it outlines the human relations movement based on the Hawthorne studies. Finally, it presents several human resource development theories including Maslow's hierarchy of needs, McGregor's Theory X and Y, Likert's systems of management, and Ouchi's Theory Z.

1. Chapter 4
Organizational Theory: Prescriptions
for Control

2. Organizational Theory:
Prescriptions for Control
• Scientific and Classical Management
• Transitional Theories
• The Human Relations Movement
• Human Resource Development

3. Scientific and Classical
Management
• Taylor’s Scientific Management
• Fayol’s General Management
• Weber’s Bureaucratic Theory
• Common Themes in Taylor, Fayol,
and Weber

4. Taylor’s Scientific
Management
• There is one best way to perform a job
(determined by scientific analysis)
• Select personnel scientifically
• Compensate workers on an incentive
plan
• Divide up labor so managers plan the
work and workers follow the plan

5. Fayol’s General Management
• Division of Work
• Authority and Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of Individual Interests
• Remuneration
• Centralization
• Scalar Chain
• Order

6. Weber’s Bureaucratic
Theory
• Clear hierarchical system of authority
• Division of labor according to specialization
• Complete system of rules regarding
employee rights, responsibilities, and duties
• Exhaustive Procedures for work performance
• Impersonality in human organizational
relationships
• Selection and promotion of employees solely
on the basis of technical competence

7. Common Themes in
Taylor, Fayol, and Weber
• The organization is driven by management
authority
• People behave according to rational,
economic models
• Machinelike precision for organizational
design

8. Transitional Theories
• Follett’s Administrative Theory
• Barnard’s Executive Functions

9. Follett’s Administrative
Theory
• Reciprocal Response
– Human interaction always involves mutual and
simultaneous influence resulting in an
outcome that neither participant could have
produced even half alone
• Universal Goal of Integration
– A harmonious marriage of differences that
produces a new form, a new entity, a new
result

10. Follett’s Administrative
Theory
• The Concept of “Power With”
– A jointly developed power, a co-active, not
a coercive power
– Employee representation as participation in
order to achieve pluralistic responsibility

11. Barnard’s Executive
Functions
• Emphasizes the variability of human behavior
– Organizational effectiveness depends on the
individual’s willingness to cooperate
• Views compliance as willingness to cooperate
– Orders must fall within individual’s zone of
indifference
– Zone of indifference: Orders must be perceived in
neutral terms so that they are carried out without
conscious questioning o their authority

12. Barnard’s Executive
Functions
• Communication is an indispensable concept
in the analysis of organizational structure
– Decision making processes hinge on
communication
– Communication is important in the informal
organization
– The first function of the executive is to
establish and maintain a system of
communication

13. The Human Relations
Movement
• The Hawthorne Studies and Elton Mayo
– The Illumination Studies
– The Relay Assembly Room Studies
– The Interview Program
– Bank-Wiring Studies
– Implications of the Studies

14. The Hawthorne Studies
and Elton Mayo
• The Illumination Studies
• Relay Assembly Room Studies
– Productivity increases regardless of changes
in work conditions
– Conclusion: The relationship between the
researchers and the workers accounted for
the results

15. The Hawthorne Studies
and Elton Mayo
• The Interview Program
– Interview employees to discover their
views toward working conditions,
supervisors, and work in general
– Conclusion: People who work under similar
conditions experience these conditions in
different ways and assigned different
meanings to their experiences

16. The Hawthorne Studies
and Elton Mayo
• The Bank Wiring Studies
– Purpose: Observe the effects of the work
group’s social processes on productivity
– Conclusion: Work group norms exert
substantial influence over performance
standards (shared ideas of the “right”
amount of work to perform)

17. Implications of the
Hawthorne Studies
• Implications of the Studies
– Led to the emergence of the human relations
school of management
– Managers should be friendly with workers,
listen to worker concerns, and give workers a
sense of participation to meet their social
needs
– View communication as a tool for motivating
workers and controlling organizational
processes

18. Human Resource
Development
• Maslow’s Need Hierarchy
• McGregor’s Theory X and Theory Y
• Likert’s Four Systems
• Theory Z

19. Maslow’s Need Hierarchy
• Physiological Needs: food, oxygen
• Safety Needs: security, protection from danger
• Social Needs: love, affection, affiliation
• Esteem Needs: sense of status, recognition
• Self-Actualization: realize one’s potential as a
human being

20. Maslow’s Need Hierarchy
• Lower-level needs are stronger than higher-
level needs
• Any need at a given level of the hierarchy
must be relatively satisfied before the need at
the next higher level is activated
• Physiological, safety, social, and esteem
needs are deficiency needs
• Self-Actualization is a growth need

21. McGregor’s Theory X
• Employees dislike work and will attempt
to avoid it if at all possible
• Employees value security above
everything else and dislike responsibility
• Employees want someone else to
control and direct them
• Managers must rely on threat and
coercion to gain employee compliance

22. McGregor’s Theory Y
• Work is as natural as play
• Employees want to work
• Employees have the ability for creative problem-
solving
• Given proper conditions, employees will learn to
seek out and accept responsibility and to exercise
self-control and self-direction in accomplishing
directives to which they are committed
• Managers develop climate of trust with employees

23. Likert’s Four Systems
Four basic types of management orientations
• System 1: Exploitative-Authoritative
• System 2: Benevolent-Authoritative
• System 3: Consultative
• System 4: Participative

24. Likert’s Four Systems
• System 1 corresponds to McGregor’s
Theory X
• System 4 is similar to Theory Y
• Systems 2 and 3 are located in
between the other two systems

25. Likert’s System 4
• Communication between superiors and
subordinates is open and extensive
• Decision making is decentralized
• Information flows freely through flexible
channels of communication and in all
directions
• Performance goals are developed through
participative management
• Control processes are decentralized

26. Likert’s System 1
• Superior-subordinate communication is minimal
and characterized by mutual mistrust
• Decision making is centralized
• Flow of information is restricted to specified
channels
• Employees do not support managerial goals
• Control processes are exercised by
management, but an active informal organization
usually develops among lower level personnel to
resist managerial control

27. Theory Z
Ouchi’s Theory Z is a hybrid American/
Japanese system
•Moderate job specialization
•Many functions accomplished through project
teams and task forces (transient and temporary)
•Less centralized decision-making depends on
informal consensus-seeking
•Concerted effort to integrate employee and
organizational goals but written communication and
individual responsibility predominate