There are three main theories of organizations discussed in the document: 1. Classical theory focuses on the form and structure of organizations, seeing them as systems of differentiated activities with clear divisions of labor, chains of command, and specialized roles. 2. Neoclassical theory recognizes psychological and behavioral issues that question the rigidity of classical theory, noting how divisions of labor can depersonalize work. 3. Systems theory views organizations as existing in interdependent relationships with their environments, made up of interconnected individuals, groups, roles, culture, and physical settings working together as a system.

1. By:

2. ORGANIZATIONS
It is not easy to grasp the whole idea of an
“organization” because they are abstract
entities. Nevertheless, they are real and can
be considered “alive”.
*Authors use metaphors to enhance the
understanding of the concept.

3. What is an Organization?

4. Organizations are collectives of parts that
cannot accomplish their goals as effective if
they operate separately.
*It’s easier to understand why organizations exist
than to precisely define what they are.

5. THREE THEORIES OF
ORGANIZATIONS
Classical Theory
Neoclassical Theory
Systems Theory

6. CLASSICAL
THEORY
- first few decades of 20 th century
FOCUS:
form and structure of organizations

7. FOUR BASIC COMPONENTS OF
ORGANIZATIONS
1.) A system of differentiated activities
2.) People
3.) Cooperation toward a goal
4.) Authority
* Superior-subordinate relationships

9. FUNCTIONAL
PRINCIPLE
- Division of labor; organizations should be
divided into units that perform similar tasks
-Work is broken down to provide areas of
specialization
*Horizontal growth of organization

10. Organization:
Xavier University
Unit 1: Unit 2: Unit 3:
English Dept. Psychology Dept. RS Dept.

11. SCALAR
PRINCIPLE
-Refers to the chain of command that grows
with increasing levels of authority
-Unity of command
- each subordinate should be
accountable to only one superior
*Vertical growth of organization

12. Organization:
Xavier University
Unit 1: Unit 2: Unit 3: Unit 3:
English Dept. Psychology Dept. Philosophy Dept. RS Dept.
Department Department Department Department
Chairperson Chairperson Chairperson Chairperson
Faculty Faculty Faculty Faculty

13. LINE/ STAFF
PRINCIPLE
Line functions
- primarily responsible for meeting
the major goals of the organization
* production department
Staff functions
- support the line’s activities but
are regarded as subsidiary in overall
importance

14. SPAN-OF-
CONTROL
PRINCIPLE
-the number of subordinates a manager is
responsible for supervising
-May be “small” span or “large” span
“Small” span-> flat organization
* 1 manager: 3 subordinates
“Large” span-> tall organization
* 1 manager: 10 subordinates

15. Manager
Staff 1 Staff 2 Staff 3 Staff 4 Staff 5 Staff 6 Staff 7 Staff 8
“LARGE” SPAN;
FLAT ORGANIZATION

16. Organization
Manager Manager Manager Manager
“SMALL” SPAN;
TALL ORGANIZATION

17. NEOCLASSICAL THEORY
There is really no theory; but rather a
recognition of psychological and behavioral
issues that question the rigidity with which the
classical theory originality stated.

18. ISSUES
Division of labor depersonalizes the activities of
the units, where a sense of alienation develops
from highly repetitive work, that the individual
finds little meaning in their activities.
*less rigid division of labor, more humanistic
work

19. Individuals are influenced by interpersonal
activities that extend well beyond the prescribed
formal organizational structure.
* Many sources operating in an organization
influence the individual.

20. SYSTEMS THEORY
“Systems approach”
Views an organization as existing in an
interdependent relationship with its
environment, where all parts affect the other
parts and their interrelatedness make up the
“system”.

21. 5 PARTS OF AN ORGANIZATIONAL
SYSTEM
1. Individuals
- personalities, abilities, attitudes
2. Formal Organization
- interrelated pattern of jobs
3. Small Groups
- facilitates adaptability within the system

22. 5 PARTS OF AN ORGANIZATIONAL
SYSTEM
4. Status and Role
- differences define the behavior of
individuals within the system
5. Physical Setting
- external physical environment and
degree of technology

23. Small
Group 1
Small Small
Group 2 Organization Group 3
Small
Group 4

24. Although the systems theory appears to be
abstract, the systems perspective of
organizations allows us to understand
phenomena of organizational life that earlier
theories would not permit.

25. ORGANIZATIONAL
STRUCTURE

26. COORDINATING MECHANISMS
Mutual Adjustment – simple process of informal communication
Direct Supervision - one person takes responsibility for the work of
others
Standardization of Work Process – standardize or specify work
process
Standardization of Work Output – standardize or specify the
product of the work to be performed
Standardization of Skills and Knowledge – specifying in advance
the knowledge, skills , training required to perform work

27. THE FIVE BASIC PARTS OF
AN ORGANIZATION
Operating Core - employees responsible for
conducting basic work duties
Strategic Apex - the “brain” of the
organization
Middle line- mid-level bosses
Technostructure - employees who posses
expertise that facilitates the overall
operation of the organization
Support Staff - provides services that aides
the basic mission of the organization

28. COMPONENTS OF SOCIAL
SYSTEM
Social System
- the human components of a work
organization that influences the behavior of
individuals and groups
-it has no formal structure apart from its
functioning
-when a social system stops functioning , no
identifiable structure remains

29. COMPONENTS OF SOCIAL SYSTEM
ROLES - a set of expectations about
appropriate behavior in a position
NORMS - a set of shared group expectations
about appropriate behavior
CULTURE - the language, values, attitudes
and beliefs and customs of an organization

30. THREE LAYERS OF CULTURE IN AN
ORGANIZATION
Observable Artifacts - artifacts are the surface level actions that can be observed from
which some deeper meaning or interpretation can be drawn about the organization.
e.g. legends, taboos and ceremonies
Espoused Values- beliefs or concepts that are especially endorsed by management.
e.g. “Safety is our top Priority” and “ We Respect the Opinions of our
Employees”
Basic Assumptions- unobservable and are at the core of organization

31. THE END