The document discusses several theories of organization:
1. Classical theory viewed organizations as machines and workers as cogs, with the goal of efficiency. Neoclassical theory emphasized good human relations and social factors.
2. Bureaucratic theory examines organizations as systems of rules and authority. Weber's theory of bureaucracy defined its key features.
3. Systems theory views organizations as complex systems of interrelated elements and environments. Changes in one element impact others.
4. Contingency theory posits that the best organization structure depends on external factors like environment, strategy, and technology. Different structures suit different situations.
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
There are different theories of organization to predict and explain the process and also behavior patterns in an organizational setting. There are three different types of organizational theory: Classical Organization Theory, Neo-Classical Organizational Theory, and Modern Organizational Theory.
Organization Theory is a set of theories that explain and help us understand how organizations function.
Organizations and people within organizations are the focus of organization theory. Organization theories could focus on the total organization, groups of employees such as departments or divisions, or on individual employees.
Introduction
Organization development (OD) is any process or activity, based upon the behavioral sciences that either in the short term period or the long term period have the potential to develop in an organizational setting. Enhanced knowledge, expertise, productivity, satisfaction, income, interpersonal relationships, team spirit, and other desired outcomes such as goodwill are the factors that are meant to prove to be advantageous to the individual, group, team, society, region, nation or the whole humanity. Organization development’s primary emphasis has been laid upon the relationships between individuals and groups, so that there is cooperation and mutuality between them so that they can work together in harmony towards the progress of the organization.
1 BUS4013 Organization Structure, Learning and Performanc.docxhoney725342
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BUS4013: Organization Structure, Learning and Performance
Background Paper
Everyone, at one time or another, has participated in a variety of types of organizations—
churches, schools, government agencies, the armed forces, corporations, hospitals, volunteer
organizations, etc. Organizations impact our lives and members of the same organization are
affected differently. As Margaret Wheatley (1996) states, “Organizations are living systems.
They, too, are intelligent, creative, adaptive, self-organizing, and meaning-seeking.”
This course is about organizational structure and its relationship to learning and performance.
Organizations have a structure, that is, an established set of relationships with ordered and
regularly occurring activities. Therefore, performance and structure are inextricably linked. The
desire to improve performance is the underlying reason for the inclusion of this course in the
Capella undergraduate business curriculum.
Perhaps one may say that organizational structure drives performance; it certainly facilitates
performance. Another may say that organizational learning drives performance; it certainly leads
to adaptation and growth. And adaptation is necessary for survival. Its opposite is extinction. In
other words, this course is an overview of organizations and their design toward fostering
learning, which in turn, yields high performance.
Historical Perspective of the Study of Organizational Structure
Classical
We may be able to track the study of how organizations work and how they are structured and
managed into ancient times. We can cite Biblical references as well as those from Socrates and
Plato. However, most analysts would state that the beginnings of the factory system in the 18th
century signified the beginning of the study. Members of the first school of organizational study
were called the classicists. They built the foundation for the study of work in organizations, and
their work remains highly influential today. Max Weber, Henri Fayol, Adam Smith, Frederick
Taylor, and others represent the thinking of the classical period. The fundamental tenets of
classicism, according to Jay Shafritz and Steven Ott (1978), follow:
• Organizations exist to accomplish production-related and economic goals.
• There is one best way to organize for production, and that way can be found through
systematic scientific inquiry.
• Production is maximized through specialization and division of labor.
• People and organizations act in accordance with rational economic principles.
2
Modern
When we speak of the structure of an organization, we are actually referring to the stable
relationships among positions and groups of positions represented by the organization chart.
Structure is concerned with vertical differentiations, or hierarchical levels of organizational
authority and coordination, and horizontal differentiations between organizational units, e.g.,
between p ...
1 Gareth Morgan’s Organisational Metaphors PER S .docxaryan532920
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Gareth Morgan’s Organisational Metaphors
PER S PEC TI V ES O N OR GA N I S A T I O N S
Our interpretations of organisations are always based on some sort of theory to explain reality
(Morgan). Many ideas about organisations and management are based on a small number of taken
for granted beliefs and assumptions.
Organisations are complex and can be understood in terms of several perspectives. People who are
inflexible only see organisations in terms of one of these metaphors, but people who are open and
flexible and suspend judgement are able to recognise several perspectives, which open up several
rather than only a single possibility for dealing with organisations and their problems. We live in a
world that is increasingly complex and deal with complexity by ignoring it.
Morgan identifies nine organisational perspectives.
1. The machine view which dominates modern management thinking and which is typical of
bureaucracies.
2. The organismic view which emphasises growth, adaptation and environmental relations.
3. Organisations as information processors that can learn (brain metaphor).
4. Organisations as cultures based on values, norms, beliefs, rituals and so on.
5. In political organisations interests, conflict and power issues predominate.
6. Some organisations are psychic prisons in which people are trapped by their mindsets.
7. Organisations can adapt and change, and
8. Some organisations are instruments of domination with the emphasis on exploitation and
imposing your will on others.
MACHINE ORG AN ISATION S
Machines and machine thinking dominates the modern world. People are expected to operate like
clockwork by working to certain procedures, rest according to certain rules and repeat that in a
mechanical way. Organisations are machines in which people are parts.
Machine organisations are tools to achieve the ends of those who own them. Organisations have to
adapt to the technology they use and after the Industrial revolution people lost their work
autonomy to become specialists in controlling machines.
Machine organisations are modelled on the military from which it borrowed ranks and uniforms,
standardised regulations, task specialisation, standardised equipment, systematic training, and
command language. Bureaucracies produce routine administration in the same way as machines in
factories.
Machine managers are taught that you can plan for and control organisations and divide
organisations in functional departments with precisely defined jobs. Commands are given from the
top and travel throughout the organisation in a precisely defined way to have a precisely defined
effect. The thrust of classical management theory is that organisations are rational and can be
optimised to become as efficient as possible.
2
Machine organisations work well if the task is simple, the environment stable, the task is repetitive,
if precision is required, and if humans behave like ...
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1. Friday, October 07, 2011
ORGANISATION THEORIES
A Theory is a set of inter related concepts, definitions & propositions that present a systematic
view of phenomena. It also specifies the relationship among variables with purpose of
explaining and predicting the phenomena.
“Organization theory refers to the study of the phenomena of organizational functioning and
performance and of the behavior of Groups and individuals working in them.”
The main theories which seek to study the organization are:
Classical theory
Neo classical theory
Bureaucratic theory
Systems theory
Contingency theory
These theories are based on the generally accepted principles ,set of assumptions and value
judgment. Each theory is based on How organization can be made effective.
Classical theory:
Classical theory is the beginning of the systematic study of the organization. It deals with the
anatomy of formal organizations.(job-unit/authority, accountability-responsibility).We know
that a formal organization is one which is deliberately created with defined jobs , a definite
measure of authority, responsibility & accountability.
The classical theorists considered organization as a machine –goal fulfilling machine and
workers were cogs in the machine. efficiency and productivity can be improved by improving
the efficiency of the workers.
F.W.Taylor is the foremost among those thinkers.He is considered as the father of
scientificmanagement. Taylor's scientific management isoften called –physiological
organization theory ormachine theory-his associates gave a rigid machinemodel of
organization and concentrated onproduction.
He considered men also as machines, well maintained machines produce more so also men.
He assumed there is one best method for every job.
He introduced division of labour, Standardization of task, Analysis work and work and time
measurement. He introduced the concept of fair day wages for fair days work.His philosophy
can be summed up in the following words:
Management is a science and not a rule of thumb.
Production is improved by harmony and cooperationand not by discord.
Team and team spirit and not a group of individuals
Assignment By Rajat Sharma Page 1
2. Friday, October 07, 2011
The goal is maximization of output and not restriction
Production improves by:
a) Selection of men.
b)The best method of doing a job.
c)Appropriate tools.
d)Motivation.
e)Fair wages.
Other contributors:
Sheldon ,mooneyurwick and Gullick. Sheldon introduced the concept of
humanorganization, the need for fellowship, and leisure.Urwick-the functions in an
organization
Podscorb , the organization principles of unity of command ,subdivision of
tasks,delegation , span of control etc.
Criticism
All the above treated organization as a closed system.
Did not study the influence of environment on organization. This approach is known as
structural theory.
It focuses on structure, processes and principles of organization
Neoclassical theorists:
They considered good human relations as good management.
The work on this subject was pioneered by Elton Mayo and his associates.
These theories are also known as human relations theories.
Elton mayo understood men as perfectly as Taylor understood machines.
The essence of this revolution was focus on the organization as a social system .
Main contribution of neoclassical theorists:
The organization is a social system composed of various interacting parts. It is a group of
persons with a common objective. Within the organization there exists an informal
organization which interact with each other. Human beings are interdependent, their behavior
can be predicted based on social and psychological factors at work. Many socio- psychological
factors work to motivate people. Human being do not always react rationally-in terms of
rewards. There is a conflict of goals between that of organization and that of the individual-
this needs to be reconciled. Team work , essential for efficient functioning is not
automatic , is to be developed.
As a result of the approaches , the classical design of the organization has undergone a
number of changes:
Assignment By Rajat Sharma Page 2
3. Friday, October 07, 2011
Flat structure.
Decentralization allowing autonomy and initiative at lower levels.
Existence of informal organization and its interaction with formal organization.
Criticism
Lacks unified approach.
Suffers from incompleteness , a short sighted perspective, and lack of integration among
many facets of the human behavior.
It is a trifling body of empirical and descriptive information.
Bureaucratic theory
The dominant form of today is bureaucratic form of organization. The word itself has a
negative impact, meaning thereby red tape corruption inefficiency and ineffectiveness. The
origin and nature of this concept of verband-meaning organization in German – goes back to
the German sociologist Weber and his philosophy of organization has become popular as
Weberism.
What is bureaucracy?
Bureaucracy is simply institution written large. Organization designed to accomplish large scale
administrative tasks by systematically coordinating the work of many individuals.
Salient features
A person is said to have power or authority.
If within the social framework his will can be enforced on others despite resistance for
structuring human groups , becomes a special instance of power called “authority" or
domination.
For Weber an organization is an administrative body of appointed officials governed by
systematic rules –an impersonal formalized structure and legitimatized authority.
Systems Theory:
Systems theory views an organization as a complex set of dynamically intertwined and
interconnected elements, including inputs, processes, outputs, feedback loops, and the
environment. Any change in one element causes changes in other elements.
The learning organization.
Built on the doctrines of participation
Maslow’s hierarchy of needs.
New component technologies (the five disciplines).
Personal mastery.
Mental models.
Assignment By Rajat Sharma Page 3
4. Friday, October 07, 2011
Building shared vision.
Team learning.
Systems thinking.
A system is defined as an assemblage or a combination of things or parts forming a complex
unitary whole. Parts of the system are known as sub systems .The various subsystems are
aligned in some order so that the whole is better than the sum of the parts. A system has a
boundary .
They are classified into two types .
1) Open systems
2) Closed systems .
An open system interacts with the environment, a closed system does not. A living system is
an open system and all nonliving systems are closed system.
Bernard an American executive defined organization as a system of consciously coordinated
personal activities of two or more persons held together by a capacity to generate a common
purpose , by willingness on the part of its members to contribute to its processes and by
effective communications. He also proposed a theory of contributions inducements or
incentives for satisfaction and equilibrium .This theory has greatly influenced the later theories
of motivation.
Features:
Open system considers organization environmental interface.
Dynamic & adaptive.
A multilevel multi-dimensional approach.
Both micro and macro level aspects are considered.
The systemic arrangement facilitates communication and control through man
machine systems.
Contingency theory:
Is also known as situational theory.
No particular design or managerial action can suit all time and all situations
Contingency theory focuses on external determinants of organization structure and
behavior.
It fills an important lacuna of the systems theory by spelling out relationship between
organization and its environment.
“There is no one best way to organize”
Assignment By Rajat Sharma Page 4
5. Friday, October 07, 2011
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.
There are various factors which determine the effectiveness of an organization structure and
those are:
Environment
Strategy
Technology
Size, and
People
Different Types Of Structures that can be used for different situations:
Mechanistic Structure:
Authority is centralized at the top.
Emphasis is on strict discipline and order
Employees are closely monitored and managed.
Can be very efficient in a stable environment.
Organic Structure:
Authority is decentralized throughout the organization.
Departments are encouraged to take a cross-departmental or functional perspective.
Works best when environment is unstable and rapidly changing.
Assignment By Rajat Sharma Page 5