This document provides an overview of organizing theories. It defines key terms like organization and theory, and discusses the evolution of organizing theory from classical to modern approaches. The classical theories focused on efficiency and included scientific management, bureaucratic, and administrative approaches. Neoclassical theory emphasized human relations. Modern theories view the organization as an open system that adapts to its environment, including the systems approach, socio-technical theory, and contingency theory. The document categorizes and explains different organizing theories.

1. Organizing theories
By /Mahmoud Shaqria
‫شقريه‬ ‫محمد‬ ‫محمود‬

2. OUT LINE;
Introduction
Definition of organization
Definition of theory
Definition of organizing theory
New direction of organization theory.
Characteristic of organization.
Category of organization.
Types of organization theory:
1- Classical theory:
Scientific management approach
weber`s bureaucratic approach
Administrative theory

3. 2- Neoclassical theory
3- Maslow's theory.
4- Modern theory
The system approach
Socio technical approach
The contingency approach
5- The theory X and theory Y.

4. INTRODUCTION;
Business organizations are formed to deliver goods or
services to consumers in such a manner that they can
realize a profit at the conclusion of the transaction. Over
the years, business analysts, economists, and academic
researchers have pondered several theories that attempt to
explain the dynamics of business organizations, including
the ways in which they make decisions, distribute power
and control, resolve conflict, and promote or resist
organizational change.

5. Organization:
Is an assembly of people working together to achieve
common objectives through a division of labor.
Theory:
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.

6. Organization theory:
It describes how organization is created;
it put suggestion on how to formulate
organization structure to improve
organizational effectiveness.

7. New direction for organization theory;
As Jeffrey P feffer summarized in New Directions for Organization
Theory, organizational theory studies provide "an interdisciplinary
focus on;
1. The effect of social organizations on the behavior and attitudes of
individuals within them,
2. The effects of individual characteristics and action on
organization
3. The performance, success, and survival of organizations.
4. The mutual effects of environments, including resource and task,
political, and cultural environments on organizations and vice versa.

8. Characteristics of organization;
Organizations differ greatly in size,
function, and makeup.
1. Division of labor.
2. Decision making structure
3. Rule and policies.

9. (1)Division of labor;
Organizations practice division of labor both
vertically and horizontally.
Vertical division includes three basic levels—top,
middle, and bottom.
The chief function of top managers, or executives,
typically is to plan long-term strategy and oversee
middle managers.

10. 1. Middle managers generally guide the day-to-day
activities of the organization and administer
top-level strategy.
2. Low-level managers and laborers put strategy
into action and perform the specific tasks
necessary to keep the organization operating

11. Organizations also divide labor horizontally by defining
task groups, or departments, and assigning workers with
applicable skills to those groups.
Line units perform the basic functions of the business,
while staff units support line units with expertise and
services.
In general, line units focus on supply, production, and
distribution, while staff units deal mostly with internal
operations and controls or public relations efforts

12. (2)Decision making structure;
These structures vary from operation to operation in their
degree of centralization and decentralization
Centralized decision structures are referred to as "tall"
organizations because important decisions usually
emanate from a high level and are passed down through
several channels until they reach the lower end of the
hierarchy.
Conversely, flat organizations, which have decentralized
decision-making structures.

13. Decentralized decision-making structures;
Flat organizations, which have decentralized
decision-making structures, employ only a few
hierarchical levels. Such organizations are typically
guided by a management philosophy that is
favorably disposed toward some form of employee
empowerment and individual autonomy

14. 3. Rule and policies.
Rules, policies, and procedures serve as templates of
managerial guidance in all sectors of organizational
production and behavior.
They may document the most efficient means of
accomplishing a task or provide standards for rewarding
workers.
Formalized rules provide managers with more time to
spend on other problems and opportunities and help
ensure that an organization's various subsystems are
working in concert.
Ill-conceived or poorly implemented rules, of course, can
actually have a negative impact on business efforts to
produce goods or services in a profitable or satisfactory
manner.

15. Category of organization:
(1) Formal organization;
Management has determined that a comparatively
impersonal relationship between individuals and
the company for which they work is viewed as the
best environment for achieving organizational
goals.
Subordinates have less influence over the process
in which they anticipate, with their duties more

16. (2) Informal organization;
Less likely to adopt or adhere to a significant
code of written rules or policies.
Instead, individuals are more likely to adopt
patterns of behavior that are influenced by a
number of social and personal factors.

17. Classification of organization theory;
The organization theories are classified into:
Classical organization theory.
Neoclassical organization theory
Modern organization theory.
System 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.

18. 1-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.
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.

19. The goal of classic theory;
1. Is maximization of output and not restriction
2. Production improves by:
3. Selection of men.
4. The best method of doing appropriate tools.
5. Motivation.
6. Fair wages.
Classification of classic theory;
1. Scientific management approach.
2. Bureaucratic approach.
3. Administrative theory.

20. 1-..Taylor's scientific management approach
The scientific management approach developed by Taylor is based
on the concept of planning of work to achieve efficiency,
standardization, specialization and simplification.
Acknowledging that the approach to increased productivity was
through mutual trust between management and workers, Taylor
suggested that, to increase this level of trust,
The advantages of productivity improvement should go to workers,
· physical stress and anxiety should be eliminated as much as
possible,

21. · capabilities of workers should be developed
through training, and
· the traditional 'boss' concept should be
eliminated.
Taylor developed the following four principles of
scientific management for improving productivity:
·Science, not rule-of-thumb Old rules-of-thumb
should be supplanted by a scientific approach to
each element of a person's work.
·Scientific selection of the worker Organizational
members should be selected based on some
analysis, and then trained, taught and developed

22. ·Management and labor cooperation rather than
conflict Management should collaborate with all
organizational members so that all work can be
done in conformity with the scientific principles
developed.
·Scientific training of the worker; Workers should
be trained by experts, using scientific methods

23. 2-Weber's bureaucratic approach
Considering the organization as a segment of broader
society, Weber (1947) based the concept of the formal
organization on the following principles:
•·Structure In the organization, positions should be
arranged in a hierarchy, each with a particular,
established amount of responsibility and authority.
•·Specialization Tasks should be distinguished on a
functional basis, and then separated according to
specialization, each having a separate chain of command.

24. •Predictability and stability the organization
should operate according to a system of procedures
consisting of formal rules and regulations.
•Rationality Recruitment and selection of
personnel should be impartial.
•Democracy Responsibility and authority should
be recognized by designations and not by persons.

25. 3. Administrative theory
The elements of administrative theory (Fayol, 1949) relate to
accomplishment of tasks, and include principles of management,
the concept of line and staff, committees and functions of
management.
·Authority and responsibility these are imperative for an
organizational member to accomplish the organizational objectives.
·Discipline Members of the organization should honor the
objectives of the organization.

26. ·Unity of command this means taking orders from and being
responsible to only one superior.
·Unity of direction Members of the organization should jointly
work toward the same goals.
·Subordination of individual interest to general interest of the
organization should not become subservient to individual interests
or the interest of a group of employees.
·Remuneration of personnel this can be based on diverse factors
such as time, job, and piece rates, bonuses, profit-sharing or non-
financial rewards.

27. ·Centralization Management should use an appropriate
·Scalar chain If two members who are on the same level of
hierarchy have to work together to accomplish a project
·Order The organization has a place for everything and everyone
who ought to be so engaged.
·Equity Fairness, justice and equity should prevail in the
organization.
·Stability of tenure of personnel Job security improves
performance. An employee requires some time to get used to new
work and do it well.
·Initiative this should be encouraged and stimulated.

28. ·Committees are part of the organization.
Members from the same or different hierarchical
levels from different departments can form
committees around a common goal.

29. ·Functions of management Fayol (1949)
considered management as a set of planning,
organizing, training, commanding and
coordinating functions.

30. CRITICISME OF CLASSICAL THEORY;
1. The motivation is incomplete and inadequate.
2. Treat human being as a machines.
3. Inadequate dealing with complexities in the
organization structure and function.
4. Classical treat the organization as a close system,
a mechanist pattern.

31. Neoclassical theory;
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 .

32. ELEMENT OF NEOCLASSICAL THEORY;
1. FLAT STRUCTURE ;Neoclassical theory a advocates the
flat structure instead of tall structure.
2. DECENTRALISATION;IS closely related to flat
structure.
The flat structure, with a wide span of control, is more
suitable for motivating human being in the organization,
shortens communication chain, and is less expensive, free
from hierarchical control.

33. Principles of ththeory e organizational approach;
The classical approach stressed the formal organization.
It was mechanistic and ignored major aspects of human nature.
In contrast, the neoclassical approach introduced an informal
organization structure and emphasized the following principles:
the individual an individual is not a mechanical tool but a distinct
social being, with aspirations beyond mere fulfillment of a few
economic and security works.

34. Criticism of org. theory;
1. Lacks unified approach.
2. Suffers from incompleteness, a short sighted
perspective, and lack of integration among
many facets of the human behavior.

35. Maslow's theories;
Maslow's theories introduced two important implications into
organization theory.
The first was that people have different needs and therefore need to
be motivated by different incentives to achieve organizational
objectives.
The second of Maslow's theories held that people's needs change
over time, meaning that as the needs of people lower in the
hierarchy are met, new needs arise.

36. Modern theories
Modern theories tend to be based on the concept
that the organization is a system which has to adapt to
changes in its environment. In modern understandings of
the organization can be broadly classified into:
1. the systems approach,
2. socio-technical theory, and
.3a contingency or situational approach

37. The systems approach
The systems approach views organization as a system
composed of interconnected and this mutually dependent
- sub-systems.
These sub-systems can have their own sub-sub-systems.
A system can be perceived as composed of some
components, functions and processes (Albrecht, 1983).
This, the organization consists of the following three basic
elements (Bakke, 1959):

38. Components
There are five basic, interdependent parts of the
organizing system, namely:
· the individual,
· the formal and informal organization,
· patterns of behavior emerging from role demands of the
organization,
· role comprehension of the individual, and
· the physical environment in which individuals work.

39. (ii) Linking processes the different components of an
organization are required to operate in an organized and
correlated manner.
The interaction between them is contingent upon the
linking processes, which consist of communication,
balance and decision making.
Coordination to link decision centers in the system in a
composite form.

40. ·Balance is the equilibrium between different parts
of the system so that they keep a harmoniously
structured relationship with one another.
·Decision analysis is also considered to be a
linking process in the systems approach. Decisions
may be to produce or participate in the system.

41. Decision to produce depends upon the attitude
of the individual and the demands of the
organization.
Decision to participate refers to the individual's
decisions to engross them in the organization
process.

42. (iii) Goals of organization the goals of an
organization may be growth, stability and interaction.
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

43. OPEN-SYSTEMS THEORY
Traditional theories regarded organizations as closed
systems that were autonomous and isolated from the
outside world.
In the 1960s, however, more holistic and humanistic
ideologies emerged.
Recognizing that traditional theory had failed to take into
account many environmental influences that impacted the
efficiency of organizations, most theorists and researchers
embraced an open-systems view of organizations.

44. The open-systems theory also assumes that all
large organizations are comprised of multiple
subsystems, each of which receives inputs from
other subsystems and turns them into outputs for
use by other subsystems. The subsystems are not
necessarily represented by departments in an
organization, but might instead resemble patterns
of activity.

45. An important distinction between open-
systems theory and more traditional
organization theories is that the former
assumes a subsystem hierarchy, meaning that
not all of the subsystems are equally
essential.

46. Socio-technical approach;
The socio-technical systems approach is based on the premise that
every organization consists of the people, the technical system and
the environment (Pasmore, 1988).
People (the social system) use tools, techniques and knowledge (the
technical system) to produce goods or services valued by consumers
or users (who are part of the organization's external environment).
Therefore, equilibrium among the social system, the technical
system and the environment is necessary to make the organization
more effective.

47. The contingency or situational approach
Is based on the belief that there cannot be universal
guidelines which are suitable for all situations.
Organizational systems are inter-related with the
environment.
The contingency approach (Hellriegel and Slocum, 1973)
suggests that different environments require different
organizational relationships for optimum effectiveness,
taking into consideration various social, legal, political,
technical and economic factors.

48. The salient features are:
(i) Situational factors play an important role in the
design of organizational structure and a suitable
management style
(ii) The determinants are
Size of the organization: Bigger the size, higher the
complexity,
Interaction need: free flow of communication
needed.