Theories of Organization

1. 22 Nov 2014

2. refers to the study of
phenomena of organizational
functioning and performance
and of the behaviour of groups
and individuals working in
them.

3. CLASSICAL
ORGANIZATIONAL THEORY
deals with the anatomy of formal
organizations (job-unit / authority,
accountability-responsibility).
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.

4. SCIENTIFIC
MANAGEMENT
APPROACH
based on the concept of planning of
work to achieve efficiency,
standardization, specialization and
simplification. The approach to
increased productivity is through
mutual trust between management
and workers.

5. BUREAUCRATIC
APPROACH
the organization as a part of broader
society
Bureaucratic administration means
fundamentally the exercise of control
on the basis of knowledge (Weber,
1947).

6. ADMINISTRATIVE
THEORY
management was considered as a set
of planning, organizing, training,
commanding and coordinating
functions.

7. INDIVIDUAL
WORK GROUP
PARTICIPATIVE MANAGEMENT

8. NEOCLASSICAL
ORGANIZATIONAL
THEORY
The neoclassical approach emphasizes the
human needs of employees to be happy in the
workplace. This allows creativity, individual
growth and motivation, which increases
productivity and profits.
emphasizes individual or group behaviour and
human relations in determining productivity. The
main features of the neoclassical approach are
individual, work group and participatory
management.

9. MODERN
ORGANIZATIONAL
THEORY
based on the concept that the
organization is an adaptive system which
has to adjust to changes in its
environment

10. CONTINGENCY
THEORY
It views conflict in the work place as inescapable, but
also manageable. This differs from classical and
neoclassical theories that interpret conflict as
interference with organizational equilibrium. In
contingency theory, productivity is a function of a
manager’s ability to adapt to environmental changes.
Managerial authority is especially important for highly
volatile industries. This allows managers the freedom to
make decisions based on current situations.

11. SYSTEMS
THEORY
Systems theorists believe all organizational components
are interrelated. Changes in one component may affect
all other components, according to StatPac. Systems
theory views organizations as open systems in a state
of dynamic equilibrium, which are continually changing
and adapting to environment and circumstance.
Nonlinear relationships between organizational
components create a complex understanding of
organizations in systems theory. Manufacturing plants
may be an example of system organizational theory --
there's interdependency for each cog in the
organization's wheel, meaning the assembly plant
cannot operate without a fully functional shipping
department that receives required machinery and parts.
Likewise, the plant cannot be profitable without a sales
force that markets the finished products.

12. SOCIO-TECHNICAL
THEORY
considers the organization as composed of a
social system, technical system and its
environment. These interact among
themselves and it is necessary to balance
them appropriately for effective functioning of
the organization.