Professional Documents
Culture Documents
TOPICS TO BE COVERED
What is an organization? Elements of an Organization Model for the Concept of Organization Definition of Organization theory Contrast between Organization Theory & Organization Behaviour Scope of Organization theory Applications of Organizational theory
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WHAT IS AN ORGANIZATION?
Organizations are social entities that are goal-oriented; are designed as deliberately structured and coordinated activity systems, and are linked to the external environment (Daft, 2004).
An organization is a consciously coordinated social entity, with a relatively identifiable boundary, that functions on a relatively continuous basis to achieve a common goal or set of goals.
Middle Line
Operating Core
Organization Structure
Organization structure defines how tasks are to be allocated, who reports to whom and the formal coordinating mechanisms and interaction patterns that will be followed. Organization structure has 3 components: Complexity , Formalization & Centralization
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Complexity considers the extent of differentiation within the organization. This includes division of labor, the number of levels in the organizations hierarchy, and the extent to which the organizations units are dispersed geographically. Formalization : The degree to which an organization relies on rules and procedures to the direct the behavior or employees. Centralization ; centralization considers where the locus of decision-making authority lies.
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Organization Design
Org design emphasizes the management side of organization theory. Organization design is concerned with constructing and changing an organizations structure to achieve the organizations goals.
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SYSTEMATIC MANAGEMENT
Key concepts
Systematized manufacturing operations Coordination of procedures and processes built into internal operations Emphasis on economical operations, inventory management, and cost control
Contributions
Beginning of formal management Promotion of efficient, uninterrupted production
Limitations
Ignored relationship between an organization and its environment Ignored differences in managers and workers views
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Personalities
Frederick W. Taylor Frank and Lillian Gilbreth Henry Gantt
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Contributions
Improved factory productivity and efficiency Introduced scientific analysis to the workplace System equated worker rewards and performance
Limitations
Simplistic motivational assumptions Workers viewed as parts of a machine Potential for exploitation of labor Excluded senior management tasks
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Administrative Management
Scientific Mgnt looked at the design & functioning of technical core on work performed on shop floor. Administrative principles looks at the design and functioning of organization as a whole.
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Contributions
Viewed management as a profession that can be trained and developed Emphasized the broad policy aspects of top-level managers Offered universal managerial prescriptions
Limitations
Universal prescriptions need qualifications for
environmental, technological, and personnel factors
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HUMAN RELATIONS
Aimed to understand how psychological and social processes interact with the work situation to influence performance Hawthorne Studies
Hawthorne Effect - workers perform and react differently when researchers observe them
Argued that managers should stress primarily employee welfare, motivation, and communication Personalities
Abraham Maslow - physiological, safety, social,
esteem & self actualization
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Contributions
Psychological and social processes influence performance Maslows hierarchy of need
Limitations
Ignored workers rational side and the formal organizations contributions to productivity Research overturned the simplistic belief that happy workers are more productive
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BUREAUCRACY
everything is governed by certain rules and regulations
Bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals Allows large organizations to perform the many routine activities necessary for their survival People should be treated in unbiased manner Personalities Max Weber
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Bureaucracy (cont.)
Key concepts
Structured network of relationships among specialized positions Rules and regulations standardize behavior Jobs staffed by trained specialists who follow rules Hierarchy defines the relationship among jobs
Contributions
Promotes efficient performance of routine operations Eliminates subjective judgment by employees and management Emphasizes position rather than the person
Limitations
Limited organizational flexibility and slowed decision making Ignores the importance of people and interpersonal relationships Rules may become ends in themselves
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QUANTITATIVE MANAGEMENT
Teams of quantitative experts tackle complex issues facing large organizations Helps management make a decision by developing formal mathematical models of the problem Personalities
military planners in World War II
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Contributions
Developed specific mathematical methods of problem analysis Helped managers select the best alternative among a set
Limitations
Models neglect nonquantifiable factors Managers not trained in these techniques may not trust or understand the techniques outcomes Not suited for nonroutine or unpredictable management decisions
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ORGANIZATIONAL BEHAVIOR
Studies management activities that promote employee effectiveness
investigates the complex nature of individual, group, and organizational processes Theory X
managers assume that workers are lazy, irresponsible, and require constant supervision
Theory Y
managers assume employees want to work and control themselves
Personalities
Douglas McGregor
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Contributions
Increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation Recognized the importance of developing human resources
Limitations
Some approaches ignored situational factors, such as the environment and technology
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SYSTEMS THEORY
Key concepts
Organization is viewed as a managed system Management must interact with the environment Organizational goals must address effectiveness and efficiency Organizations contain a series of subsystems There are many avenues to the same outcome Synergies enable the whole to be more than the sum of the parts
Contributions
Recognized the importance of the relationship between the organization and the environment
Limitations
Does not provide specific guidance on the functions of managers
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CONTINGENCY PERSPECTIVE
Key concepts
Situational contingencies influence the strategies, structures, and processes that result in high performance There is more than one way to reach a goal Managers may adapt their organizations to the situation
Contributions
Identified major contingencies Argued against universal principles of management
Limitations
Not all important contingencies have been Identified Theory may not be applicable to all managerial issues
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