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Organization theories
- 1. There are severaltheories which explain the organization and its structure .Classical organization theory includes the scientific management approach, Weber's bureaucratic approach, and administrative theory. Organization theories CLASSICAL ORGANIZATION THEORY · Scientific Management approach · Weber's Bureaucratic approach · Administrative theory. NEOCLASSICAL THEORY MODERN ORGANIZATION THEORY · Systems approach · Socio-technical approach · Contingency or Situational approach
- 2. The scientificmanagement approach is 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. Taylor (1947) proposed four principles of scientific management:
- 3. Taylor's principlesof scientific management · Science, not rule-of-thumb; · Scientific selection of the worker · Management and labour cooperation rather than conflict · Scientific training of workers
- 4. Weber's bureaucraticapproach considers the organization as a part of broader society. The organization is based on the principles of: · structure; · specialization; · predictability and stability; · rationality; and · democracy. Observe that this approach is considered rigid, impersonal, self-perpetuating and empire building.
- 5. Administrative theorywas propounded by Henry Fayol and is based on several principles of management. In addition, management was considered as a set of planning, organizing, training, commanding and coordinating functions. Fayol's principles of management: Administrative theory
- 6. Division ofwork (specialization) · Authority and responsibility · Discipline · Unity of command · Unity of direction · Subordination of individual interest · Remuneration of personnel · Centralization · Scalar chain · Order · Equity · Stability of tenure of personnel · Initiative · Esprit de corps · The concept of line and staff · Committees · Functions of management - planning - organizing - training - commanding - coordinating
- 7. Neoclassical theoryemphasizes individual or group behaviour and human relations in determining productivity. The main features of the neoclassical approach are individual, work group and participatory management. Principles of the neoclassical approach INDIVIDUAL WORK GROUP PARTICIPATIVE MANAGEMENT
- 8. Modern theoriesare based on the concept that the organization is an adaptive system which has to adjust to changes in its environment. Discuss the important characteristics of the modern approach to organizations. Modern theories include the systems approach, the socio- technical approach, and the contingency or situational approach.
- 9. Characteristics ofmodern approaches to the organization Systems viewpoint Dynamic process of interaction Multilevelled and multidimensional Multimotivated Probabilistic Multidisciplinary Descriptive Multivariable Adaptive
- 10. The systemsapproach considers the organization as a system composed of a set of inter-related - and thus mutually dependent - sub-systems. Thus the organization consists of components, linking processes and goals . Modern approaches to organization: The systems approach COMPONENTS · The individual · The formal and informal organization · Patterns of behaviour · Role perception The physical environment
- 11. LINKING PROCESSES Communication Balance Decision analysis GOALS OF ORGANIZATION Growth Stability Interaction
- 12. The socio-technicalapproach 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. The contingency or situational approach recognizes that organizational systems are inter-related with their environment and that different environments require different organizational relationships for effective working of the organization.
- 13. Ask participantswhether they consider the research organization as a social system. Since scientists constitute the core resource in a research organization, their growth is as important as the growth of the organization. A social organization is characterized by complexity, degrees of inter-dependence between sub-systems, openness, balance and multiplicity of purposes, functions and objectives..
- 14. The researchorganization as a social system Characteristics of the research organization Complexity Degree of inter-dependence between sub-systems Openness of the social organization Balance in the social organization Multiplicity of purposes, functions and objectives
- 15. Now moveto goal setting in an organization. Ask participants "Why should goals be set?" Goals are set to increase performance and provide control. How goal setting improves performance. How are goals set? The importance of goal settings Clarified what people have to do Identifies problems and facilitates solution Reduces ambiguity in work Establishes a relationship between work and organizational achievements Assists individuals to allocate time, efforts and personal resources Provides a sense of accomplishment and contentmen Provide control over the people in the organization Measures performance
- 16. Following managementby objectives, the process of goal setting involves five steps. First, the overall objectives of the organization are set and then an action plan is evolved. The second step is to prepare members in the organization for successful implementation of the action plan. Individual goals are set in the third step. Periodic appraisal and feedback is the fourth step, to ensure smooth implementation of the action plan. Finally, an appraisal of performance by results takes place.
- 17. The processof goal setting (management by objectives) 1.Setting overall organizational objectives and action plan · identifying key result areas · identifying measures of performance · stating objectives · agreement on objectives and goals 2. Develop the organization 3. Set individual objectives 4. Periodic appraisal and feedback 5. Appraisal by results
- 18. Now discussthe concept of integration and coordination in the organization. These are controlling mechanisms for smooth functioning of the organization. Organizational differentiation is the unbundling and re-arranging of the activities. Integration is re-grouping and re- linking them. The need for integration arises in the face of environmental complexity, diversity and change. Some of the important reasons which necessitate integration. The need for integration Environmental complexity, diversity and change Increase in structural dimensions Specialization Across various specialized units - each pursuing individual objectives - to ensure that organizational goals are being pursued Conflict resolution Better performance and productivity
- 19. How isintegration achieved? Obviously, the structure of the organization should facilitate proper coordination and integration of different specialized units. What could happen were the organizational structure not proper? Integration is achieved through vertical coordination along the hierarchy, decision making levels, and span of control . There are several methods to improve integration. These include rules and procedures and professional training.
- 20. Methods ofintegration COORDINATING VERTICALLY THROUGH THE HIERARCHY DETERMINING THE DECISION MAKING LEVEL DECIDING THE SPAN OF CONTROL
- 21. Next discussthe process in the organization, which involves the concept of power, decision making and communication. Power refers to the ability to get an individual or group to do something or to change in some way. Power could emanate from position, economic status, knowledge, performance, personality, physical or ideological traits. Observe that power is one of the strongest motives, and affects setting of objectives and availability of resources in an organization. Next discuss the concept, and the various types of organization-based power .
- 22. Organization-based power REWARD POWER COERCIVE POWER EXPERT POWER CHARISMATIC POWER
- 23. Communication isanother important process in the organization and is a key mechanism for achieving integration and coordination of the activities of specialized units at different levels in the organization. Communication can be horizontal, downward or upward .
- 24. Communication in theorganization UPWARD HORIZONTAL DOWNWARD
- 25. Finally, discussdecision making in an organization. It begins with goal setting, identification and evaluation of alternatives and the choice of criteria. The important steps involved in decision making.
- 26. The processof decision making SETTING ORGANIZATIONAL GOALS ESTABLISHING PERFORMANCE CRITERIA CLASSIFYING AND DEFINING THE PROBLEM DEVELOPING CRITERIA FOR A SUCCESSFUL SOLUTION GENERATING ALTERNATIVES COMPARING ALTERNATIVES TO CRITERIA CHOOSING AN ALTERNATIVE IMPLEMENTING THE DECISION MONITORING THE DECISION AND GETTING FEEDBACK
- 27. There areseveral models of decision making. Models of decision making Economic or Rational Choice model Incremental Bargaining method Simon's Bounded Rationality model Peters and Waterman's Well Managed model Quantitative techniques