This theory came into development in the early 1920s at the time of industrial revolution. People. Experiments to prove the essence of people in the production process and not machines. Researchers found out that productivity was improved due to a good relationship with employees and also being part of a supportive group. Each employee …show more content…
This theory contains two essentials. First, the organization should be structured into a hierarchy and secondly the organization is managed by a set of rules that must be followed by all the employees (Spender, 1996). Hierarchy is the act of arranging the organization according to the authoritative levels of each employee. For instance, the deputy president will always be the president. Each level of the organization reports to the level that is above it.
An example of a well-known bureaucratic organization is the United States army. The army is split into brigades. The brigades are further split into battalions. The battalions are then divided into companies and the companies into platoons. In this structure, the lowest level of management reports to its immediate level and so on. So there is no instance when the Platoon, for example, will report to the battalion, they have to report to the company first, and the company passes the information to the battalion until it reaches the top army managers (Wilson, …show more content…
In order to make effective decisions in the organization, it should be viewed as a system. The main objective of this approach is in the decisions made by managers and how these decisions impact the workers of the organization.
An organization is viewed a complex network in which information is processed with numerous decision points. Understanding on how the decisions are made in an organization helps in knowing the behavior of the organization (fredrick, 1972). The theory stresses the need for cooperative actions in any organization. This is necessary for the people’s ability to communicate and to be committed to the process of making decisions. This theory also is concerned with how decisions are made and how and how this process can be improved.
The advantage of this theory is that all the workers of the organization are involved in the decision-making process, and therefore they see themselves as very important entities in the organization. This gives them some sort of satisfaction and motivation towards their work. However, the implementation of this approach is very difficult since the decision-making process becomes very slow and hence slowing down the effectiveness of the