Orgnization Theory Part I

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CLASSICAL ORGANIZATION THEORY parts

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merger of scientific management - bureaucratic theory - and administrative theory

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SCIENTIFIC MANAGEMENT Principles

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(1) find the best way to perform tasks (2)match workers to tasks (3) closely supervise use reward/punishment as rewards (4)planning and controlling

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Frederick Taylor’s Method

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getting the best equipment and people; analyzing each task individually; find the right combination

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Max Webber

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bureaucracy theory; explained behavior in term of cause and effect; organization behavior a network of human interaction;

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BUREAUCRACY THEORY

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reduce diversity and ambiguity; establish clear lines of control; hierarchical structure of power; division of labor and specialization;

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ADMINISTRATIVE THEORY

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principles of management; formalized by Mooney and Reiley; emphasized a set of universal management principles that could be applied to all organizations;

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FLAWS OF CLASSICAL MANAGEMENT THEORY

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explained motivation stricktly as a function of economic reward

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NEOCLASSICAL THEORY

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displayed genuine concern for human needs; reaction to the rigidity of the classical theory that squelched creativity;individual growth and motivation;

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HOWTHORN EXPERIMENT

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challenged the classical view; Mayo and Roethlisberger; any change had a positive impact on productivity; the “wart” theory;

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SIGNIFICANCE OF THE HOWTHORNE EFFECT

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question the ability to evaluate the efficacy of management theories; new management theories could be a string of Hawthorn effects;

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BARNARD

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first modern theory of management; transition theorist; bot classical and neoclassicist; organization a system of conscious coordinated activities; leader should create a cohesive environment; management authority derives from subordinate acceptance;

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SIMON

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theory of limited rationality: workers could respond unpredictably to managerial attention; application of the scientific method: reductionism quantification deductive logic;

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Common beliefs of classical and neoclassical

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maintain equilibrium; emphasis on the ability to control and manipulate workers;

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CONTINGENCY THEORY

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viewed conflict as manageable;

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CHANDLER

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1962;contingency theory; form follows function: organization would adapt to changes because rational linear and sequential;

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LAWRENCE&LORCH

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1969; studied how organizations adjust to fit environment; managers should be free to make decisions contingent on the situation;

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SYSTEMS THEORY

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all components of an organization are interrelated and changing one variable might impact many others; organizations are open systems that interact with the environment; organization in a state of dynamic equilibrium as they adapt to changes;

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LUDWIG VON BERTALANFFY

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proposed systems theory;

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CENTRAL THEME SYSTEMS THEORY

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nonlinear relationships might exist among variables; small changes in one variable can cause big changes in another variable; so it’s difficult to understand the relationship between variables;

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FEDERAL DECENTRALIZATION

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Peter Drucker; project management; organization in which a number of independent units operate simultaneously;

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MATRIX ORGANIZATIONAL STRUCTURE

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evolved from project management; compromise between bureaucratic approach and the autonomous project management approach; permanently established departments provide integration for project management; matrix form superimposed on hierarchical structure; dual authority;

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SYSTEM THEORY ORGANIZATION STRUCTURE

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established pattern of relationships among the parts of the organization;

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Systems Theory’s patterns in relationship and duties

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Integration; differentiation; structure of hierarchical relationships; formalized policies and control

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Integration(ST)

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the way activities are coordinated

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Differentiation(ST)

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the way tasks are divided

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Structure of hierarchical relationships(ST)

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authority systems

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Formalized policies and procedures(ST)

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administrative systems

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Pros/cons of passage from mechanistic to organic structures

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organizations are dynamic/flexible; coordination requires more effort

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FOUR STAGES OF THE ORGANIZATIONAL DEVELOPMENT

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(1) entrepreneurial (2) collectivity (3) formalization and control (4) elaboration

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ENTERPRENEURIAL STAGE

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innovation; niche formation; creativity; conviction that there is a market for the product; beginning of the S curve; most businesses fail in this stage; desire to find a pattern that survive the market; Land and Jarman;

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COLLECTIVITY STAGE

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reverse in strategy; standardization of the rules instead of trial and error; structured patterns of operation instead of chaotic methods; regulation of internal processes;