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Unit3NotesontheTheoryofOrganization,WhatIsOrganizationTheory?,Apropositionorsetofpropositionsthatattemptstoexplainorpredicthowgroupsandindividualsbehaveindifferingorganizationalarrangements.,WhatIsOrganizationTheory?,Classicorganizationaltheory.Organizationsexisttoaccomplishproduction-relatedandeconomicgoals.Thereisonebestwaytoorganizeforproduction,andthatwaycanbefoundthroughsystematic,scientificinquiry.Productionismaximizedthroughspecializationanddivisionoflabor.Peopleandorganizationsactinaccordancewithrationaleconomicprinciples.,WhatIsOrganizationTheory?,Theoryderivedfromorganizationalstructuresandproceduresduringtheindustrialrevolution.AdamSmithandthepinfactory.TheWealthofNations,1776.Laissez-faire.Economicrationaleforthefactorysystem.Allformalorganizationsareforcemultipliers.,TheOriginsofScientificManagement,Thebasicproblemwiththetraditionalhierarchicalorganizationwasthatitwasdependentupontheproperenculturationofindividualsupervisorsateverylevelforitssuccess.Changesintheenvironmentcanmakehierarchicalorganizationslesscompetent.,TheOriginsofScientificManagement,Originofthestaffconcepttoovercomelimitationsofasinglemindandfleetingtime.Thegeneralstaffconcepthasbeenadoptedbyindustrialandgovernmentalorganizations.,TheOriginsofScientificManagement,TheinfluenceofFrederickW.Taylor(1911).Fatherofthescientificmanagementmovement.Scientificmanagementprinciples.Replacingtraditional,ruleofthumbmethodsofworkaccomplishmentwithsystematic,morescientificmethodsofmeasuringandmanagingindividualworkelements;Thescientificstudyoftheselectionandsequentialdevelopmentofworkerstoensureoptimalplacementofworksintoworkroles;Obtainingthecooperationofworkerstoensurefullapplicationofscientificprinciples;And.Establishinglogicaldivisionswithinworkrolesandresponsibilitiesbetweenworkersandmanagement.,TheOriginsofScientificManagement,HenriFayolsgeneraltheoryofmanagement(sixprinciples,1916,1949).Technical(productionofgoods)Commercial(buying,selling,exchange).Financial(raisingandusingcapital).Security(protectionofpropertyandpeople).Accounting.Managerial(coordination,control,organization,planningandcommandofpeople).,TheOriginsofScientificManagement,Fayol(contd.).Dominantprinciplewasmanagement.Divisionofwork.Authorityandresponsibility.Discipline.Unityofcommand.Unityofdirection.Subordinationofindividualinteresttogeneralinterest.Remunerationofpersonnel.,TheOriginsofScientificManagement,Fayol(contd.).Dominantprinciplewasmanagement(contd.).Centralization.Scalarchains(supervisors).Order.Equity.Stabilityofpersonneltenure.Initiative,and.Espritdecorps.,ThePeriodofOrthodoxy,Interwarperiodaperiodoforthodoxyinpublicadministration.Workofgovernmentcouldbedividedbetweendecision-makingandexecution.Administrationwasasciencewithdiscoverableprinciples.,ThePeriodofOrthodoxy,PaulApplebyspolemic.Politicsandadministrationinextricablyentwined.LutherGulick(1937,POSDCORB).Planning(outlineandmethods).Organizing(structure).Staffing(personnel).Directing(decision-making).Coordinating(taskmanagement).Reporting(communicationandrecord-keeping).Budgeting(fiscalplanning,accounting,andcontrol).,TheManyMeaningsofBureaucracy,First,“thebureaucracyisthetotalityofgovernmentofficesorbureausthatconstitutethepermanentgovernmentofthestate.Second,“thebureaucracy”referstoallofthepublicofficialsofagovernment,bothhighandlow,electedandappointed.Third,bureaucracyisoftenusedasageneralinvectivetorefertoanyinefficientorganizationencumberedbyredtape.,TheManyMeaningsofBureaucracy,Fourth,bureaucracyreferstoaspecificsetofstructuralarrangements(MaxWeber).Bureaucratsarefreeasindividuals,butnotasemployees.Hierarchy.Clearlyspecifiedfunctions.Freedomofhiring.Appointmentbymerit.,TheManyMeaningsofBureaucracy,Fourth,bureaucracyreferstoaspecificsetofstructuralarrangements.Duecompensationanddueprocess.Soleoccupation.Advancementbymeritorseniority.Non-proprietaryrightsinposition.Strictcontrols.,NeoclassicalOrganizationTheory,Theneoclassicaltheoristsgainedtheirreputationbyattackingtheclassicaltheories.Importantsourceofthepowerandpolitics,organizationalculture,andsystemstheory.HerbertSimon.Boundedrationalityandsatisficing.Programmedandunprogrammeddecision-making.Managementinformationsystems.,NeoclassicalOrganizationTheory,Theimpactofsociology.PhilipSelznickOrganizationsaremadeupofindividualswhosegoalsandaspirationsmaynotcoincidewiththeorganizations.,ModernStructuralOrganizationTheory,BasicassumptionsOrganizationsarerationalinstitutionswhoseprimarypurposeistoaccomplishestablishedobjectivesthroughcontrolandcoordination.Thereisa“best”structureforanyorganizationinlightofobjectives,environment,productsorservices,andthetechnologyoftheproductionprocess.Specializationanddivisionoflaborincreasethequalityandquantityofproduction.Mostproblemsresultfromstructuralflaws.,ModernStructuralOrganizationTheory,Mechanisticandorganizationsystems.Mechanistictraditionalbureaucracy,bestinstableconditions.Organiclessrigidity,moreparticipation,andmorerelianceonworkers,bestindynamicconditions.,SystemsTheory,Systemstheoryviewsanorganizationasacomplexsetofdynamicallyintertwinedandinterconnectedelements,includinginputs,processes,outputs,feedbackloops,andtheenvironment.Anychangeinoneelementcauseschangesinothereleme
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