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What is an organization
Organizations are:
Importance of Organizations
Consequences of the Post Industrial Revolution Era Urbanization of work force Labor movement to counter
management practices of the day The development of large non business organizations like labor unions Attempts to apply scientific techniques to study social phenomena
TYPE 1 THEORISTS
The Rational Mechanical Model
Scientific Management
Fredrick W. Taylor (1856 1915 )
Taylors work was strongly influenced by Protestant ethics of the time: Value of hard work: Economic rationality Individualism: Each person had a role to play in society His work was mainly focused on shop floor efficiency
viewed workers as machines, motivated by rational, economic considerations; work standardization and fragmentation reduced workers to impersonal cogs; assumed workers to be without emotions concerned only with wage maximization Piece rate system aroused pressures of speed up and, consequently, unhealthy practices on the part of the workers; generally failed because standards were poorly set, employers cut rates when workers earned "too much", and workers would conceal their real capacity for production to keep standards low. Opposition by managers for substitution of scientific methods for their own judgment; Taylor was fired from his own organization, Bethlehem Steel.
1. 2. 3. 4. 5.
Henri Fayol (1841 1925) was a French mining engineer and director of mines. Primary emphasis on establishing broad administrative principles applicable to higher management level Definition of Management: Management is an overall function of conducting an undertaking towards its objectives by trying to make best possible use of all resources at its disposal and to ensure smooth working of the five essential functions: Planning Organizing Command Coordination Control
Administrative Theorists
Fourteen Principles
9. Scalar chain (where he favored short
spans of control) 10.Order 11.Equity 12.Stability of tenure of personnel 13.Initiative 14.Espirit de-corps
Static Consideration:
Criticism
Does not explain the impact of Dynamic Environmental Factors and its resultant complexities Dehumanization of organizations Criticism of universal principles: Unity of command may not always be possible or feasible Authority and responsibility may not be explicit but implied (position vs personal power) Short spans of control have proved to be inefficient
Functional consequences
Specialization Predictability and stability Rational Dysfunctional Consequences Rigidity Impersonality Displacement of objectives (over-emphasis
on procedures leading to red tape) Cost of control
TYPE 2 THEORISTS
The Human Relations Model
Behavioral School
Hawthorne Effect The term was coined in 1950 by Henry A. Landsberger who had been commissioned to carry out a study at Hawthorne Works (a Western Electric Co.) Illumination Experiment: Illumination research of workplace lighting formed the basis of the Hawthorne effect, while other changes such as maintaining clean workstations, clearing floors of obstacles, and even relocating workstations resulted in increased productivity for short periods.
Result
Increase in Productivity: Researchers
concluded that choosing one's own coworkers, working as a group, being treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor were the reasons for the productivity increase
TYPE 3 THEORISTS
The Strategic Constituencies Model
OR The Environment Imperative Model
Systems Theory
System as organized, unitary whole
composed of two or more interdependent parts, components, or subsystems and delineated by identifiable boundaries from its environment supra-system Closed system Has rigid , impenetrable boundaries and closes itself to the external environment Open system Imports energy from the environment, processes it and provides its output to the environment.
Systems Theory
Inputs
Outputs
Feedback
7.
Organizational Subsystems
2.
3.
4.
5.
Handle input output transaction Production system Produces product and service outputs Maintenance Smooth operations and upkeep of the organization Adaptation Scan the environment for problems, opportunities, and technological developments Management Directing and coordinating other subsystems. Provide direction, strategy, goals and policies for the entire organization
1. 2. 3. 4. 5. 6. 7. 8.
Contextual Dimensions
Size Organization Technology The Environment Strategy and Goals Culture
Contingency View
There is no best way to manage/ organize There must be a goodness of fit
between organization structure and the conditions in the external environment. What works in one setting may not work in another setting The correct management approach is contingent on organizations situation
TYPE 4 THEORISTS
The Power & Politics Model
desired outcome The use of power to influence decisions in order to achieve those outcomes Two approaches to politics: 1.Self serving behavior involves activities not sanctioned by the organization 2. Natural organizational decision process
Organizational Politics
Involves activities to acquire, develop, and use
power and other resources to obtain the preferred outcomes when there is uncertainty or disagreement of choices Political behavior can be either a positive or negative force Uncertainty and conflicts are natural and inevitable, and politics is the mechanism for reaching agreement