theories of management organisation that helps student to study and understand them

1. Jacobus N Joseph-Management
Organization
Organization Theories

2. Theory
• A Theory is a set of inter related
concepts, definitions & propositions that
present a systematic view of phenomena
• It also specifies the relationship among
variables with purpose of explaining and
predicting the phenomena.

3. Organization theory
• Refers- to the study of the phenomena or
occurrences of organizational functioning and
performance and of the behavior of Groups and
individuals working in them.”
• There are several theories which explain the
organization and its structure .
• Classical organization theory includes the
scientific management approach, Weber's
bureaucratic approach, and administrative
theory.

4. Competing theories of organization
• As organizations are implemented over time,
many people experimented as to which one
was best.
• These theories of organizations include:
– Bureaucracy
– Rationalization (Scientific Management), and
– the Division of Labor.
• Each theory provides distinct advantages and
disadvantages when implemented.

5. Bureaucratic theory- Max Weber
• In his ‘Economy and Society’ book published in 1922,
Weber articulates the necessary conditions and
descriptive features of bureaucracy.
• An organization governed under Weber’s conception of
bureaucracy is characterized by:
1. the presence of impersonal positions that are earned
and not inherited,
2. rule-governed decision-making,
3. professionalism,
4. a chain of command,
5. defined responsibility, and
6. bounded authority.

6. In Weber's ideal of bureaucracy:
a) Official Jurisdiction on all areas are ordered by
rules or laws already implemented.
b) There is an office hierarchy; a system of super-and
subordination in which there is supervision
of lower office by higher ones.
c) The management of the modern office is based
upon written rule, which are preserved in
original form.
d) Office management requires that of training or
specialization.

7. e) When the office is developed/established it requires
the full working capacity of individuals.
f) Rules are stable and can be learned. Knowledge of
these rules can be viewed as expertise within the
bureaucracy (these allow for the management of
society)
g) When a bureaucracy is implemented, they can
provide accountability, responsibility, control, and
consistency. The hiring of employees will be an
impersonal and equal system.
• NB: Although the classical perspective encourages efficiency, it is
often criticized as ignoring human needs. Also, it rarely takes
into consideration human error or the variability of work
performances (each worker is different).

8. Additional features:
• There are several additional features that comprise a
Weberian bureaucracy:
1. It is possible to find the utilization of hierarchical
subordination in all bureaucratic structures. This means
that higher-level offices supervise lower level offices.
2. In bureaucracies, personal possessions are kept separate
from the monies of the agency or the enterprise.
3. People who work within a bureaucracy are usually
trained in the appropriate field of specialization.
4. Bureaucratic officials are expected to contribute their full
working capacity to the organization.
5. Positions within a bureaucratic organization must follow a
specific set of general rules.

9. Criticism
• It is hard to critique Weber’s theory strictly
because of the fact that it’s a theory nearly
impossible to perform in real life, making it
impossible for one to know if it works or not.
– It is merely a set of guidelines that make up
bureaucracy, which today still many believe as the
best way to run organizations in all aspects.
• All the same this approach is considered rigid,
impersonal, self-perpetuating and empire
building.

10. Rational system perspective
• In a rational organization system, there are
two significant parts:
• Specificity of Goals and Formalization.
Goal specification provides guidelines for specific
tasks to be completed along with a regulated way
for resources to be allocated.
Formalization is a way to standardize
organizational behavior. As a result, there will be
stable expectations, which create the rational
organizational system.

11. Scientific Management Theory-Taylor
• Taylor’s SM theory analyzed how to maximize
the amount of output with the least amount of
input. Taylor’s in his attempt to rationalize the
individual worker argued for the:
1. Division of work between managers and workers
2. Provision of an incentive system (based on
performance)
3. Scientifically training of workers
4. Creating of a science for each individual’s
responsibilities
5. Ensuring that work is done on time/efficiently

12. Problems arising out of scientific management
1. standardization leads workers to rebel
against mundaneness (routineness).
2. workers may reject the incentive system
because they are required to constantly work
at their optimum level, an expectation that
may be unrealistic.

13. The Administrative Theory
• was 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.

14. Fayol's Administrative theory
emphasised adherence to principles of
management:
1. Division of work (specialization)
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest
7. Remuneration of personnel

15. 8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps
15. The concept of line and staff
16. Committees
17. Functions of management
- planning
- organizing
- training
- commanding
- coordinating

16. Division of labor- Adam Smith
• The division of labor is the specialization of individual labor roles. It
is often associated with increasing output and trade.
• According to Adam Smith, the division of labor is efficient due to
three reasons:
– occupational specialization
– saving from not changing tasks, and
– machines taking the place of human labor.
• Smith argued -:
– that ‘occupational specialization’ leads to increased productivity and
distinct skill, and
– that human and physical capital must be similarly matched;
• If the skill of workers were matched with technological
improvements, Smith concluded, there would be a major increase
in productivity.

17. Arguments against theory
• Although the division of labor is often viewed as
inevitable in a capitalistic society, there are
several specific problems that may arise.
• They include a lack of creativity, monotony, and
lack of mobility-:
– Creativity will naturally suffer due the monotonous
atmosphere that the division of labor creates. Doing
the same routines may not be for everyone.
– Non mobility employees aren’t familiar with other
parts of the job and thus cannot assist employers
elsewhere.

18. Modernization Theory- Frank Dobbin
• The growth of modernization took place
beginning in the 1950s; and the ensuing decade,
people analyzed the diffusion of technological
innovations within Western society and the
communication that helped it disperse globally
• This “first wave” as it became known had some
significant ramifications:
– First, economic development was enhanced from the
spread of new technological techniques, and
– second, modernization supported a more educated
society (as mentioned above), and thus a more
qualified labor force

19. Modernization Theory- 2nd. Wave
• The ‘second wave’ took place between the
years 1960 and 1970. This period was labeled
anti-modernization, because it saw the push
of innovations of Western society onto
developing countries as an exertion of
dominance
• It refuted the concept of relying heavily on
mass media for the betterment of society.

20. Modernization Theory- 3rd. Wave
• The last wave of modernization theory, which
took place in the 1990s, depicts impersonality
(Perrow 737)
– As uses of newspapers, TVs, and radios became
more prevalent, the need for direct contact, a
concept traditional organizations took pride in,
diminished. Thus, organizational interactions
became more distant (“Modernization
Theory”).[11]

21. Frank Dobbin
• According to Frank Dobbin, the modern
worldview is the idea that “modern institutions
are transparently purposive and that we are in
the midst an evolutionary progression towards
more efficient forms.
• This phrase epitomizes the goal of modern firms,
bureaucracies, and organizations to maximize
efficiency.
• The key to achieving this goal is through scientific
discoveries and innovations (according to
Dobbin).

22. Arguments for the theory
• Dobbin discussed the outdated role of culture in organizations and
explored the significance of culture in the modern organization.
• He argued that, the rationalist worldview counters the use of
cultural values in organizations, stating that “transcendental
economic laws exist,
• that existing organizational structures must be functional under the
parameters of those laws, and
• that the environment will eliminate organizations that adopt non-efficient
solutions
• These laws govern the modern organizations and lead them in the
direction that will maximize profits efficiently.
– Thus, the modernity of organizations is to generate maximum profit,
through the uses of mass media, technological innovations, and social
innovations in order to effectively allocate resources for the betterment
of the global economy.