Organizational Theory, Research, Practice Teesside University of UK Hong Kong Institute of Technology HRM1065-N Organizational Theory, Research and Practice Assessment Report LAU HIU FUNG Donald Lau 11830049 1
Organizational Theory, Research, Practice
Teesside University of UKHong Kong Institute of TechnologyHRM1065-N Organizational Theory, Research and PracticeAssessment Report
LAU HIU FUNGDonald Lau
11830049V8188813HRM1065-N
Organizational Theory, Research, Practice Assessment Report
TABLE OF CONTENTS1
Organizational Theory, Research, Practice
INTRODUCTION
1. A CHRONOLOGY OF ORGANIZATION THEORY
Modern Structural Organization Theory
Systems Theory and Organizational Economics
CONCLUSION
REFERENCE
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Organizational Theory, Research, Practice
Introduction:
We can gain a quick overview of the historical development of organization
theory by referring to the Chronology of organizational theory which can be
divided into nine stages of development (Shafritz & Ott, 2001).
1. Classical Organizational Theory
2. Neoclassical Organizational Theory
3. Human Resource Theory
4. Modern Structural Organizational Theory
5. System Theory and Organizational Economic
6. Power and Politics Organization Theory
7. Organizational Culture and Sense Making
8. Organizational Culture Reform Movements
9. Postmodernism and the Information Age
The Organizational Theory refers to the set of interrelated concepts,
definitions that explain the behavior of individuals or groups or subgroups,
who interacts with each other to perform the activities intended towards the
accomplishment of a common goal (Shafritz & Ott, 2001). Organizations are
defined as social units of people that are structured and managed to meet a
need, or to conduct integration goals.
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Organizational Theory, Research, Practice
Chapter 1
A CHRONOLOGY OF ORGANIZATION THEORY:
In terms of chronological order of the development in organization theory,
it can be broadly divided into nine stages of development. (Shafritz &Ott,
2001)
This can gain a quick overview of the historical development of organization
theory by referring to the Chronology of organizational theory in the following.
The Chronology of organizational theoryClassical Organizational TheoryNeoclassical Organizational TheoryHuman Resource TheoryModern Structural Organizational TheorySystem Theory and Organizational EconomicPower and Politics Organization TheoryOrganizational Culture and Sense MakingOrganizational Culture Reform MovementsPostmodernism and the Information Age
Indeed, the organizational theory studies the influence of social
relationships between the individuals within the organization along with their
actions on the organization as a whole. Also, it studies the influence of
internal and external business environment such as political, legal, cultural,
etc. on the organization.
The term organization refers to the group of individuals who come
together to perform a set of tasks with the intent to accomplish the common
objectives. The organization is based on the concept of synergy, which
means, a group can do more work than an individual working alone.
The relationships between the individuals working together and their
overall effect on the performance of the organization are well explained
through the organizational theories.
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Organizational Theory, Research, Practice
In this assignment, the author is particularly interested in the theories of
the organization in Modern Structural Organizational Theory and System
Theory and Organizational Economic.
We are in here to explain the two theories in the following:
The Chronology of organizational theoryModern Structural Organizational TheorySystem Theory and Organizational Economic
Modern Structural Organization Theory:
Refers to structure of an organization, that we are analyses the relatively
stable relationships among the positions, groups of positions(units), and work
processes that make up the organization. Structural organization theory is
concerned with vertical differentiations-hierarchical levels of organizational
authority and coordination and horizontal differentiations between
organizational units-such as those between product or service lines,
geographical areas, or skills. The organization chart is the ever-present tool of
a structural organization theorist. It is shown the formal organization chart in
the following.
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Organizational Theory, Research, Practice
The Modern Theory is the integration of valuable concepts of the
classical models with the social and behavioral sciences. This theory indicates
that an organization is a system that changes with the change in its
environment, both internal and external.6
Organizational Theory, Research, Practice
There are several features of the modern theory that make it distinct from
other sets of organizational theories, these are:
1. The modern theory considers the organization as an open system. This
means an organization consistently interacts with its environment, so as to
sustain and grow in the market. Since, the organization designate the open
system several elements such as input, transformation, process, output,
feedback and environment exists. Therefore, this theory differs from the
classical theory where the organization is considered as a closed system.
2. Since the organization is designate as an open system, whose existence and
growth is determined by the changes in the environment, the organization is
called to be adaptive in nature, which adjusts itself to the changing
environment.
3. The modern theory considers the organization as a system which is dynamic.
4. The modern theory is probabilistic and not deterministic in nature. A
deterministic model is one whose results are predetermined and whereas the
results of the probabilistic models are uncertain and depends on the chance
of occurrence.
5. This theory encompasses multilevel and multidimensional aspects of the
organization. This means it covers both the micro and macro environment of
the organization. The macro environment is external to the organization, while
the micro environment is internal to the organization.
6. The modern theory is multi-variable, which means it considers multiple
variables simultaneously. This shows that cause and effect are not simple
phenomena. Instead, the event can be caused as a result of several variables
which could either be interrelated or interdependent.
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Organizational Theory, Research, Practice
The scientists from different fields have made major contributions to the
modern theory. They emphasized on the importance of communication and
integration of individual and organizational interest as prerequisites for the
smooth functioning of the organization.
It evaluates the Modern Structural Organization theory of the historical
development that is shown as below:
Mechanistic and Organization System
Tom Burns & G.M. Stalker (1961)
The Concept of Formal Organization
Peter M. Blau & W.Richard Scott (1962)
Organizational Choice: Product versus Function
Arthur H. Walker & Jay W.Lorsch (1968)
The Five Basic Parts of the Organization
Henry Mintzberg (1979)
In Praise of Hierarchy
Elliott Jaques (1990)
System Theory and Organizational Economics:
We are interested in understanding what can run on organizations in
order to improve their effectiveness and efficiency. We can research the
method to improve an organization function better, so anybody have a way of
thinking about what an organization is and about how to affect it. General
Systems Theory provides a simple, but powerful, way of viewing
organizations. This brief note will introduce you to the fundamental concepts
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Organizational Theory, Research, Practice
of Systems Theory as they relate to organizational analysis and then discuss
some implications of these concepts that you may find useful in
understanding, working within, and perhaps effecting organizations.
In fact, the systems perspective began to dominate organization theory in
1966-1967, when two of the most influential modern works in organization
theory appeared: Daniel Katz and Robert Kahn's The Social Psychology of
Organizations (1966), which articulation the concept of organizations as open
system; and James D. Thompson's coherent statement of the rational
systems/contingency perspective of organizations, in Organizations in Action
(1967).
Norbert Wiener’s classic model of an organization as an adaptive system,
from his 1948 book Cybernetics, epitomizes these basic theoretical
perspectives of the systems perspective (see Figure 1). Cybernetics, from a
Greek word meaning “steersman”, was used by Wiener to mean the
multidisciplinary study of structures and functions of control and information-
processing systems in animals and machines. The basic concept behind
cybernetics is self-regulation which through biological, social, or technological
systems that can identify problem, does something about them, and receive
feedback to adjust themselves automatically. Wiener, a mathematician,
developed the concept of cybernetics while working on antiaircraft systems
during World War Ⅱ. Variations on this simple model of a system have been
used extensively by systems theorists for many years, particularly around the
development and use of management information system, but we have not
been able to locate anyone who used it before Wiener did in 1948.
In the article, we describe the history of the system theory and refer to
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Organizational Theory, Research, Practice
book Cybernetics in 1948.
FIGURE 1 NORBERT WIENER’S SYSTEM MODEL
Organizational economics is a branch of applied economics that
studies the transactions that occur within individual company, as opposed to
the transactions that occur within the greater market. Organization economics
is broken down into three major subfields: agency theory, transaction cost
economics and property rights theory. It refers of theory appeared to Jay B.
Barry & William G. Ouchi.
Organizational economics is useful in developing a company’s human
resource management policies, determining how a company should be
organized and assessing business risk. Then, implementing rewards systems
and making, analyzing and improving management decisions.
Conclusion:
In the conclusion of the organizational theory in which is influenced by
step to step of history. And also, the organization theory is informed by
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Organizational Theory, Research, Practice
different perspectives. It is though the discussion of competing and conflicting
theories, thus there is standards of nines stages of the development and
becomes the individual structure of different stages.
According to the standard theory of the organization for the research, this
theory will influence the research and after the research it will influence the
theory development and generate new history in organization theory.
As the knowledge was established and made the practiced in completion of
regarding as knowledge to translate into practice. So that, the theory become
accepted and it had referenced by famous author.
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