Org Theories(2)

8/8/2019 Org Theories(2)

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Organization TheoriesOrganization Theories


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Organization theoriesOrganization theories

y Classical Theory

- Scientific Management theory

- Administrative Management Theory

- Theory of Bureaucracy

y Human Relation approach ( Hawthorne

experiments)

y System theory

y Contingency Theory


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Scientific Management theoryScientific Management theory

Given by Frederick W. Taylor

Principles of scientific management :

y Substituting research science rules for

rules of thumb

y Harm

ony inG

roup action

y Cooperation

y Maximum output in place of restrictedoutput

y Scientifically select, train, teach anddevelop employees


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Main features:

y Separation of planning from doing function

y Functional foremanship

y Standardize fair days work

y Work study

-Method study

- Motion study

-Time study

- Fatigue study


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y Rate setting

y Standardization

y Scientific selection & training

y

Financial incentives

y Mental Revolution


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Administrative theoryAdministrative theory

Given By Henry Fayol

1. Division of work

2. Authority & Responsibility

3. Discipline

4. Unity of Command

5. Unity Of direction

6. Subordination of individual interest to Group

interest


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Administrative theory contdAdministrative theory contd

7. Remuneration of personnel

8. Centralization9. Scalar Chain

10. Order

11. Equity

12. Stability of tenure

13. Initiative

14. Esprit de Corps


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Bureaucracy theoryBureaucracy theory

Given by Max Weber

y

Division of Labor with highly skilled em

ployeesin each position

y Consistent organization rules and procedures

y Hierarchy of authority/chain of command

y Impersonality of interpersonal relationships

y Employment/Advancement based on

com

petence


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Human relation approachHuman relation approach

Hawthorne experiments conducted by Elton

MayoyIllumination experiment

yRelay assembly test room experience

yMass interviewing programme

yBank wiring observation room experiment


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Findings ofHawthorneFindings ofHawthorneexperimentsexperiments

y Organizations are social organizations

y Informal group exists with formal groups

y Production norms decided by social normsnot by physical capacity

y Money not a sole motivator

y Informal leader exists

y Friendly supervision

y Workers prefer cordial relationships


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The Systems ApproachThe Systems Approach

yy System DefinedSystem Defined A set of interrelated and interdependent parts arrangedA set of interrelated and interdependent parts arranged

in a manner that produces a unified whole.in a manner that produces a unified whole.

yy Basic Types of SystemsBasic Types of Systems Closed systemsClosed systems

xx Are not influenced by and do not interact with theirAre not influenced by and do not interact with theirenvironment (all system input and output is internal).environment (all system input and output is internal).

Open systemsOpen systemsxx Dynamically interact to their environments by taking in inputsDynamically interact to their environments by taking in inputs

and transform

ing them

into outputs that are distrib

uted intoand transfor

ming the

minto o

utputs that are distrib

uted intotheir environments.their environments.


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The Organization as an Open SystemThe Organization as an Open System


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Characteristics of open system:Characteristics of open system:

y Composed of subsystems

y

Components are interrelatedy Environment awareness

y Feedback

y Cyclical character

y Balance ofmaintenance & adaptationactivities

y Self regulatory mechanism


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Implications of the SystemsImplications of the SystemsApproachApproach

yy Coordination of the organizations parts isCoordination of the organizations parts isessential for proper functioning of theessential for proper functioning of theentire organization.entire organization.

yy Decisions and actions taken in one area ofDecisions and actions taken in one area ofthe organization will have an effect inthe organization will have an effect inother areas of the organization.other areas of the organization.

yy Organizations are not selfOrganizations are not self--contained and,contained and,

therefore,mu

st adapt to changes in theirtherefore,mu

st adapt to changes in theirexternal environment.external environment.


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The Contingency ApproachThe Contingency Approach

Contingency Approach DefinedContingency Approach Defined

Also sometimes called the situational approachAlso sometimes called the situational approach..

There is no one universally applicable set ofThere is no one universally applicable set ofmanagement principles (rules) by which to managemanagement principles (rules) by which to manageorganizations.organizations.

Organizations are individually different, faceOrganizations are individually different, facedifferent situations (contingency variables), anddifferent situations (contingency variables), and

require different ways ofmanaging.require different ways ofmanaging.

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