Robbins 5e_Ch01.ppt

Robbins, Barnwell: Organisation Theory 5e © 2007 Pearson Education Australia

PowerPoint to accompany

Stephen RobbinsNeil Barnwell

Organisation TheoryCONCEPTS AND CASES

5e

Robbins, Barnwell: Organisation Theory 5e © 2007 Pearson Education Australia

Chapter one

An overview

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Aims of this lecture

Describe the discipline of organisation theory

Explain the systems perspective

Describe the life cycle perspective

Explain the approach of this book to organisation theory

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What is an organisation?

An organisation is a consciously coordinated social entity, with a relatively identifiable boundary, which functions on a relatively continuous basis to achieve a common goal or set of goals

Every organisation has a structure. The structure may be described in terms of complexity, formalisation and centralisation

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What is organisation design and organisational theory?

Organisation design refers to the process by which an organisation’s structure is determined

Organisation theory is the discipline which studies the structure and design of organisations

Organisation theory also includes study of areas such as organisation change, culture, growth and decline and gender

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The biological metaphor

We use a metaphor when we compare something with which we may be unfamiliar with something we are familiar with

Using metaphors, organisations have been compared to biological organisms

The two most common metaphors are the organisation as a system and the organisation life cycle

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The systems perspective

A system is a set of interrelated and interdependent parts arranged in a manner to produce a unified output,

An open system has extensive environmental interaction. It is dependent upon the environment for its existence and must respond to environmental changes

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The basic open system

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Characteristics of an open system

Environmental awareness – there is interdependence between the organisation and its environment

Feedback – the system adjusts to information from its environment

Cyclical character – the system consists of a cycle of events

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Characteristics of a open system continued:

Tendency towards growth – without active intervention i.e. management, the system winds down and disintegrates

Steady state – resources are drawn from the environment to replace those used up in production

Movement towards growth and expansion – the more sophisticated the system, the more it is likely to grow and expand

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Characteristics of an open system continued:

There is a balance between maintenance activities (those that provide stability and preserve the status quo) and adaptive activities (those that allow the system to adapt over time)

Equifinality – there are different ways of reaching the same outcome even if the starting point and methods used are different

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Life cycle perspective

Organisations may be seen as moving through patterns of predictable change which move from establishment to dissolution

This is called the organisation’s life cycle

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Life cycle perspective continued:

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Life cycle perspective continued:

Formation – informal communication and ambiguous goals

Growth – Emergence of a formal structure, growth of rules and regulations and an emphasis on efficiency

Maturity – diversified with a complex structure and decentralised decision making

Decline – centralisation, conflict and high employee turnover

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Positivism

This subject takes a positivist approach

In doing this it assumes that research based upon scientific methodology can expand knowledge of organisations

It also seeks to improve organisational effectiveness by identifying appropriate structures for organisations

In doing this it develops normative theories

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Critical theory

In contrast, critical theory concentrates on organisations’ perceived shortcomings and deficiencies

Post-modern approaches emphasise power differences and challenge the independence of scientific research and its claim to impartiality

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Discussion questions

What is the difference between an informal group and an organisation?

What benefit does the use of metaphor provide for students of organisations?

Apply each of the characteristics of an open system to an organisation you are familiar with.

Why would organisations want to grow?

Is organisation decline inevitable?

Why would this book use a positivist approach?

Does critical theory produce research which is of use to managers?