I/O chapter 3
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There are three main theories of organizations discussed in the document: 1. Classical theory focuses on the form and structure of organizations, seeing them as systems of differentiated activities with clear divisions of labor, chains of command, and specialized roles. 2. Neoclassical theory recognizes psychological and behavioral issues that question the rigidity of classical theory, noting how divisions of labor can depersonalize work. 3. Systems theory views organizations as existing in interdependent relationships with their environments, made up of interconnected individuals, groups, roles, culture, and physical settings working together as a system.
I/O chapter 3
- 1. By:
- 2. ORGANIZATIONS It is not easy to grasp the whole idea of an “organization” because they are abstract entities. Nevertheless, they are real and can be considered “alive”. *Authors use metaphors to enhance the understanding of the concept.
- 3. What is an Organization?
- 4. Organizations are collectives of parts that cannot accomplish their goals as effective if they operate separately. *It’s easier to understand why organizations exist than to precisely define what they are.
- 5. THREE THEORIES OF ORGANIZATIONS Classical Theory Neoclassical Theory Systems Theory
- 6. CLASSICAL THEORY - first few decades of 20 th century FOCUS: form and structure of organizations
- 7. FOUR BASIC COMPONENTS OF ORGANIZATIONS 1.) A system of differentiated activities 2.) People 3.) Cooperation toward a goal 4.) Authority * Superior-subordinate relationships
- 9. FUNCTIONAL PRINCIPLE - Division of labor; organizations should be divided into units that perform similar tasks -Work is broken down to provide areas of specialization *Horizontal growth of organization
- 10. Organization: Xavier University Unit 1: Unit 2: Unit 3: English Dept. Psychology Dept. RS Dept.
- 11. SCALAR PRINCIPLE -Refers to the chain of command that grows with increasing levels of authority -Unity of command - each subordinate should be accountable to only one superior *Vertical growth of organization
- 12. Organization: Xavier University Unit 1: Unit 2: Unit 3: Unit 3: English Dept. Psychology Dept. Philosophy Dept. RS Dept. Department Department Department Department Chairperson Chairperson Chairperson Chairperson Faculty Faculty Faculty Faculty
- 13. LINE/ STAFF PRINCIPLE Line functions - primarily responsible for meeting the major goals of the organization * production department Staff functions - support the line’s activities but are regarded as subsidiary in overall importance
- 14. SPAN-OF- CONTROL PRINCIPLE -the number of subordinates a manager is responsible for supervising -May be “small” span or “large” span “Small” span-> flat organization * 1 manager: 3 subordinates “Large” span-> tall organization * 1 manager: 10 subordinates
- 15. Manager Staff 1 Staff 2 Staff 3 Staff 4 Staff 5 Staff 6 Staff 7 Staff 8 “LARGE” SPAN; FLAT ORGANIZATION
- 16. Organization Manager Manager Manager Manager “SMALL” SPAN; TALL ORGANIZATION
- 17. NEOCLASSICAL THEORY There is really no theory; but rather a recognition of psychological and behavioral issues that question the rigidity with which the classical theory originality stated.
- 18. ISSUES Division of labor depersonalizes the activities of the units, where a sense of alienation develops from highly repetitive work, that the individual finds little meaning in their activities. *less rigid division of labor, more humanistic work
- 19. Individuals are influenced by interpersonal activities that extend well beyond the prescribed formal organizational structure. * Many sources operating in an organization influence the individual.
- 20. SYSTEMS THEORY “Systems approach” Views an organization as existing in an interdependent relationship with its environment, where all parts affect the other parts and their interrelatedness make up the “system”.
- 21. 5 PARTS OF AN ORGANIZATIONAL SYSTEM 1. Individuals - personalities, abilities, attitudes 2. Formal Organization - interrelated pattern of jobs 3. Small Groups - facilitates adaptability within the system
- 22. 5 PARTS OF AN ORGANIZATIONAL SYSTEM 4. Status and Role - differences define the behavior of individuals within the system 5. Physical Setting - external physical environment and degree of technology
- 23. Small Group 1 Small Small Group 2 Organization Group 3 Small Group 4
- 24. Although the systems theory appears to be abstract, the systems perspective of organizations allows us to understand phenomena of organizational life that earlier theories would not permit.
- 26. COORDINATING MECHANISMS Mutual Adjustment – simple process of informal communication Direct Supervision - one person takes responsibility for the work of others Standardization of Work Process – standardize or specify work process Standardization of Work Output – standardize or specify the product of the work to be performed Standardization of Skills and Knowledge – specifying in advance the knowledge, skills , training required to perform work
- 27. THE FIVE BASIC PARTS OF AN ORGANIZATION Operating Core - employees responsible for conducting basic work duties Strategic Apex - the “brain” of the organization Middle line- mid-level bosses Technostructure - employees who posses expertise that facilitates the overall operation of the organization Support Staff - provides services that aides the basic mission of the organization
- 28. COMPONENTS OF SOCIAL SYSTEM Social System - the human components of a work organization that influences the behavior of individuals and groups -it has no formal structure apart from its functioning -when a social system stops functioning , no identifiable structure remains
- 29. COMPONENTS OF SOCIAL SYSTEM ROLES - a set of expectations about appropriate behavior in a position NORMS - a set of shared group expectations about appropriate behavior CULTURE - the language, values, attitudes and beliefs and customs of an organization
- 30. THREE LAYERS OF CULTURE IN AN ORGANIZATION Observable Artifacts - artifacts are the surface level actions that can be observed from which some deeper meaning or interpretation can be drawn about the organization. e.g. legends, taboos and ceremonies Espoused Values- beliefs or concepts that are especially endorsed by management. e.g. “Safety is our top Priority” and “ We Respect the Opinions of our Employees” Basic Assumptions- unobservable and are at the core of organization
- 31. THE END