Three Theories of Organization Classical Theory or Bureaucracy

Three Theories of Organization • • Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement • System Theory

3 Theories of Organizations Classical Theory Neoclassical Theory 4 Basic components to any Organization Critique of the 4 structural principles of classical Theory 1. System of differentiated activities 2. People 3. Cooperation toward a goal 4. Authority System theory 5 parts of an organization 1. Functional 1. Individuals 2. Scalar 2. Formal org. 3. Line/Staff 3. Small groups 4. Span of control 4. Status & Roles 5. Physical setting

Main teachings of the Classical Theory: . 1 Basic components: A system of differentiated activities, People, Cooperation toward a goal, Authority. . 2 Structural principle: Functional, Scalar (Unity of command), Line/staff, and Span of Control principle.

Neoclassical Theorists did not agree with classical theorists in many ways e. g. • Division of labor decreases job meaning • Value of distinction between line and staff • Span of control is more than a number • Not only formal authority can influence people

Components of an Open System Environment Matter / energy return Matter / energy Inputs Matter / energy Transformation Information Outputs Information Feedback Environment

System Theory Organizational System is composed of: Individuals, Formal Organization, Small Groups, Status and Role, Physical Setting All parts in the system are interactive in order to achieve coordinated goals of the system.

Reorganizing and downsizing • When environment changes, organizations do too in response. • Job losses, more work less employees, stresses, wider span of control • Who are affected? Those in the middle line, supporting staffs, and technostructure.

Structural properties by which the organization to reach its goal. • Functional principle, divide into units that perform similar function • Scalar principle (chain of command), unity of command • Line/staff functions • Span of control, number of subordinates a manager is responsible for supervising.

Organizational Structure: the sum total of ways in which its labor is divided into distinct tasks and then its coordination is achieved among these tasks. Five coordinating mechanisms have been proposed to explain the fundamental ways in which organizations coordinate their work. They are the glue that holds organization together.

Coordinating Mechanisms • Mutual adjustment • Direct supervision • Standardization of work processes • Standardization of work output • Standardization of skills and konwledge

The Five Basic Parts of an Organization Strategic apex Technostructure Support staff Middle line Operating core

Social system: the human components of a work organization that influence the behavior of individuals and groups. Components of Social System 1. Roles 2. Norms 3. Organizational Culture

Roles: Expectations of appropriate behavior in a specific position. Aspects of roles: 1) impersonal. 2) Related to task behavior. 3) Difficult to clarify. 4) Produce behavior change. 5) Jobs and Roles are not the same. Role episode: Group expectation, communication about expectation, perceived expectation, actual role behavior Role differentiation: different roles in the same group.

Three Informal Components of Social systems Roles Norms 1. Five Aspects of Roles 1. Four important properties of norms 2. Role Episode 3. Role Differentiation 2. Three-step process for developing & communicating norms Organizational Culture 1. What is culture? 2. Three key features of an org. ’s culture 3. ASA cycle

Role: a set of expectations about appropriate behavior in position. Five aspects of roles • Impersonal • Related to task behavior • Difficult to perceive in the same way for different persons • Can produce behavior change • Not the same with job, one job can have several roles

Role episode Stage 1 Group expectations for a particular positions Stage 2 Communication about expectations Stage 3 Perceived expectations about role Stage 4 Actual role behavior

Norms: a set of shared group expectations about appropriate behavior. Norms have several properties • Shouldness or oughtness • Determine what behavior judged is • Enforce by group

Psychological Ownership 1. Self-Enhancement Overcoming Organizational Resistance to Change 2. Self-Continuity 3. Control and efficiency 3 Types of Change 1. Self-initiated vs. imposed change 2. Evolutionary vs. revolutionary change 3. Additive vs. Subtractive

Effect of psychological ownership or disposition toward change as influenced by type of change Self-initiated(+) Evolutionary (+) VS VS Imposed (-) change Revolutionary (-) Change Individual’s disposition toward change of organization Self Psychological ownership of the organization Additive (+) VS Subtractive (-) change

Statistical Quality Control Employee Involvement Total Quality Management Customer Focus Align Business Operation

Organizational Culture: The way we do things around here. Some defines as artifacts. Org Culture features: 1) can be traced to its founder. 2) develop out of org. experience with external environment. 3) maintain working relationships among employees.

Beliefs Values & Norms Artifacts Cultural Expression

Principles of Teamwork • provide feedback to and accept it from… • willing, prepare, proclivity to back others… • viewing that group success depends on their interaction… • foster interdependence… • team leadership makes differences. .

Interpersonal Processes in Teams • Communication • Conflict • Cohesion • Trust

Personnel Selection for Team Establishing team requirements involves identifying and assessing the congruence among members with regard to personality and values. Critical abilities enhancing group performance: gain gr acceptance, increase gr solidarity, be aware of the gr consciousness, share the gr identification, manage others’ impression of him/her.