Organizational Theory - Revision history

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User: Organizational theory studies organisations as a whole, the way they adapt, the strategies and structures that guide them.

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Organizational theory studies organisations as a whole, the way they adapt, the strategies and structures that guide them.

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 '''Classification of Organizational Theories<ref>The Broad Classifications of Organizational Theories [http://www.fao.org/3/w7503e/w7503e03.htm FAO]</ref>'''<br />
 Organizational theories which explain the organization and its structure can be broadly classified as classical or modern.
-*Classical Organization Theory: Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase management efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.
+*Classical Organization Theory: Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal [[organization]] and concepts to increase management efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.
 **Taylor's scientific management approach: The scientific management approach developed by Taylor is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Acknowledging that the approach to increased productivity was through mutual trust between management and workers, Taylor suggested that, to increase this level of trust,
 ***the advantages of productivity improvement should go to workers,

@@ Line 78: / Line 78: @@
 ===See Also===
 <div style="column-count:2;-moz-column-count:3;-webkit-column-count:3">
-[[Goal_Setting_Theory|Goal Setting Theory]]<br />
+*[[Goal_Setting_Theory|Goal Setting Theory]]
-[[Contingency_Theory|Contingency Theory]]<br />
+*[[Contingency_Theory|Contingency Theory]]
-[[Systems_Theory|Systems Theory]]<br />
+*[[Systems_Theory|Systems Theory]]
 </div>

@@ Line 1: / Line 1: @@
-'''Organizational Theory''' studies organizations as a whole, the way they adapt, the strategies and structures that guide them. Eisenhardt (1985) considers organizational theory to be rational, information based, [[efficiency]] oriented, concerned with determinants of [[control]] [[strategy]] and distinguish between two types of performance [[evaluation]] control: behaviour based and [[outcome]] based. The organizational theory:
+'''Organizational Theory''' studies organizations as a whole, the way they adapt, and the strategies and structures that guide them. Eisenhardt (1985) considers organizational theory to be rational, information-based, efficiency-oriented, concerned with determinants of control strategy and distinguishes between two types of performance evaluation control: behaviour-based and outcome-based. The organizational theory:
-*Compares ability to measure behaviors and outcomes.
+*Compares the ability to measure behaviours and outcomes.
-*Uses control as a [[measurement]] and evaluation [[process]]. Reward is implicit.
+*Uses control as a measurement and evaluation process. The reward is implicit.
 *Can reduce divergent preferences through social control.
 *Uses information as a purchasable commodity.<ref>Definition - What does Organizational Theory mean? [http://www.integratingperformance.com/pages/strategic-level/theory-informing-practice/ Integrating Performance]</ref>
@@ Line 10: / Line 10: @@
 '''Classification of Organizational Theories<ref>The Broad Classifications of Organizational Theories [http://www.fao.org/3/w7503e/w7503e03.htm FAO]</ref>'''<br />
 Organizational theories which explain the organization and its structure can be broadly classified as classical or modern.
-*Classical Organization Theory: Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase [[management]] efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.
+*Classical Organization Theory: Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase management efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.
-**Taylor's scientific management approach: The scientific management approach developed by Taylor is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Acknowledging that the approach to increased [[productivity]] was through mutual trust between management and workers, Taylor suggested that, to increase this level of trust,
+**Taylor's scientific management approach: The scientific management approach developed by Taylor is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Acknowledging that the approach to increased productivity was through mutual trust between management and workers, Taylor suggested that, to increase this level of trust,
-***the advantages of productivity [[improvement]] should go to workers,
+***the advantages of productivity improvement should go to workers,
 ***physical stress and anxiety should be eliminated as much as possible,
 ***capabilities of workers should be developed through training, and
@@ Line 19: / Line 19: @@
 ***Structure: In the organization, positions should be arranged in a hierarchy, each with a particular, established amount of responsibility and authority.
 ***Specialization: Tasks should be distinguished on a functional basis, and then separated according to specialization, each having a separate chain of command.
-***Predictability and stability: The organization should operate according to a [[system]] of procedures consisting of formal rules and regulations.
+***Predictability and stability: The organization should operate according to a system of procedures consisting of formal rules and regulations.
-***Rationality: Recruitment and [[selection]] of personnel should be impartial.
+***Rationality: Recruitment and selection of personnel should be impartial.
 ***Democracy: Responsibility and authority should be recognized by designations and not by persons.
 **Administrative theory: The elements of administrative theory (Fayol, 1949) relate to accomplishment of tasks, and include principles of management, the concept of line and staff, committees and functions of management.
@@ Line 27: / Line 27: @@
 ***Discipline: Members of the organization should honour the objectives of the organization. They should also comply with the rules and regulations of the organization.
 ***Unity of command: This means taking orders from and being responsible to only one superior.
-***Unity of direction: Members of the organization should jointly work toward the same [[goals]].
+***Unity of direction: Members of the organization should jointly work toward the same goals.
 ***Subordination of individual interest to general interest: The interest of the organization should not become subservient to individual interests or the interest of a group of employees.
-***Remuneration of personnel: This can be based on diverse factors such as time, job, piece rates, bonuses, [[profit]]-sharing or non-financial rewards.
+***Remuneration of personnel: This can be based on diverse factors such as time, job, piece rates, bonuses, profit-sharing or non-financial rewards.
-***Centralization: Management should use an appropriate blend of both centralization and de-centralization of authority and decision making.
+***Centralization: Management should use an appropriate blend of both centralization and de-centralization of authority and decision-making.
-***Scalar chain: If two members who are on the same level of hierarchy have to work together to accomplish a project, they need not follow the hierarchy level, but can interact with each other on a 'gang plank' if acceptable to the higher officials.
+***Scalar chain: If two members who are on the same level of the hierarchy have to work together to accomplish a project, they need not follow the hierarchy level, but can interact with each other on a 'gang plank' if acceptable to the higher officials.
 ***Order: The organization has a place for everything and everyone who ought to be so engaged.
 ***Equity: Fairness, justice and equity should prevail in the organization.
-***Stability of tenure of personnel: Job security improves performance. An [[employee]] requires some time to get used to new work and do it well.
+***Stability of tenure of personnel: Job security improves performance. An employee requires some time to get used to new work and do it well.
 ***Initiative: This should be encouraged and stimulated.
 ***Esprit de corps: Pride, allegiance and a sense of belonging are essential for good performance. Union is strength.
 ***The concept of line and staff: The concept of line and staff is relevant in organizations which are large and require specialization of skill to achieve organizational goals. Line personnel are those who work directly to achieve organizational goals. Staff personnel include those whose basic function is to support and help line personnel.
-***Committees: Committees are part of the organization. Members from the same or different hierarchical levels from different departments can form committees around a common goal. They can be given different functions, such as managerial, decision making, recommending or [[policy]] formulation. Committees can take diverse forms, such as boards, commissions, task groups or ad hoc committees. Committees can be further divided according to their functions. In agricultural research organizations, committees are formed for research, staff evaluation or even allocation of land for experiments.
+***Committees: Committees are part of the organization. Members from the same or different hierarchical levels from different departments can form committees around a common goal. They can be given different functions, such as managerial, decision making, recommending or policy formulation. Committees can take diverse forms, such as boards, commissions, task groups or ad hoc committees. Committees can be further divided according to their functions. In agricultural research organizations, committees are formed for research, staff evaluation or even allocation of land for experiments.
 ***Functions of management: Fayol (1949) considered management as a set of planning, organizing, training, commanding and coordinating functions. Gulick and Urwick (1937) also considered organization in terms of management functions such as planning, organizing, staffing, directing, coordinating, reporting and budgeting.
 *Neoclassical Theory: Neoclassical theorists recognized the importance of individual or group behaviour and emphasized human relations. Based on the Hawthorne experiments, the neoclassical approach emphasized social or human relationships among the operators, researchers and supervisors (Roethlisberger and Dickson, 1943). It was argued that these considerations were more consequential in determining productivity than mere changes in working conditions. Productivity increases were achieved as a result of high morale, which was influenced by the amount of individual, personal and intimate attention workers received.
@@ Line 48: / Line 48: @@
 '''Note the difference between Taylor's 'scientific management' - which focuses on work - and the neoclassical approach - which focuses on workers.'''
-*Modern Theories: Modern theories tend to be based on the concept that the organization is a system which has to adapt to changes in its environment. In modern theory, an organization is defined as a designed and structured process in which individuals interact for objectives (Hicks and Gullet, 1975). The contemporary approach to the organization is multidisciplinary, as many scientists from different fields have contributed to its development, emphasizing the dynamic nature of communication and importance of integration of individual and organizational interests. These were subsequently re-emphasized by Bernard (1938) who gave the first modern and comprehensive view of management. Subsequently, conclusions on systems control gave insight into [[application]] of [[cybernetics]]. The operation research approach was suggested in 1940. It utilized the contributions of several disciplines in problem solving. Von Bertalanffy (1951) made a significant contribution by suggesting a component of general systems theory which is accepted as a basic premise of modern theory. Some of the notable characteristics of the modern approaches to the organization are:
+*Modern Theories: Modern theories tend to be based on the concept that the organization is a system which has to adapt to changes in its environment. In modern theory, an organization is defined as a designed and structured process in which individuals interact for objectives (Hicks and Gullet, 1975). The contemporary approach to the organization is multidisciplinary, as many scientists from different fields have contributed to its development, emphasizing the dynamic nature of communication and importance of integration of individual and organizational interests. These were subsequently re-emphasized by Bernard (1938) who gave the first modern and comprehensive view of management. Subsequently, conclusions on systems control gave insight into application of cybernetics. The operation research approach was suggested in 1940. It utilized the contributions of several disciplines in problem solving. Von Bertalanffy (1951) made a significant contribution by suggesting a component of general systems theory which is accepted as a basic premise of modern theory. Some of the notable characteristics of the modern approaches to the organization are:
 · a systems viewpoint,<br />
 · a dynamic process of interaction,<br />

@@ Line 1: / Line 1: @@
-'''Organizational Theory''' studies organizations as a whole, the way they adapt, the strategies and structures that guide them. Eisenhardt (1985) considers organizational theory to be rational, information based, efficiency oriented, concerned with determinants of control strategy and distinguish between two types of performance evaluation control: behaviour based and outcome based. The organizational theory:
+'''Organizational Theory''' studies organizations as a whole, the way they adapt, the strategies and structures that guide them. Eisenhardt (1985) considers organizational theory to be rational, information based, [[efficiency]] oriented, concerned with determinants of [[control]] [[strategy]] and distinguish between two types of performance [[evaluation]] control: behaviour based and [[outcome]] based. The organizational theory:
 *Compares ability to measure behaviors and outcomes.
-*Uses control as a measurement and evaluation process. Reward is implicit.
+*Uses control as a [[measurement]] and evaluation [[process]]. Reward is implicit.
 *Can reduce divergent preferences through social control.
 *Uses information as a purchasable commodity.<ref>Definition - What does Organizational Theory mean? [http://www.integratingperformance.com/pages/strategic-level/theory-informing-practice/ Integrating Performance]</ref>
@@ Line 10: / Line 10: @@
 '''Classification of Organizational Theories<ref>The Broad Classifications of Organizational Theories [http://www.fao.org/3/w7503e/w7503e03.htm FAO]</ref>'''<br />
 Organizational theories which explain the organization and its structure can be broadly classified as classical or modern.
-*Classical Organization Theory: Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase management efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.
+*Classical Organization Theory: Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase [[management]] efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.
-**Taylor's scientific management approach: The scientific management approach developed by Taylor is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Acknowledging that the approach to increased productivity was through mutual trust between management and workers, Taylor suggested that, to increase this level of trust,
+**Taylor's scientific management approach: The scientific management approach developed by Taylor is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Acknowledging that the approach to increased [[productivity]] was through mutual trust between management and workers, Taylor suggested that, to increase this level of trust,
-***the advantages of productivity improvement should go to workers,
+***the advantages of productivity [[improvement]] should go to workers,
 ***physical stress and anxiety should be eliminated as much as possible,
 ***capabilities of workers should be developed through training, and
@@ Line 19: / Line 19: @@
 ***Structure: In the organization, positions should be arranged in a hierarchy, each with a particular, established amount of responsibility and authority.
 ***Specialization: Tasks should be distinguished on a functional basis, and then separated according to specialization, each having a separate chain of command.
-***Predictability and stability: The organization should operate according to a system of procedures consisting of formal rules and regulations.
+***Predictability and stability: The organization should operate according to a [[system]] of procedures consisting of formal rules and regulations.
-***Rationality: Recruitment and selection of personnel should be impartial.
+***Rationality: Recruitment and [[selection]] of personnel should be impartial.
 ***Democracy: Responsibility and authority should be recognized by designations and not by persons.
 **Administrative theory: The elements of administrative theory (Fayol, 1949) relate to accomplishment of tasks, and include principles of management, the concept of line and staff, committees and functions of management.
@@ Line 27: / Line 27: @@
 ***Discipline: Members of the organization should honour the objectives of the organization. They should also comply with the rules and regulations of the organization.
 ***Unity of command: This means taking orders from and being responsible to only one superior.
-***Unity of direction: Members of the organization should jointly work toward the same goals.
+***Unity of direction: Members of the organization should jointly work toward the same [[goals]].
 ***Subordination of individual interest to general interest: The interest of the organization should not become subservient to individual interests or the interest of a group of employees.
-***Remuneration of personnel: This can be based on diverse factors such as time, job, piece rates, bonuses, profit-sharing or non-financial rewards.
+***Remuneration of personnel: This can be based on diverse factors such as time, job, piece rates, bonuses, [[profit]]-sharing or non-financial rewards.
 ***Centralization: Management should use an appropriate blend of both centralization and de-centralization of authority and decision making.
 ***Scalar chain: If two members who are on the same level of hierarchy have to work together to accomplish a project, they need not follow the hierarchy level, but can interact with each other on a 'gang plank' if acceptable to the higher officials.
 ***Order: The organization has a place for everything and everyone who ought to be so engaged.
 ***Equity: Fairness, justice and equity should prevail in the organization.
-***Stability of tenure of personnel: Job security improves performance. An employee requires some time to get used to new work and do it well.
+***Stability of tenure of personnel: Job security improves performance. An [[employee]] requires some time to get used to new work and do it well.
 ***Initiative: This should be encouraged and stimulated.
 ***Esprit de corps: Pride, allegiance and a sense of belonging are essential for good performance. Union is strength.
 ***The concept of line and staff: The concept of line and staff is relevant in organizations which are large and require specialization of skill to achieve organizational goals. Line personnel are those who work directly to achieve organizational goals. Staff personnel include those whose basic function is to support and help line personnel.
-***Committees: Committees are part of the organization. Members from the same or different hierarchical levels from different departments can form committees around a common goal. They can be given different functions, such as managerial, decision making, recommending or policy formulation. Committees can take diverse forms, such as boards, commissions, task groups or ad hoc committees. Committees can be further divided according to their functions. In agricultural research organizations, committees are formed for research, staff evaluation or even allocation of land for experiments.
+***Committees: Committees are part of the organization. Members from the same or different hierarchical levels from different departments can form committees around a common goal. They can be given different functions, such as managerial, decision making, recommending or [[policy]] formulation. Committees can take diverse forms, such as boards, commissions, task groups or ad hoc committees. Committees can be further divided according to their functions. In agricultural research organizations, committees are formed for research, staff evaluation or even allocation of land for experiments.
 ***Functions of management: Fayol (1949) considered management as a set of planning, organizing, training, commanding and coordinating functions. Gulick and Urwick (1937) also considered organization in terms of management functions such as planning, organizing, staffing, directing, coordinating, reporting and budgeting.
 *Neoclassical Theory: Neoclassical theorists recognized the importance of individual or group behaviour and emphasized human relations. Based on the Hawthorne experiments, the neoclassical approach emphasized social or human relationships among the operators, researchers and supervisors (Roethlisberger and Dickson, 1943). It was argued that these considerations were more consequential in determining productivity than mere changes in working conditions. Productivity increases were achieved as a result of high morale, which was influenced by the amount of individual, personal and intimate attention workers received.
@@ Line 48: / Line 48: @@
 '''Note the difference between Taylor's 'scientific management' - which focuses on work - and the neoclassical approach - which focuses on workers.'''
-*Modern Theories: Modern theories tend to be based on the concept that the organization is a system which has to adapt to changes in its environment. In modern theory, an organization is defined as a designed and structured process in which individuals interact for objectives (Hicks and Gullet, 1975). The contemporary approach to the organization is multidisciplinary, as many scientists from different fields have contributed to its development, emphasizing the dynamic nature of communication and importance of integration of individual and organizational interests. These were subsequently re-emphasized by Bernard (1938) who gave the first modern and comprehensive view of management. Subsequently, conclusions on systems control gave insight into application of cybernetics. The operation research approach was suggested in 1940. It utilized the contributions of several disciplines in problem solving. Von Bertalanffy (1951) made a significant contribution by suggesting a component of general systems theory which is accepted as a basic premise of modern theory. Some of the notable characteristics of the modern approaches to the organization are:
+*Modern Theories: Modern theories tend to be based on the concept that the organization is a system which has to adapt to changes in its environment. In modern theory, an organization is defined as a designed and structured process in which individuals interact for objectives (Hicks and Gullet, 1975). The contemporary approach to the organization is multidisciplinary, as many scientists from different fields have contributed to its development, emphasizing the dynamic nature of communication and importance of integration of individual and organizational interests. These were subsequently re-emphasized by Bernard (1938) who gave the first modern and comprehensive view of management. Subsequently, conclusions on systems control gave insight into [[application]] of [[cybernetics]]. The operation research approach was suggested in 1940. It utilized the contributions of several disciplines in problem solving. Von Bertalanffy (1951) made a significant contribution by suggesting a component of general systems theory which is accepted as a basic premise of modern theory. Some of the notable characteristics of the modern approaches to the organization are:
 · a systems viewpoint,<br />
 · a dynamic process of interaction,<br />

← Older revision		Revision as of 17:33, 4 March 2020
Line 4:		Line 4:
	*Can reduce divergent preferences through social control.		*Can reduce divergent preferences through social control.
	*Uses information as a purchasable commodity.<ref>Definition - What does Organizational Theory mean? [http://www.integratingperformance.com/pages/strategic-level/theory-informing-practice/ Integrating Performance]</ref>		*Uses information as a purchasable commodity.<ref>Definition - What does Organizational Theory mean? [http://www.integratingperformance.com/pages/strategic-level/theory-informing-practice/ Integrating Performance]</ref>
		+
		+	An organisation theory furnishes a general frame of reference for explaining understanding behaviour patterns in organisations. It also furnishes a scientific base for managerial actions for predicting, controlling and influencing behaviour with a view to increase efficiency of the organisation. It also encompasses the study of structure, functioning and performance of organisations and of the behaviour of groups and individuals working in organisations. According to Joe Kelly “Organisation theory is a set of interrelated concepts, definitions and propositions that present a systematic view of behaviour Organisation theory is a set of propositions which seeks to of individuals, groups and subgroups interacting in some relatively patterned explain how individuals and sequence of activity, the intent of which is goal directed.” Organisation theory is a macro analysis of an organisation, that is, how the organisation structure is designed to integrate people with organisation. It is descriptive and predictive about a particular state of affair in the organisation.<ref>Explaining What Organizational Theory Is [http://www.yourarticlelibrary.com/organization/organisation-theory/organisation-theory-concept-importance-and-classification/63758 Diksha Kahyap]</ref>

← Older revision		Revision as of 18:20, 4 January 2019
Line 1:		Line 1:
−	~~'''Content Coming Soon'''~~	+	Organizational theory studies organisations as a whole, the way they adapt, the strategies and structures that guide them. Eisenhardt (1985) considers organisational theory to be rational, information based, efficiency oriented, concerned with determinants of control strategy and distinguish between two types of performance evaluation control: behaviour based and outcome based. The organizational theory:
		+	*Compares ability to measure behaviors and outcomes.
		+	*Uses control as a measurement and evaluation process. Reward is implicit.
		+	*Can reduce divergent preferences through social control.
		+	*Uses information as a purchasable commodity.<ref>Definition - What does Organizational Theory mean? [http://www.integratingperformance.com/pages/strategic-level/theory-informing-practice/ Integrating Performance]</ref>
		+
		+
		+	===See Also===
		+	[[Organizational_Performance\|Organizational Performance]]<br />
		+	[[Goal_Setting_Theory\|Goal Setting Theory]]<br />
		+	[[Contingency_Theory\|Contingency Theory]]<br />
		+	[[Systems_Theory\|Systems Theory]]<br />
		+
		+
		+	===References===
		+	<references/>