MGMT 861 Class 2 (Theory Development, Intro to Org. Theory and Classics of OT)

MGMT 861MGMT 861Class 2Class 2

(Theory Development, (Theory Development, Intro to Org. Theory Intro to Org. Theory and Classics of OT)and Classics of OT)

THEORY DEFINEDTHEORY DEFINEDTheory:

–A coherent group of general propositions used as principles of explanation, or

–A proposed explanation whose status is still conjectural

GREAT THEORY IS GENERALIZABLE AND ENDURING – IT STANDS THE TEST OF TIME

A theory that explains everything in social science research explains nothing – you want PARSIMONY.

WHETTEN (1989)WHETTEN (1989)

This is a “classic” that I would recommend you refer to from time to time.

He focuses on three questions:

1. What are the building blocks of theory development?

2. What is a legitimate value-added contribution to theory development?

3. What factors are considered in judging conceptual papers?


What are the building blocks of theory development?

FOUR ELEMENTS

1. What – which factors should be considered in a study? (comprehensiveness and parsimony)

2. How – how are the factors related?3. Why – what are the underlying dynamics that justify

the selection of factors?(The first three can be used to develop a model.)

4. Who, Where, and When? These place limitations on a theoretical model.


What is a legitimate value-added contribution to theory development?

THREE BROAD THEMES TO CONSIDER:

1. Proposed improvements addressing on a single element of an existing theory are seldom enough.

2. Theoretical critiques require compelling evidence.

3. Theoretical critiques should propose remedies or alternatives.


What factors are considered in judging conceptual papers?

To be publishable, a paper should answer the following:

1. What is new?2. So what?3. Why so?4. Well done?5. Done well?6. Why now?7. Who cares?

ORGANIZATION DEFINEDORGANIZATION DEFINED

Greek Organon:

meaning a tool or instrument.

Organizations are tools or instruments to meet goals, objectives, to carry out tasks.

“social structures created by individuals to support the collaborative pursuit of specified goals” (Scott & Davis, 2003; p. 11)

WHY STUDY WHY STUDY ORGANIZATION THEORY?ORGANIZATION THEORY?

To help us understand how organizations work

To help us think about how we understand organizations

To help us think about how we approach others within the organization based on our “theory.”

To help us determine more effective ways of organizing to get work done.

1. Social Psychological Level – behavior of individuals or interpersonal relations between individuals

2. Organizational Structure Level – focuses on the structural features or processes that characterize organizations

3. Ecological Level – focuses on the characteristics and actions of organizations within the environment (larger system of relations)

DIFFERENT LEVELS OF DIFFERENT LEVELS OF ANALYSISANALYSIS

Organizations are diverse and complex. Figure 1-3 from textbook

ELEMENTS OF ORGANIZATIONSELEMENTS OF ORGANIZATIONS

InformalOrganization

People

Work/Technology

FormalOrganization

Environment

Strategiesand Goals

Patterned relationships within an organization. Made up three components:

1. Normative Structure – rules, roles, and expectations (what ought to be)

2. Cultural-Cognitive Structure – beliefs and understanding organization members have about the nature of their situation and interests

3. Behavior Structure – actual activities and behaviors of organization members

SOCIAL STRUCTURESOCIAL STRUCTURE

Participants are those individuals who, in return for a variety of inducements, make contributions to the organization

Demographic characteristics can be important to social structures and organizational functioning

PARTICIPANTS (SOCIAL ACTORS)PARTICIPANTS (SOCIAL ACTORS)

Goals are conceptions of desired ends (why organizations exist)

All organizations possess technologies, but organizations vary in the extent to which these technologies are understood, routinized, and/or put to work.

GOALS AND TECHNOLOGYGOALS AND TECHNOLOGY

Every organization exists in a specific physical, technological, cultural, and social environment to which it must adapt.

No organization is self-sufficient.

Must establish relations with larger systems of which they are a part.

ENVIRONMENTENVIRONMENT

Hannan and Carroll (1995) point out three reasons why organizations are the preferred vehicles for conducting activities in modern life. Organizations are:

1. Durable – persist over time

2. Reliable – good for doing repetitive activities

3. Accountable – behavior takes place within a framework of rules

CAPACITIES OF ORGANIZATIONSCAPACITIES OF ORGANIZATIONS

Scott and Davis define and discuss organizations using three different perspectives:

1. As a Rational System

2. As a Natural System

3. As an Open System

Recognize that there is overlap between these types of organizations – rarely are organizations just one type.

CONCEPTUALIZING CONCEPTUALIZING ORGANIZATIONSORGANIZATIONS

Organizations are collectivities oriented to the pursuit of relatively specific goals and exhibiting relatively highly formalized social structures.

KEY CONCEPTS:

- Rationality- Goal Specificity- Formalization

ORGS. AS RATIONAL SYSTEMSORGS. AS RATIONAL SYSTEMS

SELECTED SCHOOLS:

Taylor’s Scientific Management (“bottom up”)

Fayol’s Administrative Theory (“top down” management, coordination, specialization)

Weber’s Theory of Bureaucracy (not “bureaucracy” as we think of it in U.S. society)

Simon’s Theory of Admin Behavior (“bounded rationality” makes goal specificity and formalization desirable)

ORGS. AS RATIONAL SYSTEMSORGS. AS RATIONAL SYSTEMS

ADAM SMITH (1776)ADAM SMITH (1776)

Discusses the power of division of labor and how it creates wealth (Wealth of Nations).

Uses an example of the manufacture of pins to make his point about the power. An individual trying to make pins could only make a handful (at most) during a day. However, using division of labor a team of 10 workers can make thousands in a day.

Piece ends with a discussion of how division of labor helps across a society by creating employment and raising standards of living for all.

FREDERICK TAYLOR (1916)FREDERICK TAYLOR (1916)

Engineer who attempted to solve the “inefficiency problem” (“soldiering”) that was plaguing the country.

Believed that scientific methods of observation and testing could be utilized by professional managers to maximize output – this was good for workers and firms.

Believed that many people were born lazy and that social pressure from groups also affected output (social loafing)

Key terms were “initiative” and “incentive”

FREDERICK TAYLOR (1916)FREDERICK TAYLOR (1916)

Could incentivize workers to achieve higher performance, but work and rest periods must be monitored by professional managers

Not politically correct – an air of arrogance in his writing.

Break down groups and understand the capabilities of each worker – put workers in their proper places with assignments and responsibilities that matched abilities.

Ultimately, viewed laborers as cogs in a machine.

LUTHER GULICK (1937)LUTHER GULICK (1937)

Descriptive/conceptual rather than empirical discussion of administration and management (primarily in government).

Whereas Taylor and Scientific Management proposed to rationalize the organization from the “bottom up,” Gulick and others who followed Fayol’s Administrative Theory worked to rationalize the organization from the “top down.”

Ultimately, believed in the division of work and felt that managers should effectively divide and coordinate efforts.


“span of control” was a key concept – that managers were limited in effective control based on work type

Believed in POSDCORB (planning, organizing, staffing, directing, coordinating, reporting, budgeting)

“Students of administration have long sought a single principle of effective departmentalization just as alchemists sought the philosopher’s stone. But they have sought in vain. There is apparently no one most effective system of departmentalism.” (quote not in book – from other text)


Discussed subdivision of work around:- purpose or process- clientele- place/geography

Technology can change best structure and coordination activities – foreshadowed computers (not in your reading)

Believed that coordination would increasingly need to be conducted by persuasion rather than coercion.

CHESTER BARNARD (1938)CHESTER BARNARD (1938)

Believed that organizations were “systems of consciously coordinated activities of two or more persons.”

Downplayed the pursuit of goals and discussed the fact that organizations were often made of multiple systems and subunits whose whole was greater than the sum of its parts.

Communication within organizations was critical as was the role of the “informal organization” (as opposed to formal organization)

“(1) It facilitates communication. Informal organization is the aggregate of personal contacts between people. It involves experiences, attitudes, and emotions. Moreover, these contacts usually involve mutual likes and dislikes, mutual interests and inclinations. It is upon these that the all-important flow of communications is maintained throughout the organization. The informal organization is the mechanism by which issues which would otherwise require formal decisions and embarrassing action can be tactfully handled. (2) It monitors and regulates the participation of individuals and in so doing maintains the stability of the objective authority by influencing individual responsibility toward the acceptance of authority in the mutual interest. (3) The informal organization provides a means for maintaining personal integrity and individualism within the formal organizations.” (Wolf, 1974; p. 71-72)

CHESTER BARNARD’S (1938)CHESTER BARNARD’S (1938)CONCEPT OF THE CONCEPT OF THE

INFORMAL ORGANIZATIONINFORMAL ORGANIZATION

CHESTER BARNARD (1938)CHESTER BARNARD (1938)6 ELEMENTS OF FORMAL ORGANIZATION:

1. Specialization (autonomous subunits operate)2. Incentives (material and non-material)3. Authority (zone of indifference, p. 83)4. Decisions and Decision Making (logical and nonlogical, best for organization

or for the individual)5. Status Systems6. Organization Morals (ethics)

These are largely driven by informal organization.

NOTE: Consider differences to Taylorism/Scientific Mgmt.

Documents

MGMT 861 Class 2 (Theory Development, Intro to Org. Theory and Classics of OT)