Organizational TheoryOrganizational Theory

ByBy

Bhupendra Ratha, LecturerBhupendra Ratha, LecturerS. L. I. Sc.,S. L. I. Sc.,

D.A.V.V., IndoreD.A.V.V., Indore

An OrganizationAn Organization

“Organizations are social entities that are “Organizations are social entities that are goalgoal--oriented; are designed as deliberately oriented; are designed as deliberately structured and coordinated activity systems, structured and coordinated activity systems, and are linked to the external environment” and are linked to the external environment”

(Daft, (Daft, 20042004).).

TheoryTheory

Theory is “a plan or scheme existing in the Theory is “a plan or scheme existing in the mind only, but based on principles mind only, but based on principles verifiable by experiment or observation” verifiable by experiment or observation”

(Funk & Wagnalls, (Funk & Wagnalls, 13021302).).

Organization TheoryOrganization Theory

A proposition or set of propositions that A proposition or set of propositions that attempts to explain or predict how groups and attempts to explain or predict how groups and individuals behave in differing organizational individuals behave in differing organizational arrangements.arrangements.

Organizational TheoryOrganizational Theory

Classic Organizational TheoryClassic Organizational Theory Bureaucratic Organizational TheoryBureaucratic Organizational Theory Functional specification Organizational Functional specification Organizational

TheoryTheory Human Relations Organization TheoryHuman Relations Organization Theory Systems TheorySystems Theory

Classic Organizational Theory.Classic Organizational Theory.

Specialization Specialization Unity of directionUnity of direction Functional specificationFunctional specification Chain of commandChain of command Parity between authority and responsibility Parity between authority and responsibility Span of controlSpan of control

Bureaucratic Organization TheoryBureaucratic Organization Theory Task should be divided among various position Task should be divided among various position

holder on the criteria of their abilities.holder on the criteria of their abilities. Position should be organized in a hierarchical Position should be organized in a hierarchical

structure of authority.structure of authority. Official decisions and actions should be governed by Official decisions and actions should be governed by

a formally established system of rules and a formally established system of rules and regulations.regulations.

Employment and promotions in the organization Employment and promotions in the organization should be based on the universalistic criterion of should be based on the universalistic criterion of abilities.abilities.

Modern Structural Organization Modern Structural Organization TheoryTheory

1.1. Established objectives through control and Established objectives through control and coordination.coordination.

2.2. There is a “best” structure for any organization in light There is a “best” structure for any organization in light of objectives, environment, products or services and the of objectives, environment, products or services and the technology of the production process.technology of the production process.

3.3. Specialization and division of labor increase the quality Specialization and division of labor increase the quality and quantity of production.and quantity of production.

4.4. Organic Organic ––More participation, more reliance on workers More participation, more reliance on workers and best in dynamic conditions.and best in dynamic conditions.

Human Relations Organization TheoryHuman Relations Organization Theory

Group oriented managementGroup oriented management Team workTeam work Voluntary cooperationVoluntary cooperation Self controlSelf control Group decision making Group decision making Hierarchical coordination and controlHierarchical coordination and control Task specialization Task specialization

Systems TheorySystems Theory

Systems theory views an organization as a Systems theory views an organization as a complex set of dynamically intertwined and complex set of dynamically intertwined and interconnected elements including inputs, interconnected elements including inputs, processes, outputs, feedback loops and the processes, outputs, feedback loops and the environment. environment.

System Theory by MaslowsSystem Theory by Maslows

Physiological Needs Physiological Needs Safety Needs Safety Needs Needs of Love Needs of Love Needs for EsteemNeeds for Esteem Needs for SelfNeeds for Self--Actualization Actualization