of organizational theory … · web viewthe organizational theory refers to the set of...

Organizational Theory, Research, Practice

Teesside University of UKHong Kong Institute of TechnologyHRM1065-N Organizational Theory, Research and PracticeAssessment Report

LAU HIU FUNGDonald Lau

11830049V8188813HRM1065-N

Organizational Theory, Research, Practice Assessment Report

TABLE OF CONTENTS1


INTRODUCTION

1. A CHRONOLOGY OF ORGANIZATION THEORY

Modern Structural Organization Theory

Systems Theory and Organizational Economics

CONCLUSION

REFERENCE

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Introduction:

We can gain a quick overview of the historical development of organization

theory by referring to the Chronology of organizational theory which can be

divided into nine stages of development (Shafritz & Ott, 2001).

1. Classical Organizational Theory

2. Neoclassical Organizational Theory

3. Human Resource Theory

4. Modern Structural Organizational Theory

5. System Theory and Organizational Economic

6. Power and Politics Organization Theory

7. Organizational Culture and Sense Making

8. Organizational Culture Reform Movements

9. Postmodernism and the Information Age

The Organizational Theory refers to the set of interrelated concepts,

definitions that explain the behavior of individuals or groups or subgroups,

who interacts with each other to perform the activities intended towards the

accomplishment of a common goal (Shafritz & Ott, 2001). Organizations are

defined as social units of people that are structured and managed to meet a

need, or to conduct integration goals.

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https://en.wikipedia.org/wiki/Organization


Chapter 1

A CHRONOLOGY OF ORGANIZATION THEORY:

In terms of chronological order of the development in organization theory,

it can be broadly divided into nine stages of development. (Shafritz &Ott,

2001)

This can gain a quick overview of the historical development of organization

theory by referring to the Chronology of organizational theory in the following.

The Chronology of organizational theoryClassical Organizational TheoryNeoclassical Organizational TheoryHuman Resource TheoryModern Structural Organizational TheorySystem Theory and Organizational EconomicPower and Politics Organization TheoryOrganizational Culture and Sense MakingOrganizational Culture Reform MovementsPostmodernism and the Information Age

Indeed, the organizational theory studies the influence of social

relationships between the individuals within the organization along with their

actions on the organization as a whole. Also, it studies the influence of

internal and external business environment such as political, legal, cultural,

etc. on the organization.

The term organization refers to the group of individuals who come

together to perform a set of tasks with the intent to accomplish the common

objectives. The organization is based on the concept of synergy, which

means, a group can do more work than an individual working alone.

The relationships between the individuals working together and their

overall effect on the performance of the organization are well explained

through the organizational theories.

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In this assignment, the author is particularly interested in the theories of

the organization in Modern Structural Organizational Theory and System

Theory and Organizational Economic.

We are in here to explain the two theories in the following:

The Chronology of organizational theoryModern Structural Organizational TheorySystem Theory and Organizational Economic

Modern Structural Organization Theory:

Refers to structure of an organization, that we are analyses the relatively

stable relationships among the positions, groups of positions(units), and work

processes that make up the organization. Structural organization theory is

concerned with vertical differentiations-hierarchical levels of organizational

authority and coordination and horizontal differentiations between

organizational units-such as those between product or service lines,

geographical areas, or skills. The organization chart is the ever-present tool of

a structural organization theorist. It is shown the formal organization chart in

the following.

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The Modern Theory is the integration of valuable concepts of the

classical models with the social and behavioral sciences. This theory indicates

that an organization is a system that changes with the change in its

environment, both internal and external.6


There are several features of the modern theory that make it distinct from

other sets of organizational theories, these are:

1. The modern theory considers the organization as an open system. This

means an organization consistently interacts with its environment, so as to

sustain and grow in the market. Since, the organization designate the open

system several elements such as input, transformation, process, output,

feedback and environment exists. Therefore, this theory differs from the

classical theory where the organization is considered as a closed system.

2. Since the organization is designate as an open system, whose existence and

growth is determined by the changes in the environment, the organization is

called to be adaptive in nature, which adjusts itself to the changing

environment.

3. The modern theory considers the organization as a system which is dynamic.

4. The modern theory is probabilistic and not deterministic in nature. A

deterministic model is one whose results are predetermined and whereas the

results of the probabilistic models are uncertain and depends on the chance

of occurrence.

5. This theory encompasses multilevel and multidimensional aspects of the

organization. This means it covers both the micro and macro environment of

the organization. The macro environment is external to the organization, while

the micro environment is internal to the organization.

6. The modern theory is multi-variable, which means it considers multiple

variables simultaneously. This shows that cause and effect are not simple

phenomena. Instead, the event can be caused as a result of several variables

which could either be interrelated or interdependent.

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The scientists from different fields have made major contributions to the

modern theory. They emphasized on the importance of communication and

integration of individual and organizational interest as prerequisites for the

smooth functioning of the organization.

It evaluates the Modern Structural Organization theory of the historical

development that is shown as below:

Mechanistic and Organization System

Tom Burns & G.M. Stalker (1961)

The Concept of Formal Organization

Peter M. Blau & W.Richard Scott (1962)

Organizational Choice: Product versus Function

Arthur H. Walker & Jay W.Lorsch (1968)

The Five Basic Parts of the Organization

Henry Mintzberg (1979)

In Praise of Hierarchy

Elliott Jaques (1990)

System Theory and Organizational Economics:

We are interested in understanding what can run on organizations in

order to improve their effectiveness and efficiency. We can research the

method to improve an organization function better, so anybody have a way of

thinking about what an organization is and about how to affect it. General

Systems Theory provides a simple, but powerful, way of viewing

organizations. This brief note will introduce you to the fundamental concepts

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of Systems Theory as they relate to organizational analysis and then discuss

some implications of these concepts that you may find useful in

understanding, working within, and perhaps effecting organizations.

In fact, the systems perspective began to dominate organization theory in

1966-1967, when two of the most influential modern works in organization

theory appeared: Daniel Katz and Robert Kahn's The Social Psychology of

Organizations (1966), which articulation the concept of organizations as open

system; and James D. Thompson's coherent statement of the rational

systems/contingency perspective of organizations, in Organizations in Action

(1967).

Norbert Wiener’s classic model of an organization as an adaptive system,

from his 1948 book Cybernetics, epitomizes these basic theoretical

perspectives of the systems perspective (see Figure 1). Cybernetics, from a

Greek word meaning “steersman”, was used by Wiener to mean the

multidisciplinary study of structures and functions of control and information-

processing systems in animals and machines. The basic concept behind

cybernetics is self-regulation which through biological, social, or technological

systems that can identify problem, does something about them, and receive

feedback to adjust themselves automatically. Wiener, a mathematician,

developed the concept of cybernetics while working on antiaircraft systems

during World War Ⅱ. Variations on this simple model of a system have been

used extensively by systems theorists for many years, particularly around the

development and use of management information system, but we have not

been able to locate anyone who used it before Wiener did in 1948.

In the article, we describe the history of the system theory and refer to

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book Cybernetics in 1948.

FIGURE 1 NORBERT WIENER’S SYSTEM MODEL

Organizational economics is a branch of applied economics that

studies the transactions that occur within individual company, as opposed to

the transactions that occur within the greater market. Organization economics

is broken down into three major subfields: agency theory, transaction cost

economics and property rights theory. It refers of theory appeared to Jay B.

Barry & William G. Ouchi.

Organizational economics is useful in developing a company’s human

resource management policies, determining how a company should be

organized and assessing business risk. Then, implementing rewards systems

and making, analyzing and improving management decisions.

Conclusion:

In the conclusion of the organizational theory in which is influenced by

step to step of history. And also, the organization theory is informed by

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different perspectives. It is though the discussion of competing and conflicting

theories, thus there is standards of nines stages of the development and

becomes the individual structure of different stages.

According to the standard theory of the organization for the research, this

theory will influence the research and after the research it will influence the

theory development and generate new history in organization theory.

As the knowledge was established and made the practiced in completion of

regarding as knowledge to translate into practice. So that, the theory become

accepted and it had referenced by famous author.

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