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

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Page 1: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Three Theories ofOrganization

• Classical Theory orBureaucracy

• Neoclassical Theory or Human Relations Movement

• System Theory

Page 2: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

3 Theories of Organizations

Neoclassical Theory

Critique of the 4 structural principles of classical Theory

1.Functional

2.Scalar

3.Line/Staff

4.Span of control

System theory

5 parts of an organization

1.Individuals

2.Formal org.

3.Small groups

4.Status & Roles

5.Physical setting

Classical Theory

4 Basic components to any Organization

1.System of differentiated activities

2.People

3.Cooperation toward a goal

4.Authority

Page 3: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Main teachings of the Classical Theory:

1. Basic components : A system of diff erentiated activities, People, Cooperatio

n toward a goal, Authority.

2. Structural principle: Functional, Sc alar (Unity of command), Line/staff, and

Span of Control principle.

Page 4: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Neocl assi cal Theori sts di dnot agree wi thcl assi cal theori sts i

nmany ways e. g.

• Division of labor decreases job meani

ng• Value of distinction

between line and staff• Span of control is

more than a number• Not only formal

authority can influencepeople

Page 5: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Components of an Open System

Inputs

Transformation

Outputs

Matter / energy return

Matter / energyMatter / energy

Information Information

Feedback

Environment

Environment

Page 6: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

System Theory

Organizational System is composed of: Indivi

duals, Formal Organiz ation, Small Groups, S

tatus and Role, Physic al Setting

All parts in the system are interactive in orde r to achieve coordinate d goals of the system.

Page 7: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

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? Thos e in the middle line, suppo

rting staffs, and technostructure.

Page 8: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

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.

Page 9: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Organizational Structure

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.

Page 10: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Coordinating Mechanisms

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

konwledge

Page 11: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

The Five Basic Parts of an Organization

Strategic apex

Middle line

Operating core

Technostructure Support staff

Page 12: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Components of Social System1. Roles2. Norms3. Organizational Culture

Social system: the human components of a work organization that influence the behavior of individuals and groups.

Page 13: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Roles: Expectations of appropriate behavi or in a specif

ic position.Aspects of roles : 1 ) impersonal. 2) Related to task behavior.

3 4) Difficult to clarify. ) Prod 5uce behavior change. ) Jobs

RRRRR RRR RRR RRR RRRRR.Role episode : Group expectation, co mmunication about expectation, p

erceived expectation, actual role behaviorRole differentiation : different roles in RRR R RRRRRR.

Page 14: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Three Informal Components of Social systems

Roles

1. Five Aspects of Roles

2. Role Episode

3. Role Differentiati

on

Norms

1. Four important properties of norms

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

Page 15: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

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: a set of expectations about appropriate behavior in position.

Page 16: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

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

Page 17: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

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

Page 18: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Overcoming Organizational Resistance to Change

Psychological Ownership

1. Self-Enhancement

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

Page 19: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Effect of psychological ownership or disposition toward change as influenced by type of change

Self-initiated(+)

VS

Imposed (-) change

Evolutionary (+)

VS

Revolutionary (-) Change

Self

Psychological ownership of the organization

organization

Individual’s disposition toward change of organization

Additive (+)

VS

Subtractive (-) change

Page 20: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Total Quality Management

Employee Involvement

Customer Focus

Statistical Quality Control

Align Business Operation

Page 21: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Organizational Culture: RRR R RR R R RR RRRRRR RRR undhere. Some defi nes as ar t i f act s. Org Culture features: 1

) can be traced to its found 2er. ) develop out of org. e

xperience with external en 3vironment. ) maintain wo

rking relationships among employees.

Page 22: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

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Page 23: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Beliefs

Values & Norms

Artifacts

Cultural Expression

Page 24: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Principles of Teamwork

• provide feedback to an d accept it from…

• RRRRRRRRRR , ,RR RRRR RRRRRRR• viewing that group

success depends on their int…

• RRRRRRRRRRRRRRRR…

• team leadership makesdifferences..

Page 25: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Interpersonal Processes in Teams

• R RR R RRRRRRRRR• Conflict

• Cohesion

• Trust

Page 26: Three Theories of Organization Classical Theory or Bureaucracy Neoclassical Theory or Human Relations Movement System Theory

Personnel Selection for Team

Establishing team requirements involves

identifying and assessing the congruence among members

with regard to personality an d values.

Critical abilities enhancin g group performance: RRRR RR

acceptance, increase gr solidarit y, be aware of the gr consciousne ss, share the gr identification, ma

RR RRRRRRRR RR RRR RR’ /.