Chapter 14, Module 1: Conceptual and theoretical foundations of organizations. Flashcards
Definition of Organization
A organizaiton is a group of people who have common goals and who follow a set of operating procedures to develop products and services.
How is worked organized? Two paradigms
- Taylorism
- Sociotechnical systems
Definition Taylorism
Taylorism is the name of the first ‘grand theory’about the organization of work, that offically is called scientific management (1911).
- Its main objective is to imporve labor productivity by reorganizing the division of labor.
- Optimizing production by reorgnizing how people work.
Characteristics of Taylorism
- Taylor rejected the notion that manufacturing could only be performed by craft production methods (manual labor).
- According to Taylor, these production methods were highly inefficient and could benefit when the execution of work is divided.
- Instead of one person doing everything, a large collection of people do something.
Definition organization structure
The organizational structure refers to the formal way that an organziations is designed in terms of:
- division of labor (who does what)
- delegation of authority (who reports to whom - control)
- span of control (how many does one dirrectly control).
which are key characteristics that define how the organization operates.
Key conceps of Organizational structure
- Division of labor (who does what)
- Specialization/departementalizaition (who does what where - grouping)
- Centralization (who decides what and where).
- Formalization (how are processes standardized).
- Span of Control (how many subordinates are supervised by a supervisor).
- Hierarchy (who reports to whom). ——
- Structure (how is the organization organized on these aspects)
- Organizational chart (diagram of an organization’s structure).
Division of Labor
Work is seperated and divided;
- Thinking is seperated from execution
- Regulation/control is seperated from execution
- Execution is divided into sub-tasks (task is simple and repetitive)
Span of control
A concept that descirbes the number of positions or people reporting to a signle individual - the width - in an organization. A narrow span means tight leadership (supervision) and many managerial layers. Wider span means loose leadership (support) and few managerial layers.
Centralization
Means that the decision-making power is concerntrated within a group in the organization.
Decentralization
The decision-making power is distributed across the organization so more peole can decide.
Formalization
is the extend in which protocols are in place.
Classical organization theory
“Scientific Managment”is a universal approach, where the management solely supervises and the employees are expeted to execute simple tasks. Is based on the following principles;
- Seperating thinking form doing
- Seperating control and execution
- Division of work in sub-tasks
The human relations theory
Adds a personal or human element to the study of organizations. Considers the interrelationship between an organization’s requriemetns and the characteristics of its members.
Theory X
Theory developed by McGregor to describe managers wo belief subordinates must be controled to meet organizational ends.
Theory Y
Developed by McGrogor to describe managers who believe subordinates are motivated to meet goals in the absence of organizational controls.
The contingency theory
Theory of organization are theories proposing that the best way to structure an organization depends on circumstance of the organization.
Three types of organizations;
By Joan Woodward
- Small-batch organization: organization that produces specialty products one at a time.
- Large-batch and mass-production organization: Produces large numbers of discrete units.
Authority
The inherent rigts of an managment positoin to exercise power and give orders.
Unity of Command
Unity of command menas that a subordinate is supposed to operate and report to only one supervisor.
14 Principles of Management
Fayol, 1916
- Division of Work
- Autority and responsibility
- Discipline
- Unity of command
- Unity of direction
- subordination of Individual interest
- Remuneration
- The degree of centralization
- Scalar Chain
- Order
- Equity
- Stability of Tenure of Personnel
Ideal Bureaucracy
Weber 1921 / 1947
- Fixed specialized task per position.
- Strong hierarchical organization with a formal power structure.
- Emphasis on formal standardized regulations
- Assignment / improvement based on skills
- Seperation of ownership and operations
- Right / duties are ‘position-based’
- Documentation of decisions, rules and activites
Specialization / Departmentalization
The actual grouping of work processes (activities) into specific task (specialization) and departments (departmentalization) - there is wehre the diviosn o flabor actually happens.
Typology of Taylorism
- Division of Labor = High
- Span of control = Low - Specialization = High
- Departementalization = High
- Centralization = High
- Formalization = High
Some characteristics of Tayloristic jobs;
- Ultra short work cycles
- Meaningless work (one single activity)
- No variety of task
- No control
- No preparatory tasks
- Work pace completely determined by the assembly line; this decreased human motivation
National culture, consist of 4 dimensions
The culture of a country while the organizational culture is the culture of a company.
- Power distance; if low power distance then people want to equalizae the distribution of power. If high power distance then people accept a hierachical order in which everybody has a place and expect that power in distributed unequally.
- Individualism; peope take care for themselves and collectivism is that you care for each other in exchange for unquestioning loyalty.
- Masculinity; the society is competitive and want to win and achieve things. Femininity stands for cooperation and work together.
- Uncertainty avoidance; The degree to which the mebmers of society feel uncomfortable with uncertainty and ambiguity.
How is work organized?
Phase 1 - Social Engineering (1905-1935)
- Scientific management (Frederick taylor); A theory of management in which the main objective is to improve labor productivity by the mechanization of production.
- Greatly influenced industrial pioneers; who wanted to create efficient organizations
- Organizing principle; maximum division of labor (worker is extension of machine)
- Social ideal; Stable incomes and wealth for everyone, increased prosperity
- Typical problems; Lack of autonomy, alienation, low motivation
From Taylorism to sociotechnical systems
These type of structures were eventually failing due to an increased complexity of the operational process and organizational environment. People had no autonomy, experienced low motivation.
Sociotechnical systems provided an answer by proposing a radically different approach in how work should be organized.
Sociothenical systems
The second ‘grand theory’about the organization of work, which is a strong propagandist of an minimal division of labor. In organizing work, the integration of autonomy and performance is put central.
Longwall method of mining
When mechanizing the mining process, one team is responsible to prepare the coal face, the other team extracts the coals, and the third transports the goals (high division of labor).
Different stages of socialization are:
- Pre-arrival stage: before entering the organization.
- Encounter stage: The stage in which a new employee experiences the values and finds out whether expectations are reality.
- Metamorphosis stage; The stage in which a new employee accepts the norms, values, and beliefs of the organization.
Socio-technical systems
Minimal division of labor
- Integration of thinking and doing
- Integration of execution and control
- Combination of subtasks into a whole meaninful piece of work.
Sel-managed teams, are autonomous teams who’s members share leadership responsibility and hold themselves mutually responsible for achieving goals (self-directed work processess).
Some characteristics of STS tasks
- Optimum variety of tasks within the job.
- Meaningful pattern of tasks
- Job makes clear contribution to the utility of product
- Inclusion of preparation tasks (execution and control).
This increase the human motivaiotn and performance.
