Organizational theories

Question 1

is the sociological study of the structures and operations of social organizations, including companies and bureaucratic institutions. Organizational theory includes the analysis of the productivity and performance of organizations and the actions of the employees and groups within them.

Answer 1

ORGANIZATIONAL THEORY

Question 2

•Addresses the primary aspects of a business’s formal organizational structure

•discusses how to divide up professional tasks in the most efficient and effective way

Answer 2

CLASSICAL ORGANIZATIONAL THEORY

Question 3

•Classical theorists pay particular attention to the professional dynamics and relationships within an organization and how these relationships may impact the company’s function and production

Answer 3

Classical Organizational Theory

Question 4

CLASSICAL ORGANIZATIONAL THEORY
It includes the following Approaches

Answer 4

scientific management approach (Frederick Taylor)
bureaucratic approach (Max Weber)
administrative approach (Henry Fayol)

Question 5

•applying science to work
• is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification.
•“Time and Motion Studies”

•customized self-work style is problematic
•wanted to find the “right way” to do a single task
•aims: reduce amount of time; reduce number of motions
•break each tasks into small steps
•standardize tasks
•do all tasks, the new and the right way

Answer 5

Scientific Management Approach

Question 6

Four principles:
•science, not rule-of-thumb;
•scientific selection of the worker;
•management and labour cooperation rather than conflict; and
•scientific training of workers.

Answer 6

Scientific Management Approach

Question 7

•considers the organization as a part of broader society.
•organizations should look like the government and the legal systems
•legal-rational approach

Answer 7

Bureaucratic approach

Question 8

•not-traditional, family-based
•not charismatic based
•authority should be tied up to the official position he or she occupies
•clear rules should govern
•standardized hiring and selection process (against favoritism and particularism)

Principles:
•structure;
•specialization;
•predictability and stability;
•rationality; and
•democracy.

Answer 8

Bureaucratic approach

Question 9

• also called managerial approach/classical management
•wanted more systematic approach in training managers
•response to the lack of management theory

Management Approaches:
•Planning
•Organization
•Command
•Coordinate
•Control

Answer 9

Administrative approach

Question 10

Commonalities among the three approaches:
•hierarchy
•division of labor
•standardized approach to work
•centralization of authority
•separation of personal and work life
•fair selection of employees
•fair and reasonable treatment to employees

Answer 10

Note

Question 11

•began with the Hawthorne Studies
•focuses on the emotional and psychological components of peoples’ behavior in an organization

Answer 11

NEO-CLASSICAL ORGANIZATIONAL THEORY

Question 12

•emphasizes individual or group behaviour and human relations in determining productivity.
•The main features of the neoclassical approach are individual, work group and participatory management.

•the human side of the organization and the social needs of the employees

Answer 12

NEO-CLASSICAL ORGANIZATIONAL THEORY

Question 13

Two movements in the Neo-Classical

Answer 13

•Human Relations Movement (how people interact with the group)
•Behavioral Movement (individual behavior of employees)

Question 14

(how people interact with the group)
•aims to increase employee productivity by considering the human side of the organization

Answer 14

Human Relations Movement

Question 15

Key proponents: Human Relations Movement

Answer 15

George Elton Mayo (founder of human relations movement) and Fritz Roethlisberger

Question 16

•conducted by Elton Mayo
•consisted of a series of worker productivity studies, which began around 1924 at the Western Electric plant in Illinois, near Chicago

Answer 16

Hawthorne Studies

Question 17

•is the modification of behavior by study participants in response to their knowledge that they are being observed or singled out for special treatment. In the simplest terms, the Hawthorne effect is increasing output in response to being watched.

Answer 17

Hawthorne Effecr/Observer effect

Question 18

Findings from Hawthorne Studies:
•managers need good interpersonal skills
•managers should be trained in listening and interviewing skills
•employees personal issues and problems are factor in the workplace
•employee control = better performance
•bonding among employees = satisfaction

Answer 18

FAMILIARIZE

Question 19

Findings from Hawthorne Studies:
•feelings of worth (more than changes in conditions)= improvement in performance
•focusing only on efficiency without considering human conditions do not improve performance

Answer 19

Familiarize

Question 20

Conclusions from Hawthorne Studies:
•Informal rules and arrangements affect how the work is done
•rigid division of labor isolates workers, particularly those assigned to insignificant jobs
•a manager’s authority is based on his/her interpersonal skills
•communication is important

Answer 20

Study bitch

Question 21

•operates under behavioral science approach which focuses on human behaviors in organizations and seek to promote verifiable propositions in scientific understanding of human behavior and stresses the development of both individual and the organization

Answer 21

Behavioral Movement

Question 22

Characteristics of Behavioral Movement:
•interdisciplinary
•organization as a social-technical system
•reorganizes individual differences
•recognizes conflict in the organization
•recognized influence of informal groups within the organization
•stressed group behavior and group dynamics
•interdisciplinary
•organization as a social-technical system
•reorganizes individual differences
•recognizes conflict in the organization
•recognized influence of informal groups within the organization
•stressed group behavior and group dynamics

Answer 22

Familiarize

Question 23

Key Contributors of Behavioral Movement:

Answer 23

•Abraham Maslow (Dynamics of Human Motivation)
•Douglas McGregor (Theory X and Theory Y)
•Frederick Herzberg (Two Factor Theory)
•Robert Blake and Jane Mouton (Managerial Grid)
•Rensis Likert (Four Managerial Systems)

Question 24

•This theory considers interactions between people within an organization and the surrounding environment, as well as the interpersonal interactions between members of the organization.

• based on the concept that the organization is an adaptive system which has to adjust to changes in its environment

Answer 24

MODERN ORGANIZATIONAL THEORY

Question 25

•Recognizes that organizational systems are inter-related with their environment and that different environments require different organizational relationships for effective working of the organization
•views organizations as a structure composed of choice-makers, and argues that there is no one right way to make a decision
•choices are dependent on internal and external factors

Answer 25

CONTINGENCY ORGANIZATIONAL THEORY

Question 26

•also called Situational Approach
•a management theory that suggests the most appropriate style of management is dependent on the context of the situation and that adopting a single, rigid style is inefficient in the long term
•it builds upon the accepted elements of the System Theory

Answer 26

CONTINGENCY ORGANIZATIONAL THEORY

Question 27

•no universal way to manage
•management decision making is dependent on situation
•decision making might be affected by environmental changes

•need to anicipate environmental changes
•need human relation skills to manage change
•managers must learn how to communicate effectively

Answer 27

CONTINGENCY ORGANIZATIONAL THEORY

Question 28

CONTINGENCY ORGANIZATIONAL THEORY
Primary Characteristics:

Answer 28

•Non-universality of management theory - There is no one best way of doing things.
•Contingency - Management decision making is contingent upon the situation.
•Environment - Managerial policies and practices to be effective, must adjust to changes in the environment.

•Diagnostics - Managers must possess and continue to improve diagnostic skills so as to anticipate and ready for environmental changes.
•Human Relations - Managers should have sufficient human relations skills to accommodate and stabilize change.
•Information and Communication - Managers must develop a communication system adequate to deal with environmental changes.

Question 29

The commonly-identified contingencies influencing organizational structure include:

Answer 29

•Organization Size
•Nature of Business and Technology (the need for customization)
•Environmental Uncertainty
•Individual Differences or Organizational Preferences

Question 30

The primary advantages of contingency theory include:

•It provides a realistic view of management and organization.
•It discards the universal validity of principles.
•Managers are situation-oriented and not stereotyped.
•Lends itself to an innovative and creative management style.

Answer 30

Study Bitch

Question 31

The negatives of contingency theory include:
•It does not have a theoretical base.
•Executive is expected to know all the alternative courses of action before taking action in a situation that is not always feasible.
•It does not prescribe a course of action.
•A situation can be influenced by many factors. It is difficult to analyze all these factors.

Answer 31

Study Mani bitch

Question 32

Some of the primary contributors to contingency theory include:

Answer 32

•Burns and Stalker - In their work “Management of innovation” (1968), they identified two types of organizational structures (Mechanistic and Organic) and two categories of the environment (Stable and Dynamic).

•John Woodward - She analyzed the influence of technology on the organization structure and observed that the type of technology used for production, such as unit, small batches, large batches, mass production, and continuous process of production. She also examined how production shifts directly affected the span of control, use of committees, participative decision making, and other structural characteristics.

•J.W. Lorsch and P.R. Lawrence - In studies beginning in 1969, they proposed that organizations functioning in a complex environment adopted a much higher degree of differentiation and integration than those operating in a simple environment. They identified as key issues: environmental uncertainty and information flow. They advocated to Focus on exploring and improving the organization’s relationship with the environment, which characterized by along a certainty-uncertainty continuum.

Question 33

is the process of gathering information about events and their relationships within an organization’s internal and external environments.

Answer 33

Environmental Scanning

Question 34

•focuses on Strengths, Weaknesses, Opportunities, and Threats. (One of the processes employed in environmental scanning)
•it is a framework used to evaluate a company’s competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.

Answer 34

SWOT analysis

Question 35

Types of Environmental Scanning

Answer 35

Economic Scanning
Technological Scanning
Legal Scanning
Ecological Scanning
Sociological Scanning

Question 36

involves evaluating how consumers are spending their money, which industries are outperforming others, and the financial health of various markets due to economic factors.

Answer 36

Economic scanning

Question 37

refers to the evaluation and tracking of new technologies, updated technologies, and consumer & business trends within tech.

Answer 37

Technological scanning

Question 38

involves monitoring legislative changes and their overall impact on business rules and regulations, consumer activities, and public health and safety.

Answer 38

Legal scanning

Question 39

considers climates, natural disasters, and green issues as a whole.

Answer 39

Ecological scanning

Question 40

involves deepening one’s understanding of current social movements, political climates (not related to legislation), and cultural impacts of business decisions.

Answer 40

Sociological scanning

Question 41

•includes the study of what drives and inspires members of an organization to work toward their professional goals
•aims to increase employee productivity by finding ways on how to encourage employees to perform better

Answer 41

MOTIVATION ORGANIZATIONAL THEORY

Question 42

•a concept that argues that an organization’s environment influences it, and understanding the impact of this influence may help managers develop more effective leadership strategies.

Answer 42

OPEN SYTEMS ORGANIZATIONAL THEORY

Question 43

•it encompasses the following components:
a.energic inputs into the organizations;
b.the transformation of those inputs within the system;
c.energic outputs; and
d.recycling.

Answer 43

OPEN SYTEMS ORGANIZATIONAL THEORY

Question 44

In Open Systems Organizational Theory Environmental factors affecting an organization could be:

Answer 44

Economic conditions
Cultural Values
Education Systems
Legal Consideration

Question 45

The geographic location of a business can have a great impact on the company’s ability to grow and remain successful because of local economic trends and events, including recessions and economic upswings.

Answer 45

Economic conditions

Question 46

The cultural values of a community can influence customers’ viewpoints and standards. Ths may influence whether they support your business or organization, and business leaders may use this theory to adapt to local cultural ethics.

Answer 46

Cultural values

Question 47

Areas with strong education systems may be ideal for businesses that are in the technology industry or other companies that may rely on employees with extensive academic training.

Answer 47

Education systems

Question 48

The legal and political environment, including the taxes and regulations on business operations, may impact the stability and security of an organization. This may influence its ability to remain productive and successful.

Answer 48

Legal consideration