OT Flashcards
Scientific Management & Taylorism (5 Principles)
1) Shift all responsibility for the organization of work from the worker to the manager.
2) Use scientific methods to determine the most efficient way of doing work.
3) Select the best person for the job thus designed.
4) Train the worker to do the work efficiently.
5) Monitor worker performance to ensure that the appropriate work procedures are followed and appropriate results are achieved.
Matrix structure
Two structures and sets of managers
- Managers on functional side are responsible for allocating specialists to projects, helping them maintain skills and acquire new ones
- Managers on project side are responsible for overseeing specific projects, planning, and coordinating work
- Greatest difficulty is in managing the conflict from dual lines of authority, but there is the ability to maximize value of specialists because can be included on a wide variety of projects
Agency Theory
The central premise of agency theory is that managers as agents of shareholders (principals) may engage in self-serving behavior that can be inconsistent with the shareholders’ wealth maximization principle (Shleifer & Vishny, 1997)
Autopoiesis
refers to a system capable of producing and maintaining itself by creating its own parts
Capacity for self-renewal
Autopoiesis defines life as “circularly organized” or “operationally closed” complex dissipative entities with the autonomous capacity to self-produce components they need for life and able to observe themselves to apply self-regulating feedback in the face of perturbations that might otherwise cause them to disintegrate
Joan Woodward
- showed spools of classic management theory not always right to follow, different tech pose different demands must be met through appropriate structure, suggested bureaucratic mechanistic or appropriate for firms employing mass production tech but firms with unit, small-batch, or process systems of production needed a different approach
Population ecology (environmental level analysis)
- This theory and resource dependence theory assume that environment has power over the org because of the dependency. But population ecology focuses mainly on the environment.
- It derives from Charles Darwin’s principles of evolution (variation, selection, and retention). Population in this case is organizations.
- Variation - creates diversity (new organizations that come into the pool)
- Selection - only organizations that fit well in the ecology survive and other organizations may take a flight and try to find another ecology (find other resources)
- Retention - when there are some changes occur, organizations in the ecology need to adapt (this could result in merger and acquisition)
Institutional theory
theory on the deeper and more resilient aspects of social structure
-institutional theory can explain how colleges and universities come to resemble each other even when the organizations under comparison are notably different. Old institutional theory held that institutional influence could be understood through the data point of organizational behavior. New institutional theorists explored the ways that organizations are shaped by, and operate with, competitive and cooperative exchanges with other organizations and institutions. Neo-institutional theorists returned to the isomorphic and homogenizing ideas of old institutional theory to posit that organizations are embedded in wider social and political environments that shape practices and structures.
Contingency Theory
Contingency Theory: Adapting Organization to Environment
a. in a nutshell main ideas underlining this approach:
i. “organizations are open systems that need careful management to satisfy and balance internal needs and to adapt to environmental circumstances”
ii. “there is no one best way of organizing. The appropriate form depends on the kind of task for environment with which one is dealing”
iii. “management must be concerned, above all else, with achieving alignments and ‘good fits’”
iv. “different approaches to management may be necessary to perform different tasks within the same organization”
v. “different types or ‘species’ of organizations are needed in different types of environments”
Modernism
objective truth
Modernists believe that by finding relationships between the organization’s structure and its performance, a recipe for an efficient and effective organizational structure can be found. This theory shows that not all organizations are the same, due to differing environments and other factors
Chaos theory
can likely essentially be boiled down to - small changes can reverberate to large changes
Von Bertalanffy
proposed open systems theory to explain life phenomena. Open systems, living organisms are examples of such systems, do not follow the second law of classical thermodynamics. They are characterized by negative entropy. This property explains organismic growth, differentiation and increasing complexity.
Post-modernism
A relativistic approach
Abandons notions of universal criteria for truth and excellence: knowledge is fundamentally fragmented
Views questions of right/wrong, good/bad as social constructions that are usefully deconstructed
Challenge modernist quest for objective truth and unifying views
- Offers critique and other forms of appreciation
- Primary phenomena of interest — modern management practices
- Methods: reframing the concepts and theories of modernism by adopting a critical or aesthetic stance toward them
- Offer appreciation (as an alternative to explanation and understanding), provoke reflexivity and greater awareness of the moral and ethical implications of managing, organizing, and theorizing from any perspective
Corporate governance
Objective – maximizing the value for shareholders by ensuring good social and environment performances
The theories of corporate governance are rooted in agency theory with the theory of moral hazard’s implications, further developing within stewardship theory and stakeholder theory and evolving at resource dependence theory, transaction cost theory and political theory. Later, to these theories was added ethics theory, information asymmetry theory or the theory of efficient markets
Organizational economics
studies the nature of the obstacles to coordination of activities in
and between firms
identifies organizational alternatives with their costs and benefits
Symbolic interpretivism
focuses on individual and group experiences within the organization and how these are interpreted. This theory can be seen as being based on the following theories: Social Construction Theory: Society is based on our interpretations and experiences
Resource dependence theory (organizational level analysis)
- This theory suggests that when looking at environment, organizations usually have to deal with power and dependence
- It suggests that orgs should identify key players that are related to the org (e.g., suppliers, customers, investors, technology sector, employees). These players have different functions on the flow of resources.
- Organizations should assess their resources using criticality (what are important) and scarcity (what are difficult to get). This way, the org can come up with some strategies to make sure that they will have resources to feed into work process. For example, organizations should develop a good relationship with some suppliers to get important raw materials.
Fragmentation perspective
relationships among the manifestations of a culture are neither clearly consistent nor clearly inconsistent, instead, the relationships are complex, containing elements of contradiction and confusion
consensus is transient and issue-specific; culture is no longer a clearing in the jungle of meaninglessness, it becomes the jungle itself
Bounded Rationality
in general, the attempt to make a decision that is ‘good enough’ rather than the best possible solution.
When making decisions we often have imperfect and incomplete information, very complex problems, limited time, and conflicting preferences for org goals
Interorganizational Relations Theory
- Addresses change across organizations
- Focuses on how organizations work together
- Based on the premise that collaboration among community organizations leads to a more comprehensive coordinated approach to a complex issue that can be achieved by one organization.
- Provides a useful foundation for understanding and enhancing community mobilization to address a range of public health issues such as emergency preparedness and tobacco control.
Adhocracy
orgs that are temporary by design, also involving project teams that dispersed after project completion, sometimes “virtual” or “network” org (many innovative firms)
Single-loop learning
results from feedback generated by a process of observing the consequences of action and using this knowledge to adjust subsequent actions in order to avoid similar mistakes in the future
E.g. a thermostat; budget
But the system cannot under any circumstances decide what the desired temperature should be.
Single-loop systems solve problems as given, they cannot tell you why something went wrong or make corrections