OTD L1 Flashcards
Definition of Organization Theory
The discipline that studies the structure and design of organizations
Organizational Change
occurs when a company makes a transition from its current state to some desired future state.
Managing organizational change
process of planning and implementing changes in organizations in such a way as to min. employee resistance and cost to the org. while max. the effectiveness of the change effort.
Historical development phases of Organizational Theory
Prehistory, Modern, Symbolic, Postmodern
When was prehistory?
1900-1950s
When was modern?
1960s-1970s
When was Symbolic?
1980s
When was Postmodern?
1990s
Which historical development phases contribute to the present?
Modern, Symbolic and Postmodern
Modernist paradigm
- Organizations are means to an end
- Organizations are founded primarily for the performance of collective tasks
- Scientific, objectivist approach
Symbolic-interpretive perspective
- Focus on behavior and social relations where meaning is constructed
- people construct meaning and act accordingly (enactment)
- Relativistic, context dependent approach
Postmodernist perspective
- Power and control issues: critical theory
- Pocus on micro-text
Modernism has which approach?
Contingency approach
What does the contingency theory say about organizations?
The dimensions of social structure will depend on the relationship btw. the environment and its strategy, technology, size, etc.
In Modernism:
What is the goal orientation of sub-units based on?
On the environment that affects them the most.
In Modernism:
What is the time orientation of sub-groups dependent on?
On the immediacy of feedback from their actions.
In Modernism:
Which groups have more formal structures?
Groups that are organized to perform simpler, more certain tasks (e.g. production groups)
R&D has more uncertain tasks
In Modernism:
Which companies are best equipped to adapt to environmental change?
With a high sub-unit differentiation and high integration between sub-units.
Steps of rational decision-making in organizations
- Assumption:
purpose pre-exists
purpose guides behavior
unified purpose for the whole organization - Search process for alternatives is costless and large number of alternatives are considered
- Consequences of alternatives are fully anticipated
- Choice of alternatives that max. goal achievement = decision
Decision-making under bounded rationality
Satisficing: people pick first satisfactory alternative
Search: is problemistic, as it is triggered by performance below aspirations
Rule following: experience is captured in rules. This makes search local and innovation incremental.
–> disagreement on achieved results
Political model of decision-making
- diverse interest groups
- actions are taken not alternatives
- decision reflects power distribution
What does Symbolic paradigm state?
- the most important processes that constitute organizations are the enacted product of socially shared beliefs (culture, status, authority)
