Rational & Natural Systems

Question 1

Who are the major theorists taking the rational perspective?

Answer 1

Taylor - Scientific Management
Fayol - Administrative Theory
Weber - Bureaucracy
Simon - Administrative Behavior/Decision-Making

Question 2

Who takes the natural perspective?

Answer 2

May & Human Relations School (Hawthorne studies)
McGregor - Theory Y
Barnard - Organizations are cooperatives of men

Question 3

Chandler (1990)

Answer 3

The Enduring Logic of Industrial Success

Studied the multi-divisional firm, case studies

Diversification must FIT with company (i.e, related diversification is best)

Structure FOLLOWS strategy

In contrast to Ecological Perspectives (e.g., structures limit choice, strategy can be emergent and influence top management, structure can influence information flows)

Question 4

Simon (1980)

Answer 4

Key Concept: Decision-making

• Intelligence (scanning)
• Design (evaluating, analyzing alternatives)
• Choice (selecting the course of action)

Good Execs are good decision-makers and they can be trained…(tie to leadership (are good ones born or bred?))

Goals: Orgs help managers make decisions by supplying goals/values premise to guide them

Didn’t focus on environment

Question 5

Weber (1947;2007)

Answer 5

Key Concept: Bureaucracy
-Hierarchy of authority, rules, formalization, promotions/selection, and technical competence

Goals? not much
Man: Focused on position, technical skills
Environment: big picture, social structures

History: he studied family farms in Europe and their move towards a westernized employer/employee relationship where there were no longer slaves/serfs, etc. and hiring was not based on kinship

Main Tenets:
• Fixed division of labor among participants (as opposed to arbitrary assignment by owner in other systems)
• Hierarchy of offices whereby lower offices enjoy the right to appeal (in contrast to traditional systems)
• Set of rules that govern performance (in contrast to traditional systems where rules were not documented and could change that the whim of the leader)
• Separation of personal from official property (as opposed to traditional systems where there is no separation from the owner’s personal property to the larger business he owns)
• Selection of personal based on technical expertise (as opposed to selection based on population of followers available (slaves, serfs, sons, etc.))
• Employment viewed as a career (vs. no clear expectation of tenure)

Question 6

Taylor (1947)

Answer 6

Believed labor could be optimized (one best way)

Time & Motion studies to:

• make the workplace safer and more productive
• reduce inefficiency and paid workers higher wages
• divide the work into small elements and monitor constantly
• Believed scientific management would achieve motivation of workers, his vision focused on managers understanding the strengths/weaknesses of workmen and controlling them.
• assumed man may be dumb

no room for job crafting or the idea of meaningful work (Hackman & Oldham, 1980)

Question 7

McGregor (Theory X and Theory Y)

Answer 7

Theory X - people don’t like work and try to avoid it, people need to be controlled, directed, threatened, etc., people prefer direction and want security above all

Theory Y - most people don’t inherently dislike work, threat and control aren’t only means to motivate, most significant rewards are ego satisfaction and self-actualization of needs

McGregor and the Human Relations School were the first to really discuss alternative forms of management/decision-making and motivation of employees