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Organization Theory
What makes an organization work / work well.
What are the important parts and how do they relate to one another.
to understand the system of roles, relationships, and mechanisms that lead to organizational outcomes
Empirical
Trying to describe what is
Normative
Trying to describe what out to be
Important Terms / Concepts / Topics
Empirical versus normative, Ad hoc organization
Specialization, division of labor, Homogeneity of labor
Hierarchy, coordination, unity of command, span of control
Line versus staff
Scientific management, Frederick Taylor, time and motion study, machine model
Organize by purpose, process, client, place
Authority: traditional, charismatic, rational-legal, Principal-Agent Problem
MORE Terms / Concepts / Topics
Open system, closed system, black box, feedback, organizational environment
Hawthorne Experiment, Theory X and Theory Y and assumptions of each
Abraham Maslow, KITA
Pluralism, Iron Triangles, interest group, congressional committee,
Public Choice theory
Pre-Industrialization
Most organizations were ad hoc
Barn Raising
Military
Most jobs performed by single craftsmen
Blacksmiths
Carpenters
Industrial Revolution
Larger organizations
Efficiency by specialization
Assembly line division of labor
Train unskilled (low cost) workers into a single task
A. Turn spokes for wheel
B. Carve rim for wheel
C. Drill holes for spokes
- - etc.
BUT . . . .
For divided labor to be efficient it must also be coordinated
Can’t drill any holes if person B hasn’t made the rims yet
How do you put this different pieces together to create an efficient whole?
Theories of Organization
I. Structural
II. Systems
III. Humanist
IV. Pluralist
And others
I. Structural Approach
The key is the structure of the organization
The boxes on an organizational chart and how they relate to one another.
The structure shapes the behavior of people in the organization
The Structure is hierarchy
The major goal is efficiency
Hierarchy
Homog
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