Organizational Theory Assignment

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Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. The paper should be double-spaced in Times New Roman font (or its equivalent) which is no greater than 12 points in size. The paper should cite at least two sources in APA format. One source can be your textbook.

In Chapter 2 of the Organizational Theory text, we reviewed four theoretical contributions which are central to the understanding of today's Organizations. Offer a brief analysis of all four theoretical concepts and then pick the one you the feel is the most influential from both historical and managerial perspectives. Explain. Now, consider how these concepts impacted the development of the current organizational theories.


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Jørgen Lægaard & Mille Bindslev Organizational Theory 2 Download free eBooks at bookboon.com Organizational theory 1st edition © 2006 Jørgen Lægaard, Mille Bindslev & Ventus Publishing ApS & bookboon.com ISBN 87-7681-169-7 3 Download free eBooks at bookboon.com Organizational theory Contents Contents 1 Organizational theory in perspective 7 1.1 Requirements of future organizations 9 1.2 Levels and perspectives in organizational theory 9 1.3 The connecting thread in organizational theory 11 1.4 Chronological outline of organizational theories 12 2 Focus on task performance and structure 13 2.1 Scientific Management – F.W. Taylor 14 2.2 Administrative Theory – H. Fayol 15 2.3 Bureaucracy Model – M. Weber 16 2.4 Organizational structure 2.5 Theory of Administrative Behavior – H. Simon 2.6 Team organization 2.7 Pitfalls in focus on task performance and structure 2.8 Literature for chapter 2 360° thinking . 360° thinking . 18 30 34 38 39 360° thinking . Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers Deloitte & Touche LLP and affiliated entities. © Deloitte & Touche LLP and affiliated entities. Discover the truth 4 at www.deloitte.ca/careers Click on the ad to read more Download free eBooks at bookboon.com © Deloitte & Touche LLP and affiliated entities. Dis Organizational theory Contents 3 Focus on motivation 40 3.1 Theoretical approaches to motivation 45 3.2 Inner motivation 46 3.3 Motivational theory based on rational factors 47 3.4 Motivational theory based on needs 53 3.5 Outer motivation 59 3.6 Motivation and money 68 3.7 Motivation and absence due to illness 71 3.8 Motivation and age 72 3.6 Pitfalls in focus on motivation 74 3.7 Literature for chapter 3 76 4  Focus on adjustments to the external environment NY026057B TMP PRODUCTION 77 4 12/13/2013 4.1 Organizational model with loose couplings – K. Weick 4.2 Organizational Learning – J.G. March and J. Olsen 4.3 The Learning Organization – C. Argyris and P. Senge 4.4 Organizational culture 84 4.5 Rational adjustment with the Contingency theory – Lawrence and Lorsch 87 6x4 gl/rv/rv/baf PSTANKIE 79 ACCCTR00 81 Bookboon Ad Creative 82 All rights reserved. © 2013 Accenture. Bring your talent and passion to a global organization at the forefront of business, technology and innovation. Discover how great you can be. Visit accenture.com/bookboon 5 Download free eBooks at bookboon.com Click on the ad to read more Organizational theory Contents 4.6 External Environment Factors and Five Organizational Forms – Mintzberg 88 4.7 Pitfalls in focus on adjustment to the external environment 89 4.8 Litteratur til kapitel 4 89 5 Management 91 5.1 Management is both management and leadership – Kouzes and Posner 91 5.2 Continuum of Leadership Behavior – Tannenbaum-Schmidt 96 5.3 Model for Situational Leadership – Hersey and Blanchard 98 5.4 Value-based Leadership – Fairholm 104 5.5 Leading Change – John Kotter 109 5.6 Appreciative Inquiry – Cooperriders 113 5.7 Lean Management 118 5.8 Pitfalls in management approaches 120 5.9 Literature for chapter 5 121 6 Endnotes 122 Unlock your potential eLibrary solutions from bookboon is the key eLibrary Interested in how we can help you? email ban@bookboon.com 6 Download free eBooks at bookboon.com Click on the ad to read more Organizational theory Organizational theory in perspective 1 Organizational theory in perspective Since Mr. A.P. Møller founded this business, decency, integrity and trustworthiness have been in the heart of the company, and I venture to assert that in the A.P. Møller Group, there always has been and still is high morals and ethics. We have never had and still do not have written rules. And we are not planning on having any. Mærsk Mc-Kinney Møller The above quotation from Mærsk Mc-Kinney Møller expresses some of the reasons why the company has come to serve as a model for many when it comes to the ability to manage and organize a company. The company is based on a number of standards which indicate what it perceives as right and important: • Focus on the company – in contrast to focus on the individual • Consideration – in contrast to hasty decisions or exaggerated caution • 100% rather than 99.9% as we can always improve • Take small risks at the risk of failing – rather than risking everything • Make usage of abilities for the benefit of the company – rather than keeping knowledge to yourself • Create confidence in the company – in contrast to performing actions that create distrust • Be visionary – rather than having a lazy attitude • Dress code – rather than jeans and sweaty hands. All managers in the company have attained technical qualifications through a kind of apprenticeship, which corresponds with Mærsk Mc-Kinney Møller’s own type of employment in the shipping company at the age of 19, and subsequent training in the group, including stationing supplemented with long-term education at an institution of higher education. Previous managers in A.P. Møller still use their experience in management and organization from the headquarters in their new jobs. Many managers state that Mærsk Mc-Kinney Møller is visionary, aweinspiring and perceptive and at the same time a straightforward manager who communicates directly and “kicks the ball” when employees are sluggish. 7 Download free eBooks at bookboon.com Organizational theory Organizational theory in perspective His 90th birthday did not put a full stop to his career. There were no signs that his active career would end then, and his work to improve and develop continues. There is room for improvements in the management and structure of many companies and organizations. Everybody talks about the need for innovation, but according to opinion formers, many companies have not succeeded in being innovative. Three frequent mistakes in managements and organizations are: 1. Management and organization are too self-satisfied 2. Management and organization do not master the process of change 3. Management and organization underestimate the significance of vision In a knowledge society, companies are challenged by technology leaps, slides in values and globalization. Heavy demands are placed on the management and the organization: Both radical, innovative thinking and disciplined action in response to challenges. Too much self-satisfaction can be a large barrier in taking up these challenges. Sources of self-satisfaction are e.g. unconcerned management, staff ’s ability to deny facts, organizational culture, lacking performance feedback from external sources, internal assessment systems, organizational structure, low performance standards, too many visible resources, and the absence of a large, visible crisis. These challenges place demands on future organizations. Self-satisfaction may be the greatest obstacle in taking the first step in the process of change. Furthermore, management is becoming more important and more difficult than earlier as organizations are becoming more important than production equipment. It is no longer enough to invest in new technology, and implement effective production processes. Many companies can do that. It is about who is the best, when it comes to mobilizing the organization’s energy and individual talents and controlling the necessary challenges. 8 Download free eBooks at bookboon.com Organizational theory 1.1 Organizational theory in perspective Requirements of future organizations Future organizations must be capable of changing relative to a quickly changeable world. Future organizations are characterized by: Characteristics Requirements Perceived need for change The maintenance of this perception requires information systems which communicate results as feedback, e.g. customer satisfaction and accounting figures. Open and honest dialogue about results and working methods. Cooperation at the top No person – regardless of talent – can manage the necessary changes alone. Management teams are used as they have a stronger basis for changes than one manager. Individuals, who have influenced the management earlier, but who spoil teamwork, are replaced by cooperative managers. Both leadership and management The traditional manager, who plans, budgets, organizes, staffs, controls and solves problems, is supplemented with a manager who can create and communicate visions. Proactive work to become future winners Sitting boxes for management which include both leadership and management Ability to implement changes Broadly based competence development in the staff group contributes to a thorough implementation of changes. Excellent short-term results Delegation of management which provides short-term results indicating that the vision is on the right track. Structure facilitates changes The organization is structured without unnecessary interdependence creating inflexible structures and power concentrations, which prevent changes from being implemented. Figure 1.1: Features characterizing future organizations 1.2 Levels and perspectives in organizational theory My experience in working with organizational analyses is that they tend to become too extensive. It may be relevant to include relations to society and the influence on and from other organizations. And naturally, there are also relations between the organization’s own teams and individuals. Thus, an organization may be viewed from different angles. In order to limit the organizational analysis, I recommend Scott’s1 three levels of analysis as a starting point: Social-psychological level – focus on the individual and interpersonal relations. Structural level – focus on the organization in general and its subdivisions into organizational entities containing departments, teams, etc. Macro level – focus on the organization as a player in relation to other organizations and society. 9 Download free eBooks at bookboon.com Organizational theory Organizational theory in perspective The diversity of isolated theories within organizational theory may be related to these levels of analysis. The earliest organizational studies were based on the social-psychological level, e.g. Mayo’s Hawthorne studies2. On the basis of early studies by Max Weber, the structural level became widespread, e.g. Lawrence and Lorsch’s Contingency Theory3. After that, organizational theories were supplemented with studies at macro level. Currently, I am extending Scott’s analysis levels, giving special attention to organizations’ learning, which is perceived as the critical success factor in the organization’s adjustment to the surrounding environment. Today and in the future, any organization needs broadly based competence development in its staff group as it contributes to thorough implementation of changes. Conversely, production is limited away from the macro level. For a total presentation, see “Strategy in Successful Companies”4, chapter 3 as an alternative. In this context, organizational theories are considered with emphasis on the socio-psychological level, the structural level and on organizational learning. Each organizational theory has its primary perspective which Scott5 subdivided into rational, natural and open perspectives. In this presentation, a distinction is made between these three perspectives through three primary areas of focus for a given organizational theory. • Focus on performance of tasks • Focus on motivation • Focus on adjustment to the surrounding environment . 10 Download free eBooks at bookboon.com Click on the ad to read more Organizational theory 1.3 Organizational theory in perspective The connecting thread in organizational theory This book is structured according to these three areas of focus and subdivided according to the three analysis levels. It provides the reader with the following view of the organizational theories: Task performance and structure Motivation Adjustment to surroundings Social-psychological analysis level Scientific Management – Taylor Expectancy Theory – Vroom Administrative Theory – Fayol Self-efficacy Management by Objective – Drucker Needs theories Motivational theories Qualifications and Personality 2 Factor Theory – Herzberg Rewards/reinforcement Theory – Skinner Pathfinder Theory Cultural theories – Schein, Martin and Albert & Whetten Structural analysis level Bureaucracy Model – Weber Job Design Loose-coupled organizations – Weick Administrative Theory – Fayol Job Characteristics – Hackman & Oldham External Environment Factors and Organizational Structures – Mintzberg Organizational learning level Organizational Learning – March & Olsen The Learning Organization – Argyris & Senge 11 Download free eBooks at bookboon.com Organizational theory 1.4 Organizational theory in perspective Chronological outline of organizational theories Personally, I have often needed an outline of the chronological development in organizational theories. Not least because there are so many applicable theories which solve part of the organization’s task, but there is no single theory which explains the entire area of analysis and development of organizations. I have not found it earlier, and therefore, I have made a chronological outline containing significant contributions to organiza-tional theory over the past 100 years. See figure 1.4. 1900 Weber - Bureaucracy Model Mayo - Hawthorne Studies McGregor - Theory XTheory Y Simon & March – Organizations Blake-Mouton Managerial Grid McClelland - Achievement Theory Likert - Systems 1-4 Olsson - Management By Objectives Fayol - Administrative Theory 1954 Maslow - Hierarchy of Needs 1957 Tannenbaum-Schmidt Continuum of Leader Behavior 1961 Burns & Stalker – Management of Innovation 1965 Woodward – Industriel organisation 1966 Herzberg - MotivationHygiene 1967 Fiedler - Contingency Model 1969 Hersey-Blanchard Situational Leadership 1974 House-Mitchell - Path-Goal 1980 Hackman & Oldham – Jodesign 1985 Schein – Organizational Culture 1991 Toyota - Lean 1995 Weick – Sensemaking in Organizations 1997 Kotter – Leading Change 1998 Scott – Rational, Natural and Open Systems 1957 1958 1964 1965 1967 1968 Vroom - Expectancy Theory 1976 1981 Senge – The Learning Organization 1990 Whetter-Cameron Empowerment 1925 1933 1972 Martin – Culture in Organizations Taylor - Scientific Management 1922 Alderfer – Existence, Relationship and Growth Mintzberg – Organizational Design 1911 1992 1995 Fairholm - Values-Based Leadership 1998 Knowledge Society - Kolind 2001 Figure 1.4: Significant organizational theories 12 Download free eBooks at bookboon.com Organizational theory Focus on task performance and structure 2 Focus on task performance and structure The greatest contributions to organizational theory have been collected and called “focus on task performance and structure”. In terms of time, these contributions were made in connection with the build-up of the industrial society and the great industrial groups, which created a need for theories about the management of many people gathered around industrial tasks. The large industrial groups were characterized by being instrumental collectives designed to achieve specific objectives with a strongly formalized culture. The development resulted in organizational theories with normative6 rules for structuring of work, where the organizations were instrumental, or machines were constructed for the purpose of reaching a determined objective. In the following, we will review four different theoretical contributions, which are central to the understanding of organizations that focus on task performance and structure. In the rational perspective, we also call these contributions theoretical schools: • Taylor – Scientific Management • Fayol – Administrative Theory • Weber – Bureaucracy and Organizational Structure • Simon – Administrative Behavior Although the schools differ, they share the perception that a formalized structure is prescribed behavior for the staff ’s common behavior. This rational approach is based on: • Transparency to enable consequences of organizational choices to be assessed • Adjustability for the attainment of maximum production • Need for the possibility of replacing parts of the organization and avoid key staff • Need to reduce infighting in order to maintain achieved positions • Top-down management and control • Professional and rational behavior without disruptive emotional relationships 13 Download free eBooks at bookboon.com Organizational theory 2.1 Focus on task performance and structure Scientific Management – F.W. Taylor Scientific Management originated in the beginning of the 20th century, and Frederick W. Taylor7 was the primary contributor. Scientific Management was based on an idea of systematization where attempts were made to enhance the efficiency of procedures to best effect via scientific analyses and experiments. Taylor believed that it was possible to prescribe the processes that resulted in maximum output with a minimum input of energy and resources. Thus, Taylor’s starting point was the individual work process, which had considerable consequences throughout the system. The structure had to be adapted to the focus that was put on work processes, and in doing so; the manager lost his governing role as he was subjected to scientifically calculated solutions. Therefore, it was necessary to establish a staff of specialists who were capable of determining the optimum work processes. Since the employee and his handling of work processes was the starting point, Taylor’s approach is categorized as a bottom up approach. Scientific Management was quickly adopted by large mass-producing industrial companies. Henry Ford is the most outstanding example of what is characterized as the ‘industrial revolution’. From studies of time and carefully determined educational skills, cars were now constructed by mass production in fixed, machine-like procedures, which created a new ism – Fordism. AXA Global Graduate Program Find out more and apply 14 Download free eBooks at bookboon.com Click on the ad to read more Organizational theory Focus on task performance and structure Hence, Scientific Management has had a decisive and long impact on the industrial practice and on the theoretical ideas of organizations in general. Later on, the theory was criticized by both employees and managers as scientific time studies disregarded their own common sense and judgment. As a result of this resistance and the spread of other views of humanity, Scientific Management is no longer prevalent as a managerial ideology. However, it still functions as a guideline for technical procedures, not only in the industrial sector, but also in the service sector. 2.2 Administrative Theory – H. Fayol Around the same time as Taylor, Henri Fayol8 developed another approach within the rational perspective, which inverts the focus of Scientific Management. Now, administrative processes rather than technical processes were rationalized. The administrative principles in the form of the management’s hierarchical pyramid structure were to function as the basis of the part of the organization that involved activities, i.e. a top down approach. Although Fayol’s thoughts appeared at the beginning of this century, they were not widespread outside France until 1949 when his studies were translated. Several different theoretical contributions to this administrative approach are concerned with two overall princip ...
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