Organizational Theory and Its Historical Development

Organizational Theory
Organization: Co-Ordinated social entity of
People Working for common goal

Organizational theory: The discipline that

studies the structure and design of Organization

Scope
Strategy/Finance: Achieve results by structuring activities

and designing organizational processes. Marketing :To create a successful corporate brand they need to get the organization behind the delivery of its promise. Information Technology : The way information flows through the organization affects work processes and outcomes,It help IT specialists identify,understand and serve organizations need as they design and promote the use of their information systems. Human Resourses :Organizational development and change are particularly important element of HR that demand deep knowledge of organizations and organizing,and organization theory can provide content for executive training programs.

Why to Study.?
Early Contribution
Bible Contributions Roman Contribution

Adam smith and Contribution

1776-An Inquiry into the Nature and Causes of the

wealth Nations Division of Labors

Emile Durkheim
French Sociologist The Division of Labor in Society

extended Smiths ideas about the structural shift from agricultural to industrial societies brought about by the industrial revolution. Distinction between the Informal and Formal Organization Placed attention on workers social needs in addition to the demand of formally organising work.

Karl Emil Maximillian (max) Weber

Ideal Structure of Bureaucracy
Division of labor A clear authority Hierarchy

Formal Selection Procedure

Detailed rules and regulations Impersonal relationships spr

F. W. Taylor and Scientific Management

Principles
The replacement of a workers job with

Scientific determination The scientific selection and training of workers The co-operation of management and labor to accomplish work objectives, in accordance with the scientific method A more equal division of responsibility between managers and workers; where former doing the planning and supervising and latter doing the execution

Henryi Fayol, Administrative Theorist

Principles of Organization

Division of Work Authority Discipline Unity of command Unity of Direction Subordination of Indusial interest to the general interests Remuneration Centralization Scalar Chain Order Equity Stability of tenure of personnel Initiative Esprit de corps

Luther H. Gulick , Admistrative Theorist

In 1936,Professor of Muncipal Science and

Administration at Columbia. Notes on theory of Organization built on Fayols theory that organizational efficiency could be increased by dividing Work into small pieces,specialised segments,alloting the work to those skilled in that specific segment.

Chester Barnard and Co Operative Systems

Organization-

Task and People A Co-Operative System He Presented his Ideas in the Functions of the executive-Experiences with American Telephone and Telegraphs Challenging the classical view ( Authority flowing top to down) and Favoring the Informal Organization to Organizational Theory

Douglas McGregor and Theory X-Theory Y

Theory X
Employees inherently dislikes the work and,

whenever possible, will attempt to avoid it.. Since employees dislike work, they must be coerced controlled, or threatened with punishment to achieve the desired goal Employees will shrink Responsibilities and seek formal direction whenever possible Most workers place security above all other factor associated with work and will display little ambition

Douglas McGregor and Theory X-Theory Y

Theory Y
Employees can view work as being as natural as

rest or play Human Beings will exercise self direction and self control if they are committed to the objectives The average person can learn to accept, even seek, responsibility Creativity that is , the ability to make good decisions-is widely dispersed throughout the population and is not necessarily the sole province of those in managerial function

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