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Organization Theories

Organization Theories. Management Theories (I). Management Process “Traditional” approach Based on Fayol’s functions Empirical Case study approach Business schools Human Behavior Behavioral science approach (individuals and groups) Roots in psychology. Management Theories (II).

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Organization Theories

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  1. Organization Theories

  2. Management Theories (I) • Management Process • “Traditional” approach • Based on Fayol’s functions • Empirical • Case study approach • Business schools • Human Behavior • Behavioral science approach (individuals and groups) • Roots in psychology

  3. Management Theories (II) • Social System • Behavioral science (groups & organizations) • Roots in sociology • Decision Theory • Management as decision making • Roots in economics • Mathematical • Modeling behavior • Primarily (not exclusively) operations research

  4. Some Disciplines Contributing to Management • Social sciences • Psychology (industrial, social) • Sociology • Anthropology • Quantitative fields • Economics • Finance • Mathematics

  5. Systems Theory • 5 related components: • Input • Transformation process • Output • External environment • Feedback • Synergy • Equilibrium

  6. Environment Feedback Systems Model Input Transformation Process Output

  7. One view: Boundary spanning Production Maintenance Adaptation Management Another view Technical Structural Psychosocial Managerial Every System is Made up of Subsystems

  8. Systems Theory and Organization Effectiveness • How well the organization manages the interaction between internal and external environments • Three basic principles: • Organizations must have inputs to survive (or face entropy) • One system’s output is another system’s input, and vice versa • Organizations must respond to feedback (remain open, not closed)

  9. Contingency Theory • There is no “One Best Way” to manage organizations and people • Every situation has different requirements It Depends !

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