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Organizational Theory

Organizational Theory. By Bhupendra Ratha, Lecturer S. L. I. Sc., D.A.V.V., Indore. An Organization. “Organizations are social entities that are goal-oriented; are designed as deliberately structured and coordinated activity systems, and are linked to the external environment”

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Organizational Theory

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  1. Organizational Theory By Bhupendra Ratha, Lecturer S. L. I. Sc., D.A.V.V., Indore

  2. An Organization • “Organizations are social entities that are goal-oriented; are designed as deliberately structured and coordinated activity systems, and are linked to the external environment” (Daft, 2004).

  3. Theory • Theory is “a plan or scheme existing in the mind only, but based on principles verifiable by experiment or observation” (Funk & Wagnalls, 1302).

  4. Organization Theory • A proposition or set of propositions that attempts to explain or predict how groups and individuals behave in differing organizational arrangements.

  5. Organizational Theory • Classic Organizational Theory • Bureaucratic Organizational Theory • Functional specification Organizational Theory • Human Relations Organization Theory • Systems Theory

  6. Classic Organizational Theory. • Specialization • Unity of direction • Functional specification • Chain of command • Parity between authority and responsibility • Span of control

  7. Bureaucratic Organization Theory • Task should be divided among various position holder on the criteria of their abilities. • Position should be organized in a hierarchical structure of authority. • Official decisions and actions should be governed by a formally established system of rules and regulations. • Employment and promotions in the organization should be based on the universalistic criterion of abilities.

  8. Modern Structural Organization Theory • Established objectives through control and coordination. • There is a “best” structure for any organization in light of objectives, environment, products or services and the technology of the production process. • Specialization and division of labor increase the quality and quantity of production. • Organic –More participation, more reliance on workers and best in dynamic conditions.

  9. Human Relations Organization Theory • Group oriented management • Team work • Voluntary cooperation • Self control • Group decision making • Hierarchical coordination and control • Task specialization

  10. Systems Theory • Systems theory views an organization as a complex set of dynamically intertwined and interconnected elements including inputs, processes, outputs, feedback loops and the environment.

  11. System Theory by Maslows • Physiological Needs • Safety Needs • Needs of Love • Needs for Esteem • Needs for Self-Actualization

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