University of the People Organization Behavior – BUS 5113 Four Theoretical Concepts Submitted by: Soko A. Kamara Introduction This paper offers a brief analysis of the four theoretical concepts which are central to understanding today’s organization and then discusses one that is most influential from both historical and managerial perspective. Finally, the paper considers how these concepts impacted the development of the current organizational theories. Theoretical Contributions/Concepts There are four theoretical concepts that have contributed immensely to the understanding of how organizations are managed. Of noteworthy, each of these concepts have had individual organizational influences, applications, and successes. The four concepts are Scientific Management Approach, Administrative Theory, Administrative Behavior, and Bureaucracy & Organizational Structure. 1. Scientific Management Approach Scientific management, also known as Taylorism, is a theory of management “that analyzes workflows to improve economic efficiency, especially labor productivity” (Wikipedia, Scientific Management 2020). This management theory was developed by Frederick Winslow Taylor. The theory calls for the use of scientific methods to analyze production processes, which would result into increased productivity. The following scientific management principles were developed by Taylor and are still relevant today: • Instead of workers using their own way of doing things, the “rule of thumb”, Taylor states that a scientific method should be used to determine the “one best way” to do the job. • Assign the right workers for each job and provide them the necessary training to enable them work at their maximum efficiency. • Monitor the performance of workers, evaluate their efficiency, and provide instruction and training when and where necessary to guarantee higher productivity. • Properly separate the workload between the managers and the workers, so that managers focus on planning and training, while workers carry out the implementation of what they have been trained to do. 2. Administrative Theory Administrative theory was a “theory of management that analyzed and synthesized the role of management in organizations” (HigherStudy.org et al., 2020). Administrative Theory requires organization to identify and classify all the activities needed to be performed to achieve its purpose into different groups or departments. This according to the theory will cause the tasks to be accomplished effectively. The administrative theory was published by Henri Fayol in 1916 in his book, Administration Industrielle et Générale. In the book, Fayol mentioned the 14 most important principles of management, which explained how managers should organize and interact with their staff. Fayol's principles are listed below: a) Division of Work: where workers are specialized, there is an increased output because of skill and efficiency. b) Authority and Responsibility: Just as managers are given authority to give orders, they should be aware of the responsibilities that come with such authority. c) Discipline: there should be discipline within the organizations, with varying methods. d) Unity of Command: every employee should be supervised by one person, to avoid conflicts. e) Unity of Direction: teams or groups with the same goals or objectives should work under one manager using a single plan. f) Subordination of Individual to General Interest: individual interest should not exceed the organizations. g) Remuneration of Personnel: there should be fair payment to every employee. h) Centralization: employees are to be close or part of the decision-making process. i) Scalar Chain: There should be proper hierarchy in the organization that does not hinder the flow of authority and communication. j) Order: Everything within the organization should be in an organized place and fashion. k) Equity: All the employees should always be treated fairly. l) Stability of Tenure: The organization should ensure employees retained. m) Initiative: Employees should be encouraged to be creative and execute plans. n) Esprit de Corps: Team spirit and unity should be encouraged. 3. The Theory of Administrative Behavior The theory of administrative behavior describes the process used by people to perform their work within the organizations. Herbert Simon is credited for this theory. Employees in top level positions are expected to make decisions with a higher value component, while those at the lower levels make decisions with a higher factual component. Two key concepts are related to the theory of administrative behavior. The first is the concept of bounded rationality, which takes note of the cognitive limitations of decision makers. The other concept is satisficing, “a behavior which attempts to achieve at least some minimum level of a particular variable, but which does not strive to achieve its maximum possible value” (Wikipedia, Theory of administrative behavior). 4. Bureaucracy & Organizational Structure The structure of an organization defines how activities are allocated, coordinated, and supervised towards the achievement of organizational aims. Organizational structure affects the actions of the organization. The structure also provides the foundation on which standards, policies, procedures, and routines rest. It determines the individuals who get to participate in which decision-making processes, and to what extent their views can shape the organization's plans and actions. The key characteristics of bureaucracy are, clearly defined roles and responsibilities, a structure with hierarchy, and respect for merit. There are many management levels within bureaucratic structures. They range from senior executives to regional managers, all the way to department managers. Due to these levels, decision-making authority must pass through more layers than flatter organizations. References Administrative behavior, theory of. (n.d.). Retrieved September 8, 2020, from https://is.theorizeit.org/wiki/Administrative_behavior,_theory_of Fayolism. (2020, July 10). Retrieved September 9, 2020, from https://en.wikipedia.org/wiki/Fayolism HigherStudy.org, Says:, L., Says:, J., Says:, F., Says:, H., Says:, I., . . . Accounting, M. (2020, June 29). Administrative Theory or Basic 14 Principles of Henri Fayol. Retrieved September 8, 2020, from https://higherstudy.org/administrative-theory-14-principles-henri-fayol/ Human Resources Management. (n.d.). Retrieved September 8, 2020, from https://courses.lumenlearning.com/wmopen-humanresourcesmgmt/chapter/administrative-managementtheories/ Introduction to Business. (n.d.). Retrieved September 8, 2020, from https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/scientific-management-theory/ Krenn, J. (2011, July 02). Management Theory of Henri Fayol. Retrieved September 8, 2020, from https://www.business.com/articles/management-theory-of-henri-fayol/ Mohamed, Thouhid.H, Rai, S., Ali, M., Wycliff, K., Rukshan, A., . . . Reddy, P. (2016, June 13). What are Henry Fayol's 14 Principles of Management? definition and meaning - Business Jargons . Retrieved September 9, 2020, from https://businessjargons.com/henry-fayols-14-principles-management.html Scientific management. (2020, August 28). https://en.wikipedia.org/wiki/Scientific_management Retrieved September 9, 2020, from
