Organizational Theory * Part 1 Three Early Perspectives

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Chapter 3 Lecture/Recap
 Change with cultures
 Resources or thinking tools
 3 P’s of historical writing
 Partial
 Partisan
 Interpreting meaning of facts > identifying facts
 Problematic
 Encourages dialogue
 Organizations as efficient machines
 Science used to predict ways to make organization run




efficiently
Big focus on hierarchy
Managers  communication  deliver orders to
employees
Employees as wage-maximizing individuals
Communication: creativity < constraint
 Scientific Management
 Reinforced divisions of labor and strict hierarchy (conflict)
 New focus: impact of manager/worker relationships
 Fayol’s Classical Management
 Five principles: planning, organizing, commanding,
coordinating, and controlling
 Focused on importance of factors such as: firm hierarchy,
centralization of power, rewards for employees, employee
morale
 Bureaucracy
 Focused on importance of factors such as: fixed division of
labor, hierarchy, general rules, separation of personal and
work life, personnel selected based on technical
qualifications, equal treatment of employees, employment as
career, tenure as protection
 What about the quality of manager/worker
relationships?
 “…emphasized the interpersonal and social needs of
individuals…” (p. 78)
 Focused on: empowering workers, importance of
cooperation and strong internal relationships
 Examples:
 Chester Barnard: strong interpersonal relationships will
help with persuading employees to work towards shared
purpose
 Hawthorne Studies: more attention can lead to more
productivity
 Concerns:
 What is the organizational climate?
 ‘How can an organization encourage employee
participation and dialogue?’ (p. 82)
 What are the employees’ individual needs?
 Maslow’s Hierarchy of Needs
 Recognize goals/needs; how can work environment help?
 Example (figure 3.2, pg. 83): Need for love – respect from colleagues,
feeling like you belong t the organization. Need for good self-esteem –
salary and responsibilities
 McGregor’s Theory Y Management
 Employees = valued human resources. Don’t generally dislike work
and plan to slack without constant control
 More participative and facilitative management style
 Example of principles/beliefs: the right conditions can encourage
employees to accept and seek responsibility, it is natural for people
to put effort into work, rewards for achievement can increase
commitment
 Likert’s Principle of Supportive Relationships
 Four types/systems of organizations
 System IV – Participative – Principle of Supportive Relationships
 Stresses importance of open communication, general oversight >
close supervision, supportive peer groups
Considering one of the theories/approaches, what are issues
with this scenario? How should it have been handled and
why?
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