Organizational Theories & Principles PDF

Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Organizational Theory (20) o Scal...

Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Organizational Theory (20) o Scalar Principle – deals with the organization’s Organizational Theories, Models, and Concepts vertical growth and refers to the chain of command Organizational Theory that grows with levels added to the organization o Organization – collectivities of parts that cannot ▪ Each subordinate should be accountable to only accomplish their goals effectively if they operated one superior (unity of command) separately o Line/Staff Principle ▪ a tool people use to coordinate their actions to Line Functions: have primary responsibilities for obtain something they desire or value to achieve meeting the major goals of the organization, like the a goal production department ▪ org creates value, or else the “die” Staff Function: support the line’s activities but are ▪ How do org create value? Environment regarded as subsidiary in overall importance to line (Customers, Suppliers) > Input (Raw Materials, functions IT, HR) > Process (Machines, Computers, o Span-Of-Control Principle – refers to the number KSAOs) > Output (Products, Services) of subordinates a manager is responsible for o Organizational Theory – set of propositions that supervising explains or predicts how group and individuals ▪ Large Span-of-Control produce flat behave in varying organizational structures and organizations, whilst, smaller Span-of-Control circumstances produce taller organizations Classical Theory/Classical Organizational Theory A. Scientific Management by Frederick Taylor o Classical Organizational Theory – organizations ▪ The organization is a machine, a pragmatic exists for economic reasons and to accomplish machine whose focus is to simply run more productivity goals effectively o The basic ingredient of any organization and then ▪ Taylor believed that scientific principles could addresses how organizations should best structured be applied to the study of work behavior to help to accomplish its objectives increase worker efficiency and productivity ✓ System of differentiated activities – activities ▪ Based on the concept of planning of work to that are linked to each other achieve efficiency, standardization, ✓ People – perform tasks and exercise authority specialization, and simplification ✓ Cooperation toward a goal – unity of purpose in ▪ The advantages of productivity improvement pursuit of their common goals should go to workers ✓ Authority – ensures cooperation among people ▪ Physical stress and anxiety should be eliminated pursuing their goals ▪ Capabilities of workers should be developed o There is a “right” structure for an organization through training o Assumes there is one best configuration to ▪ Traditional boss concept should be elimated accomplish goals ▪ Mainly associated with high levels of job o Scientific Analysis will identify the one best way to specialization and standardization organize for production ▪ conducted time and motion studies and analyzed o Deal with the formal organization and concepts to temperature, illumination, and other conditions increase management efficiency of work, all while looking at the effects of these o Both people and organizations act in accordance with rational economic principles conditions on productivity and efficiency o To be successful in this new economy, industrial ▪ Taylorism: has a premise that there is one best and mechanical engineers are needed to organize way to get the job done production systems to keep the machines busy and ▪ Management gathers data from the workers, who work flowing are in the best position to understand the job o Functional Principle – concept behind division of duties and tasks labor, that is, organizations should be divided into ▪ Workers are selected carefully or scientifically units that perform similar functions into areas of and trained so that they become more efficient specialization than ever ▪ Scientific selection, data collection, and training are combined to enhance efficiency  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) ▪ The work itself is redistributed, with C. Administrative Management by Henri Fayol management taking over tasks previously left to ▪ Aims to improve organizational productivity by subordinated focusing on methods that managers can use to ▪ The most effective companies have detailed synchronize internal processes procedures and work practices developed by ▪ Managerial practices are the key to driving engineers, enforced by supervisors, and executed efficiency in organizations by employees ▪ Seeks to heighten managerial performance ▪ Taylor, along with Frank and Lillian Gilbreth instead on individual worker efficiency implemented the principles of scientific ▪ Proposed the creation of work groups and management functional departments wherein distinct ▪ Worker efficiency would lead to greater activities are performed which contribute to the managerial efficiency accomplishment of greater tasks B. Bureaucracy by Max Weber ▪ Five functions of Managers: Planning, ▪ Described the structure, organization, and Organizing, Commanding, Coordinating, and operation of many efficient organization Controlling ▪ ideal form of organization Structural Theory ▪ includes formal hierarchy, division of labor, and o Harry Mintzberg proposed how organizations a clear set of operating procedures evolve to reach a certain form and shape (structure) ▪ Well-defined authority hierarchy with strict rules which permits the organization to function in its for governing behavior, with few members with surroundings highest status on the top o The structure of an organization is an adaptive ▪ Increase productivity by reducing inefficiencies mechanism that permits the organization to function in organizational operations in its surroundings Characteristics of a Bureaucratic Organization Seven Basic Parts of an Organization Specialization of labor Operating Core – responsible for conducting basic Well-defined Authority Hierarchy work duties that give the organization its defining Formal Rules and Procedures purpose; transform raw goods into a sellable products Impersonality – behavior is based on logical reasoning Strategic Apex – responsible for the overall success rather than emotional thinking of the entire organization; associated with executive Employment decisions based on merit leadership Emphasis on written records Middle Line – ensures that overall goals set by ▪ Division of Labor: each job is a specialized strategic apex are being carried out by the operating position with its own set of responsibilities and core duties; division of tasks performed in an Technostructure – possess specific technical organization expertise that facilitates overall operation of the ▪ One potential difficulty involves the organization; accounting, HR, IT, law departments coordination of various tasks handled by various Support Staff – aid the basic mission of the employees organization and typically includes the mailroom, ▪ Tend to be top-down pyramidal organization security, and janitorial services ▪ Delegation of Authority: approach whereby Ideology – belief system that compels commitment to supervisors assign particular tasks to separate a particular value; organizations should have employees and hold them responsible for singularly devoted to a particular mission, and all its completing these tasks (Micromanagers); actions are in pursuit if that mission; employees information about which lower-level employees behave in accordance with their sincere conviction in report to higher-level employees the ideology of the organization, and can perform their ▪ Structure: formal way an org is designed in work relatively independent of each other terms of division of labor, delegation of Politics – side effect of ideology, causes divisiveness authority, and span of control and conflict; the basis is the use of power that is ▪ Characterized by Span of Control (number of neither formally authorized or widely accepted in the subordinates who report to a given supervisor organization  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Neoclassical Theory o Growth was a natural and health experience for an o Neoclassical Theory – recognizes the importance individual of individual or group behavior and emphasized o Organizations that acknowledged and aided this human relations growth would be more likely to prosper than those o also known as Behavioral Theory of Organization, that are ignored or actively inhibited this growth Human Relations, or New Classical Theory of o Passive to active organisms Management Humanistic Theory o Based on Elton Mayo, Chester Barnard, and Herbert o Humanistic Theory – organizational success in Simon’s Theories terms of employee motivation and the interpersonal o Adds a personal or human element to the study of relationships that emerge within the organization organization, considering the interrelationship ▪ Theory X and Theory Y (McGregor) – between an organization’s requirements and the managers’ beliefs and assumptions about their characteristics of its members employees determine how they behave towards o Productivity was achieved as a result of high those employees morale, which was influenced by the amount of ▪ Self-Fulfilling Prophecy – employees, over individual, personal, and intimate attention workers time, learn to act and believe in ways consistent received with how managers think they act and believe o Introduced informal organization and emphasized Theory X the: individual, work group, and participative - employees are viewed to be lazy, selfish, management uninterested in work, lack in ambition, and not very 1. Elton Mayo’s Hawthorne Experiment intelligent ▪ Conducted in Western Electric Company - managers control and direct employees in order to Hawthorne, Chicago make outputs ▪ Study if the workers would be more productive - employees is passive and unresponsive to depending on the levels of illumination in the organization needs factory - most prevalent set of beliefs about employees from ▪ Increased productivity when lighting conditions the birth of industry improved - lack of focus would lead to apathy and resistance ▪ Workers motivation increased due to interest Theory Y shown by the company in them and their well- - much more humanistic and developmental being orientation, emphasizing not only the inherent 2. Chester Barnard’s Comprehensive Theory of goodness, capacity, and potential of employees but Behavior in Formal Organizations also their readiness to develop those inherent ▪ People in executive roles must foster a sense of characteristics purpose, moral codes, ethical visions, and create - emphasizes management’s responsibility for formal and informal communication systems nurturing those qualities and providing employees ▪ People should cooperate, thus making no place with opportunities to develop their inherently positive for conflicts among workers characteristics in the workplace 3. Herbert Simon’s Application of Classical Theories - without unduly constraining organizational or to current situations of his time managerial controls ▪ Contradicted Henri Fayol’s Administrative o Motivation – the internal force that drives a worker Management to action as well as the external factors that o Human Relations Movement – social and encourage that action psychological factors are important in determining ▪ Ability and skill determines whether the worker worker productivity and satisfaction can do the job, but motivation determines ▪ Efficient leaders are employee-centric, whether a worker can do it properly democratic, and follow a participative style Three Individual differences traits that are most o Behavioral Movement – proposes ideas how related to work motivation managers should behave to motivate the employees 1. Self-Esteem – the extent to which a person views 4. McGregor’s Theory X and Theory Y himself as valuable and worthy 5. Argyris’ Growth Perspective  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) - Employees high in self-esteem are more motivated satisfied when jobs involve little challenge and have a and will perform better than employees low in self- high probability of success esteem - Employees who have a strong need for affiliation are - Consistency Theory: employees who feel good about motivated by jobs in which they can work with and themselves are motivated to perform better at work help other people than employees who do not feel that they are valuable - Employees who have strong need for power are and worthy people motivated by a desire to influence others rather than - Employees try to perform at levels consistent with simply to be successful self-esteem is compounded by the fact that employees o Other Humanistic/Motivational Theories: with low self-esteem tend to underestimate their 1. Job Expectations Theory – a discrepancy between actual ability and performance what an employee expected a job to be like and the - Chronic Self-Esteem: person’s overall feeling about reality of the job can affect motivation and satisfaction himself ▪ When expectations from the job was not met, - Situational Self-Esteem: person’s feeling about ▪ the employee might feel unmotivated himself in a particular situation ▪ Realistic Job Preview is really important - Socially Influenced Self-Esteem: how a person feels 2. Hackman and Oldham's Job Characteristics about himself on the basis of the expectations of Theory/Model - employees desire jobs that are others meaningful, provide them opportunity to be personally - To increase self-esteem, employees can attend responsible for the outcome of their work, and provide workshops in which they are given insights into their them with feedback of the results of their efforts strengths ▪ Jobs will have motivation potential if they allow - Experience-with-Success: employee is given a task employees to use a variety of skills and to so easy that he will almost certainly succeed connect their efforts to an outcome which has - Galatea Effect: the relationship between self- meaning, is useful, or is appreciated by expectations and performance coworkers as well as by others in society - Train supervisors to communicate a feeling of ▪ Job Diagnostic Survey confidence in an employee ▪ Job Enrichment: redesigning jobs to give - Pygmalion Effect/Rosenthal Effect: if an employee workers greater responsibility in the planning, feels that the manager has confidence in him, his self- execution, and evaluation of their work, raises esteem will increase the level of responsibility - Golem Effect: occurs when negative expectations of Core Job Characteristics an individual cause a decrease in that individual’s Skill Variety: use of different skills and talents to actual performance complete a variety of work activities 2. Intrinsic Motivation – they will seek to perform Task Identity: the degree to which a job requires well because they either enjoy performing the actual completion of a whole or identifiable piece of work tasks or enjoy the challenge of successfully Task Significance: the degree to which the job affects completing the task the organization and/or larger society - Extrinsic Motivation – they don’t particularly enjoy Autonomy: provide freedom, independence, and the tasks but are motivated to perform well to receive discretion in scheduling the work and determining the some type of reward or to avoid negative procedures to be used to complete the work consequences Feedback: employees can tell how well they are - Work Preference Inventory – measures the doing from direct sensory information from the job intrinsic and extrinsic motivation itself 3. Needs for Achievement and Power – employees 3. Abraham Maslow’s Need Hierarchy - employees differ in the extent to which they are motivated by the would be motivated by and satisfied with their jobs at need for achievement, affiliation, and power any given point in time if certain needs were met - Employees who have strong need for achievement ▪ This model condenses a long list of previously are motivated by jobs that are challenging and over studied drives into five basic categories (primary which they have some control, whereas employees needs) who have minimal achievement needs are more  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) ▪ Proposed that human beings are motivated by 5. Frederick Herzberg’s Two-Factor Theory – some several primary needs (drives) at the same time, factors seemed to cause job satisfaction and but the strongest source of motivation is the dissatisfaction lowest unsatisfied need a. Motivators – related to the work itself, the type ▪ As the person satisfies the a lower-level need, of work, level of responsibility, and the chances the next higher need in the hierarchy becomes for recognition, advancement, and personal the next strongest motivator and remains so even achievement if never satisfied b. Hygiene – related to the context in which people ▪ Motivation can be shaped by human thoughts perform the job, e.g., benefits, working a. Physiological Needs – food, air, water, shelter conditions, type of supervision, salary, company b. Safety Needs – physical, psychological, and policies financial needs ▪ Eliminate job dissatisfaction by providing basic c. Belongingness/Social needs – interaction with hygiene factors (compensated properly, treated others well, and provided with job security) d. Ego Needs – recognition and success 6. David McClelland’s Achievement Motivation e. Self-Actualization – highest potential Theory – three needs are central to work motivation: needs for achievement, power, and affiliation Need for Achievement – drive to success and get the job done; love the challenges of work, task-oriented, preferring situations offering moderate levels of risk or difficulty Need for Power – need to direct and control the activity of others and to be influential - Personal Power: used toward personal ends - Institutional Power: power that is oriented toward organizational objectives Need for Affiliation – desire to be liked and accepted by others 7. Four-Drive Theory – emotions are the source of 4. Clayton Alderfer’s ERG Theory – states that human motivation and that these emotions are generated individuals can be motivated by multiple levels of need through four innate and universal drives at the same time, and that the level which is most 1) Drive to acquire – seek out, take, control, and important to them can change over time retain objects and personal experiences ▪ Individual’s priorities and motivations may be 2) Drive to bond – variation of the need for fluid and can move between existence, belonging and affiliation, motivates the people relatedness, and growth to cooperate and, essentially, for organizations and societies 3) Drive to Comprehend – need to know, discover answers to unknown 4) Drive to defend – protect ourselves physically, psychologically, and socially 8. Self-Regulation Theory - employee monitor their own progress toward attaining goals and then make the necessary adjustments: that is to self-regulate 9. Reinforcement Theory – draws principles of operant conditioning and states simply that behavior is motivated by consequences ▪ Operant Conditioning – employees will engage in behaviors for which they are rewarded and avoid behaviors for which they are punished  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Factors the must be considered in determining the - Gainsharing: ties groupwide financial incentives to effectiveness of incentive programs improvements in organizational performance Timing of incentive – reinforcer or punisher is most - Stock Options: employees are given the opportunity effective if it occurs soon after the performance of the to purchase stock in the future behavior Use of positive incentives versus negative incentives Contingency of the consequences – if it is not – instead of rewarding employees, punish possible to immediately reward or punish a behavior, those who did wrong it should at least be clear that the employee - For punishment to be effective, the employee must understands the behaviors that brought reward or understand why he is being punished and be shown punishment alternative ways of behaving that will result in some - Reward and punishment must be made contingent type of desired reinforcement upon performance, and this contingency of Fairness of the reward system consequence must be clear to employees if we want ▪ Reinforcement – increases behavior them to be motivated a. Positive – addition of something to increase Type of incentive used – supervisors should have behavior access to and be trained to administer different types b. Negative – removing something to increase of reinforcers behavior - Premack Principle: reinforcement is relative and that ▪ Punishment – decreases behavior a supervisor can reinforce an employee with 4 types of Schedules something that on the surface does not appear to be a Fixed Interval reinforcer Fixed Ratio - Financial Rewards: can be used to motivate better Variable Interval worker performance either by making variable pay an Variable Ratio integral part of an employee’s compensation package * ratio – responses or by using financial rewards as a bonus for * interval – time accomplishing certain goals ▪ Organizational Behavior Modification – - Recognition: reward through recognition program certain target behaviors are specified, measured, - Social Recognition: consists or personal attention, and rewarded signs of approval, and expressions of appreciations; 7. Edwin Locke’s Goal Setting Theory – emphasized informal recognitions the role of specific, challenging performance goals and - Travel: offer travel rewards rather than financial worker’s commitment to those goals as key determinants rewards of motivation Use of individual-based versus group-based ▪ Difficult or challenging goals will also result in Incentive greater levels of motivation, if the goals have 1. Individual Incentive Plans – designed to make high been accepted by the workers levels of individual performance financially ▪ Specific, Measurable, Attainable, Relevant, worthwhile and the research is clear monetary Time-Bound incentive increase performance over the use of a 8. J. Stacey Adam’s Equity Theory – based on the guaranteed hourly salary premise that our levels of motivation and job - Pay For Performance: also called as earnings-at-risk satisfaction are related to how fairly we believe we are (EAR) plans, pay employees according to how much treated in comparison with others they individually produced ▪ Inputs – those elements that we put into our - Merit Pay: base their incentives on performance jobs appraisal scores rather than on such objective ▪ Outputs – elements we receive from our jobs performance measures as sales and productivity ▪ Employees subconsciously list all their outputs 2. Group Incentive Plans – get employees participate and inputs and then compute an input/output in the success or failure of the organization ratio by dividing the output value by input value - Profit Sharing: provide employee with percentage of ▪ When an employee’s ratio is lower than those of profits above a certain amount others, he will become dissatisfied and be  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) motivated to make the ratios equal in one or Motivation – represents the forces within a person more ways that affect his or her direction, intensity, and ▪ Our motivation decreases when our input/output persistence of voluntary behavior ratios are lower than others - Direction: path along which people steer their effort 9. Vroom’s Expectancy Theory – also known as VIE - Motivation is goal-oriented Theory - Intensity: amount of effort allocated to the goal Valence – desirability of a particular outcome to an - Persistence: refers to the length of time that the individual individual continues to exert effort toward an - extent to which an employee value a particular objective consequence Ability – includes both the natural aptitudes and the - “gusto ko yumaman” learned capabilities - gaano mo ka-gusto yung outcome Role Perceptions – how clearly people understand Instrumentality – relationship between the their job duties performance of a particular behavior and the Situational Factors – any context beyond the likelihood that a certain outcome will result employee’s immediate control - link between one outcome and another outcome 12. Costa & McCrae’s Five Factor Model of - outcome of a worker’s performance, if noticed, Personality – the most researched and respected results in a particular consequence clustering of personality traits - the extent to which the performance will result to the Conscientiousness – organized, dependable, goal- desired outcome focused, thorough, disciplined, methodical, and - “kapag bae to yung ginawa ko, yayaman ako?” industrious Expectancy Agreeableness – trusting, helpful, good-natured, - perceived relationship between the amount of effort considerate, tolerate, selfless, generous, and flexible an employee puts in and the resulting outcome Neuroticism – people who tend to be anxious, - the extent to which the effort an employee exerted insecure, self-conscious, depressed, and resulted to the outcome she wanted temperamental - “nag-aral ako ng mabuti, nag-trabaho ako ng maayos Openness to Experience – imaginative, creative, kaya eto mayaman na ako” unconventional, curious, nonconforming, 10. Organization Justice Theory – if employees are autonomous, and aesthetically perceptive treated fairly, they will be more satisfied and motivated Extraversion – outgoing, talkative, energetic, ▪ Focused on fairness of many aspects such as the sociable and assertive process of decision making, outcome of ▪ Conscientiousness stands out as the best overall decisions, and how it is communicated to predictor of proficient task performance for most employees job, followed by Extraversion ▪ Distributive Justice – fairness of the decision 13. IMPACT Theory - each leader has one of six itself behavior styles: informational, magnetic, position, ▪ Procedural Justice – fairness of the procedures affiliation, coercive, or tactical used to arrive with the decision Informational (Ignorance) provides info in a climate 11. MARS Model of Individual Behavior and of ignorance, where important information is missing Performance – Performance is predicted by the from the group Motivation, Ability, Role Perception, and Situational Magnetic (Despair) leads through energy and Factors optimism but characterized by low morale ▪ All 4 factors are critical influences on an Position (Instability) leads through energy and individual’s voluntary behavior and optimism but characterized by low morale performance, if one is low in a given situation, Affiliation (Anxiety) leads by liking and caring about then, the employee will perform poorly others ▪ Motivation, ability and role perception is Coercive (Crisis) leads by controlling and clustered together as they are located within the punishment person Tactical (Disorganization) leads through strategy  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) 14. Path-Goal Theory – a leader can adopt one of four Systems Approach – considers organization as behavioral leadership styles to handle each situation systems – a system is an organized or complex whole Instrumental – calls for planning, organizing, and – an assemblage or combination of things or parts controlling the activities of employees which form a complex unitary whole Supportive – shows concern for employees - Subsystems: different parts of the system, which are Participative – shares information with employees interrelated and lets them participate in the decision making - Open: interact with the environment Achievement-Oriented – challenging goals and - Closed: no interaction with the environment rewards increases in performance - offer an open-system view of an organization and 15. Situational Leadership Theory – a leader typically recognizes its environmental interface uses one of the 4 behavioral styles: - adopts multi-level and multi-dimensional approach, 1. Delegating – willing and able which considers both macro and micro aspects 2. Directing – unwilling and unable - 3 basic elements: Components, Linking Processes, 3. Coaching – willing but unable Goals of Organization 4. Supporting – unwilling but able - focuses on the internal dynamics of an 16. Leader-Member Exchange Theory (Vertical Dyad organization’s structure and behavior Linkage Theory) – concentrates on the interactions - applicable to all situations between leader and subordinates Socio-Technical Approach – based on the premise ▪ Leaders develop different roles and relationships that every organization consists of the people, the with other people under them and thus act technical system, and the environment differently with different subordinates - people use tools, techniques, and knowledge to ▪ In-Group: HQ relationship with the leader, produce goods or services valued by consumers or developed trusting and friendly relationship users ▪ Out-Group: LQ relationship with the leader, - equilibrium among the social system, technical developed system, and the environment is necessary to make the 17. Ryan and Deci’s Self-Determination Theory – org more effective defined as the person’s ability to make choices and - Joint Optimization: the idea that the social and manage their own life technological systems should be designed to fit one ▪ You feel in greater control, as opposed to being another as well as possible non-self-determined, which can leave you - Unit Control of Variance: concerns who handles feeling that your life is controlled by others work problems when they arise ▪ People are motivated to grow and change by - enhances the motivation, self-efficacy, and skills of three innate psychological needs the employee, and it saves the time of the specialist ▪ The tendency to be either proactive or passive is and supervisor largely influenced by the social condition which - very useful because of the trend of downsizing in we are raised favor of advanced equipment/machinery/gadgets ▪ Intrinsic motivation plays an important role - reduces lag time associated with topo many moving Autonomy – people need to feel in control of their parts own behaviors and goals Contingency or Situational Approach – based on Competence – people need to gain mastery of tasks the belief that there cannot be universal guidelines and learn different skills suitable for all situations, thus, different environment Connection or Relatedness – people need to requires different organizational relationships for experience a sense of belonging and attachment to optimum effectiveness, taking into consideration people various social, legal, political, technical, and Modern Organization Theory economic factors o Modern Organization Theory – based on the - focuses on external determinants of the concept that the organization is a system which has organization’s behavior and structure to adapt to changes in its environment’ - works on the prescription which says that “it all o Organization is defined as a designed and structured depends,” process in which individuals interact for objectives  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Open System Theory by Katz & Kahn ▪ Mass Production, large span of control and long o Open System Theory – organization develop and chain of command change over time as a result of both external and ▪ Continuous process, largest span of control internal forces ▪ Deals only with manufacturing organizations 3 Key Elements of Open System Theory B. Lawrence and Lorsch’s Model – asserted that two Inputs – raw materials, human resources, energy, processes determine the company’s ability to keep up machinery with external changes: differentiation and integration Throughputs – production processes, service, ▪ Proposed that the stability of the environment training dictates the most effective form of organization Outputs – products, services, knowledge ▪ Depends on the environment of the company o The interplay between internal reality of an ▪ Mechanistic Organization: an organization that organization and the external reality of its depends on formal rules and regulations, makes environment and history decisions at higher levels of the organization and o Organization must be open to its environment to be has smaller spans of control (for stable effective environments) o Organizations thrive only as long as there is a ▪ Organic Organization: organization with a large continuous flow of energy from the external span of control, less formalized procedures, and environment into the system and continuous export decision-making at middle levels (for unstable of products out of the system environments) o Too much Negative Entropy (all forms of ▪ Differentiation: complexity of the org structure – organization move towards disorganization or number of units, various orientations and death, so orgs must avoid this movement) philosophies of the managers, and the goals and o The negative feedback loop provides information interests of the organization’s members about where and how the organization is getting off- ▪ Integration: amount and quality of collaboration course; therefore, they could correct or adjust the C. Fiedler’s Contingency Model – any individual’s course leadership style is effective only in certain situations o Equifinality – a system can reach the same end D. Mintzberg’s Contingency Model – argued that one state in different ways (there isn’t just one way to could describe an organization by looking at several achieve a particular outcome) categories of characteristics o Surviving open systems are characterized by a ▪ the key mechanism used by the organization for balance in energy exchange coordinating its efforts o Open systems move toward more specialized ▪ functions and roles of people in the organization functions ▪ the context in which the organization operates o Bringing the system together as a unified process is ▪ the priority level depends on the goals necessary for the system to continue ▪ Operating Core: Contingency Theory Basic Forms of Coordination o The “it depends” theory Mutual Adjustments based on Informal Comms o Behavior must be selected to fit the particular Direct Supervision circumstance Standardization of Work Process o This answers the problem of both classical and neoclassical theories Standardization of KSAOs A. Joan Woodward’s Contingency Model – for Standardization of Outputs maximal performance, org structure needed to match the Standardization of norms (Culture) type of production technology Seven Basic Parts of an Organization ▪ 3 types of manufacturers: Small-batch, mass Operating Core – responsible for conducting basic production, and continuous production work duties that give the organization its defining ▪ Producers of small batches of specialty products purpose; transform raw goods into a sellable products required a span of control that was moderate in Strategic Apex – responsible for the overall success size and a short chain of command of the entire organization; associated with executive leadership  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Middle Line – ensures that overall goals set by - forces that maintains the status quo are broken down, strategic apex are being carried out by the operating and the system is opened up for change core; mid-levels managers - started by pointing out behaviors and outcomes Technostructure – possess specific technical prevalent in the organization that are not consistent expertise that facilitates overall operation of the with its goals and objectives organization; accounting, HR, IT, law departments Moving Support Staff – aid the basic mission of the - real org change begins to happen organization and typically includes the mailroom, Refreezing security, and janitorial services - changes become stabilized, and the organization Ideology – belief system that compels commitment to reaches a new level of equilibrium a particular value; organizations should have B. Action Research Model – social problems that singularly devoted to a particular mission, and all its needed to be addressed from both methodological and actions are in pursuit if that mission; employees social perspective behave in accordance with their sincere conviction in ▪ Cyclical nature the ideology of the organization, and can perform their ▪ Initial research about the organization work relatively independent of each other ▪ Results from the research could be the guide for Politics – side effect of ideology, causes divisiveness further activities and conflict; the basis is the use of power that is ▪ Sensemaking: what employees do to gain a neither formally authorized or widely accepted in the better understanding of their workplace organization C. Perrow’s Model – examined information Organizational Models technology, which refers to all aspects of jobs A. Lewin’s Change Model – change as a matter of ▪ The structure of the organization adjusts to the modifying those forces that are acting to keep things technology stable ▪ among the various units of the organization o Any behavioral situation is characterized both by D. Kotter’s Change Model – proposed an eight-stage forces operating to maintain stability or equilibrium model that essentially broke down Lewin’s 3 steps into and by forces pushing for change subcomponents based on common mistakes he saw o Intervention: the program or initiative suggested or organizations make when trying to change implemented by the change agent 1) Increase Urgency o Evolutionary Change: continual process of 2) Build Guiding Team upgrading or improving processes 3) Develop the Vision o Revolutionary Change: drastic changes 4) Communicate the Vision o Change Agent: initiates the change, usually external 5) Empower Action, Remove Obstacles to the organization, people who enjoy change and 6) Create Short-Term Wins often make changes just for the sake of it 7) Build on Wins o Client: recipient of the change effort 8) Embed changes into culture o Change Resistant: individuals who prefer to keep E. Adam Smith’s Invisible Hand Theory – individuals things the way they are are driven by self-interest and rationality will make o Change Analysts: not afraid to change or make decisions that lead to positive benefits for the whole changes but want to make changes only if the economy changes will improve the organization ▪ Rational Choice Theory: individuals use rational o Receptive Changers: people who probably will not calculations to make rational choices and instigate change but are willing to change achieve outcomes that are aligned with their own o Reluctant Changers: not instigate or welcome change, but they will change if necessary personal objectives o Planned for change to occur in organizations with F. Peter and Waterman’s Well-Managed Model – the least amount of tension and resistance aims at formulating a descriptive model of choice which 3 Steps of Change Process focuses on the expressive character of decision making Unfreezing in the organization ▪ Based on empirical perception of how successful organizations are being run  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) G. Vroom-Yetton Model – provide a flowchart that can ▪ Establish the behavior expected of everyone in tell a leader process to go through when making a the group decision ▪ Descriptive norms – developed through a process of observation ▪ Injunctive norms - developed through a process of conforming to gain social approval ▪ There is “oughtness” or “shouldness” ▪ Usually more obvious for behavior judged to be important for the group ▪ Norm must be first defined and communicated, either explicitly or implicitly ▪ The group must be able to monitor behavior and judge whether the norm is being followed ▪ Group must be able to reward conformity and punish nonconformity 3. Organizational Climate and Culture Organizational Climate – shared meaning organizational members attach to the events, policies, Organizational Concepts practices, and procedures they experience and the Components of Social Systems behaviors they see being rewarded, supported, and o Social System – structuring events or happenings, it expected has no formal structure, apart from its functioning - how things are done within an organization ▪ Sometimes referred to as informal component of Organizational Culture – languages, values, an organization attitudes, beliefs, and customs of an organization 1. Roles – expectations of others about appropriate - complex pattern of variables that, when taken behavior in a specific position collectively, gives each organization its unique ▪ Impersonal “flavor” ▪ related to task behaviors - three layers: Observable Artifacts (symbols, ▪ difficult to pin down, some people might define language, narratives, and practices), Espoused Values your role differently as how you define it or the (values endorsed by the management), and Basic other way around Assumptions (unobservable and are at the core of the ▪ learned quickly and can produce major behavior org) changes - Organizational Culture Profile – organizational reps ▪ roles and jobs are not the same, some people sort 54 “value statements” describing such things as have several roles in one job (e.g., Head organizational attitudes toward quality, risk taking, Manager, also specifically watches the and the respect the organization gives to workers into production department, a mother) meaningful categories to provide a descriptive profile ▪ Role Conflict – when an individual is faced with of the organization incompatible or competing demands - Organizational Practices Scale – designed ▪ Role Ambiguity – uncertainty about the specifically to measure organizational structure behaviors to be exhibited in a role, or boundaries assesses the company’s culture in terms of dimensions that define a role such as whether the organization is “process versus ▪ Role Overload – when an individual feels result oriented,” etc. overwhelmed from having too many Person-Organization Fit responsibilities o Person-Organization Fit (Person-Organization ▪ Role Differentiation – the extent to which Congruence) – process of gauging the degree of fit different roles are performed by employees in between the two parties is mutual the same subgroup ▪ People populating the organization who most 2. Norms – shared group expectations about appropriate define its culture behavior  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Downsizing, Outsourcing, Offshoring ▪ An organization’s ability to divide work among Downsizing – decision to cut jobs, one of the most people depends on how well those people can radical and tumultuous ways an organization can coordinate with each other change in response to pressures Coordinating Mechanisms in Organizations - reducing cost Informal Communication – sharing information on - reduction-in-force mutual tasks; forming common mental models to - greatest losses come from middle line, synchronize work activities technostructure, and support staff Formal Hierarchy – assigning legitimate power to - Horizontal Cut: involves the loss of jobs within a individual, who then use this power to direct work department, but the department remains within the processes and allocate resources organization Standardization – creating routine patterns of - Vertical Cut: involves elimination of all jobs in the behavior or output department o Elements of Organizational Structure: Outsourcing – company use external employees to 1. Chain of Command perform internal functions which known to be less 2. Span of Control costly than hiring its own employees to perform these 3. Centralization and Decentralization services 4. Formalization Offshoring – work performed domestically is 5. Mechanistic vs. Organic Structure exported to cheaper labor markets in overseas o Traditional – have formally defined roles for their countries members, very rule driven, and are stable and Mergers and Acquisition resistant to change Organizational Merger – marriage of two a. Bureaucracy organizations of equal status and power b. Line-Staff Organizational Structure Acquisition – procurement of property by another (Principle) organization o Nontraditional – less formalized work roles and - Hostile Takeover: dominant organization thus procedures (organic) acquires an unwilling partner to enhance its financial ▪ Generally, have fewer employees and may also status occur as a small organization that is a subunit of - Parent: acquiring organization a larger, more traditionally structured - target: organization being acquired organization - 3 Phases: Precombination (emphasis on financial Team Organization – workers have defined jobs, not issues), Combination (clash between people as they narrowly specialized positions common to focus on differences between partners), traditionally structured organizations, collaborate Postcombination (integrating two cultures) among workers, and share skills and resources (e.g., Organizational Structure group of psychologists working on a single case) o Organizational Structure – arrangement of Project Task Force – temporary, nontraditional positions in an organization and the authority and organization of members from different departments responsibility relationships among them or positions within a traditional structure who are o Arrangement of positions in an organization and the assembled to complete a specific job or project (e.g., authority and responsibility relationships among Avengers) them Matrix Organization – structured of both product o The division of labor as well as patterns of and function simultaneously coordination, communication, workflow, and o Tall – managers have smaller span of control, formal power that direct organizational activities longer chain of command, provide a clear, distinct o Division of Labor – subdivision of work into layers with obvious lines of responsibility and separate jobs assigned to different people control and a clear promotion structure ▪ Leads to job specialization to increase work o Flat – span of control is larger, fewer management efficiency levels, focused on empowering employing rather than adhering to the chain of command by encouraging autonomy and self-direction; common  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) when the task is repetitive and requires minimal Organizational Development supervision o Organizational Development – planned, o Functional – divides the organization into organization-wide effort to increase organizational departments based on the functions or tasks effectiveness through behavioral science knowledge performed and technology ▪ Creates job specialists but overly focused on ✓ Involve the total organization their own department and area of specialization ✓ Be supported (and initiated) by top management o Divisional – based on type of products or clients ✓ Entail diagnosis of the organization, as well as ▪ Can easily expand products or services merely implementation plan by adding new division but there is a duplication ✓ Be long-term processes of areas of expertise ✓ Focus on changing attitudes, behaviors, and o Centralization – the degree to which decision- performance of groups/team making authority is concentrated at the top of the ✓ Emphasize the importance of goals, objectives, organizational hierarchy and planning o Decentralization – process of taking the decision- o Change process through which employees making power out of the hands of the top level and formulate the change that’s required and implement distributing it to lower levels it, often with the assistance of trained consultants o Formalization – the degree to which organizations o When OD fails, it is often because the standardize behavior through rules, procedures, characteristics mentioned above has been ignored in formal training, and related mechanisms favor of superficial changes that have very little o Mechanistic – characterized by narrow span of impact on the organization’s effectiveness and control and high degree of formalization and result in greater stress and lower morale at the centralization company ▪ Have many rules and procedures, limited o “is an effort (1) planned, (2) organization-wide, and decision making at lower levels, tall hierarchies (3) managed from the top, to (4) increase of people in specialized roles, and vertical rather organization effectiveness and health through (5) than horizontal communication planned interventions in the organization’s ▪ Operate better in rapidly changing environments processes, using behavioral science knowledge,” o Organic – operate with a wide span of control, (Beckhard, 1969) decentralized decision-making, and little o Planned ahead of time (Revolutionary (abrupt) and formalization Evolutionary (gradual)) ▪ Tasks are fluid, adjusting to new situations and o Often involves altering the organization’s works organizational needs structure or influencing workers’ attitudes or o Departmentalization – specifies how employees behaviors to help the organization to adapt to and their activities are grouped together fluctuating external and internal conditions ▪ Establishes chain of command 1. identify significant problems ▪ Focus people around common mental models or 2. appropriate interventions are chosen to deal with ways of thinking the problems ▪ Encourages specific people and work units to 3. implementation coordinate through informal communication 4. evaluation a) Simple – few people minimal hierarchy o Change Agent = OD practitioner b) Functional – organizes employees around o Action Research Model – social problems that specific knowledge or other resources needed to be addressed from both methodological c) Divisional – group employees around and social perspective geographic areas, outputs, or clients ▪ Cyclical nature d) Team Based – built around self-directed teams ▪ Initial research about the organization that complete an entire piece of work ▪ Results from the research could be the guide for e) Matrix – overlays two structures to leverage the further activities benefits of both ▪ Sensemaking – what employees do to gain a f) Network – design and build a product or serve a better understanding of their workplace client though an alliance of several organizations o Effective Interventions:  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) ✓ Fit the needs of the organization create job specialist and overly focused on their ✓ Based on the causal knowledge of intended own department and are of specialization outcomes; and, ✓ Transfer change-management competence to organization members 1. Survey Feedback – involves systematic collection data, widely used intervention strategy 2. Team Building – develop teams or to enhance the effectiveness of the existing teams ▪ In order to be successful, the members must collaborate and be interdependent ▪ Must be initiated to correct existing problems ▪ Combined with other interventions ▪ Strongly supported by the members ▪ Implemented in a participative management ▪ Product-Based Organizational Design climate (Divisional Structure) – organized based on ▪ Performance was measured at the group level their product output, allows the managers of a ▪ Outdoor Experiential Training – makes use of particular division to focus exclusively on that outdoors and entails various physical and mental division, creating greater commitment and exercises cohesion within the division; operates as a 3. Total Quality Management – also known as separate entity continuous improvement or quality management ▪ Matrix Structure – combined function and ▪ Focuses on employee involvement in the control products structures of quality in organizations ▪ Reengineering (business process redesign) – 1) Senior management must receive training on involves fundamental rethinking and redesign of what TQM is, how it operates, and what their business processes to improve critical responsibilities are performance as measures by cost, quality, 2) Employees are trained in quality methods such service, and speed as statistical process control (identifying Fundamental problems reflective of a low-quality product or Examination of what the company does and why service) Radical 3) Employees identify not only the areas in which Willingness to make crucial and far-reaching their department or division excels but also organizational changes rather than superficial ones deviations (output variation) from quality Dramatic standards Making striking performance improvements rather 4) Self-Comparison analysis, whereby the org that slight ones compares its effectiveness to that competitors Processes that set the benchmark for the industry ▪ Information Technology – science of 5) Rewards are linked to achievement of collecting, storing, processing, and transmitting intervention goals information 4. Gainsharing – involves paying employees a bonus 6. Positive Organizational Development based on improvements in productivity ▪ Positive Psychology – scientific study of the ▪ Link between pay and performance lead to strengths and virtues of individuals and increased employee involvement and job institutions rather than their weaknesses and satisfaction impairments 5. Technostructural Interventions – focus on the ▪ Appreciative Inquiry – engages employees by technology and structure of organizations focusing on positive messages, the best of what ▪ Functional Organizational Design – most employees have to offer, and the affirmation of basic, structured according to the various past and present strengths and successes functions of the employees, groups employees to 1) Discovery – determine the strengths various departments based on their expertise;  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) 2) Dream – information gathered from discovery is o Individual Power – derived from personal analyzed and elaborated upon to arrive at a characteristics that are of value to the organization vision statement or focused intent and its members 3) Design – designing innovative ways to identify Power Bases where the organization should be going Coercive Power – ability to punish or threaten to 4) Destiny – the design is maintained or sustained punish others in this stage Reward Power – ability to give something positive 7. Organizational Transformation – any Legitimate Power – formal rights or authority that an intervention primarily directed toward creating a individual possesses by virtue of a position in an new vision for an organization and changing its organization beliefs, purpose, and mission Expert Power – possession of some special, work- ▪ Culture Change – alteration of a pattern of related knowledge, skill, or expertise beliefs, values, norms, and expectations shared Referent Power – an individual is respected, admired, by organizational members and liked by others ▪ Knowledge Management – organizations Communication in the Organization enhance their operations through attempts to o Horizontal Communication – aims at linking generate, transform, disseminate, and use their related tasks, work units and divisions in the knowledge organization; among co-workers with the same level ▪ Organizational Change – process of altering or similar hierarchical positions organizations to be more adaptive and congruent o Downward Communication – provides with their business environment information from the higher levels to lower levels 8. T-groups – sensitivity training, use of unstructured o Upward Communication – serve as a control group interaction to help workers gain insight into system for the organization wherein subordinates their motivations and their behavior patterns in communicate to the higher levels dealing with others Organizational Decision Making Power in the Organization 1. Setting Organization Goals o Power – refers to the ability to get an individual or 2. Establish Performance Criteria group to do something or change in some way 3. Classifying and defining the problem o Politics – process to achieve power 4. Developing criteria for a successful solution o Organizational Politics – involves any action taken 5. Generating Alternatives to influence the behavior of others to reach personal 6. Comparing Alternatives to criteria goals 7. Choosing an alternative o Ingratiation – increasing one’s personal appeal 8. Implementation through such tactics as doing favors, praising, or 9. Evaluation flattering another (#sipsip) Types of Individual Behavior o Assertiveness – making orders or demands Task Performance – individual’s voluntary goal- o Rationality – using logic to convince someone directed behaviors that contribute to organizational o Sanction – withholding salary, threaten firing objectives someone - Proficient Task Performance: refers to performing o Exchanges – offering something in exchange for the work efficiently and accurately another - Adaptive Task Performance: refers to how well o Upward Appeals – obtaining the support of employee modify their thoughts and behaviors to superiors align with and support a new or changing environment o Blocking – threatening to stop working with the - Proactive Task Performance: refers to how well other person employees take the initiative to anticipate and o Coalition – obtaining co-workers’ support of a request introduce new work patterns that benefit the o Organization Power – comes from an individual’s organization position in the organization and from the control Organizational Citizenship Behaviors – various over important organizational resources conveyed forms of cooperation and helpfulness to others that by that position  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) support the organization’s social and psychological Leadership context o Leadership – influencing, motivating, and enabling Counterproductive Behavior – voluntary behaviors others to contribute toward the effectiveness and that have the potential to directly or indirectly harm success of the organizations of which they are the organization or its stakeholders members Joining/Staying with the Organization ▪ Motivate others through persuasion and other Maintaining Attendance influences tactics Perceptual Effects o High Openness, Conscientiousness, and o Halo Effect – occurs when our general impression Extraversion = great leaders of a person, usually based on prominent o High Self-Monitors = leaders characteristic, distorts our perception of other Motivation to Lead characteristic of that person Affective Identity Motivation – become leaders ▪ Most likely to occur when important information because they enjoy being in charge and leading others about the perceived target it missing or we are Noncalculative Motivation – seeking leadership not sufficiently motivated to search for it position that will result to personal gain o False-Consensus Effect (Similar-to-Me Effect) – Social-Normative Conditions – becomes leaders out occurs when people overestimate the extent to of a sense of duty which others have similar beliefs or behaviors to o Leadership Motive Pattern – high need for power our own and a low need for affiliation ▪ We are comforted by the thought of other people o Person-Oriented leaders – acts in warm and are similar to us supportive manner and show concern for their ▪ We interact more with people who have similar subordinates views and behaviors ▪ Believe that employees are intrinsically ▪ We are more likely to remember information motivated, seek responsibility, are self- consistent to our own views and selectively controlled, and do not necessarily dislike work screen out information that is contrary to our ▪ Consult their subordinates before making beliefs decisions, praise their work, ask about their o Primacy Effect – tendency to rely on the first families, and etc. information we receive about people to quick form ▪ Socially withdrawn an opinion of people of them ▪ Appreciate humor o Recency Effect – occurs when the most recent ▪ Have satisfied employees information dominates our perception o Task-Oriented Leaders – define and structure their Organizational Commitment own roles and those of their subordinates to attain o Organizational Commitment – the extent to which the group’s formal goals an employee identifies with and is involved with an ▪ See their employees as lazy, extrinsically organization motivated, wanting security, undisciplined Affective Commitment – the extent to which an ▪ Manage or lead by giving directives, setting employee wants to remain with the organization, cares goals, and making decisions without consulting about the organization, and is willing to exert effort on their subordinates its behalf ▪ Under pressure, they become anxious, defensive, Continuance Commitment – the extent to which an and dominant employee believes she must remain with the ▪ Produce humor organization due to the time, expense, and effort that ▪ Productive employees she has already put into it or the difficulty she would Team – both task- and person-oriented have in finding another job Middle-Of-The-Road – moderate amounts of both Normative Commitment – the extent to which an orientations employee feels obligated to the organization and, as a Impoverished – neither task- nor person-oriented result of this obligation, must remain with the o Transactional Leadership – consists of many task- organization oriented behaviors  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) o Transformational Leadership – focus on - humans are the focus of the theory and social changing or transforming the goals, values, ethics, relationships and interactions are instrumental to standards, and performance of others organizational efficiency ▪ Visionary, charismatic, and inspirational - introduced an informal organization structure ▪ Confident, have need to influence others, and - the most irrational behavior is when they seek hold a strong attitude that their beliefs and ideas rewards from work are correct - human beings are interdependent, one can predict ▪ Charisma, intellectual stimulation, individual their behavior by looking at the social and consideration psychological factors o Shared Leadership – exists when employee - integrates the classical model with behavioral champion the introduction of new technologies and science and even considers the environment it’s in produces - small groups and human behavior ▪ when employee engage in organizational - resulted to more satisfied and efficient employees citizenship behaviors to assist the performance - democratic and participative and well-being of co-workers and the overall Modern Org Theory team - tend to be based on the concept that the organization ▪ flourishes in organizations where formal leaders is a system which must adapt to changes in its are willing to delegate power and encourage environment employees to take initiative and risks without - an organization is defined as designed and structured fear of failure process in which individuals interact for objectives o Managerial Leadership – daily activities that Contingency Theory support and guide the performance and well-being - no particular managerial action or organizational of individual employees and the work unit toward design that is appropriate for all situations current objectives and practices - also known as situational theory ▪ Assumes the organization’s objectives are stable - situational variables and aligned with the external environment - result to dynamic management style – since it adapts ▪ Micro-focused to what is needed o Servant Leadership – an extension or variation of Motivation Theory people-oriented leadership because it defines - what drives an employee towards a particular goal or leadership as serving others outcome Determine the focus and differences of Organization - motivated employee = more productive = more Theories profitable Classical Org Theory Open Systems Theory - views an organization as a machine with centralized - organizations are strongly influenced by their authority, labor specialization, and incentives to environment (whether political, economic, or social in optimize productivity in an organization, and in turn, nature) drive profits - environment provides key resources that sustain the - each employee must be efficient to increase organization and lead to change and survival efficiency Importance of Organizational Theories - rigid and static view of organization o Help study an organization, its corporate designs, - no interaction with the environment structures and behaviors of individual or groups - more on structural and technical aspects of o Aim to provide an overview of how an organization organizations functions and the things needed to improve - oversimplified and mechanistic assumptions efficiency and profitability - work as well as the economic needs of the workers - more mechanical and impersonal - results to work alienation and dissatisfaction - authoritarian and bureaucratic Neo-Classical Org Theory - emphasized human relations  Sources: Aamodt (2016), Levy (2017), Howes & Muchinsky (2019), Riggio (2013), McShane & Glinow (2018), Dessler (2017), Cummings & Worley (2009), Mondy & Martocchio (2016) Organizational Structures and Systems (20) authority and - impedes specialists’ Pros and Cons of different types of Organizational responsibility exposure to others within Structures - heightens departmental the same specialties Pros Cons cohesion and - puts multiple-role Functional involvement in work demands on people and - promotes skill - emphasizes routine so creates stress specialization tasks, which encourages - may promote - reduces duplication of short-time horizons departmental objectives, scarce resources and uses - fosters parochial as opposed to overall resources full time perspectives by organizational objectives - enhances career managers, which limit Simple development t for their capabilities for top- - minimal hierarchy - insufficient economies specialists within large management positions - highly flexible and of scale to assign them to departments - reduces communication minimizes the walls that specialized jobs