The topic for today’s discussion is Rational Organization.
Traditional model of the organization: the organization as a“rational” structure
Employee’s duties towards the firm
Employer’s duties towards the employee What are the main problems faced by the employees in theorganization or what are the problematic characteristics of Business Organizations? Can you list down some of theseproblems on a piece of paper and then start analyzing what typeof organization are we talking about. The most problematic characteristics of organizations:
The alienation experienced by workers doing repetitive work.
The feelings of oppression created by the exercise of authority.
The responsibilities heaped on the shoulders of managers.
The power tactics employed by managers anxious to advancetheir career ambitions.
The pressure felt by the subordinates and superiors as they both try to get the jobs done.
Health problems created by unsafe working conditions.
Conflicts of interest created by an employee’s allegiance toother causes.
The absence of due process for non-unionized employees.
Invasion of privacy by a management’s legitimate concern toknow its workers. This list could go on and on…………………………………..In this lecture I am going to explain the above-mentionedproblems and other problems raised by life within businessorganizations.In the next lectures we will discuss the two main ethical issuesraised by this more recent “political” analysis of the firm:employee rights and organizational politics then we will discussa very new view of the organization: the organization as anetwork of personal relations focused on caring.
The more traditional “rational” model of a business organiza-tion defines the organization as a structure of formal (explicitly defined and openly employed) relationships designed to achievesome technical or economic goal with max-imum efficiency.E. H. Schein provides a compact definition of an organiza-tionfrom this perspective:
An organization is the rational coordination of theactivities of a number of peo-ple for the achievement of some common explicit purpose or goal, through di-visionof labor and function and through a hierarchy of authorityand responsibility.
If the organization is looked at in this way, then the mostfundamental re-alities of the organization are the formalhierarchies of authority identified in the “organizational chart”that represents the various official positions and lines of authority in the organization. At the bottom of the organization is the “operating layer”:those em-ployees and their immediate supervisors who directly produce the goods and services that constitute the essentialoutputs of the organization. Above the operating layer of laborers are ascending levels of “middle managers” who directthe units below them and who are in turn directed by thoseabove them in ascending formal lines of authority. The plantmanager quoted above worked within these middle levels of the organization. At the apex of the pyramid is “top manage-ment”: the board of directors, the chief ex-ecutive officer, andhis or her staff. The pictorial description of the hierarchy of an organization isgiven below: