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T.VENKATARAMANAN.FICWA.FCS
MEANING OF THEORY
Theory is a set of inter related
concepts, definitions & propositions
that present a systematic view of a
phenomena.
It also specifies the relationship
among variables with purpose of
explaining and predicting the
phenomena
Classical theory
Classical theory is the beginning of the
systematic study of the organization
It deals with the anatomy of formal
organizations.(p/44) job-unit/authority
accountability-responsibility.
We know that a formal organization is one
which is deliberately created with defined
jobs , a definite measure of authority,
responsibility & accountability
Other contributors
Sheldon ,mooney urwick and gullick
Sheldon introduced the concept of human
organization, the need for fellowship, and
leisure.
Urwick-the functions in an organization
Podscorb , the organization principles of
unity of command ,subdivision of tasks,
delegation , span of control etc
All the above have contributed to the theory
of administration
criticism
All the above treated organization as a
closed system.
Did not study the influence of environment
on organization. This approach is known
as structural theory.
It focuses on structure, processes and
principles of organization
Neoclassical theorists
They considered good human relations as
good management.
The work on this subject was pioneered by
Elton Mayo and his associates .These
theories are also known as human relations
theories.
Elton mayo understood men as perfectly as
Taylor understood machines.
The essence of this revolution was focus 0n
the organization as a social system .
The effect
As a result of the approaches , the
classical design of the organization
has undergone a number of changes
Flat structure.
Decentralization allowing autonomy
and initiative at lower levels.
Existence of informal organization
(p/36)and its interaction with formal
organization
criticism
Lacks unified approach
W.G.scott.-suffers from
incompleteness , a short sighted
perspective, and lack of integration
among many facets of the human
behavior
It is a trifling body of empirical and
descriptive information
Bureaucratic theory
The dominant form of today is bureaucratic
form of organization
The word itself has a negative impact,
meaning thereby red tape corruption
inefficiency and ineffectiveness.
The origin and nature of this concept of
verband-meaning organization in German
goes back to the German sociologist weber
and his philosophy of organization has
become popular as Weberism
What is bureaucracy?
Bureaucracy is simply institution written
large.
Organization designed to accomplish large
scale administrative tasks by
systematically coordinating the work of
many individuals
Salient features
A person is said to have power or authority
If within the social framework his will can
be enforced on others despite resistance for
structuring human groups , becomes a
special instance of power called authority"
or domination
For Weber an organization is an
administrative body of appointed officials
governed by systematic rules an
impersonal formalized structure and
legitimatized authority.
Organization as a system
A system is defined as an assemblage or a
combination of things or parts forming a complex
unitary whole. Parts of the system are known as
sub systems .The various subsystems are aligned
in some order so that the whole is better than the
sum of the parts.
A system has a boundary .They are classified into
two types .they are 1) closed systems 2) open
systems .An open system inter acts with the
environment. a closed system does not. A living
system is a open system and all nonliving systems
are closed system.
Features
Open system considers organization
environmental interface.
Dynamic & adaptive
A multilevel multi dimensional approach
Both micro and macro level aspects are
considered
The systemic arrangement facilitates
communication and control through man
machine systems
Contingency theory
Is also known as situational theory.
No particular design or managerial action
can suit all time and all situations
Contingency theory focuses on external
determinants of organization structure and
behavior
It fills an important lacuna of the systems
theory by spelling out relationship between
organization and its environment
For a change