ORGANIZATION

THEORY
Module Four

Learning Objectives
1.

2.

3.

4.

5.

Discuss the evolution of organization and

management
Determine the models of organizational
effectiveness
Explain the mechanisms for coordinating
activities
Identify the strategies on motivating
employees
Differentiate the different organization
theories

RISE OF
ORGANIZATIONS

Models of Organizational
Effectiveness

Six Mechanisms for Coordinating

Work Activities
1.
2.
3.

4.

5.

Mutual Adjustment
Direct Supervision
Standardization of Work
Process
Standardization of Work
Output
Standardization of Skills and
Knowledge

Four Strategies for Motivating

Employees
1. Lets

Talk Money
2. Be the Judge
3. Recognize their Talents
4. When Everything Fails

ORGANIZATION
THEORIES

Max Webers Theory of

Bureaucracy

German
Sociologist
Basic
Principles
of Bureaucracy

Principles of bureaucratic theory

1.
2.
3.
4.

5.
6.

Job Specialization
Authority Hierarchy
Formal Selection
Formal rules and
regulation
Impersonality
Career Orientation

Criticism of
Bureaucratic
Organization

Scientific Management Theory

tries
to
increase
productivity
by
increasing
efficiency
and
wages
of
the
workers.

Principles of Scientific
Management
1.
2.

3.
4.
5.
6.

Performance Standard
Differential piece-rate
system
Mental Revolution
Time Study
Fatigue and Motion Study
Gantt Chart

Drawbacks of
Scientific
Management

Key Points

Henri Fayol's Principles of Management

Was born in Istanbul in

1841
When he was 19, he
began working as an
engineer at large mining
company in France

Fayol's 14 Principles of Management

1.
2.
3.
4.
5.
6.

Division of Work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of Individual
Interest to General Interest

Fayol's 14 Principles of Management

7.
8.
9.
10.
11.
12.
13.
14.

Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps

Key Points

Mary Parker Follett: A Human

Relations Approach to Work

Integrate the idea of

organizational conflict on
management theory
Stressed the interactions
of
management
and
workers

Elton Mayo: Human Relations

Theory

Australian
Interested in employee
motivation and
commitment
- Hawthorne Studies