Organizational Theory

Organizational theory is the study of

organizations
 Seeking to understand their nature
and behavior
 Organization theory is concerned with
the relationship between organizations
and their environment, the effects of
those relationships on organizational
functioning, and how organizations affect
the distribution of privilege in society.
 A central concept is organizational design (sometimes termed “organizational
form”). Organizational design is important because the ability of societies to respond
to various problems depends on the availability of organizations with different
capabilities.
The seven characteristics of organizational theory are:
 Innovation (Risk Orientation)
 Attention to Detail (Precision Orientation)
 Emphasis on Outcome (Achievement Orientation)
 Emphasis on People (Fairness Orientation
 Teamwork (Collaboration Orientation)
 Aggressiveness (Competitive Orientation)
 Stability (Rule Orientation)