THEORETICAL CONTRIBUTIONS CRITICAL TO UNDERSTANDING TODAY’S

ORGANIZATIONS

Theoretical contributions critical to understanding today’s organizations

Bogdan Culita

University of the People, Pasadena

2020
THEORETICAL CONTRIBUTIONS CRITICAL TO UNDERSTANDING TODAY’S
ORGANIZATIONS

In the current days, most of the population work in a form of organization where they are

dependent on a wage income. According to Perrow (1991), this was a transitional process, with

roots in the Industrial Revolution that started in 1760. In those times, independent farmers, hunters,

craftspersons, and family-run businesses were replaced with factories and mass production

industries. With the rise of these new forms of organization, researchers conducted studies to create

theories that define organizations and their structures.

Laegaard & Bindslev (2006) compose a review of the classical organization theories. These

are developed in the first half of the 20th century and represent the base of the current theories. In

chronological order, Scientific Management (1911), Bureaucracy Model (1922), Administrative

Theory (1925), and Theory of Administrative Behavior (1947).

Scientific Management theory is proposed by Frederick Taylor as an early attempt of

organizational studies. By applying a scientific management approach he wanted to increase the

efficiency of the workers and to boost their productivity. During the Industrial Revolution, he uses

standardization in factories to manage large groups of employees and handle much more complex

production processes (Lyon, 2016a). Although it was a successful methodology to maximize the use

of resources for a company, later it was criticized by workers and management. Their view was not

important anymore in the business process and their role was just to work like a machine.

Furthermore, the pride for workmanship and organization was diminished due to mechanized work.

Employees become expandable and due to their higher efficiency, fewer job opportunities were

available.

The bureaucracy Model is developed by Max Weber as an explanation of the bureaucracy

using a logical perspective (Jeong, 2012). In Weber’s view, the organizational structure is a

hierarchy with well-defined responsibilities and authority. Furthermore, the authority should be

allocated to a specific position and not to a person that is or was holding it. Another principle of his
THEORETICAL CONTRIBUTIONS CRITICAL TO UNDERSTANDING TODAY’S
ORGANIZATIONS

theory is rationality. More precisely, Weber suggests that an organization should hire or fire the

employees by targeting the organization’s goals and not doing any favouritisms (Lyon, 2016b).

Moreover, the work volume should be divided among them, based on their specialization. A further

aspect of this theory is that businesses should be governed by strict rules and policies.

The bureaucratic methodology is still in use in the current days (Grey, 2005). In general by

government organizations, military, colleges, and large companies with operational activities in

multiple regions.

Henri Fayol develops Administrative Theory which consists of 14 administrative principles.

Created relatively at the same time and with the same purpose of increasing efficiency as Taylor’s

Scientific Management approach (March & Simon, 1958). However, instead of targeting to improve

worker’s performance, Fayol focuses on the structure of management and the relationships between

individuals from the organization. Administrative Theory is known as the “Top-Down” method

where Scientific Management is considered a “Bottom-Up” one. A “Top Down” method of

performance improvement, starts with the change at the managerial level, then is standardized and

later it passed to workers at the lower levels where they integrate it in their daily work schedule.

The theory of Administrative Behavior was published by Herbert Simon in 1947. He

defines organizations not as machines to generate goods and services but mainly to produce

decisions (Balducci, 2009). Simon, critically review the Bureaucracy Model and concluded that it

does not match with the social and psychological facts. For example, workers are setting their own

targets which in the end are subpar to the expected results by the organization.

The most influential theory in terms of historical and managerial perspectives is represented

by Weber's Bureaucratic Model. This theory thrived until today and is mainly used by large

organizations. A well-established hierarchy allowed to enforce control over all the resources from

the top to the bottom of the organization (Lyon, 2016b). Bureaucracy is known to slow or prevent

managerial actions due to its rigidity and inefficiency when a change in the organization is required
THEORETICAL CONTRIBUTIONS CRITICAL TO UNDERSTANDING TODAY’S
ORGANIZATIONS

(Gajduschek, 2003). However, Gay (2005) asserts that bureaucracy creates in some specific

applications a safer and more efficient business flow. For example, public institutions, medical

centers or schools require a strict bureaucratic hierarchy. The extra measures of control are used to

protect the safety of human beings or the information collected and processed about them.

All the previously presented theories, represent the initial effort to study organizations.

There is still a significant influence on the current organization theories by acting as the foundation

and not as a whole theory for them. Many of the new theories and methodologies developed in the

past fifty years are reactions against the initial theories (Lyon, 2016a). Because organizations

evolved massively from the initial theories, a fusion of the classical theories was necessary to be

able to satisfy the new values of organizations. Niels Andersen is the main researcher for this new

theory where the name was coined as polyphonic organizational-movement. Neil asserts that

polyphonic organizations are multi-functional, use multiple codes to identify, and are made up of

ideas from different backgrounds (Andersen, 2001). These theories will remain the base of

organizations, however, they will suffer a process of transformation tied to the relationship with the

sociological and psychological needs of the workers, the economical context, culture, and

technological advancements.

References

Alexander Lyon. (2016b, October 23). Classical Management Theory [Video]. YouTube.
https://www.youtube.com/watch?v=d1jOwD-CTLI

Alexander Lyon. (2016a, October 18). Max Weber Bureaucracy [Video]. YouTube.
https://www.youtube.com/watch?v=zp554tcdWO8

Andersen, N. (2001). Polyphonic Organisations.

Balducci, M. (2009). The Influence of Herbert Simon’s Administrative Behavior on the Study of
Organizations and Public Choice Theory. Revue française d’administration publique, no
131(3), 541-554. doi:10.3917/rfap.131.0541.
THEORETICAL CONTRIBUTIONS CRITICAL TO UNDERSTANDING TODAY’S
ORGANIZATIONS

Gajduschek, G. (2003). Bureaucracy: Is It Efficient? Is It Not? Is That The Question?

Administration & Society, 34(6), 700–723. https://doi.org/10.1177/0095399702239171

Gay, P. (2005). The values of bureaucracy. Oxford New York: Oxford University Press.

Grey, C. (2005). A very Short Book about Studying Organization. London, Sage Publication.

Jeong, C. H. (2012). Principles of public administration: Malaysian perspectives. Kuala Lumpur:

Pearson Malaysia Sdn Bhd.

Laegaard, J. & Bindslev, M. (2006). Organizational Theory. Ventus Publishing & Bookboon.com

Perrow, C. (1991). A Society of Organizations. Theory and Society, 20(6), 725-762. Retrieved
September 8, 2020, from http://www.jstor.org/stable/657602

Simon, Herbert A.: Administrative Behavior. A Study of Decision-Making Processes in

Administrative Organization, Third Edition, The Free Press, Collier Macmillan Publishers,
London, UK, 1976.

Taylor, F. W. (1914). The principles of scientific management. Harper.