MBA 202 – LEARNING JOURNAL

TOPIC – MODERN ORGANIZATION THEORY

Modern Organization theory is the management’s approach in the application of classical and
neo classical theory with the adoption of innovation integrated with the values of the two
theories as an adaptive system to respond in the changes of business environment. There are
persons behind the modern organization theory, according to Chester Bernard, organizations is
a system with the cooperation of human activity with the affectivity of communication. There
are 3 theories that lie in the modern organization theory: 1. System Approach 2. Socio-
Technical Approach and 3.Contingency Approach. System Approach sees the organization as a
system composed of inter – related thus mutually dependent sub-systems with the
components of Individual, formal organization, informal organization , status and roles and the
physical setting. Two of the notable persons in this approach is Daniel Katz and Robert Kahn
who developed a framework of open systems that composes energetic inputs, transformation
of inputs, energetic outputs and recycling. The socio-technical approach on the other hand
considers the organization as of composed of socio system, technical system and its
environment that interact and necessary to balance for the effective functioning of
organization. As for the contingency approach or situational approach, organizations are
individually different and require different ways for managing, with the following factors:
government, economy, technology, geography, culture and demography.

With the passage of time, I was able to witness how my current company, Phoenix Petroleum
have adapted to the modernization. I remember in my early years with the company, we
manually make our Daily Time Records in an Excel from the biometrics, after a year or two the
company decided to incorporate the Payroll System which is very useful now that we are
working from home, thus we’re able to make our Time records, file our leave of absences and
get our copy of Payslip online. Another, notable innovation adopted by the company is the
upgrade of our Accounting software, from a semi-manual kind of system-the SAP Business One
to the fully automated the SAP A1 System where we can check real time the transactions made
by the operations and be able to make necessary correction should there be any invalid
transactions, a lot easier to check on the accuracy and also this help establish the process and
procedures to be at the standard. Being able to modernize the system especially those at the
critical function indeed was a big help for the company as it was able to position itself especially
at this time of the pandemic. In the world today, it is best if we learn to embrace change, as
change is the only constant thing as long as it is for the betterment and welfare of everyone.