Understanding

the Study of
Organizations:
A Historical
Review
CHAPTER T WO
PA R T 2
 Report Outline

I. The Systems Metaphor

II. Classical Approaches to Understanding Organizations

III. Reaction, Critiques, and Subsequent Developments in Analysis of Organizations and the
People in Them

IV. More Recent Developments in Organization Theory and Research

V. The Role of Public and Nonprofit Organizations and Their Management in Organization Theory

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

Two Systems

have firm boundaries between the organization and

Closed System the outside environment.

one where an organization functions while becoming

Open System increasingly mixed and complex due to its growing
relationship with its environment.

And it is said that the earliest “ Classical” theories treated organizations and employees as if they were
“CLOSED SYSTEMS”.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

Classical Approaches to Understanding Organization

Frederick Winslow Taylor Max Weber

Principles of Scientific Bureaucracy as an
Management Ideal Construct
•Time motion studies • Characteristics: Hierarchy,
•Increase in workers’ well-being Specialization, Rules and
through productivity regulations, Impersonality and
•Highly impersonal Formalization.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

The Administrative Management School: Principles of Administration

• Presented the ideas of POSDCoRB Model (Luther Halsey Gulick) and

Scalar Principle ( James D. Mooney)
• Highlighted the importance on hierarchy and specialization
• Division of work should based on task, geographic location,
interdependency of work process
• Coordination of Work should be guided by the principles of span of
control, one master, and technical efficiency

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

Reaction, Critiques, and Subsequent Developments in Analysis of

Organizations and the People in Them
The Hawthorne Studies:
The Inducements-Contributions Equilibrium, The Limits of Rationality,
Elaborating the Nature of People in and Behavioral Theory of Organizations
the Workplace

• Elton Mayo’s aim is to study • Chester Irving Barnard

the relationship between •Barnard wrote The Functions of the Executive (1938)
physical factors and •He studied the inducements-contributions equilibrium.
production, but ended up •Incentives include more than money. Employees are also motivated by such factors as
power, prestige, and self-fulfillment.
providing the relationship •The "executive" or manager has a key role in inducing behavior through communication
between human social factors and persuasion.
and production. •Herbert Alexander Simon
•Considered to be the most •"The Proverbs of Administration" critiques four then-accepted principles of public
important event in the history administration, that principles were vague and contradictory.
•Simon was also concerned with complex decision making and the assumption that
of Organizational Behavior. humans are fully rational. He contended that administrators "satisfice" rather than
maximize.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

Reaction, Critiques, and Subsequent Developments in Analysis of

Organizations and the People in Them
Force Field Analysis The Human Relations School The Human Relations School
Kurt Lewin Abraham Harold Maslow Douglas McGregor

•Humans maintain a quasi-

stationary equilibrium in their
attitudes and behaviors that
results from a balance
pressing for change.
•That CHANGE occurs in
phases:
•Unfreezing
•Changing
•Refreezing.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

Reaction, Critiques, and Subsequent Developments in Analysis of

Organizations and the People in Them
Open-Systems Approaches Open-Systems Approaches Open-Systems Approaches
and Contingency Theory and Contingency Theory and Contingency Theory
Joan Woodward Burns and Stalker Lawrence and Lorsch

•She found out in her studies •Published the book “The •Introduced the Concept of
that Bureaucracy was the management of Innovation” Differentiation and Integration
best form of organizational (1961) •Found that firms performed
structure for routine •They pointed out that the best when the differences
operations environment is considered as between units were
•And on the other hand, an important variable of the maximized, if the integrating
temporary work groups, organization equation. mechanisms were neither
decentralization, and • They distinguished the strongly bureaucratic nor
emphasis on interpersonal Organic and Mechanistic laissez-faire.
processes worked best for Systems.
nonroutine operations.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 Understanding the Study of Organizations: A Historical Review
Chapter II (RECAP)

Reaction, Critiques, and Subsequent Developments in Analysis of

Organizations and the People in Them
Open-Systems Approaches
and Contingency Theory
Charles Perrow
• Two (2) concepts of technology
• --- Predictability of the task
refers to the extent to which a
task or job can be broken down
into a set of routine and
repetitive steps that can be
easily predicted and
standardized.
• ---- Analyzability of the problem
encountered refers to the extent
to which a problem or task can
be broken down into its
component parts and analyzed
in a rational, scientific manner.
Open-Systems Approaches
and Contingency Theory
James Thompson
• "Organizations in Action" (1967)
• Thompson sought to close the gap
between open and closed systems
theories by suggesting that
organizations deal with
uncertainties in their environment
by creating specific elements to
cope with the outside world, while
other elements can focus on the
rational nature of technical
operations.
• Emphasized the importance of
environmental factors on
organizational behavior.
Open-Systems Approaches
and Contingency Theory
Peter Blau and colleagues
•Conducted a series of studies
showing that organizational
size has an important
relationship to structure.
• Large size increases structure,
which increases pressure for
more administration to control
and coordinate the increased
heterogeneity of work
activities.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review

 IV. More Recent Developments in Organization Theory and
Research
Recent developments in organization theory and research have built upon and extended earlier
theories and perspectives, while also incorporating new ideas and approaches. Here are some key recent
developments:

Resource dependence theory: Resource dependence theory suggests that organizations are dependent on their
external environment for the resources they need to survive and grow.

Institutional theory: Institutional theory focuses on the role of norms, values, and beliefs in shaping
organizational behavior. An example of institutional theory would be Meyer and Rowan's notion of institutional
isomorphism. There are three main types of institutional isomorphism: normative, coercive and mimetic

Organizational learning theory: Organizational learning theory emphasizes the importance of learning and
knowledge creation in organizations.

Complexity theory: Complexity theory suggests that organizations are complex systems that are made up of
many interacting parts, and that they are characterized by non-linear, unpredictable behavior.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review |More Recent Developments in Organization Theory and Research
 IV. More Recent Developments in Organization Theory and
Research

As the Advances in technology

different fields
have
progressed,
new topics The presence of women and other underrepresented groups in
have emerged. the workplace

Feminist organization theory - Feminist organization theory is a field of study that emerged in the
1970s and is concerned with examining the ways in which gender, power, and inequality are
manifested in organizations.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review |More Recent Developments in Organization Theory and Research
 V. The Role of Public and Nonprofit Organizations and
Their Management in Organization Theory

Public & nonprofit organizations play an important role in organization theory and
have their own unique challenges and opportunities when it comes to management
-Public and nonprofit organizations play a significant role in organization theory,
which is concerned with the study of how organizations are structured, managed,
and function.
-Nonprofit organizations, on the other hand, are owned and operated by private
individuals or groups, and their primary goal is to serve the public interest, such
as providing humanitarian aid, promoting social justice, or preserving the
environment.

-The management of public and nonprofit organizations requires a different set

of skills than that of for-profit businesses. Inequality are manifested in
organizations.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review |More Recent Developments in Organization Theory and Research
 Understanding the Study of Organizations: A Historical Review

Conclusion

Over the years, the study of organizations has evolved and expanded to include many
different perspectives and approaches. Some of the key areas of research in the field today include
organizational structure and design, leadership, motivation, communication, decision making, and
the impact of technology on organizations.

The study of organizations has a long and rich history, and it continues to evolve and
expand as new insights and perspectives are gained. Today, the field of organizational behavior
provides a comprehensive understanding of the complexities of organizations, and it remains an
important area of study for anyone interested in improving organizational performance and
effectiveness.

CHAPTER TWO | Understanding the Study of Organizations: A Historical Review |The Role of Public and Nonprofit Organizations and Their Management in Organization Theory