ORGANIZATION THEORY Summary S2 - EBA

by mehdi

different approaches to manage the resources and the labor of enterprises:

1-Classical approach
2-Human resources approach
3-Systematic approach
4-Contingency approach
5-Post modernism approach
CLASSICAL APPROACH:
The classical method came because of the Industrial Revolution. Machines began to run on electricity, which speeded up
work, involved machine innovation, and improved transportation options.
However, the Industrial Revolution led to the following problems:
-many people working together
-people working alongside machinery
- Accelerate the pace of industry
-Companies need answers.
Thus, a classical approach was developed to address these issues using three theories: Frederick Taylor's theory of scientific
management, Max Weber's theory of bureaucracy, Henri Fayol's theory of administration

• Scientific management theory: • Bureaucratic management: • Administrative control:

Benefits: Increases productivity; promotes benefits: specialization, rule system, less Benefits include improved
specialization; avoids conflict and conflict due to heavy bureaucratic structures organizational performance, a clear
misunderstanding. and proper chain of command. line of command, and roles and
Problem: Workers find the job boring and Problems: Too expensive to control; can lead responsibilities definition.
unskilled. Humans are seen as machines to over-reliance on supervisors; lacks Issues include its excessive rigidity,
rather than social beings; it does not flexibility and adaptability (due to strict rules lack of applicability to complex and
encourage innovation or creativity and hierarchical structure) dynamic enterprises, and disregard for
employees.
The three theories share the following fundamental ideas:
-Hierarchy-Dividing up the work- Standardized method of operation-Authoritative centralization
-Division of personal and professional lives-Wanted to pick the top workers-Desired equitable payment of employees
HUMAN RESOURCES APPROACH:
Because it solely focused on the organization and not the people, the classical idea drew a lot of criticism. This is why the
human resources approach—which puts people before organizations was developed.
The following are some problems with the conventional theory:
-The working conditions were difficult for the employees.
-The workers weren’t considered important, only the production mattered.
-The workers found the work boring because it was repetitive.
In order to address these problems, the human resources method was developed. For this, psychologist and researcher Eltern
Mayo conducted 4 studies to see whether the workplace had any impact on employees' productivity.

1st experiment: The illumination experiments.

They divided the employees into a control and an experimental group, and only the
experimental group's workspace was lit. Both the experimental group and the control group saw
an improvement in production. This demonstrates that the working environment had no impact.
They performed better because they were aware that they were being watched.
 2nd experiment: The relay assembly test room
Six women were selected for an experimental group, and they were kept apart from the assembly
line while the surrounding conditions remained the same. However, they paid the experimental
group more attention and demonstrated their concern for them. They were inspired to work as a
result, which raised their output. They came to the conclusion that paying employees more
attention boosts their output.
3rd experiment: the interviewing program.
They began interviewing the workers in the third experiment after discovering in the
second experiment that they enjoy being listened to. And they discovered that the
employees prefer to chat about their personal lives rather than simply their jobs. (like
troubles, children, etc.) and they want to be heard and cared for.

4th experiment: the bank wiring observation room,

a group of guys were selected, and they were informed that they would be paid more if they
boosted productivity.
But what actually happened was that they had an unofficial leader who advised them against
doing better because if they did, it's probable that the managers would later advise them to
constantly work as hard without getting paid more since they are capable of doing so.

we concluded that when the human is observed and listened to, he tends to work well.
• NEO HUMAN APPROACH:
Hierarchy of human needs (By Maslow):
Maslow, a psychologist, wanted to know what motivates humans.
And this allows us also to know what we should do to motivate
employees to be motivated at work.
After conducting his research, Maslow said that humans have a
variety of needs that motivate them. When we satisfy a stage of
needs, humans are motivated by the next stage. You’re not
motivated by the next stage until you have satisfied the previous
ones.

Theory X and Y (by Douglas McGregor):

Theory X explains the importance of heightened supervision, external rewards, and penalties
while Theory Y highlights the motivating role of job satisfaction and encourages workers to
approach tasks without direct supervision.

device for the two theories: a person refusing to work ("X") and a person cheering the opportunity to work ("Y")

SYSTEMS APPROACH:
This approach states that the organizational system is composed of 3 parts:
-Inputs (resources and information)
-Processes (The processes of the organization that gets the work done)
-Outputs (outcomes, products, services created by the organization)
without one of them, it can’t work.!!!!!!
There are both good and negative comments, and both have an impact on the organization:
Negative feedback: A negative feedback is a course correction for the organization's procedures that puts it back on the proper track.
Positive feedback: an activity that improves current procedures will help the organization reach its objectives more quickly.
Negative feedback may include, for instance, repairing the pizza delivery man's motorcycle so that he can resume making deliveries.
Purchasing him a car so that he can deliver pizzas more quickly would be a favorable response.
In conclusion, the systems approach sees organizations as dynamic, complex, open systems that interact with their surroundings. It
advises that rather of focusing on a single aspect of the system, we should instead
CONTINGENCY APPROACH:
The contingency approach to management, also known as the situational approach, holds that there is no single,
textbook rule for the best way to manage an organization. In each company's case, the “best” approach will be
contingent upon the company's internal and external needs.
POST MODERNISM APPROACH:
The most recent perspective on organizations and management is this. It advises that the organization be very adaptable. It
must be flexible and nimble in order to alter fast and adjust to its surroundings.