PUBA 306__Chapter 4 Assignment 1

The lesson of Chapter Four from our textbook is about Organizational Theory. These are

the five most important lessons I have learned from this chapter and why I found them to be

important.

1. Organizational Theory

Organizational theory can be described as the complex study of the structure, human relations,

process and environment that play a role within an organization. The formal study into different

types of organizational theory and behavior have evolved and grown over time. There are

different ways that have been researched on what motivates employees to do their best work to

benefit an organization. There are four major theories of organizational behavior that I will be

breaking down. This is an important concept within any type of organization as you want to be

the most productive and efficient as you can be…no matter what type of organization you have.

2. Formal Theories

Formal theories are considered to be the oldest form of organizational study. It is usually based

off the idea of a hierarchy within the organization. The hierarchy means that there is a vertical

line of command within an organization with you being in charge of the person below you, and

the person above you is in charge of you. The most prominent formal theory was founded by

Max Weber. His model compromised of five elements: Division of labor and functional

specialization, hierarchy, formal framework of rules and procedures, maintenance of files and

other records, and professionalism. This is an important theory to recognize as it helped shape

future methods on what did and did not work.

PUBA 306__Chapter 4 Assignment 2

3. Scientific Management

In the early 1900’s, Frederick W Taylor developed the theory of scientific management style that

focused on achieving efficiency in production. This was developed to assist managers to devlope

production practices during the industrial revolution. This theory focused on four main

principles: Efficiency in production, rationality in work procedures, productivity, and profit.

Taylor believed that there was one way to preform a task, and that through the scientific method,

that way could be implemented and perfected, thus increasing efficiency leading to profits.

Taylor also stressed that managers needed to do three things to increase productivity. First, tools

and procedures needed to be developed and applied. He trusted time-on-motion studies, which

concentrated on the actual physical movements and steps for each process. Second, he stressed

standardized procedures, which allowed employees to use the new techniques developed to

perform their tasks efficiently. Third, managers selected employees based off their task-related

capabilities. While there are advantages of this system, each worker has a specialty and can be

cost effective, the disadvantages can be worker boredom and it ignored the psychological needs

of workers. This theory is important as many of todays companies use similar techniques to

increase productivity.

4. The Human Relations Approach

This was the start of a more informal approach to organizational theory. The human relations

approach looks beyond economic gains and focuses on the psychology of the workers needs.

What kinds of motivation can be used to make employees feel good about their job performance?

Between 1927 and 1932 the first study into the human relations approach were conducted. These

were known as the Hawthorne Studies. Over the five year span, researchers tested theories of
PUBA 306__Chapter 4 Assignment 3

paying more for output of work, and changing the physical surroundings of the workplace. An

unexpected outcome of the studies where the effects it had on people and them being observed

and being paid attention to. The tendency of someone changing their behavior to meet the

expectations of the researched became known as the Hawthorne or ‘halo’ effect. The Hawthorne

Studies are important as they introduced another approach to organizational management and

behavior. Another concept in the human relations approach is organizational humanism.

Organization Humanism is a concept that stresses that the worker must be interested in the job

and seeks satisfaction by performing well. It also investigates how workers are motivated by

being a part of the decision making and receiving positive incentives. Research done by

Abraham Maslow, suggested that workers had a hierarchy of needs, and each level needed to be

satisfied before moving onto the next level. These needs are: Physiological Needs (hunger,

thirst), Safety Needs (security, protection), Social Needs (sense of belonging, love), Esteem

Needs (self-esteem, recognition status), and finally Self Actualization. These hierarchy of needs

are important to understand as it looks more at the science of how our minds place importance of

needs.

5. Modern Organizational Theory

Modern theory has taken a look at past research and has examined them using more data, and

technology to try to come up with the best methods. The main take away from studying these

theories is that there has been a shift in the way leaders and followers interact and react with each

other. This is important to recognize that things are always changing. Changes in our

environments and social norms have great effect on behavior. I personally am interested in a

more recent concept of Emotional Intelligence, or EI, when it comes to looking at the behavior
PUBA 306__Chapter 4 Assignment 4

within organizations from a management approach. I also believe that not every approach works

for every organization, and not all employees will react the same to those approaches. It will be a

continuous process improvement to achieve goals of any organization.