Organization Theory

Building a Model of Empowerment

Practice
What Is Organization
Theory?
 A proposition or set of propositions that
attempts to explain or predict how groups and
individuals behave in differing organizational
arrangements.
What Is Organization
Theory?
 Classic organizational theory.
 Organizations exist to accomplish production-related
and economic goals.
 There is one best way to organize for production, and
that way can be found through systematic, scientific
inquiry.
 Production is maximized through specialization and
division of labor.
 People and organizations act in accordance with
rational economic principles.
What Is Organization
Theory?
 Theory derived from organizational structures
and procedures during the industrial
revolution.
 Adam Smith and the pin factory.
 The Wealth of Nations, 1776.
 Laissez-faire.
 Economic rationale for the factory system.
 All formal organizations are force multipliers.
The role of theories
 Theories describe the distribution of power &
resources in organizations, how organizations
function, how people interact in organizations, and
how organization systems maintain themselves.
 Theories must be empirically tested and verified.
 Independent and dependent variables must be
identified in order to test a theory.
 Therefore theories contain assumptions about
cause and effect relationships
The Origins of Scientific
Management
 The basic problem with the traditional
hierarchical organization was that it was
dependent upon the proper enculturation of
individual supervisors at every level for its
success.
 Changes in the environment can make
hierarchical organizations less competent.
The Origins of Scientific
Management
 Origin of the staff concept to overcome
limitations of a single mind and fleeting time.
 The general staff concept has been adopted
by industrial and governmental organizations.
The Origins of Scientific
Management
 The influence of Frederick W. Taylor (1911).
 Father of the scientific management movement.
 Scientific management principles.
 Replacing traditional, rule of thumb methods of work
accomplishment with systematic, more scientific methods of
measuring and managing individual work elements;
 The scientific study of the selection and sequential
development of workers to ensure optimal placement of works
into work roles;
 Obtaining the cooperation of workers to ensure full application
of scientific principles; And.
 Establishing logical divisions within work roles and
responsibilities between workers and management.
The Origins of Scientific
Management
 Henri Fayol’s general theory of management (six
principles, 1916, 1949).
 Technical (production of goods)
 Commercial (buying, selling, exchange).
 Financial (raising and using capital).
 Security (protection of property and people).
 Accounting.
 Managerial (coordination, control, organization,
planning and command of people).
The Origins of Scientific
Management
 Fayol (contd.).
 Dominant principle was management.
 Division of work.
 Authority and responsibility.
 Discipline.
 Unity of command.
 Unity of direction.
 Subordination of individual interest to general interest.
 Remuneration of personnel.
The Origins of Scientific
Management
 Fayol (contd.).
 Dominant principle was management (contd.).
 Centralization.
 Scalar chains (supervisors).
 Order.
 Equity.
 Stability of personnel tenure.
 Initiative, and.
 Esprit de corps.
In social work, we differentiate
between perspectives, theories, and
models
 A perspective is an approach to practice that involves basic
value assumptions about best practices. For example, the
strengths perspective tells us to look at the individual’s,
community’s, or organization’s strengths rather than deficits.
Perspectives give us only very general information about the
outcomes specific actions will produce.
 A theory contains assumptions about cause and effect
relationships that have been established as valid through
empirical testing. Theories help us link specific actions or
interventions with specific outcomes.
 Practice models provide detailed frameworks for understanding
social problems and developing responses to those problems.
Models include, a theoretical framework, an intervention
approach, and probable outcomes associated with this approach.
Historical overview of
organizational theory
 Weber – developed organizational theories in early part of the
20th century based on German models of public organizations.
Ideal organizations had organizational structures, clearly defined
supervisory structures, and standardization of tasks. Decision-
making was to be rational (objective) and not based on political
motives.
 Taylor developed “Scientific Management.” This method was to
be used by managers find the most efficient or scientific method
for breaking down work into concrete tasks that could be
assigned to individual workers. Efficient performance was
expected to maximize work output (Scott, 1987). Often efficiency
“experts” were brought in to industrial plants to conduct time and
motion studies to find the best allocation of staff resources and
skill assignments
The Many Meanings of
Bureaucracy
 First, “the bureaucracy is the totality of
government offices or bureaus that constitute
the permanent government of the state.
 Second, “the bureaucracy” refers to all of the
public officials of a government, both high and
low, elected and appointed.
 Third, bureaucracy is often used as a general
invective to refer to any inefficient organization
encumbered by red tape.
The Many Meanings of
Bureaucracy
 Fourth, bureaucracy refers to a specific set of
structural arrangements (Max Weber).
 Bureaucrats are free as individuals, but not as
employees.
 Hierarchy.
 Clearly specified functions.
 Freedom of hiring.
 Appointment by merit.
The Many Meanings of
Bureaucracy
 Fourth, bureaucracy refers to a specific set of
structural arrangements.
 Due compensation and due process.
 Sole occupation.
 Advancement by merit or seniority.
 Non-proprietary rights in position.
 Strict controls.
Basic assumptions of the systems approach are
incorporated into many theories about how
organizations work:
 Organizational systems change constantly through
interaction and exchange with their environments.
 Effective organizational systems are highly open –
but boundaries between the organizational system
and its external environment are well defined.
 Organizational systems may be orderly and
predictable but may also be disorderly and
unpredictable.
 Order may rest on coercion and domination as well
as consensus and cooperation.
 Places equal emphasis on conflict and change as
order and stability.
Human Relations Theory
 Originates from experiments conducted on plant works at an
AT&T factory in Chicago the Hawthorne effect).
 The researchers found, among other things that people simply
react and change their behavior in response to being observed.
 Other major findings were that organizations have unique cultures
influenced by the values of participants and the fact that people
tend to form groups. Consequently, most workplaces contain
informal leaders who may influence the behavior of other workers.
 These leaders and the values shared by group members
influence how workers perform.
 Mayo, the primary researcher, based his theory on the
assumption that managers should attempt to use these group
norms to influence and motivate workers.
 He also argued that workers need to feel that they have a certain
amount of control over their own work. They should also be given
awards for performance. He also felt that workers perform better
in teams or groups.
Other theories focus on:

 Organization structure.
 Organization culture and groups of people
interacting in organizations.
 How organizations adapt to external
demands.
 How power is achieved and used in
organizations.
Neoclassical Organization
Theory
 The neoclassical theorists gained their
reputation by attacking the classical theories.
 Important source of the power and politics,
organizational culture, and systems theory.
 Herbert Simon.
 Bounded rationality and satisficing.
 Programmed and unprogrammed decision-making.
 Management information systems.
Neoclassical Organization
Theory
 The impact of sociology.
 Philip Selznick – Organizations are made up of
individuals whose goals and aspirations may not
coincide with the organization’s.
Modern Structural
Organization Theory
 Basic assumptions
 Organizations are rational institutions whose primary
purpose is to accomplish established objectives
through control and coordination.
 There is a “best” structure for any organization in light
of objectives, environment, products or services, and
the technology of the production process.
 Specialization and division of labor increase the
quality and quantity of production.
 Most problems result from structural flaws.
Modern Structural
Organization Theory
 Mechanistic and organization systems.
 Mechanistic – traditional bureaucracy, best in
stable conditions.
 Organic – less rigidity, more participation, and
more reliance on workers, best in dynamic
conditions.
Systems Theory

 Systems theory views an organization as a

complex set of dynamically intertwined and
interconnected elements, including inputs,
processes, outputs, feedback loops, and the
environment. Any change in one element
causes changes in other elements.
Systems Theory

 Cybernetics – Norbert Wiener (1948).

Systems Theory

 The learning organization.

 Built on the doctrines of participation
 Maslow’s hierarchy of needs.
 New component technologies (the five disciplines).
 Personal mastery.
 Mental models.
 Building shared vision.
 Team learning.
 Systems thinking.
In social work:
 Strengths and Systems Approaches are
Perspectives.
 The systems perspective can be used to create a
model of the different component parts of
organizations and their environments.
 Empowerment is a perspective, is a distinct model
of practice, and is a theory in development (some
empirical testing and identification of specific types
of outcomes).
Models of Organizational Practice Include
 Theory X. Control, discipline, and sanctions are needed to force people to do their
work.
 Theory Y. Management can take action so that employees will become motivated to
do their work. All workers are to be regarded as goal-oriented and as having potential
to further develop their own talents and skills.
 Contingency Theory – Employees are motivated by different things, but need to
achieve a sense of competency. Therefore the manager must provide appropriate
incentives to motivate individual employees.
 Human Relations Approach. To maximize performance, staff members need
autonomy, involvement in management decisions, and appropriate rewards. People
react as group members.
 Theory Z – focuses on quality of production, collective accountability and loyalty.
Decisions are made by consensus.
 Participatory Management – Staff involvement in organizational decision-making
increases job satisfaction and productivity; decreases staff turnover.
 Feminist Management - Fights oppression; creates “management partnerships”
among participants; assumes women manage differently then men, focusing on
interpersonal relationships rather than traditional approaches to power & authority.
Decisions are made by consensus & cooperation.
 Total Quality Management – Management produces an organizational culture
based on product quality, consumer satisfaction, standardization of production, and
employee empowerment.
Empowerment Model in Social Work
Practice
Social Worker Constituent Organization

Role Facilitator Change Agent Resource

Provider
Practice Information Self-Advocacy
Activity Forms Self- Group Member
Help Groups Decision-maker
Leadership Political Activist
Training Evaluator

Outcomes Worker Self- New Skills Constituents

Efficacy Self-Efficacy Political Power
Policy Change Political Power Better Service
Empowerment Model in Organizations

Social Worker Constituent Organization

Role Facilitator Change Agent Provides
Decision-maker Opportunities for
Decision-making
Process/ Provides Information Self-Advocacy Provides
Tasks Provides Leaderships Group Member Resources & Staff
and Skills Training Board Member Provides Support
Facilitates Self-help Program Planner for Groups
Groups Researcher Links Local
Raises Critical Networks to
Lobbyist Institutions
Consciousness
Political Activist Provides Effective
Identifies Informal
Networks Establishes Services
Strong Networks Facilitates
Political Activism
Empowerment Outcomes

Social Worker Constituent Organization

Role Facilitator Change Agent Provides
Decision-maker Opportunities for
Decision-making
Outcomes Increases Own Increase Own Recruits Skilled
Skills Skills Constituents/
Personal Personal Volunteers
Empowerment Empowerment Better Response to
Delivers Effective Acquires Client Needs
Services Resources Improves Service
Power to Change Power to Change Effectiveness/
organization Organization Utilization
Political Activist Participation in Political Power
Social/Political
Action
Theoretical Components of Empowerment
Model
Systems and Ecological Approaches (practice should occur at multiple levels – personal, inter-

personal, and political). We also should be knowledgeable about how different systems interact and/or
compete with one another.
 Human relations/Participatory Management. Staff should be involved in organization decision-
making. To motivate workers, managers must provide opportunities, training, and incentives to help
workers obtain a sense of competence.
 Contingency Theory. Ecological Perspective – social problems occur when individuals interact with
the social environment. There is continuing competition for resources.
 Conflict Theory – Various social groups in society and within the organization compete for resources.
Allocation of services is often determined by perceptions of in-group versus out-group status of
recipients. Members of oppressed groups should acquire power in order to gain resources and civil
rights.
 Feminist Theory – organizations should minimize the social distance between administrators, staff, and
clients. All should be partners in decision-making.
 Transformative model/Social constructivist paradigm-Service consumers should be equal partners
with staff in decision-making process. Service users/consumers reduce own feelings of oppression and
low self-esteem by engaging with the organization in social action.
 Power-dependency Theory. Clients who receive free services are dependent upon or can controlled by
the organization. Therefore service delivery should incorporate the principle of reciprocity (service users
contribute something back to the organization). The organization should create structures that help
service users obtain power.
 Political-economy Theory. People inside the organization represent a variety of different constituency
groups with different amounts of power. People within the organization are influenced by the
organization’s external environment. The manager must reconcile internal/external demands on the
organization. One way to do this is for the organization and its members to develop sources of political
power.
 Total Quality Management. Work teams develop quality indicators and work to achieve these goals.
This method results in the psychological empowerment of workers and improvements in service quality.
Introduction to Start-up.com:
Understanding Organization
Culture
 Values and perspectives of organization participants influence
how organizations function.

 The organization’s mission and the philosophy of managers and

other decision-makers influence what the organization can do.

 Participants bring their own experiences and ways of interacting

into the organization.

 Organization structure and technology also influence how the

organization operates and the influence the organization has on
its members.