The document discusses Max Weber's theory of bureaucracy and how industrialization led to changes in organizational structure. As technology advanced, work became separated from home into specialized jobs with less customization and more efficiency. A hierarchy developed within organizations to coordinate different roles. Industrialization resulted in three main production systems - continuous, bulk, and customized - with organizations structured differently depending on their system. Externalities and social stratification are also referenced.
The document discusses Max Weber's theory of bureaucracy and how industrialization led to changes in organizational structure. As technology advanced, work became separated from home into specialized jobs with less customization and more efficiency. A hierarchy developed within organizations to coordinate different roles. Industrialization resulted in three main production systems - continuous, bulk, and customized - with organizations structured differently depending on their system. Externalities and social stratification are also referenced.
The document discusses Max Weber's theory of bureaucracy and how industrialization led to changes in organizational structure. As technology advanced, work became separated from home into specialized jobs with less customization and more efficiency. A hierarchy developed within organizations to coordinate different roles. Industrialization resulted in three main production systems - continuous, bulk, and customized - with organizations structured differently depending on their system. Externalities and social stratification are also referenced.
All types of companies have the same structures as the organization.
INDUSTRIALIZATION PROCESS
Pre Industrialization Post Industrialization
• Work from home
• Separation of work from home • Jobs were delineated • Customized product • No Customization • Generation of professionals • More efficient • Less efficient • Hierarchy was developed Contingency theory It is said that as technological advancement increases it affects the types of organizations that require different types of organizational structure. It has three types of production systems: • Continuous Production System • Bulk Production System • Customized Production System Externality: It refers that when two parties’ economic transaction affects the other.