3 org theories

Upload: nikita-ambre

Post on 04-Jun-2018

224 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/13/2019 3 Org Theories

    1/29

    Classical Theories of Organizations

    \\Theoretical Foundations

    1Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    2/29

    PREVIEW

    ReviewTheoretical Relevancy

    Minimizing MisunderstandingsClassical Theories of OrganizationsTaylors Theory of Scientific Management Fayols Administrative Theory

    Webers Theory of Bureaucracy

    2Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    3/29

    Organizational Communication

    Foundations REVIEW

    the process of creating, exchanging,interpreting (correctly or incorrectly), andstoring oral, nonverbal, and writtenmessages within (and across theboundaries of) a system of interrelated andinterdependent people working toaccomplish common tasks and goals withinan organization.

    MESSAGE-CENTERED DEFINITION

    3Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    4/29

    Assumptions and Features

    Communication is central to theexistence of the organization

    Organizational communication is acomplex process (creating, exchanging,interpreting, and storing messages)

    Misunderstandings occur

    4Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    5/29

    Misunderstandings

    Instances in which people who arecommunicating dont share meanings as well as situations in which featuresof organizational life serve to impingeupon the efficient and effectivefunctioning of organizational members.

    5Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    6/29

    Three Important ConstructsOrganizat ion al Ident i f icat ion (process & product)

    An active process by which individuals link themselves toelements (people, policies, products, services, customers,values) in the social scene.Involves an individuals sense of membership in andconnection with an organization.

    Jo b Sat isfact ion The degree to which employees feel fulfilled by their job andrelated experiences.

    A pleasurable or positive emotional state from the appraisalof ones job or experiencesLinked to absenteeism and turnover

    Com m unica t ion Sat i s fac t ionThe degree to which employees feel that communication isappropriate and satisfies their need for information and workrelationships6

    Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    7/29

    Communication Satisfaction (CSQ)Eight Factors concerned with communicationinformation, relationships, channels, and climate

    Communication ClimateRelationship to Supervisors

    Organizational IntegrationMedia QualityHorizontal and Informal CommunicationOrganizational PerspectiveRelationship with Subordinates

    Personal Feedback

    Communication satisfaction is often considered thesum of an individuals satisfaction with the abovedimensions.

    7Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    8/29

    Primary Goal Reducemisunderstandingsthrough communication.

    8Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    9/29

    Theory An explanation for how orwhy something occurs. . .

    Question: What is themost efficient and effectivemeans of running an

    organization?9Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    10/29

    Functions of Theory DescribeExplainPredictControl

    Classical approaches to organizationalmanagement and early organizationaltheories were designed to predict andcontrol behavior in organizations.

    10Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    11/29

    Classical Theories ofOrganizations

    Emerged in early part of the twentieth century.

    Models were military and the Catholic Church.FeaturesStrict CONTROL of workers

    Absolute CHAINS of COMMAND

    PREDICTABILITY of behaviorUNIDIRECTIONAL downward influence

    11Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    12/29

    Classical Theories of

    Organizations:Relevancy and Metaphor

    How and Why does studying classical theoryhelp us to understand how modernorganizations function and particularly therole that communication plays in effective

    organizing?

    What is the metaphor which characterizesthe classical approach to organizations?

    12Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    13/29

    The Metaphor of the MachineOrganizations are viewed as if they are machines.

    Managerial principlesModes of operation

    Treatment of workersCommunication in the organization

    Properties of MachinesVery predictableRarely deviates from the norm

    Replace defective parts with other standard parts Specific rules exist regarding repair and specific roles

    Organizational ApplicationWorkers behave predictably-management knows what toexpect

    Workers operating outside expectations are replaced13Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    14/29

    Minimizing MisunderstandingsSimple: Promote principles of SPECIALIZATION,STANDARDIZATION, and PREDICTABILITY

    STRICT RULES & REGULATIONS regarding . . .how work is accomplished,who could speak to whom and when, andmanaging through fear.

    PROBLEMSCreativity and intelligence are underutilizedIncreased dissatisfactionDecreased motivation and commitment to task andorganizationDecreased communication effectiveness and satisfaction14

    Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    15/29

    Distinguishing Classical TheoriesCreative Application Skit

    Theory Matchbook Definition Describe the theory in a nutshell

    Principles of ManagementMajor Elements of the Theory

    Application in the Modern WorkplacePersonal Example(s)

    How are misunderstandings minimized?What new forms of misunderstandings arecreated?

    Unintentional by-productsContributions to occurrences of different problems

    15Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    16/29

    Taylors Theory of Scientific Management Frederick Taylor (1856-1915)

    The Father of Scientific Management Maximize worker capacity and profitsPROBLEM: Get employees to work at their maximumcapacityPRIMARY FOCUS: TASKShttp://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.html

    Systematic SoldieringDeliberately working slowly as to avoid expanding more effortthan deemed necessaryReasons

    Reduction in workforce due to decreased needPiecework system of remuneration - raise productionrequirements without increasing payRule of thumb training methods - inefficient16

    Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

    http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.htmlhttp://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.htmlhttp://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.htmlhttp://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.html
  • 8/13/2019 3 Org Theories

    17/29

    Taylors Theory of Scientific Management Elements of Scientific ManagementScientific design of every aspect of every task

    Time and Motion StudiesCareful selection and training of every task

    Proper remuneration for fast and high-quality workMaximize output - increase pay

    Equal division of work and responsibility between worker andmanager

    Underlying ThemesManagers are intelligent; workers are and should be ignorantProvide opportunities for workers to achieve greater financialrewardsWorkers are motivated almost solely by wagesMaximum effort = Higher wagesManager is responsible for planning, training, and evaluating

    17Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    18/29

    Taylors Theory of Scientific Management Application in the Modern Workplace

    Assembly Line Plants as Prototypical ExamplesPrisoners of Taylorism

    System of Remuneration (quotas - commission)Re-Design - ReengineeringBenchmarkingData are used to refine, improve, change, modify,and eliminate organizational processesLean Manufacturing

    18Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    19/29

    Fayols Administrative Theory Henri Fayol (1841-1925)

    General and Industrial ManagementPrinciples and Elements of Management - how

    managers should accomplish their managerialdutiesPRIMARY FOCUS: Management(Functions of Administration)More Respect for Worker than Taylor

    Workers are motivated by more than moneyEquity in worker treatment

    More PRESCRIPTIVEhttp://www.lib.uwo.ca/business/fayol.html

    19Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

    http://www.lib.uwo.ca/business/fayol.htmlhttp://www.lib.uwo.ca/business/fayol.html
  • 8/13/2019 3 Org Theories

    20/29

    Fayols Administrative Theory Five Elements of Management -- Managerial Objectives

    PlanningOrganizing

    CommandCoordinationControl

    Keep machine functioning effectively and efficiently

    Replace quickly and efficiently any part or process thatdid not contribute to the objectives

    20Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    21/29

    Fayols Administrative Theory Fourteen Principles of Management (Tools for AccomplishingObjectives)

    Division of work - limited set of tasks Authority and Responsibility - right to give ordersDiscipline - agreements and sanctionsUnity of Command - only one supervisorUnity of Direction - one manager per set of activitiesSubordination of Individual Interest to General InterestRemuneration of Personnel - fair price for servicesCentralization - reduce importance of subordinates role Scalar Chain - Fayols bridge Order - effective and efficient operationsEquity - kindliness and justiceStability of Tenure of Personnel - sufficient time for familiarityInitiative - managers should rely on workers initiative Esprit de corps - union is strength loyal members

    21Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    22/29

    Fayols Administrative Theory Positioned communication as a necessary ingredientto successful management

    Application in the Modern WorkplaceFayols elements of management are recognizedas the main objectives of modern managersPlanning - more participatoryOrganizing - human relationships andcommunicationIMPORTANT TABLE 2.1 Comparison ofManagerial Skills (p. 32)Especially applicable for large organizations

    (military)22Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    23/29

    Webers Theory of Bureaucracy Max Weber (1864-1920)

    German SociologistTheory of Social and Economic Organization

    (1947)Principles and Elements of Management -describe an ideal or pure form of organizationalstructure (general policy and specific commandsPRIMARY FOCUS: Organizational StructureWorker should respect the right of managers todirect activities dictated by organizational rules andproceduresMore DESCRIPTIVE

    http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML 23Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

    http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTMLhttp://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTMLhttp://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML
  • 8/13/2019 3 Org Theories

    24/29

    Webers Theory of Bureaucracy Bureaucracy allows for the optimal form ofauthority - rational authority

    Three types of Legitimate AuthorityTraditional Authority - past customs; personalloyaltyCharismatic Authority - personal trust in character

    and skillsRational Authority - rational application of rules orlaws

    24Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    25/29

    Webers Theory of Bureaucracy Tenets of Bureaucracy

    RulesSpecified sphere of competence

    HierarchySpecialized TrainingWorkers do not own technologyNo entitlement to official position by incumbent

    Everything written downMaintenance of ideal type - bureaucracy

    25Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    26/29

    Webers Theory of Bureaucracy Concerned with describing the ideal structureof an organizationCornerstone: existence of written rules

    The rational application of written rulesensures the promotion of legitimate authorityand the effective and efficient functioning ofthe organization.

    26Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    27/29

    Webers Theory of Bureaucracy Application in the Modern Workplace

    Large organizations guided by countless rules arebureaucracies

    Linked with inefficient, slow-moving organizationsOrganizations have several characteristics ofbureaucracies

    27Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    28/29

    SUMMARY

    Classical Theories of Organizations (p. 36)Taylors Theory of Scientific Management Fayols Administrative Theory Webers Theory of Bureaucracy

    All 3 theories attempt to enhance managementsability to predict and control the behavior of theirworkers

    Considered only the task function of communication(ignored relational and maintenance functions ofcommunication)Designed to predict and control behavior inorganizations

    28Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions

  • 8/13/2019 3 Org Theories

    29/29

    NEXT WEEK

    Read CHAPTER 3: Humanistic Theories ofOrganizations(pp. 39-62)

    Human Relations TheoryThe Hawthorne StudiesMcGregors Theory X and Theory Y

    Human Resources TheoryLikerts Systems Theory (Four Systems of Management) Blake and Moutons (a.k.a. Blake and McCanse) ManagerialGrid

    29Prof Dr Satish Pai-CEO,PEOPLE PLUS BusinessSolutions