historical development of organizational theory

7/31/2019 Historical Development of Organizational Theory

1/14

Organizational Theory and ItsHistorical Development


2/14

Organizational Theory

Organization: Co-Ordinated social entity ofPeople Working for common goal

Organizational theory: The discipline that

studies the structure and design of Organization


3/14

Scope

Strategy/Finance: Achieve results by structuring activitiesand designing organizational processes.

Marketing :To create a successful corporate brand theyneed to get the organization behind the delivery of itspromise.

Information Technology : The way information flowsthrough the organization affects work processes andoutcomes,It help IT specialists identify,understand andserve organizations need as they design and promote theuse of their information systems.

Human Resourses :Organizational development and

change are particularly important element of HR thatdemand deep knowledge of organizations andorganizing,and organization theory can provide contentfor executive training programs.


4/14

Why to Study.?

Early ContributionBible Contributions

Roman Contribution

Adam smith and Contribution1776-An Inquiry into the Nature and Causes of the

wealth Nations

Division of Labors


5/14

Emile Durkheim

French Sociologist

The Division of Labor in Society

extended Smiths ideas about the structural

shift from agricultural to industrial societiesbrought about by the industrial revolution.

Distinction between the Informal and FormalOrganization

Placed attention on workers social needs inaddition to the demand of formallyorganising work.


6/14

Karl Emil Maximillian (max) Weber

Ideal Structure of Bureaucracy Division of labor

A clear authority Hierarchy

Formal Selection ProcedureDetailed rules and regulations

Impersonal relationships spr


7/14

F. W. Taylor and Scientific Management

PrinciplesThe replacement of a workers job with

Scientific determination

The scientific selection and training of workers

The co-operation of management and labor toaccomplish work objectives, in accordancewith the scientific method

A more equal division of responsibilitybetween managers and workers; where formerdoing the planning and supervising and latterdoing the execution


8/14

Henryi Fayol, Administrative Theorist

Principles of Organization Division of Work Authority Discipline Unity of command

Unity of Direction Subordination of Indusial interest to the general

interests Remuneration Centralization

Scalar Chain Order Equity Stability of tenure of personnel Initiative

Esprit de corps


9/14

Luther H. Gulick , Admistrative Theorist

In 1936,Professor of Muncipal Science andAdministration at Columbia.

Notes on theory of Organization

built on Fayols theory that organizationalefficiency could be increased by dividingWork into small pieces,specialisedsegments,alloting the work to those skilled in

that specific segment.


10/14

Chester Barnard and Co OperativeSystems

Organization-

Task and People

A Co-Operative System

He Presented his Ideas in the Functions ofthe executive-Experiences with AmericanTelephone and Telegraphs

Challenging the classical view ( Authorityflowing top to down) and Favoring theInformal Organization to OrganizationalTheory


11/14


12/14

Douglas McGregor and Theory X-Theory YTheory Y Employees can view work as being as natural as

rest or play

Human Beings will exercise self direction and selfcontrol if they are committed to the objectives

The average person can learn to accept, even seek,responsibility

Creativitythat is , the ability to make gooddecisions-is widely dispersed throughout thepopulation and is not necessarily the sole provinceof those in managerial function


13/14


14/14

historical development of organizational theory

Documents