A Brief Analysis of Organizational Theories

A Brief Analysis of Organizational Theories

Abstract

The purpose of this paper is to will analyze four organizational theory contributions and evaluate their impact on present and past work structure and behavior. Based on all four organizational theory contributions, the author will select and reason the most influential among the theories by using personal, historical and managerial perspectives.

 To understand an organization, we must explore its behavior and how it impacts its operations, workplace, and employees. For decades, the study of organizations has created scientific approaches to help business professionals and leaders understand their modern business. In this paper, we will analyze four organizational theory contributions and express the differentiation and impact each contribution has provided to current work management. Lastly, we will provide a perspective approach that focuses on the most influential contribution based on its historical and leadership context.

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Max Weber, a sociologist influenced by social and historical perspective, believed organizations should look like the legal system. Henceforth, he developed the bureaucracy model. Bureaucracy relied on a “legal-rational” approach where organizations established non-traditional authority systems to be in charge of large groups of people. He saw most workplaces favor to familiar people and kinship when it came to hiring and making decisions; therfore, organizations didn’t have the skill-based employees needed working for them. As a result, in bureaucracy, an employee must act as if their authority is tied to their position as long as they’re employed with the organization. In fact, Weber believed the presence of clear rules and guidelines would optimize performance and staffing while lessening issues such as workplace favoritism. Bureaucracy can be seen in organizations with referral programs, structure, and leadership management.

Early theorist, Frederick Taylor, was interested in bringing efficiency and productivity within the workplace. He believed by providing simple procedures and fair paying opportunities, employees would be more productive and efficient in their work output. As a result, Taylor created the scientific management theory. Scientific management presents a “one-way” approach, meaning there’s only one method to completing tasks. Managers focused on training and specializing employees for tasks while employees managed the tasks itself; there was no room for common sense or suggestions. During its time, scientific Management was adopted by industrial companies which value methods that would result in mass production.  Over the years, the theory became a dislike among employees and managers; the idea of lack of judgment and definition of humanity within work brought on the demise of scientific management. Although Scientific Management is no longer used for management approaches, today, it is still used as instructions and procedures for product and technical guides.

At the same time, another organizational approach was developed; a theory opposing Frederick Taylor’s. Rather than a logical approach, Henri Fayol wanted to create a rational perspective where administrative processes was the focus versus technical processes ( Lagarraed). In similar, both Taylor’s and Fayol’s approach entailed specialization for task performance. Also can be understood as departmentalization, specialization would group employees with similar training and skills into small departments. Fayol believed managers should be confident in their managerial skills such as planning, compliance, coordination, and compliance, therefore, continuing education became important. Today, with a “top-down” logical approach, you can see Fayol’s theory being using in militant organizations. Fayol was heavily criticized for not including all details of administrative processes. In fact, the administrative theory was most criticized by theorist Herbert Simon.   

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Herbert Simon developed the administrative behavior theory from Taylor’s scientific management theory. At a macro-level, he focused on the process of decision-making within an organization. He believed humans couldn’t gain all information necessary to make full logical decisions; instead we utilize the information we have and create good results. He described this theory as limited rationality. The administrative behavior theory focuses on how the decisions of staff can directly affect organizational goals. An organization that centralizes an authority figure within a group or department would also bring good results; the authority would focus on the “what” decisions and the employee focused on the “how” decisions. Today, you can see the administrative behavior theory within strategic departments such as human resources, marketing, and sales.

After analyzing four organizational theory contributions, based on historical and present perspective, Weber’s bureaucracy model is the most influential theory. In the past, bureaucracy created many good limits for an organization to run effectively. For instance, leaders began to develop clear rules and decisions for organizations; adding more focus to operations. Authority figures who resigned from their position no longer had influence within the organization. Processes were created to separate work into smaller steps. Lastly, bureaucracy brought on the policy of providing equal treatment to all employees regardless of relationship to higher management or ownership. Today, the impact of bureaucracy has created multiple departments and positions within organizations to create structure of limitations for management and employees. There’s a policy for most company issues to assist in compliance, safety, and functionality.

Overall, this paper has informed readers of the difference and impact of each organizational theory contribution. These concepts impacted the development of today’s organizational theories by providing a starting point in revolution in organization management and operations. Each concept has brought a strategy and process we utilize today. In addition, the influence of organizational theory improved the outlook of work and even made organizations look at their culture as vital to their goals.

References