Sunday 26 Feb

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An Overview of Organizational Theory:

Who’s running this place and what are theythinking?

Mary Cowan M.S.R.S. ARRT RT R

What is organizational theory?

• https://youtu.be/lqk3TKuGNBA?t=139

• Attempts to describe the nature, behaviors, and structure of organizations and the individuals within them.

• Concerned with organizations as a whole

• Internal and External influences

• Stresses the interconnectedness of organizational dynamics

• Seeks to better understand the nature and importance of changes from within

Theories

• Organizational

• Classic

• Neoclassical

• Modern Structural

• Human Resource Frame

• Leadership

Sunday 26 Feb

2

Test your Tendencies

Organizational

• Classic

• Neoclassical

• Modern Structural

• Human Resource Frame

• “Organizations should work like machines…the first theories of organizations were concerned primarily with the anatomy, or structure, of formal organizations. This was the environment and the mode of thinking that shaped and influenced the tenets of classical organization theory” (Shafritz, Ott, & Jang, 2016, p. 34).

• While organization theory has evolved, the following fundamentals remain• Purpose of organizational theory is to carry out production-related and economic goals.

• Organizational theory arrived at by means of systematic, scientific inquiry.

• Maximize production with specialization and division of labor

• Participants follow rational economic principals

Classical Organizational Theory

Shafritz, J. M., Ott, J. S. & Jang, Y. S. (2016). Classics of Organization Theory (8th ed.). Boston, MA: Wadswoth Cengage Learning.

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• Common Themes:

• Practical division of tasks or jobs among workers

• The role of management in an organization

• Importance of trained, skilled workers and knowledge of tasks

Shafritz, J. M., Ott, J. S. & Jang, Y. S. (2016). Classics of Organization Theory (8th ed.). Boston, MA: Wadswoth Cengage Learning.

Classical Organizational Theory

Frederick Winslow TaylorFour Principles of Scientific Management

1. Make each workman’s duties a “science”

2. Select and trained the best workmen

3. Bring together all the workmen creating camaraderie

4. Divide the work evenly between management and the workmen.

Max WeberBureaucracy

• Fully developed and fixed areas under jurisdiction of laws or regulations

• Division of office authority into supervisor and subordination (office hierarchy) are clearly established.

• Written documentation about how management of “the office” is conducted

• Management of the office follows an exhaustive set of rules that is clearly embedded in the culture of the office.

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• No precise definition, this theoretical perspective revises and/or criticizes classical organizational theory.

• Particularly for minimizing humanness of

• Organizational members

• Coordination of needs of administrative units

• Internal/external organizational relationships

• Decision making process

Neoclassical Organization Theory

Neoclassical Organization Theory

• Simon (1946) argues that administrative theory of the neoclassical period is not based on sound principles, but is limited to proverbs.

• These proverbs are aimed at improved organizational efficiency and includes

• The specialization of tasks

• A hierarchy of authority

• A limited span of control

• An organization by purpose, process, clientele, place

Modern Structural Organization Theory

• Organization chart is “the” tool for this school of theorists

• Division of labor leads to differentiation = specialization

• Integration is required for coordination of work and control

• Rational organizations through systems of rules and authority

• Need to find “best” structure to meet objectives

• Specialization may increase quality and quantity

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Modern Structural Organization Theory

• Walker and Lorsh (1968) asked: “Should an organization be structured according to product or function?”

• Reasons to restructure for either a product or function system could be to minimize payroll cuts, or to utilize equipment, or maximize use of technical knowledge.

• Walker and Lorsh conducted a study, from the viewpoint of the behavioral scientist, to answer the above question. They used two similar plants, but one was organized by product and one by functional basis.

Observed characteristics of the two organizations in the study

Organized by Function

• Efficient, stable production, but less successful in improving plant capabilities

• Less differentiation, except in goal orientation

• Somewhat less effective integration

• Used confrontation conflict management, smoothing over, and avoidance

• Prevalent feeling of employee satisfaction but did not have less stress

Organized by Product

• Successful in improving plant capabilities, but less effective in stable production

• Greater differentiation in structure and time orientation

• More effective integration

• Confrontation to conflict, open, face-to-face communication

• Prevalent feeling of stress and involvement, less satisfaction

Bolman and Deal (2013) stated Human Resource theory draws upon the following assumptions:

1. “Organizations exist to serve human needs” (not the reverse).2. “Organizations and people need each other. Organizations need ideas, energy and talent;

people need careers, salaries and work opportunities.”3. “When the fit between the individual and the organization are poor, one or both suffer.

Individuals will be exploited, or will seek to exploit the organization or both.”4. “A good fit between individual and organization benefits both. Humans find meaningful

and satisfying work, and organizations get the human talent and energy that they need” (p. 127)

Human Resource Theory

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• Harvard professors led by Elton Mayo researched different variables to increase productivity at the Hawthorne Plant of the Western Electric Company near Chicago.

• Productivity of five workers was analyzed and experimented with over time to see if it decreased or increased productivity.

• https://www.youtube.com/watch?v=EEwCWR5Vkpw

Hawthorne Study

Alanis, M. (2013, July 11). The hawthorne effect: Why workers respond to more than just money (episode 117). Alanis Business Academy

Social Media

• https://youtu.be/97QyFPIxLAc?t=80

• https://youtu.be/F2k018hctZQ

• <iframe width="854" height="480" src="https://www.youtube.com/embed/F2k018hctZQ" frameborder="0" allowfullscreen></iframe>

Matching Frames to Organizational Situations• Are commitment and motivation essential to success?

• Human resource issues need to be considered when issues of dedication, energy, and skill are vital to success.

• Is technical quality important? • This is divided into two sections, does the decision require data and logic or does it need to be

looked at in more of a human resource, skills, or political manner. • Are ambiguity and uncertainty high?

• If clear goals are set forth and technology and behavior are predictable, then there is a likelihood for success.

• Are conflict and scarce resources significant? • Human resource logic seems to work best when resources are abundant and profits are high; this

would also seem to be a model for anything in life? Also, when resources are scarce and self-interest overtake, the outcome is less favorable.

• Are you working from the bottom up? • Restructuring is always an option for those in a position of authority.

Sunday 26 Feb

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Leadership Theories

• Bureaucratic

• Democratic

• Path-Goal

• Situational

• Ethical

• Leader-Member Exchange

• Political

• Systems

• Transformational

• Symbolic

• Transformative

• Servant

Leadership Theory

• Understanding by leaders a variety of viewpoints and factors

• Gives leaders a more comprehensive view of complex issues

• Helps make predictions

• Control and guide the organization

Bureaucratic Leadership Theory

• Facilitated through strong processes, polices, rules, regulations, and protocols

• Primary control over subordinates and standardization

• Role of the subordinate is very prescribed and often non-negotiable

• Focused on individual and organizational control

• Policies are used to sustain and increase control of authority.

• Promotions are based on productivity

• Communication is always directed upward

Nevarez, C., Wood, J. L., & Penrose, R. (2013). Leadership theory and the community college.

Sterling, VI: Stylus.

Sunday 26 Feb

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Test your Tendencies

• Organizational success is facilitated through strong policies and procedures

• Organizational success is facilitated through a strong chain of command

• Leaders should have complete control over their employees

• It is the leader’s responsibility to enact new policies when there are areas where polices are not evident

• Leaders should have complete control over the organizational environment

• Rewards are used as tools to control employees

• Policies drive organizational practices

• Employee worth is primarily measured through productivity

Democratic Leadership Theory

• Based on the principle that leaders use their influence to encourage participation and support employees from within

• Solicitation of thoughts and problem-solving skills are welcomed and encouraged

• Creates time and space to reflect, dialogue, and solicit various opinions

• Engages participants in the decision making process

• Employees are viewed as assets

• Supports professional development

• Feelings of shared governance

Test your Tendencies

• I prefer/enjoy collaborating with others.

• I prefer/enjoy investing in the personal and professional development of my staff.

• I believe that collaboration leads to the ‘best’ decisions.

• I am known for engaging others in shared decision making.

• I value the experience, insight, and knowledge of my staff.

• I spend a lot of time building a community/family-like atmosphere at work.

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Path-Goal Leadership Theory

• Centers on an assortment of leadership behaviors to motivate and allow employees to feel accomplished

• Leaders motivate employees in accordance with the needs of their work situations

• Leader behavior is dependent on four main factors:• The situation

• The needs

• The environment

• Characteristics of employees

Test your Tendencies

• I regularly engage staff in group decision making.

• I set challenging goals for employee performance.

• I motivate staff to accomplish desired goals.

• I keep my staff “in the loop” at all times.

• I make sure that my staff has all the resources they need to excel at work.

• I constantly push my staff to go beyond set expectations.

Situational Leadership Theory

• Based on the principle that the best course of action is based on the situation and given circumstances

• The effective decision may not focus on rules, procedures, or codes in place

• Instead, the decision is based off what is perceived as the best outcome for the organization

• Four guiding principles:• The relationship between the leaders and members

• The task at hand

• Degree of Authority

• Level of Maturity

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Test your Tendencies • I always consider the social landscape of my organization before making any decision.

• Effective decisions necessitate having a full understanding of a problem.

• I am aware of the power balance between leaders and followers in my organization.

• I always make sure I understand a problem fully before trying to fix it.

• Leaders who understand workplace relationships will make the most effective decisions.

• The leadership style employed by a leader is dependent upon the level of authority between leaders and staff.

• Leaders should always know the intricacies of a problem before trying to address it.

• I believe the best results are achieved by understanding staff members’ competencies.

Ethical Leadership Theory

• Of course involves “doing the right thing”

• Operates off three metatheories:• Dentololgy

• Teleology

• Axiology

• Dentology- states the best action is not a by-product, but the mechanism by which the outcome is sought

• Teleology-concerned with the end basis, outcome focused, and wants to promote the best outcome

• Axiology-concerned with virtues rather than values

Test your Tendencies

• Having strong rules, policies, and procedures will always lead to better organizational outcomes.

• Care and compassion typify my leadership style.

• Leaders should always adhere to the rules and regulations in place.

• Creating a sense of community at work is an ethical imperative.

• Following a policy is more important than the outcome of the policy.

• Sometimes you must ignore policies to do what is “right.”

• To be effective, a leaders must care about and affirm their staff.

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Leader-Member Exchange Theory

• Grounded in the idea that leaders should develop a relationships that is positive with both organizational affiliates and followers

• Philosophy is that all member benefit from high-quality interactions• Once the positive relationship has been formed, employee and member willingness

will follow• Each employee are given an opportunity to go above and beyond expectations and

set their own goals• Three phases:

• Stranger• Acquaintance• Mature Partner

Test your Tendencies

• I only invest myself in employees who “come through.”

• There are some employees that I purposely avoid interaction with.

• I am only loyal to employees who are loyal to me.

• I have a core group of employees that I am loyal to.

• I refrain from providing benefits to employees who do the bare minimum and/or do not meet my standards.

• There are some employees I don’t trust with information.

Political Leadership Theory

• Existing rules are an opportunity to renegotiate, modify, or create a new process to facilitate both short and long term goals

• Leads naturally to conflict which is a byproduct of competing for scarce resources

• Conflict is embraced and used to bargain

• Uses power to configure the organization in a way advances their power

• Levels of power• Legitimate

• Reward

• Coercive

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Test your Tendencies

• I contemplate my actions multiple steps in advance.

• I am a “power” player.

• I maneuver people and resources to meet my goals.

• I use the interests of my adversaries to gain advantage over them.

• My actions are designed to position myself (and my sub-unit) for future battles.

Systems Leadership Theory

• Concentrates on the importance of inputs, processes, outputs and outcomes

• Leaders’ primary role is to enhance the system efficiency through policies with increased communication

• Develop a clear strategic plan

• Allow multiple subsystems to work together

• Leaders enact policies, procedures, and interventions

• Each subsystem has a unique contribution• Familiarize with each subsystem

• Possess a firm grasp of the linkage between subsystems

• How each subsystem fits within the larger picture

Test your Tendencies

• A primary role of a leader is to facilitate inter-departmental linkages.

• I am concerned with the success of all departments in my organization.

• Individual and departmental success is dependent upon the efficiency of the institution.

• Each department/program must have a unique contribution to the greater institution.

• Organizational success is achieved by each sub-unit operating at maximum capacity.

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Transformational Leadership Theory

• Uses a two step process:• Guide and encourage by formal agreements

• Achievement beyond expectation

• Leaders take advantage of wide array of skills, roles, and behaviors• Work ethic

• Great communication

• Leading the way

• Multi-skilled leaders

• Affiliate development

Test your Tendencies

• I am known for being a great communicator.

• I have established a clear vision and strategic plan.

• I am known for “getting the job done.”

• I have many abilities and talents.

• I am attuned to the needs of my staff.

• I have a high degree of socio-emotional intelligence.

• I encourage the personal development of my employees.

• I inspire others with a sense of hope and optimism.

• Others are eager to hear what I have to say.

Symbolic Leadership Theory

• Uses symbols • Representations and ideas and indirect illusions to concepts and meaning the leaders want to

portray

• Meaning is constructed and interpreted from social interactions and messages• Documents, protocols, and policies are only important based on the meaning the

leader conveys• Must influence social reality• Uses words to describe employees

• Rock• Soldier • Pillar

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Test your Tendencies

• I have an advanced understanding of my organization’s culture.

• Others perceive me as charismatic.

• I often communicate ideas through the use of metaphors (e.g., pillar, soldier, rock, lion) to describe valued employees.

• I reinforce important values and principles by making them visible (e.g., posting an organizational mission statement, displaying core values).

• Leaders must embrace organizational tradition.

• I guide my staff ’s behavior by drawing upon elements of our organization’s culture.

Transformative Leadership Theory

• Social injustice orientated• Undergirded with notions of democracy

• Seeks to identify, challenge, and redress issue of marginalization, power, privilege, and subjugation

• Embraces diversity • Socioeconomic• Cultural• Linguistic

• Advocates for others • Learning Leaders• Cultural leadership is important

Test your Tendencies

• I am committed to social justice.

• I challenge the “status quo.”

• I am concerned with inequities facing diverse student communities.

• I am dedicated to advancing education equity.

• I have a strong will when it comes to overcoming injustice.

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Servant Leadership

• Serves other above all else

• Natural feeling of wanting to serve others

• Makes sure others highest-priorities are being met

• Long term transformational approach

Test your Tendencies

• I am traditionally valued for my communication and decision-making skills

• I strive to understand and empathize with others

• I accept and recognize others around me for their unique and special spirits

• I have the potential to heal myself and those around me

• I often rely on persuasion rather than authority

• Stewardship is very important to me and within an organization

USE your Tendencies

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References

• Alanis, M. (2013, July 11). The hawthorne effect: Why workers respond to

more than just money (episode 117). Alanis Business Academy

• Bolman, L. G., & Deal, T. E. (2013). Artistry,choice, and leadership, reframing organizations (5th ed.). John Wiley and Sons, Inc.

• Jang, S. O. (2016). Classics of organization theory (8E ed.). Boston, MA: Cengage Learning.

• Nevarez, C., Wood, J. L., & Penrose, R. (2013). Leadership theory and the community college. Sterling, VI: Stylus.

• Shafritz, J. M., Ott, J. S. & Jang, Y. S. (2016). Classics of Organization Theory (8th ed.). Boston, MA: WadswothCengage Learning.