Organizational Theories Flashcards
(84 cards)
Classical Theory
Focuses on organizational structure and economic efficiency, ignoring employee needs.
Components of Classical Theory
- A system of Differentiated Activities- There are different activities each individual perform, and each of these activities are linked on with each other.
- People- Different people have different tasks and activities they need to perform.
- Cooperation Towards a Goal- Cooperation between these individuals is a must in order for the organization to reach their goal.
- Authority- This is the superior and subordinate relationship between the employees. This is important to achieve the cooperation needed.
Four Major Structural Principles of Classical Theory
- Functional Principle
- Scalar Principle
- Line / Staff Principle
- Span of Control Principle
Functional Principle
Divides organization into units with similar tasks for specialization
Scalar Principle
Refers to vertical growth and chain of command (e.g., promotions).
Unity of Command
Each subordinate reports to one supervisor to avoid fragmentation.
Line Functions
Roles directly responsible for organizational goals (e.g., managers).
Staff Functions
Support roles (e.g., HR, quality control).
Span of Control
Number of subordinates a manager supervises (flat vs. tall orgs).
Scientific Management (Taylorism)
The organization itself is a machine, the primary focus of the individuals is to run more effectively to achieve its goals
Taylorism
has a premise that there is one best way to get the job done
Time and Motion Studies
Analyzes work conditions to boost productivity (Taylor/Gilbreth).
Bureaucracy (Weber)
Formal, hierarchical, rule-based, impersonal organization.
What are the 6 major principles of Bureaucracy
- A formal hierarchical structure: Each level control the level below it. A formal hierarchy is the basis of central planning and centralized decision-making
- Rules Based Management: Strictly adheres to rules to have control within the organization.
- Functional Specialty Organization: Each specialization has their own activities and responsibilities.
- Up-focused or in-focused: If the mission of the organization is to serve the stockholders, board, or any other agency that empowered it, then it is up-focused. On the other hand, if the mission is to serve the organization itself and those within it (like generating profits, etc.), then it is in-focused
- Impersonal: They treat all employees equally, no matter what the circumstance of an individual, all is fair and square, they will strictly adhere to the rules.
- Employment-based on Technical Qualifications: Selection as well as the promotion of employees is based on technical qualifications and skills
Delegation of Authority
approach whereby supervisors assign tasks to separate employees and hold them responsible for completing these tasks
Micromanagers
information about which lower-level employees report to higher-level employees
Administrative Management (Fayol)
Aims to improve organizational productivity by focusing on methods that managers can use to synchronize internal processes
Division of Specialization
Assign each employee a task that they can become specialized and proficient with. Productivity increases as employees become more skilled, assured and efficient
Differentiate what is Employed, Underemployed, and Unemployed
a. Employed: working in the person’s chosen field of specialization
b. Underemployed: employed in a field that is not under a person’s specialization
c. Unemployed: no work
Authority and Responsibility
Managers should have the authority of issue commands, but it comes with responsibility to ensure the work gets done
Unity of direction
Each workgroup or department is working under a singular plan that coordinates effort (guided by one supervisor)
Subordination of Individual interest
interests of individuals are subordinate to the general interests of the group or department of company
Centralization
A management style where decision-making power is concentrated at the top of an organization
Scalar Chain
Hierarchy of authority that places workers below managers in the reporting structure