Organization theory

The study of organizations draws on a number of disciplines:-

Economics

Classical economics viewed the firm as a single decision-unit engaged in maximizing profits. It ignored the
possibility of conflict between owners, managers and employees. The obsession with competition failed to take
into account the other goals which may take precedence in organizations. Organization theory partly owes its
existence to a reaction against such simplistic ideas. It became necessary to understand behaviour which
seemed - in classical terms - to be irrational.

Psychology

Psychology is a wide-ranging subject. Early psychologists provided an insight into individual behaviour within
organizations particularly on aspects of motivation and leadership. The Hawthorne studies led to a realization of
the importance of social phenomena, such as the informal groups, group norms and conformity. Valuable as
these micro-level studies were, they suffered from the problem of reductionism, making it difficult understand the
link between the behaviour of individuals and the structure of the organization in which they worked.

Sociology

Organizational sociologists took a wider perspective, setting the organization within its environmental framework -
specifically in relation to society and its institutions. Some sociologists have examined formal organizational
structures, particularly in relation to technology (for example, Burns and Stalker, 1961). Morgan (1986) provides a
(by now) classical interpretation of organizations as a series of metaphors. Dating from Weber's early work on
bureaucracy, sociologists have taken a particular interest in non-profit making organizations.

Systems theory

Organizations are not merely physical, they are also social and technological systems: they are multi-
dimensional, with aspects which are unmeasurable. Drawn from physical and engineering models, systems
theory considers organizations as systems with boundaries which make exchanges with the environment and
must adapt to environmental changes in order to survive. Organizations are open systems which interact directly
with the environment. They have:

* Inputs. For example, taking in raw materials, finance and recruits from the outside world.

* Outputs. They provide products and services, and pay wages and dividends. Technology and human resources
transform inputs into outputs.

The systems approach has become popular with the advance of information technology. Computers and
telecommunications are increasingly important, integrating organizations in the same way that the nervous
system controls and coordinates the human body. Organizations are changing in line with new technical
possibilities, yet organizations cannot be viewed simply as communications networks - the human dimension
cannot be forgotten.

Organization theory has attracted critical attention. Thompson and McHugh, for example, have argued that there
is a tendency for a narrow 'management plus psychology' perspective which has little to do with real-life
enterprises. In an attempt to produce a science of organizations, the main focus has been on identifying
generalizations about behaviour in work situations and applying them to all organizations, regardless of their
nature. In particular, theorists have paid scant attention to the differences between organizations which are
subject to market forces and those which are not. Thompson and McHugh contend that it is not meaningful to
treat organizations as diverse as scout troops and transnational companies within the same analytical framework.
This has resulted in a massive - but vague and over-theoretical - body of literature with little practical value.

Organizational studies, organizational behaviour, and organizational theory is the systematic study
and careful application of knowledge about how people - as individuals and as groups - act within
organizations
Theories and models of organizational studies

Decision making

 Mintzberg's managerial roles

 Rational Decision-Making Model
 Scientific management
 Garbage Can Model

Organization structures and dynamics

 Bureaucracy
 Complexity theory and organizations
 Contingency theory
 Evolutionary Theory and organizations
 Hybrid organisation
 Incentive theory (organization)
 Informal Organization
 Institutional theory
 Merger integration
 Organizational ecology
 Model of Organizational Citizenship behaviour
 Model of organizational justice
 Model of Organizational Misbehaviour
 Resource dependence theory
 Transaction cost
 Hofstede's Framework for Assessing Cultures
 Mintzberg's Organigraph

Personality traits theories

 Big Five personality traits

 Holland's Typology of Personality and Congruent Occupations
 Myers-Briggs Type Indicator

Control and stress modelling

 Herzberg's Two factor theory

 Theory X and Theory Y

Motivation in organizations

Motivation the forces either internal or external to a person that arouse enthusiasm and
resistance to pursue a certain course of action. According to Baron et al. (2008)[6]: "Although
motivation is a broad and complex concept, organizational scientists have agreed on its basic
characteristics. Drawing from various social sciences, we define motivation as the set of
processes that arouse, direct, and maintain human behavior toward attaining some goal"

Description of Organization Theory

Organization Theory offers a clear and comprehensive introduction to the study of organizations
and organizing processes. It encourages an even-handed appreciation of the different perspectives
contributing to our knowledge of organizations and challenges readers to broaden their intellectual
reach. Organization Theory is in three parts: BL Part I introduces the multi-perspective approach.
BL Part II presents many ways in which organizations can be analyzed - as entities within an
environment, as social structures, technologies, cultures and physical structures, and as the
products of power and political processes. BL Part III explores applications of organization theory
to the practical matters of organizational design and change, and introduces the latest
perspectives on the horizons of organization theory, including complex adaptive systems,
organizational identity theory, critical realism, network theory, aesthetics, and organizational
learning. Online Resource Centre For lecturers: PowerPoint slides, exam questions, teachig
suggestions, a discussion forum, case studies and exercises with instructor's notes. For Students:
annotated web links, and discussion questions.

Reviews

"Organization Theory is unique among textbooks in organization and management. It is

theoretically acurate, giving a comprehensive and up-to-date view of this dynamic, diverse and
quickly developing field. In addition, the book is written in such a way that it encourages a
reflexive stance towards both academic theory and organizational practices. We have used the
bookextensively in our undergraduate education, and it has proved to enrich students'
understanding of this important field of theory and practice."
- Rolf Lind, Stolkholm University School of Business

"I very much welcome this second edition of Organization theory . As a textbook it is not only
comprehensive and instructive but also original and evocative - it makes a significant contribution
to the study of organizations. In particular the book demonstrates convincingly the advantages of
taking a multiperspectival approach to organization theory. Taking the student through the
complex literatures of modern, symbolic, and postmodern analysis it offers the reader a repetoire
of new ways of understanding complex organisations. In my view it is a must for students of
organization."
- John Hassard, Manchester University

"The instant success of Mary Jo Hatch's Organization Theory when it was first published in 1997
demonstrated that this text was badly needed... But even the best textbooks age, and therefore it
is a great relief to see that Mary Jo Hatch continues to update her book. This is a livig text, which
reports the most recent developments in organizational theory and practice, and both teachers
and students can continue to use it with full confidence."
- Barbara Czarniawaska, Goteborg University

"Mary Jo Hatch;s textbook was brilliant the first time it was published. Now, revised jointly with
Ann Cunliffe, it is even better. Hatch and cunliffe do not merely summarize major perspectives and
trends in organization theory for the reader, They provide an organizing framework for making
sense of it perplexing density, while, at the same time, being sensitive to the forced synthesis any
integrative summarizing may entail.. This is a marvellous textbook."
- Haridimos Tsoukas, Athens Laboratory of Business Administration (ALBA) and Warwick University

"Textbooks are supposed to cover the ground so that the student is introduced to a field or to an
area. ncovering is much harder; uncovering involves the bringing in of innovative and marginalized
knowledge to a field through exposure to perspectives that refresh and challenge it. Students who
read this book should open their minds; by contrast, many textbooks in organization theory erect
strict boundaries and manage foreclosures on contexts, politics and public issues. Theycover
things. Hatch and Conliffe cover - but they also uncover."
- Stewart Clegg, University of Technology, Sydney

"Review from previous edition I like the different perspectives presented rather than simply the
modern which seems to be typical of most popular texts in this area."
- J. G. Whinney, Senior Lecturer, University of Ulster

"A comprehensive introduction to the study of organizations, with an appraisal of the different
perspectives that have contributed to the knowledge of organizations. The volume is developed in
three parts. Part 1 introduces the multi-perspective approach. Part 2 explores the ways in which
organizations are analysed, notably as entities within an environment, as subjects of strategic
action, as technologies, as structures, as cultures and as physical structures. Part 3 covers topics
of central importance in organization theory including decision making, power, conflict, control,
and change within organizations."
- International review of Administrative Sciences (IRAS) Number 1. 1999.

"It is not often that you can read a work on organization theory that you feel that you can
recommend to students and to practising managers. Mary Jo Hatch's book provides a good read
for both groups. It presents a range of theories in a useful, attractive and accessible format that
will not only enable aspiring managers to come to grips with what is going on around them, but
will also enable more experienced practitioners to understand and influence what occurs in their
organizations."
- Professor Iain Mangham, School of Management, Bath

"Organization Theory is both a historical testimony and a peek into the future, and it will be the
main guide to organization studies well into the 2000s.'' - Barbara Czarniawska-Joerges,
Gothenburg University, Sweden
"Few books so successfully communicate the spirit and possibility of enquiry ... Here students will
learn, and learn to use for themselves, modernist, symbolic, and postmodern perspectives ... If
you want a current text that is broad, coherent, and reader-friendly, then look no further!"
- Stewart Clegg, University of Technology, Sydney, Australia

"A useful summary of the historical perspective."

- Long Range Planning