Analysis of All Four Theoretical Concepts of Organizational Theory And

Their Impacts on The Development of The Current Organisational Theories

MBA

University of the People

Course 5113

Instructor: Joaquin Angles

                    Introduction

        The organizational theory simply defines the behavior of individuals, groups, or subgroups who relate as a team to perform set goals or

tasks, to create success concerning common goals in an organization. This theory deeply studies the positive or negative effect of social

relationships between the individual within an organization, in conjunction with their output (actions) on the organization. Therefore, this

theory has developed into a distinctive social science discipline, a body of thinking and writing that tries to describe, explain, and sometimes

influence what goes on in organizations.  Nevertheless, during the past two decades, organization theory has also become increasingly

diverse in terms of the perspectives that organization theorists use to study these important social phenomena which affect so many aspects

of our lives. [McAuley, 2007]

        Modern organization theory is rooted in concepts developed during the beginnings of the Industrial Revolution in the late 1800s and

early 1900s. Of considerable import during that period was the research done by German sociologist Max Weber (1864—1920). Weber

believed that bureaucracies, staffed by bureaucrats, represented the ideal organizational form. Weber based his model bureaucracy on legal

and absolute authority, logic, and order. In Weber's idealized organizational structure, responsibilities for workers are clearly defined and

behavior is tightly controlled by rules, policies, and procedures. [INC, 2020].

Brief Analysis of Scientific Management

         Frederick Taylor's (1856-1915) Scientific Management Theory is a classic approach in organizational studies and Ford used Taylorism

more than most companies. Taylor's work over 100 years ago still influences our lives at work today. [Organizational Communication

Channel. (2016, September 2)]. Frederick Taylor believed that management was a science. He stated that there were set laws that could be

applied to the study of management and thereby get the desired results. Taylor strongly believed that one has to ascertain management with

scientific precision rather than sticking to the decision-making of the management. To sum up, scientific management in practice generally

tends to weaken the competitive power of the individual worker and thwarts the formation of shop groups, and weakens group solidarity;

moreover, generally, scientific management is lacking in the arrangements and machinery necessary for the actual voicing of the worker's

ideas and complaints and the democratic consideration and adjustment of grievances. [Lumen Learning. (n.d.).]

Administrative Theory

       Fayolism was a theory of management that analyzed and synthesized the role of management in organizations, developed around 1900

by the French management theorist Henri Fayol (1841–1925). It was through Fayol's work as a philosopher of administration that he

contributed most widely to the theory and practice of organizational management. Fayol developed the theory of management. According to

him managerial excellence is technical ability and can be acquired. He developed theories and principles of management which are

universally accepted and make him universalistic. [Edwards, R. (2018, January).] The administrative theory of management is focused on

principles that could be used by managers to coordinate the internal activities of organizations. Fayol observed a work stoppage and judged

it to be a management failure. He believed that organizational managerial practices are important for driving predictability and efficiency in

organizations. He believed that organizational managerial practices are important for driving predictability and efficiency in organizations.

[Wood, (n.d.).]
 

Bureaucracy: The foremost theorist of bureaucracy is the German sociologist Max Weber (1864–1920), who described the ideal

characteristics of bureaucracies and offered an explanation for the historical emergence of bureaucratic institutions. [Rockman, B.

(n.d.).].       Max also instituted the belief that an organization must have a defined hierarchical structure and clear rules, regulations, and

lines of authority which govern it. He believed bureaucracy was the most efficient way to set up an organization, administration, and

organizations. Max Weber believed that Bureaucracy was better than traditional structures. In a bureaucratic organization, everyone is

treated equally, and the division of labor is clearly described for each employee. According to the bureaucratic theory of  Max Weber, three

types of power can be found in organizations: traditional power, charismatic power, and legal power. He refers in his bureaucratic theory to

the latter as a bureaucracy. All aspects of democracy are organized based on rules and laws, making the principle of established jurisdiction

prevail. [Mulder, P. (2021, May 10).]

Administrative behavior: It asserts that "decision-making is the heart of the administration, and that the vocabulary of administrative

theory must be derived from the logic and psychology of human choice", and it attempts to describe administrative  organizations "in a way

that will provide the basis for scientific analysis". [Wikipedia contributors. (2021, June 6)]. Simon clarified the processes by which goal

specificity and formalization contribute to rational behavior in organizations. He criticized Fayol's platitudes and Taylor's "economic man"

assumptions, proposing the "administrative man" who pursues his self-interests but often does not know what they are, is aware of only

some of the possible decision alternatives, and is willing to settle for an adequate solution than continue looking for an optimal one. Simon

helps us understand how the decisions of hundreds or thousands of individuals in an organization can be directed toward ultimate

organizational goals. Simon sought to replace the highly simplified classical approach to economic modeling—based on a concept of the

single decision-making, profit-maximizing entrepreneur—with an approach that recognized multiple factors that contribute to decision

making. [Encyclopedia Britannica. (n.d.).]

Historical and Managerial Perspective of Bureaucracy

       The history of the idea of bureaucracy is also marked by changes in the public perception of the term. Before Weber defined the idea of

bureaucracy, the practice of rational organization of government services according to neutral merit-based qualifications was viewed as a

positive antidote to the nepotism and hereditary domination of traditional monarchical or ethnocentric forms of government. However,

across most of the globe, the recent history of the term suggests that it has had a largely negative influence upon society. One final

characteristic of the history of the idea of bureaucracy is the multitude of synonyms that have evolved to describe the practice or the idea of

bureaucracy in more neutral or passive terms, particularly within the past century. [Jordan, S. (n.d.).]

Specialization & Division of Labour: Specific set tasks allow employees to achieve their own objectives.

Rules & Procedures: Written policies help manage and direct the organization. Managers spend most of their time on how these policies

help to guide and function in the organization. [Zink, J. (n.d.).]

 Impersonal Environment: Under Weber's theory, relationships between employees are to be only professional only. The impersonal

environment characterized by bureaucracies is designed to promote decision-making that is based solely on facts and rational thinking.

Achievement-based advancement: Weber felt that promotions within an organization should be based solely on achievement, experience,

and technical qualifications. [Peek, S. (2020, April 27)].

 
The impacts of these concepts on the development of the current organizational theories.

       This theory was the pioneer theory of organizations and was the traditional theory of organizations in the 1930s and it is still relevant

today.  The advent of the industrial revolution and power-driven machines resulted in production workers and factory systems which led to

capital intensive and highly coordinated work processes. As a result, the old order of the organization process was no longer enough and

classical theory emerged as an answer to this challenge. The classical theory comprises three schools of thought comprising the scientific

management- which emphasized the one best way to complete a line of work, bureaucratic management- which focuses on hierarchy, rules

and procedure, and clear division of labor, and administrative management which emphasized the transmission of information across the

organization. Over time, the emphasis in organizational theory has shifted from stiff, hierarchical structures rampant in the industrial age to

broader, more flexible structures more prevalent in the technological, modern age. [CHRON. (2021, April 28).]

       The early philosophers from the pre-classical era advocated conceptual models which later formed the foundation on which

organization theories are built when the social and technological changes brought on by the industrial revolution necessitated the emergence

of organization theories.  The classical organization theory is the pioneer organization theory and it made enormously contributions to the

practice of management, but it did not always yield desired results.   It is an oversimplified and mechanistic view of the organization as a

machine without people could no longer adequately deal with the complexities of an organization structure and functioning as factories

became larger. There is a rise in new perspectives and ideologies as organizations become increasingly larger and complex thus the

bureaucratic organization is also giving way to matrix structures.  Thus, modern organization theory is gradually replacing bureaucratic

organizations, however, it is our opinion that classical and neo-classical theories are still important and cannot be completely done away

with as they still provide truly relevant answers to certain challenges.  [Oyibo, C. O. (2020, Nov 14)].

In conclusion:

       Even though modern theories have made a great contribution, they could not stand to the expectation of management experts. They

could give much support to organizational design but was unable to give a satisfactory and comprehensive explanation about the

organization.

One thing can be said that its concepts are still under the process of research. These theories have so far failed to develop to the required

standard to replace the old theories of management. [Bhardawaj, A. (2019, Aug 7).

 
References:

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2. INC. (2020, February 6). Organization Theory. Inc.Com. https://www.inc.com/encyclopedia/organization-theory.html

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