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Organization
People
Organizations are social entities
Individuals take part in the processes (decision-making,
communication, problem-solving, information sharing)
Structure
All the activities (jobs, works and tasks) are coordinated
within a particular framework
Purpose
Mission
Accomplishing specific goals
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Organization Organization
for-profit or non-profit organizations utilization of resources
public or private organizations goods and service production
large or small organizations creating value for the community
number of employees, generated profit, production volume technology development and innovations
family-owned organizations economic growth and employment
virtual organizations
start-up organizations

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Pre-industrial and Industrial Period

Ancient times
Egypt, Greece, and Rome
The Medieval Period
the Catholic church and national monarchs
The Post-Medieval Period
the Renaissance & Reformist movements
Humanism
The Capitalistic Ethic and Economic Individualism
The Industrial Revolution
machine power and mechanization
mass production
organizations

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Ancient Times:
Egypt, Greece, and Rome The Medieval Period
Between the fall of Rome and the Renaissance.
The first large-scale organizations were Egyptian state
Characterized by stagnation and a lack of economic and social
monopolies.
development.
water-channel and tunnel building, irrigation, construction of
Ottoman Empire is an exception; growth by conquest
pyramides
The feudal system dominated the economic life of Europe.
Trade and commerce efforts by Greek colonies
Rigid authority and monarchs
the autocratic Roman military organization reached its
Key powers - appointment, taxation and jurisdiction- were
apex
circumscribed by churchs.
the popularity of the Catholic Church began to spread. Ottomans led by a powerful «sultan»
The dominant view was that trade and commerce were to be
tolerated as necessary evils.

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Post-Medieval Period Post-Medieval Period

The capitalistic ethic and economic invidualism Economic individualism
This new ethic had religious, political and economic roots and had liberterian interpretation of the church
its origin in the Crusades.
Humanism philosophy
The crusades stimulated commerce by establishing new trade
routes Scientific & technologic progress; geographical discoveries
European civilization exposed to the wealth of the Orient. Merchantilism
Renaissance increase of trade efforts and volume
step to modernity; «Social change» Colonialisation
Reformist movements against the church access to raw materials, gold and silver
30-year wars roots of imperialism
Protestantism; Anglican thought; Calvinism, Puritanism Aggregation of capital over Europe.
puritanism provided a religious rationale for hard work, Population growth
specialization, and competition.

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The Industrial Revolution Evolution of the «management»

England, 1780s; the substitution of machine power for manpower. Classical thought
invention of steam power; scientific management, administration, and bureaucracy
greater scale of mechanization in production, transportation, Neo-classical thought
agriculture.
behaviors, leaders, motivation
Modern thought
The new economic, religious, and political ideas emerging at the time
system theory, contingency approach
combined to produce a catalytic climate in which the scientific and
technological discoveries contribute to industrialization. Post-modern thought
critical theory, diversity, complexity, and chaos
Industrialization resulted in an almost total emphasis on the strategy of
resource accumulation and company growth.

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Scientific Management Scientific Management

was a product of its times.

Frederick Winslow Taylor
finding the «one best way» born and nurtured in an era of laissez-faire economics,
the Protestant Ethic and national optimism and
scientific selection of personnel
dedication to efficiency.
financial incentives
has a narrower concern; for just worker efficiency and
functional foremanship
productivity.
«Modern Times» by Charlie Chaplin

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Administration-Henri Fayol Henri Fayol

Principles of Management
1. Technical activities
production 1. Division of work 7. Remuneration of
2. Commercial activities personnel
2. Authority and 8. Centralization
buying, selling, exchange responsibility 9. Scalar chain
3. Financial activities 3. Discipline 10. Order
use of capital Equity
4. Unity of command 11.
4. Security activities 12. Stability of tenure
5. Unity of direction
protection of the property and person personnel
5. Accounting activities
6. Subordination of 13. Initiative
individual interests to 14. Esprit de corps
balance sheets, costs, statistics)
general interests
6. Managerial activities
planning, organization, command, coordination and control)

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Max Weber’s Bureaucracy The Changing Environment

a well-defined hierarchy of authority
a clear division of work
a system of rules covering the rights and duties of position
incumbents
a system of procedures for dealing with the work situation
impersonality of interpersonal relationships
selection for employment and promotion based on
technical competencies
The technological factors were primarily products of the
rapid industrialization of the period.
Mechanization was rapidly replacing manpower and
standardization, divison of work and specialization were
widely emphasized on both the production and
organizational levels.
The proximity and dependency caused by technology and
population growth resulted in conflict and collision.

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Hawthorne
The End of an Era
The original Hawthorne studies were based on a
Superiors have to view the worker as a significant variable
number of traditional scientific management
in the system instead of viewing him as a inert tool.
assumptions.
Results suggested that variables other than physical Organization theories would have to follow for interaction
working conditions might be affecting worker behavior between the formal system and its human components.
and output.
Environments become increasingly complex.
Add an entirely new perspective to the analysis of
organizations and management.

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The End of an Era The Behavioral Approach

Mary Parker Follett Kurt Lewin
«power with» instead of «power over»
«empowerment»
«group dynamics»
«participation» Employee behavior is a “variable”, not a “given” in the
organization.
Herbert Simon’s «theory of acceptance»
The order must fall within the person’s «zone of
Rensis Likert
acceptance». Importance of motivating employees
The inducements and contributions determine how wide
the zone of acceptance is. Supportive, friendly and helpful leaders
«imposed control» vs. «self-control»
Douglas McGregor
theory X vs theory Y
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The Behavioral Approach System theory

Holistic paradigm
Chris Argyris Subsystems
Traditional highly structured organization inhibits people Open system view
from maturing to the point where they can utilize their full
potential. Boundries
Steady state
Organization structure is not something to be designed for Feedback
efficiency without regard to employee behavior. Negative entrophy
Equafinality

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Open system view

Open system view

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Contingency approach Post-modernism

Organizations are both social and technologic systems.
Organizations are dependable on both «internal» and
«external» contingent variables.
There is no «one best way» to succeed.
Organizations interact/responds differently with/to the
environment under different circumstances.
rather than seeking to unify and homogenize peoples’
experiences, organization theorists would be searching for
«conflicts», «contradictions» and «ambiguity», trying to
understand the processes
challenging existing practices and deconstruct accepted wisdom.
celebrating the «diversity and complexity»

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