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Chapter 2 Organizations and Organiztional Structure and System
Chapter 2 Organizations and Organiztional Structure and System
Chapter 2 Organizations and Organiztional Structure and System
ORGANIZATIONS
Classical Theory
Neoclassical Theory
Systems Theory
CLASSICAL
THEORY
- first few decades of 20 th century
FOCUS:
form and structure of organizations
FOUR BASIC COMPONENTS OF
ORGANIZATIONS
2.) People
4.) Authority
* Superior-subordinate relationships
FUNCTIONAL
PRINCIPLE
- Division of labor; organizations should be
divided into units that perform similar tasks
-Unity of command
- each subordinate should be
accountable to only one superior
*Vertical growth of organization
Organization:
Xavier University
“LARGE” SPAN;
FLAT ORGANIZATION
Organization
Manager Manager Manager Manager
“SMALL” SPAN;
TALL ORGANIZATION
NEOCLASSICAL THEORY
“Systems approach”
1. Individuals
- personalities, abilities, attitudes
2. Formal Organization
- interrelated pattern of jobs
3. Small Groups
- facilitates adaptability within the system
5 PARTS OF AN ORGANIZATIONAL
SYSTEM
5. Physical Setting
- external physical environment and
degree of technology
Small
Group 1
Small Small
Group 2 Organization Group 3
Small
Group 4
Although the systems theory appears to be
abstract, the systems perspective of
organizations allows us to understand
phenomena of organizational life that earlier
theories would not permit.
ORGANIZATIONAL
STRUCTURE
COORDINATING MECHANISMS
Mutual Adjustment – simple process of informal communication
Direct Supervision - one person takes responsibility for the work of
others
Standardization of Work Process – standardize or specify work
process
Standardization of Work Output – standardize or specify the
product of the work to be performed
Standardization of Skills and Knowledge – specifying in advance
the knowledge, skills , training required to perform work
THE FIVE BASIC PARTS OF
AN ORGANIZATION
Operating Core - employees responsible for
conducting basic work duties
Strategic Apex - the “brain” of the
organization
Middle line- mid-level bosses
Technostructure - employees who posses
expertise that facilitates the overall
operation of the organization
Support Staff - provides services that aides
the basic mission of the organization
COMPONENTS OF SOCIAL
SYSTEM
Social System
- the human components of a work
organization that influences the behavior of
individuals and groups
-it has no formal structure apart from its
functioning
-when a social system stops functioning , no
identifiable structure remains
COMPONENTS OF SOCIAL SYSTEM