ORGANIZATIONAL THEORIES

PROF. BRENDA DE LA ROSA

COMPARATIVE TABLE OF CLASSICAL THEORIES OF ADMINISTRATION

THEORY REPRESENTATIVE YEAR CHARACTERISTICS CONTRIBUTIONS CRITICS
- Aims to rationalize the behavior of 4 basic principles To his conception that
Scientific theory Frederik Winslow 1903 workers 1.Planning principle: Substitution of saw the worker as a
Taylor - Aspires to replace the arbitrary and the worker's individual criteria at work complement to the
capricious activities of managers with 2. Preparation principle: scientific machine.
analytical and scientific procedures selection of workers. His extreme rationalism
- Emphasize the worker's tasks. 3.Principle of control: the work must when conceiving the
- There are no incentives, only be controlled to ensure that it is being Administration.
remuneration for your work executed The closed system
- Completely lacks attention to the human 4. Principle of execution: Workers approach.
factor. assume responsibility for executing the The absence of
- Determine scientifically. tasks and management assumes experimental work that
-Have different methods and techniques responsibility for their design and supported the
to perform any task and select, train and planning. hypotheses posed by his
motivate workers. theory.
* The structure that the organization 14 basic principles: Division of labor- Its principles are mere
Classical Theory Henry Fayol 1916 should have to be efficient. authority-discipline platitudes or common
* Administration was like any other skill, -unity of command-unity of direction - sense pronouncements.
which could be taught once its subordination of individual interest to Its principles are based
fundamental principles were understood. the common good-remuneration- on questionable
* Its concept of organization was as a centralization-hierarchy-order-equity- premises.
formal structure, as a set of bodies, stability of personnel-initiative-group Its principles are
positions and tasks. spirit presented as
*It is based on the premise that They are summarized in the following contradictory
knowledge about administrative practices points: Plan: Visualize the future and statements.
can be established as a coherent and draw up the action program These principles are
uniform body. Organize: Build both the material and malleable and adapt to
social organism of the company. any circumstance, time
Direct: Guide and orient staff. or place.
Coordinate: Harmonize all acts and all
collective efforts.
Control: Verify that everything
happens in accordance with the
established rules and the orders given.
- It is based on a systematic division of Closed system approach: It is influenced by
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Bureaucracy Max Weber 1922 labor. -closed view on the internal aspects of behavioral factors.
Theory - Establishes positions according to the the system The distortion in the
principle of hierarchy. -emphasis on planning and control achievement of
- Establishes the standards and technical -expectation of certainty and objectives.
rules for carrying out each position. predictability. The delegation of
- Selects people based on merit and not -descriptive and explanatory approach authority and
personal preferences. -effect of industrialization on maintenance of the
- It is based on the separation between organizational structure Organization as an
ownership and administration. -establishments of types of companies adaptable cooperative
- Tends to demand that its resources be and authorities system.
free of any external control. Limitations and
- It is characterized by the dysfunctional
professionalization of its participants. consequences due to
being a highly structured
approach.
- It was a movement of reaction and - Introduces for the first time the - Scientific validity
Theory of human opposition to the classical theory of contributions of sociology to - Myopia of focus
Elton Mayo 1932 administration administration. - Excessive concern for
relations
- Counteract the dehumanization of work - I also detect the group variables that happiness
- It was based on the Hawthorne influenced their actions. -- Marks the - Misunderstood sense
experiment appearance of the INFORMAL. of participation
- Emphasis on emotional aspects and - He proposed less repressive - Short view of the group
human relationships between employees. techniques - - He offered an incentive decision
- Looks at the social behavior of workers. system that was not only economic. - Generation of conflicts
- Study the organization as groups of - Opposition to
people: individualism
- Full delegation of authority
- Worker autonomy
-trust in people
- Importance of the content of the
position
- The level of production depends on
social integration.
* Establishes standards of administrative - It assigns high hierarchy to the classic -They did not make
Neoclassical Peter Drucker, 1930 behavior. concepts of: structure, authority, substantial
Harold Koontz and * It is based on general principles on how responsibility contributions, they were
Theory
Francis William 1948 to plan, how to organize, how to direct - Incorporates other theoretical mechanistic and static
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Neumann, and how to control. approaches considered important: - models.

Cyrill J. O'Donell * It is based on the objectives and results informal organization,-group -They were formalist and
that the organization must be focused, dynamics,-interpersonal did not recognize the
structured and oriented. communication,-leadership influence of behavioral
* It is based on decentralization that - Openness towards democratic variables.
allows decisions to be made by units leadership.
located at the lowest levels of the -assigns high hierarchy to the classic
organization, providing a considerable concepts of: structure, authority,
increase in deficiency. responsibility

* The behavioral theory is based on - Maslow and human needs are - Marked emphasis on
Theory of Abraham Maslow, 1947 human behavior. organized and arranged in levels of people.
Herzberg Simon, * Studies the functioning and dynamics of importance such as Self-Actualization, - More descriptive and
Behavior
Douglas Mcgregor. organizations and how groups and Esteem, Secondary, Social, Security, less prescriptive
(or behavioral individuals behave within them. Physiological and Primary. approach.
theory) * Analyzes people and - Herzberg there are two factors that - Extreme concern for
to their behavior individually, based ON guide people's behavior: Hygienic and explaining and
HUMAN MOTIVATION. Motivational Factors. describing the
* The organization is seen as a decision - Mc Gregor, I compare two opposite characteristics of
system, where everyone behaves and antagonistic styles of managing. organizational behavior.
rationally. Style X based on excessively - Lack of creation of
*Reciprocity between individuals and mechanistic traditional theory, style Y models and principles of
organizations and their exchange based on modern conceptions practical application.
relationships are important for the study regarding human behavior.
of organizations THEORY X: leads people to do exactly
what the organization asks them to do,
since it is given in the form of
imposition.
THEORY Open and democratic
management style, managing is a
process of creating opportunities,
releasing potentials, removing
obstacles and promoting individual
growth. It is based on human and
social values.
+ It is an educational strategy because it is - Improvement of interpersonal
Organizational Warren Bennis and 1970 based on the modification of the competence.

development Richard Beckhard organizational culture to achieve a
planned change in the company.
+ The changes sought are directly linked
to the demands or requirements that the
organization tries to satisfy: Growth,
destiny, identity and revitalization.
+ Satisfaction and human development.
+ Organizational efficiency.
+ Its foundation is a methodology that
emphasizes the importance of
experienced knowledge.
+ Change agents are mostly external to
the organization
It involves a cooperative collaborative
relationship between the change agent
and the client system components.
 Change agents share a set of values
regarding the world in general and
organizations
* It is considered the fruit of business
HOLISTIC Stanislav Grof intellect and accumulated sensitivity.
* The participation of all staff is essential,
APPROACH
resulting in the development of tangible
goods and contributing to a broad
partnership
* Its objective is social profitability rather
than economic profitability.
* He is interested in the generation of a
superior life.
* Manage for business progress AND
context
* Manage for the progress of the company
and its members
COMPARATIVE TABLE OF CONTEMPORARY THEORIES OF ADMINISTRATION
THEORY REPRESENTATIVE CHARACTERISTICS
ORGANIZATIONAL THEORIES
PROF. BRENDA DE LA ROSA
- Transfer of values so that human
factors and feelings become
considered legitimate.
- Understanding between work groups
and the members of each of them, in
order to reduce tensions.
- Team management, that is, the
ability to develop functional teams to
work more efficiently.
- Development of conflict resolution
methods. Instead of the usual
bureaucratic methods based on
repression, intermediate transactions
or agreements and unethical power,
more rational and open methods are
sought.
Cooperation "With others"
Alliances
Integration
Consideration of the person
Corporate social responsibility
Meaning of work
Progress without predation
Ecology
Recyclability
planetary consciousness
Coexistence
Sustainable development
Mutual help
Companies at the service of quality of
life.
CONTRIBUTIONS CRITICS

Quality is achieved more by people
Total Quality Theory Edwards Deming, than by techniques.
Joseph Juran, The quality of products and
Philip Crosby, services is influenced by the nine
Kaoru Ishikawa, basic areas known as the 9 m's.
Armand Feigenbaum Quality from the point of view of
the client and the organization.
Improvement by eliminating the
causes of problems.
The person in charge of a job is the
one who has the most knowledge
about it.
Every person wants both to be
involved and to do their job well.
Every person wants to feel like an
important contributor.
To improve a system it is better to
work as a team than to work
individually.
It says that work is natural and
Theory Z William Ouchi should be a source of satisfaction,
encouraging man's psychological
needs,
It focuses on increasing the
employee's ownership and love for
the company, through a job for life,
Strong emphasis on employee well-
being, both inside and outside of
work.
It tends to promote permanent jobs,
high productivity and high employee
satisfaction and morale.
Thomas J. Peters and The need to constantly train.
New Theory of Human Robert H. waterman Automate work.
Relations Promote flexibility and creativity.
Security
ORGANIZATIONAL THEORIES
PROF. BRENDA DE LA ROSA
It includes the commitment of Your results will always be an
workers, the ability to perform estimate and not absolute or
their roles and interpersonal actual costs.
communication. Knowledge of costs does not
Contribution is the use of guarantee their reduction.
information collection and It will always act as an indicator
analysis tools such as: that guides the success of the
 Diagrams (Venn, flow, work carried out and not as a
control, dispersion and solver of quality problems.
cause-effect)
 The inspection sheet
 Charts (Pareto, pie, bar)
 The stratification
 Field analyzes
o Emphasizes the meaning of
business
o Relationship with local
communities
o Control the individual's
reactions to various
problems
o When a decision is to be
made, a proposal is written
describing one of the best
alternatives for
consideration.
o The responsibility falls on
the youngest and most
recent member.
It constitutes a comprehensive
approach, which combines an
optimistic and positive conception
of man.

Credit to the improvements.
Profits bonuses.
* Focus your attention on the
Contingency Theory company's external environment.
* Considers external factors that can
be divided into general conditions
and specific influences.
* Most important elements:
technology and the environment.
* It states that there is a functional
relationship between environmental
conditions and appropriate
administrative techniques to
effectively achieve the organization's
objectives.
* Highlights the effectiveness of
administrative actions undertaken in
a situation and disapproves of
standardization in a certain way.
- Process improvement
SiX Sigma (Process methodology, focused on reducing
Intelligence) their variability, managing to reduce
or eliminate defects or failures in the
delivery of a product or service to
the customer.
- The goal of 6 Sigma is to reach a
maximum of 3.4 defects per million
events or opportunities (DPMO), a
defect being understood as any
event in which a product or service
fails to meet the customer's
requirements.
Your strategy must comply with:
ORGANIZATIONAL THEORIES
PROF. BRENDA DE LA ROSA
People as the main driving force
of any company.
Address the particular needs of
individuals.
Consider human beings: Sensitive,
Intuitive, Creative.
 Its application requires It is not possible to solve at a
particular adaptation to the theoretical level each of the
specific industry, size of the situations that may be present
organization and in organizations.
environmental conditions. The situations, specific needs
 It requires research carried and the strategy to be
out by educational developed are what determine
institutions, in order to the form that the structure of a
improve the theoretical given organization will take.
frameworks according to
the environment in which
the future administrator
will operate.
 The organization's
contingency plan is
essential for the correct
functioning of the company.
 Develops the long range of
the business plan to achieve
total customer satisfaction.
 Increase market share.
 Increase and improve the
profit margin.
 Develops leaders in
discovering technologies
and extending the goals
associated with the
products and services of
lower and faster costs.
 Develop a world-class
culture as a competitive

Define, Measure, Analyze, Improve,
Control
*Focused on processes: Not on
Reengineering departments or areas, jobs, people
or structures
*It must be quick because results
are expected in short times.
Observe all processes from a
comprehensive perspective. See the
whole and not the parts.
*What you require most is flexibility.
*It is based on the principle of
uncertainty (Chaos Theory): In
reengineering everything is "pulse
and sight."
*Creative destruction, building new
processes.
*Free without pre-established plan:
The model is that there is no model.
Everyone has to do their own
reengineering project.
*Renewal: Change your mentality or
focus.
* Monitoring: through a control
Or outsourcing Or panel you can monitor the status of
subcontracting of the contracted service at all times
personnel (case management).
* Flexibility: customization of the
application and service.
* Gradual Outsourcing: possibility of
outsourcing processes gradually,
choosing the services that best suit
each client.
* Process automation: allows
greater control over processes and
reduction of errors and risks, with
the consequent reduction of costs.
ORGANIZATIONAL THEORIES
PROF. BRENDA DE LA ROSA
advantage.
* Ability to guide the
reengineering process according
to a systematic and broad
methodology.
* Coordinated change
management for affected
business functions
* Ability to evaluate, plan and
implement change on an ongoing
basis
* Ability to analyze the full impact
of proposed changes
* Ability to visualize and simulate
proposed changes
* Ability to use these models on
an ongoing basis
* Ability to associate all the
company's administrative
parameters with each other
- Optimization and adaptation of Loss of critical skills for meeting
costs related to management, the business objective or
based on real needs. development of skills that may
- Elimination of risks due to incorrectly be classified as
technological obsolescence. essential
- Concentration on the Loss of control over the quality
organization's own activity. of contracted services
Not all employees who lost
their position within the
organization will be able to be
absorbed by the service
providing companies.

* Security: protection of data and
access.
Balanced Scorecard - It is organized into perspectives
and such perspectives are related.
- The indicators reflect the
formulated strategies.
- Works based on cause and effect
relationships.
- Relates the strategy to its
execution by defining objectives in
the short, medium and long term.
- Allows you to reduce risk in
decision making.
- Communicate the strategy at all
levels of the organization.
- Have a clear vision of the cause-
effect relationships of the strategy.
ORGANIZATIONAL THEORIES
PROF. BRENDA DE LA ROSA
* Facilitates consensus
throughout the company, not
only in the direction, but also in
how to do it.
* Clarifies how day-to-day actions
affect not only the short term, but
also the long term.
* It can be used to communicate
company plans, unify efforts in a
single direction and avoid
dispersion.
*Can be used as a learning tool
* Contributes to maximizing
profitability and value creation
over time.
+ A poorly developed model
without collaboration from
management is a dead letter
and the effort will be in vain.
+ If the indicators are not
chosen carefully, the BSC loses
a good part of its virtues,
because it does not
communicate the message it
wants to transmit.
+ When the company's strategy
is still evolving, it is
counterproductive for the BSC
to be used as a classic control
system and by exception,
instead of using it as a learning
tool.
+ There is a risk that the best is
the enemy of the good, that the
BSC is perfect, but outdated
and useless