Unit 3: Evolution of Organisation Theory

Head Details
Focus on Efficiency through Rationality, Order, Discipline, and Division
of Labour, Principles and Hierarchy of authority etc.
Classical thought

1. Max Weber: Bureaucracy: Legal Rational authority, use of rules,

procedures, specialization etc to make people efficient.
2. Taylor: Scientific Management: One best way of doing work, not rule
of thumb. Three Papers (Articles) on Techniques, four principles.
3. Fayol: Administrative Management: Educational approach,
comprehensive thought on management, Six Activities (and their sub
Activities, POCCC), 14 principles of management for efficiency.
Common features of classists ( Structure, Division of labour, span,
coordination)
Common criticism: Mechanical, static, internal focus.
Focus: Meet social-psychological-intellectual people needs to make them
efficient.
Neo-classical thought

1. Elton Mayo- Human Relations Theory: emphasized fulfillment of social

and psychological needs and people satisfaction to tap potential. ( four
Hawthorne experiments, social man concept)
2. Many social-psychologist- Behavioural Sciences approach- use of
knowledge of psychology, sociology etc to UPC people and manage
them better. Now in OB. Not a perfect science.
3. Chaster Bernard- Social School- focus on common goal,
communication and cooperation [Functions of executives] for
productivity. Contribution satisfaction equilibrium. Informal
organisation- that may not be known to managers.
Design implications of NCT- Decentralization, Informal Organisation,
flat structure, dynamic organisation.
Founded upon General System Thought. Two sub-theories or
approaches:
1. System thought- focuses on different elements of organisation, IPO
Modern
Theory

mechanism, and linkage with environment. Many thinkers-

particularly Cargo & Yunouzas.
2. Contingency thought- focuses on uncertain environment and need
for continuous scanning and responding the environment. Many
thinkers.
Factors behind: flat relations, skills focus, highly dynamic environment,
global working, new worker etc.
1. Learning organisation to adapt with environment.
2. Network structure to create value with linkages.
Most modern

3. Boundryless organisation to tap potential 360 degree to create more

Concepts

value.
4. Virtual enterprise- founded upon ICT to create solutions.
5. Virtual teams- connected with ICT within organisation.
6. Self managed teams, self organizing system.
7. Other new forms.
8. Cybernetics, Fishnet organisation.
9. CHATBOTS & ROBOTS- making 360 degree change in concept of
organisation itself. Structure and culture-less organisation.
10. Google- Modern, recent, contemporary organisation designs and structures.
Ranker’s Classes
 Understanding organisation theory simple way

Subject matter of Unit 3 is how to make organisations efficient and effective:

Various approaches in use today Theory Involved
1. Fixed office time, office hours, job duties Bureaucracy

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