ORGANIZATION

THEORIES

ORGANIZATION AND MANAGEMENT

OBJECTIVE
At the end of this lesson, the students are
expected to:

1. Apply organization theories for effective

business management
ORGANIZATION
THEORIES

• Set of interrelated concepts explaining

the behavior of individuals or groups or
subgroups, who interacts with each other
to perform the activities intended towards
the accomplishment of a common goal.
ORGANIZATION
THEORIES
CLASSICAL ORGANIZATION THEORY
1.Taylor’s Scientific Management Approach
2.Weber’s Bureaucratic Approach
3. Administrative Theory
NEOCLASSICAL THEORY MODERN ORGANIZATION
THEORY
1.Systems Approach
2.Socio-Technical Approach
3.Contingency or Situation Approach
SCIENTIFIC MANAGEMENT
APPROACH

 Philosophy Frederic W. Taylor states that

increase productivity and to make work

easier by scientifically studying work

methods and establishing standards.

4 MAIN PRINCIPLES
OF SCIENTIFIC MGT.

1. Scientific method of designing jobs to

replace the old rule-of-thumb methods.
2. Scientific selection and progressive
teaching and development of employees.
4 MAIN PRINCIPLES
OF SCIENTIFIC MGT.
3. The bringing together of scientifically selected
employees and scientifically developed methods
for designing jobs.
4. A division of work resulting in interdependence
between management and workers.
BUREAUCRATIC
MANAGEMENT THEORY

• Max Weber believed that bureaucratic

organization, everyone is treated equal and the
division of labor is clearly for each employee.
3 ELEMENTS SUPPORTING
BUREAUCRATIC MANAGEMENT

1. All regular activities are regarded as official

duties.
2. Management has the authority to impose rules.
3. Rules can easily be respected on the basis of
established methods.
6 BUREUCRACY
CHARACTERISTICS
1. Task Specialization
2. Hierarchical layers of authority
3. Formal selection
4. Rules and requirements
5. Impersonal
6. Career orientation
ADMINISTRATIVE
THEORY

• Henri Fayol’s 14 Principles of Management

identified the skills that were needed to manage
an organization well.
14 PRINCIPLES OF
MANAGEMENT
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of Direction
6. Collective interest over individual interest
7. Remuneration
14 PRINCIPLES OF
MANAGEMENT
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
NEOCLASSICAL
APPROACH
• Also called as human relation theory
• Emphasizes individual or group behavior and
human relations in determining productivity
• Focuses on work satisfaction, informal
workplace organizations and means of
influencing employee productivity
• Team building, excursion, cooperative, labor
union
MODERN ORGANIZATION
THEORY

1. System approach
2. Socio-technical approach
3. Contingency or situational approach
MODERN ORGANIZATION
THEORY
1. SYSTEMS APPROACH
SYSTEM – set of connected elements that
functions as “a whole”
a.) Open system – organization interacts
with its external environment

b.) Closed system – organization has no

interaction with its external environment
SOCIO-TECHNICAL
SYSTEM
• STS is a work design that recognizes the
interaction between people and
technology in workplaces.
• People, software, hardware, the
organization, and any number of other
systems functioning together as a whole.
CONTINGENCY OR
SITUATIONAL APPROACH
1. Fiedler’s contingency Model
2. Path-goal Theory
3. Hersey and Blanchard’s situational
model
FIEDLER’S
CONTINGENCY MODEL

• Fred Fiedler states that your effectiveness as a

leader is determined by how well your
leadership style matches the situation.
• There is no one best style of leadership.
Two factors being considered:
1. Leadership style
2. Situational favorableness
PATH GOAL THEORY
• States that a leader’s behavior is contingent to
the satisfaction, motivation and performance of
their subordinates

• Can be done through the use of tangible and

intangible benefits ( incentives, recognition,
commission, bonuses, promotion, etc.)
HERSEY-BLANCHARD’S
SITUATIONAL MODEL
• States that no single leadership is better than another

• Leadership styles are related directly to the different

maturity categories of employees
HERSEY-BLANCHARD’S
SITUATIONAL MODEL
Leadership styles
1.Telling
2.Selling
3. Participating
4. delegating