Organization Theory

Pr. Sara YASSINE

Learning Outcomes
At the end of the course, students should
1. have an in-depth knowledge of the most relevant organizational
theories
2. be able to distinguish between the ontological, epistemological
and methodological assumptions underlying the different theories.
3. be able to discuss the scientific and practical relevance of the
different organization theories
Content
1. Classical approach
2. Human relations approach
3. Systemic approach
4. Contingency approach
Organization / Entreprise
Definition:
• Organization refers to a collection of people, who are involved in
pursuing defined objectives. It can be understood as a social system
which comprises all formal human relationships. The organization
encompasses division of work among employees and alignment of tasks
towards the ultimate goal of the company.
• Enterprise refers to a for-profit business started and run by an
entrepreneur. And we will often say that people running such
businesses are enterprising. The roots of the word lie in the French
word entreprendre (from prendre), meaning ‘to undertake’, which in
turn comes from the Latin “inter prehendere” (seize with the hand).
Organization
It can also be referred as the second most important managerial function, that
coordinates the work of employees, procures resources and combines the two, in
pursuance of company’s goals.
• Process of Organization
Step 1: Determination and classification of firm’s activities.
Step 2: Grouping of the activities into workable departments.
Step 3: Assignment of authority and responsibility on the departmental executives for
undertaking the delegated tasks.
Step 4: Developing relationship amidst superior and subordinate, within the unit or
department.
Step 5: Framing policies for proper coordination between the superior and subordinate
and creating specific lines of supervision.
Organisation Charts Depict Organisation
Structure
Tall Organisational Structures
ADVANTAGES
• Communications lines are clear
– better communication
• Promotional opportunities
• Linear and downward authority
so standards are maintained
• Monitoring and supervision of
quality
DISADVANTAGES
• Highly structured system –
inflexible
• Status symbol effect – clear
divisions in responsibility, etc.
• Long chains of command impact
and can slow down decision
making
Flat Structures
Can you do this?
Advantages Disadvantages
• Fewer managers – • Breadth of managerial
money saved ( BUT?) responsibility (span of
control issues)
• Loss of managerial
control
What is Organization Theory (OT) and Why Study It?
• OT is a range of theories and models that attempt to explain how
organizations function and relate to the environment. The driving
force behind OT is the idea that if we understand this, then we can
design organizations in such a way that they operate:
• efficiently – utilizing their resources in a cost-effective way
• effectively – achieving their goals
• responsibly – in a way that respects the community, society and the
environment
The Cambridge Dictionay Definition
• The study of how Organization work and why there are or are not
succeful.