Theoretical Foundations

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Classical Theories of Classical Theories of Organizations Organizations Theoretical Foundations Theoretical Foundations

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Theoretical Foundations. Classical Theories of Organizations. PREVIEW. Review Chapter One Theoretical Relevancy Minimizing Misunderstandings Classical Theories of Organizations Taylor’s Theory of Scientific Management Fayol’s Administrative Theory Weber’s Theory of Bureaucracy. - PowerPoint PPT Presentation

Transcript of Theoretical Foundations

Page 1: Theoretical Foundations

Classical Theories of Classical Theories of OrganizationsOrganizations

Theoretical FoundationsTheoretical Foundations

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PREVIEWPREVIEW

Review Chapter OneReview Chapter OneTheoretical RelevancyTheoretical RelevancyMinimizing MisunderstandingsMinimizing MisunderstandingsClassical Theories of OrganizationsClassical Theories of Organizations

Taylor’s Theory of Scientific ManagementTaylor’s Theory of Scientific ManagementFayol’s Administrative TheoryFayol’s Administrative TheoryWeber’s Theory of BureaucracyWeber’s Theory of Bureaucracy

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Organizational CommunicationOrganizational CommunicationFoundations REVIEWFoundations REVIEW

“…“…the process of creating, exchanging, the process of creating, exchanging, interpreting (correctly or incorrectly), and interpreting (correctly or incorrectly), and storing oral, nonverbal, and written storing oral, nonverbal, and written messagesmessages within (and across the within (and across the boundaries of) a system of interrelated boundaries of) a system of interrelated and interdependent people working to and interdependent people working to accomplish common tasks and goalsaccomplish common tasks and goals within an organization.”within an organization.”

MESSAGE-CENTERED DEFINITIONMESSAGE-CENTERED DEFINITION

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Assumptions and FeaturesAssumptions and FeaturesCommunication is central to the

existence of the organization

Organizational communication is a complex process (creating, exchanging, interpreting, and storing messages)

Misunderstandings occur

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MisunderstandingsMisunderstandings

“Instances in which people who are communicating don’t share meanings as well as situations in which features of organizational life serve to impinge upon the efficient and effective functioning of organizational members.”

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Three Important ConstructsThree Important ConstructsOrganizational IdentificationOrganizational Identification (process &

product)An active process by which individuals link

themselves to elements (people, policies, products, services, customers, values) in the social scene.

Involves an individual’s sense of membership in and connection with an organization.

Job SatisfactionJob SatisfactionThe degree to which employees feel fulfilled by their

job and related experiences.A pleasurable or positive emotional state from the

appraisal of one’s job or experiences Linked to absenteeism and turnover

Communication SatisfactionCommunication SatisfactionThe degree to which employees feel that

communication is appropriate and satisfies their need for information and work relationships

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Communication Satisfaction (CSQ)Communication Satisfaction (CSQ)Eight Factors concerned with communication Eight Factors concerned with communication

information, relationships, channels, and climateinformation, relationships, channels, and climate1.1. Communication ClimateCommunication Climate2.2. Relationship to SupervisorsRelationship to Supervisors3.3. Organizational IntegrationOrganizational Integration4.4. Media QualityMedia Quality5.5. Horizontal and Informal CommunicationHorizontal and Informal Communication6.6. Organizational PerspectiveOrganizational Perspective7.7. Relationship with SubordinatesRelationship with Subordinates8.8. Personal FeedbackPersonal Feedback

Communication satisfaction is often considered Communication satisfaction is often considered the “sum” of an individual’s satisfaction with the the “sum” of an individual’s satisfaction with the above dimensionsabove dimensions.

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Primary GoalPrimary Goal

Reduce misunderstandings Reduce misunderstandings through communication.through communication.

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TheoryTheory An explanation for how or why something An explanation for how or why something

occurs. . .occurs. . .

Question:Question: What is the most efficient and What is the most efficient and effective means of running an effective means of running an organization? organization?

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Functions of Functions of TheoryTheoryDescribeExplainPredictControlClassical approaches to organizational

management and early organizational theories were designed to predict and control behavior in organizations.

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Classical Theories of Classical Theories of OrganizationsOrganizations

Emerged in early part of the twentieth century.

Models were military and the Catholic Church.

FeaturesStrict CONTROL of workersAbsolute CHAINS of COMMANDPREDICTABILITY of behaviorUNIDIRECTIONAL downward influence

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Classical Theories of Classical Theories of Organizations:Organizations:Relevancy and MetaphorRelevancy and Metaphor

How and why does studying classical theory help us to understand how modern organizations function and particularly the role that communication plays in effective organizing?

What is the metaphor which characterizes the classical approach to organizations?

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The Metaphor of the MachineThe Metaphor of the MachineOrganizations are viewed as if they are Organizations are viewed as if they are

machines.machines.Managerial principlesModes of operationTreatment of workersCommunication in the organization

Properties of MachinesProperties of MachinesVery predictableRarely deviates from the normReplace defective parts with other “standard” partsSpecific rules exist regarding repair and specific roles

Organizational ApplicationOrganizational ApplicationWorkers behave predictably-management knows what

to expectWorkers operating outside expectations are replaced

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Minimizing Minimizing MisunderstandingsMisunderstandingsSimple: Promote principles of SPECIALIZATION, Simple: Promote principles of SPECIALIZATION,

STANDARDIZATION, and PREDICTABILITYSTANDARDIZATION, and PREDICTABILITY

STRICT RULES & REGULATIONS regarding . . .STRICT RULES & REGULATIONS regarding . . .how work is accomplished, who could speak to whom and when, and managing through fear.

PROBLEMS PROBLEMS Creativity and intelligence are underutilizedIncreased dissatisfactionDecreased motivation and commitment to task and

organizationDecreased communication effectiveness and

satisfaction

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Distinguishing Classical Distinguishing Classical TheoriesTheories““Creative Application Skit”Creative Application Skit”

Theory “Matchbook Definition”Theory “Matchbook Definition”Describe the theory “in a nutshell”Describe the theory “in a nutshell”

Principles of ManagementPrinciples of ManagementMajor Elements of the TheoryMajor Elements of the TheoryApplication in the Modern WorkplaceApplication in the Modern WorkplacePersonal Example(s)Personal Example(s)How are misunderstandings minimized?How are misunderstandings minimized?What new forms of misunderstandings are What new forms of misunderstandings are

created?created?Unintentional by-productsUnintentional by-productsContributions to occurrences of different problemsContributions to occurrences of different problems

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Taylor’s Theory of Scientific Taylor’s Theory of Scientific ManagementManagementFrederick Taylor (1856-1915)

“The Father of Scientific Management”Maximize worker capacity and profitsPROBLEM: Get employees to work at their maximum

capacityPRIMARY FOCUS: TASKS http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylo

r/taylor.html

Systematic SoldieringDeliberately working slowly as to avoid expanding

more effort than deemed necessaryReasons

Reduction in workforce due to decreased needPiecework system of remuneration - raise production

requirements without increasing payRule of thumb training methods - inefficient

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Taylor’s Theory of Scientific Taylor’s Theory of Scientific ManagementManagementElements of Scientific ManagementElements of Scientific Management

Scientific design of every aspect of every taskTime and Motion Studies

Careful selection and training of every taskProper remuneration for fast and high-quality work

Maximize output - increase payEqual division of work and responsibility between worker

and managerUnderlying ThemesUnderlying Themes

Managers are intelligent; workers are and should be ignorant

Provide opportunities for workers to achieve greater financial rewards

Workers are motivated almost solely by wagesMaximum effort = Higher wagesManager is responsible for planning, training, and

evaluating

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Taylor’s Theory of Scientific Taylor’s Theory of Scientific ManagementManagementApplication in the Modern WorkplaceApplication in the Modern Workplace

Assembly Line Plants as Prototypical Examples“Prisoners of Taylorism”System of Remuneration (quotas -

commission)Re-Design - ReengineeringBenchmarkingData are used to refine, improve, change,

modify, and eliminate organizational processesLean Manufacturing

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Fayol’s Administrative TheoryFayol’s Administrative TheoryHenri Fayol (1841-1925)Henri Fayol (1841-1925)

General and Industrial ManagementPrinciples and Elements of Management -

how managers should accomplish their managerial duties

PRIMARY FOCUS: Management(Functions of Administration)

More Respect for Worker than TaylorWorkers are motivated by more than moneyEquity in worker treatment

More PRESCRIPTIVEhttp://www.lib.uwo.ca/business/fayol.html

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Fayol’s Administrative TheoryFayol’s Administrative TheoryFive Elements of Management -- Managerial Five Elements of Management -- Managerial

ObjectivesObjectivesPlanningOrganizingCommandCoordinationControl

Keep machine functioning effectively and Keep machine functioning effectively and efficientlyefficiently

Replace quickly and efficiently any part or Replace quickly and efficiently any part or process that did not contribute to the objectivesprocess that did not contribute to the objectives

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Fayol’s Administrative TheoryFayol’s Administrative Theory Fourteen Principles of Management (Tools for Accomplishing Fourteen Principles of Management (Tools for Accomplishing

Objectives)Objectives)Division of work - limited set of tasksAuthority and Responsibility - right to give ordersDiscipline - agreements and sanctionsUnity of Command - only one supervisorUnity of Direction - one manager per set of activitiesSubordination of Individual Interest to General InterestRemuneration of Personnel - fair price for servicesCentralization - reduce importance of subordinate’s roleScalar Chain - Fayol’s bridgeOrder - effective and efficient operationsEquity - kindliness and justiceStability of Tenure of Personnel - sufficient time for

familiarityInitiative - managers should rely on workers’ initiativeEsprit de corps - “union is strength” “loyal members”

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Fayol’s Administrative TheoryFayol’s Administrative TheoryPositioned communication as a necessary Positioned communication as a necessary

ingredient to successful managementingredient to successful management

Application in the Modern WorkplaceApplication in the Modern WorkplaceFayol’s elements of management are recognized Fayol’s elements of management are recognized

as the main objectives of modern managersas the main objectives of modern managersPlanning - more participatoryPlanning - more participatoryOrganizing - human relationships and Organizing - human relationships and

communicationcommunicationIMPORTANT TABLE 2.1 Comparison of IMPORTANT TABLE 2.1 Comparison of

Managerial Skills (p. 32)Managerial Skills (p. 32)Especially applicable for large organizations Especially applicable for large organizations

(military)(military)

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Weber’s Theory of BureaucracyWeber’s Theory of BureaucracyMax Weber (1864-1920)Max Weber (1864-1920)

German SociologistTheory of Social and Economic Organization

(1947)Principles and Elements of Management -

describe an ideal or pure form of organizational structure (general policy and specific commands

PRIMARY FOCUS: Organizational StructureWorker should respect the “right” of

managers to direct activities dictated by organizational rules and procedures

More DESCRIPTIVE http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HT

ML

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Weber’s Theory of BureaucracyWeber’s Theory of BureaucracyBureaucracy allows for the optimal Bureaucracy allows for the optimal

form of authority - “rational authority”form of authority - “rational authority”

Three types of Legitimate AuthorityThree types of Legitimate AuthorityTraditional Authority - past customs;

personal loyaltyCharismatic Authority - personal trust in

character and skillsRational Authority - rational application of

rules or laws

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Weber’s Theory of BureaucracyWeber’s Theory of BureaucracyTenets of Bureaucracy Tenets of Bureaucracy

RulesSpecified sphere of competenceHierarchySpecialized TrainingWorkers do not own technologyNo entitlement to “official position” by

incumbentEverything written downMaintenance of “ideal type” - bureaucracy

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Weber’s Theory of BureaucracyWeber’s Theory of BureaucracyConcerned with describing the ideal Concerned with describing the ideal

structure of an organizationstructure of an organizationCornerstone: existence of written rulesCornerstone: existence of written rulesThe rational application of written The rational application of written

rules ensures the promotion of rules ensures the promotion of legitimate authority and the legitimate authority and the effective and efficient functioning effective and efficient functioning of the organization.of the organization.

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Weber’s Theory of BureaucracyWeber’s Theory of BureaucracyApplication in the Modern WorkplaceApplication in the Modern Workplace

Large organizations guided by countless Large organizations guided by countless rules are bureaucraciesrules are bureaucracies

Linked with inefficient, slow-moving Linked with inefficient, slow-moving organizationsorganizations

Organizations have several characteristics Organizations have several characteristics of bureaucraciesof bureaucracies

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SUMMARYSUMMARY

Classical Theories of Organizations (p. 36)Classical Theories of Organizations (p. 36)Taylor’s Theory of Scientific ManagementTaylor’s Theory of Scientific ManagementFayol’s Administrative TheoryFayol’s Administrative TheoryWeber’s Theory of BureaucracyWeber’s Theory of Bureaucracy

All 3 theories attempt to enhance management’s All 3 theories attempt to enhance management’s ability to predict and control the behavior of their ability to predict and control the behavior of their workersworkers

Considered only the task function of Considered only the task function of communication (ignored relational and communication (ignored relational and maintenance functions of communication)maintenance functions of communication)

Designed to predict and control behavior in Designed to predict and control behavior in organizationsorganizations

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NEXT WEEKNEXT WEEK

Read CHAPTER 3: Humanistic Theories of Read CHAPTER 3: Humanistic Theories of OrganizationsOrganizations(pp. 39-62)(pp. 39-62)Human Relations TheoryHuman Relations Theory

The Hawthorne StudiesMcGregor’s Theory X and Theory Y

Human Resources TheoryHuman Resources TheoryLikert’s Systems Theory (Four Systems of

Management)Blake and Mouton’s (a.k.a. Blake and McCanse)

Managerial Grid