Organizational theories improved with F. W. Tailors medical method of management (1917). His primary was accepted for the reason that period; but later it was criticized for its weaknesses. It acquired several weaknesses inherent with it. It overemphasized on economic rewards and dehumanization of individuals. It assumes human being as the economic rational one. So job became much table and dull. And in addition de skilling of employees is also considered and criticized. In 1914s fords modern style of mass development with moving average come to existence. It targets division of labor and increased mechanised processes. Both of these organizational ideas were similar in mother nature.
With the failures of these theories potential Webbers bureaucratic theory began to attract organizations. He offered more emphasis on rational legal structure of authority utilizing a bureaucratic structure. This is the first stage of having an effective organizational structure with having clear regulators and powers. It offers certain formal regulations and other principals of scientific management. Then administrative theory tries to stick to certain management primary. The primary weakness of these ideas is that they failed to recognize the individuals and their motivational factors. First-time in neoclassical organizational theory Mayo known the key of human behavior and their needs.
This assignment targets a modern organizational theory which is system theory. Modern organizational theories say organizations as systems plus they should adapt to environmental changes.
Systems theory was created by Ludwig von Bertalanffy. The machine theory says that the components of an organization are interrelated, and making changes in a single varying might impact other variables including organizational performance. Organizations are seen as wide open systems and interact consistently with environment. So that it views organizational framework as the "established style of relationships one of the parts of the organization. There are certain components of system theory. They are simply specific, formal and casual organizations, role understanding of the individual, patterns of behavior growing from role requirements of the business and the physical environment where individuals work. And also it targets linking processes within the components of the business. They include communication, decision analysis.
Finally it centered on goal setting of the business. Goals of the business may be growth, stableness etc. system theory concentrated to attain these goals by the interaction of its components. Connection between employees always will lead to group thinking and team working.
Organizational structure [Refer Shape 3. 1] shows how the operations are performed within the organization by the employees and their government bodies. In the initial stages of the organization they used bureaucratic organizational framework. But they cannot follow the same composition because the environment is certainly, which is so volatile, complicated, and vibrant. So other organizational set ups began to emerge.
Figure 3. 1: Organisation Structure
http://www. johnfosterprojects. com. au/images/organisation-structure. gif Source: www. johnfosterprojects. com.
For small size organizations entrepreneurial composition would be useful to achieve its objectives. But when the corporation is getting bigger and bigger it requires some other buildings that ought to be interrelated with each other. One such composition is functional group. In this framework, organizations main activities and functions are separated via structure. So there will be high interaction between the members of every function. Further individual associates quality of work will be improved through its useful specialist. Further you will see possibilities to enhance the carrier in the same department and it'll make communication easier between its users. This would motivate the employees of the business. But it will be sometimes difficult to just do it with this framework. As mentioned in the machine theory the total integration will be needed between factors of the business. Regarding non routine and interdepartmental conflicts situations organizations should focus on other structures. Divisional composition too has similar drawbacks.
So the other set ups such as matrix framework are began to evolve. This composition allowed more conversation between employees in all levels and divisions. So this structure encourages inside coordination and communication and removed the formal control by contact. But this composition too has certain weaknesses no clear responsibility, specific functions getting rid of its direct control over its employees etc.
As system theory of business states the present day organizations are so intricate and strong. So proper structure should be developed in order to manage the business well. So Flexible structure of organization will be very useful in controlling these varieties of complex organizations. Rather than sticking purely to formal composition of corporation. Where Minzbergs state governments simple structure to be accompanied by small organizations. Where decisions will be produced by who owns the organization. And he prefers machine bureaucracy for organizations working in highly standardize environment the decisions of the structure will be standardized. And there will groupings and specialist who'll look for improvement in efficiency.
The next versatile organizational structure is professional bureaucracy. It will be employed by organizations that happen to be run by specialists such as private hospitals, law firms etc. Its structure is more decentralized than these structure. That is applied in by many present day professional organizations that happen to be pursuing system theory of organization. This also encourage the group and team functions by its decentralization primary.
The next organizational framework discussed by mintzberg is Divisional form. As reviewed in system theory organizations will demand high conversation between every components of the organization. You can find large range multifunctional organizations working today. So it is very important to management to manage its functions, improve integrations and inspire its employees working in whatever the division or activity of the organization. So the divisional form can help in finding solutions for these problems. Where it will allow separate units of the business to operate separately. But top management will always be focused on their activities. So this will motivate the associates of the different divisions.
The final of the flexible company is adhocracy. This is also more suits the present day system theory of corporation. Because in adhocracy allows progressive and decentralized composition. This can help in sophisticated and rapidly changing environment, where changes would take place from anywhere in it.
And another form of framework accompanied by modern organizations is the network firm. This looks for the connection of other business to its operation. As per the machine theory we talked about earlier a tiny change in one variable would make large difference to the whole business. So that it is important to select the proper structure which suits the organizations. Further according to how throne experiment Maya found about the group work, their norms etc. so it is important for these structures to allow team working and group thinking within the organizational configurations. So the performance of the organizations would be advanced.
In the aforementioned two parts I talked about about the system theory, and the partnership between the system theory and organizational structure. Here I'd like to handle about the organizational culture and its own romantic relationship with system theory and composition. Organizational culture [Refer number 4. 1] is the set of important understandings, such as norms, beliefs, attitudes and beliefs shared by organizational users and transmitted by one generation to another.
So when drafting organizational constructions based on system theory one cant ignore the culture of the organization. Regarding to McKinsey culture is determined by systems, structure, style, strategy, personnel, skills, and shared values. So out of this we will identify the value of composition and system in culture of the organization. And the main characteristics of a solid culture are it'll fortify the regularities and norms among the list of members of the organization, and there will not be much personal variations among the customers etc. therefore the group norms and team working through the culture should be considered when developing structures for the organization predicated on system theory.
Further system theory state governments about the connection between variables specifically with environment. When having relationships with environment it will concentrate on culture such as norms, dominating worth, and organizational weather etc. so the marriage between organizational theory, composition and culture are so strong. Further professionals can control the evolution of culture nonetheless they cant impact on that. So identifying culture is very much important.
Certain cultures are outcome focused, team oriented, people oriented and some other are impressive oriented. They are highly pertains to organizational theories. These cultures changed with certain principals in the machine theory as well. So it is important to understand these cultures before making decisions of the business.
Figure 4. 1 Company Culture Profile
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Team working also should be considered in making decisions in regards to to organizations. This will help in developing new ideas within the organization. This might come through distributed experience within the business. These shared innovations and learning will help in increase the organizations production. These factors will also lead to new product development and inventions within the organization.
Finally System ideas of company, organizational framework and culture have strong romance among them. So in this powerful business environment it is very much important to focus on each one of these factors to succeed in business.
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