Literature Review – How Organizational Theories Improve Operations

Literature Review – How Organizational Theories Improve Operations

An organizational theory is a set of related concepts that explain how operations are managed and run in an organization. According to Ferdous (2016), organizational theories play a significant role in forming appropriate approaches and ideas in an organization based on the assumption that organizations have guidelines, objectives, affiliations, hierarchy, and a set of rules guiding affiliations. The theories focus on how an organization’s structure produces specific results and inspires employees. Organizational theories also consider how an organization’s internal environment affects operations. Therefore, they can be applied in addressing the issues in an organization by highlighting specific causes of problems and how an appropriate structure can be used to address the problems. The main organizational theories that improve operations include administrative, neoclassical, modern organization, bureaucratic, and scientific management theories.

Administrative theories focus on managerial operations in an organization, such as planning, forecasting, organizing, coordinating, commanding, and monitoring (Stern, 2018). The theories improve operations by highlighting the structure of an organization’s management to determine if employees are well organized to complete specific tasks based on the organization’s expectations. The theories also improve operations by matching the organization’s goals, employees, and business environment within the organizational structure to address the challenges in the organization. Organizations can define the required employee conduct through policies and procedures to influence the expected behavior. For example, Bloomberg L.P. can set strict antidiscrimination regulations to prevent discrimination and encourage collaboration among employees, thus enhancing the efficiency in running operations within the organization. Administrative theories also improve operations by defining the administrative capacity of leaders within the organization based on their experience and qualities. Therefore, an organization can assign administrative tasks based on an employee’s leadership capability to enhance operational efficiency.

Neoclassical theories view organizations as social systems where human interactions and actions directly impact performance (Stern, 2018). The theories improve operations by focusing on behaviors that encourage employee teamwork to facilitate the exchange of ideas. The theories can also be applied in identifying employees’ needs and expectations to design an appropriate motivation strategy, thus increasing job satisfaction and employee commitment. According to Chakraborty & Ganguly (2019), fulfilling employees’ needs improves organizational operations by enhancing employee morale. Therefore, neoclassical theories are essential in improving the performance of organizations. Neoclassical theories also improve operations by reducing conflicts among employees. For example, Bloomberg L.P. may apply neoclassical theories to create a sense of belonging among employees and reduce discrimination by involving all employees in decision-making.

According to Stern (2018), modern organization theories view organizations as open systems that regularly interact with the environment to grow and enhance sustainability. Organizations apply modern organization theories to improve operations by adapting to the changes in their business environment. For example, Bloomberg L.P. may create a diversity and inclusion policy that prevents discrimination and encourages hiring a diverse workforce to increase employee retention and create a good image for increased competitive advantage. Modern organization theories can also be applied in organizational planning to improve operations by predicting how certain events can impact the organization and preparing employees to respond to changes that may be required to respond to the events. They can also be applied in designing risk management plans based on the assumption that the business environment is dynamic and may create uncertainties that may affect operations.

The bureaucratic theories focus on organizational structure and administrative processes (Stern, 2018). The theories improve operations by defining how tasks are divided based on employee competencies and specialization to meet an organization’s goals. Therefore, every employee knows what is expected of them. The theories also improve operations by ensuring employees have the skills and competencies to complete assigned tasks effectively. An organization may train employees to equip them with additional skills and competencies in response to the changes in the business environment, such as integrating technology in business operations, thus improving operations. Bureaucratic theories also improve operations by creating formal rules that govern employee behavior to create uniformity in how operations are run within the organization and facilitate the development of interpersonal relations by preventing bias. For example, Bloomberg L.P. can use bureaucratic theories to create uniformity in how employees are treated, thus preventing discrimination.

Scientific management theories focus on creating a distinction between implementation and planning (Stern, 2018). The theories improve operations by defining the role of supervisors in the organization and how they relate with employees. They also review the work environment based on employee workload to determine whether employees are fatigued and make necessary changes to improve the work environment, such as adjusting schedules to reduce fatigue, thus improving operations. Scientific management theories also improve operations by standardizing the cost of production, thus reducing operational costs. The theories also emphasize employee training and development, which are vital in equipping employees with the skills and competencies needed to complete assigned tasks effectively, thus improving operations. Scientific management theories also prevent conflict between management and employees by clearly defining the role of managers and employees. Bloomberg L.P. can use scientific methods to limit the conduct of employees and managers in completing assigned tasks to prevent discrimination.

References

Chakraborty, T., & Ganguly, M. (2019). Crafting engaged employees through positive work

Environment. Advances in Human Resources Management and Organizational Development, 180-198. https://doi.org/10.4018/978-1-5225-7799-7.ch011

Ferdous, J. (2016). Organization Theories: From Classical Perspective. International Journal of Business, Economics and Law, 9(2). http://ijbel.com/wp-content/uploads/2016/05/K9_11.pdf

Stern, M. J. (2018). Organizational theories. Oxford Scholarship Online. https://doi.org/10.1093/oso/9780198793182.003.0007

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Literature Review / How Organizational Theories Improve Operations
You will conduct a literature review on your topic which includes a minimum of eight scholarly resources for the project. In order to achieve a final list of eight scholarly sources in your paper, consider researching at least twenty to thirty relevant articles.

Additionally, you will answer the following question. How do organizational theories improve operations? Be sure to carefully consider your research question. Reflect on further defining your research problem (the problem you identified in your selected company.) Also, consider, as a part of answering the question, whatever preliminary suggestions seem relevant as solutions to your stated research question
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