Organizational Theory

An organization refers to a group of people working together to achieve a common objective (Czarniawska-Joerges, 2006). Each individual in the organization has their own specific part to play as they contribute to the organization’s common goal. The aim of working as a group is to utilize the individual strengths of people in the organization to achieve more than what could be achieved if the people were working individually. Business organizations aim to deliver goods and services to their clients as they yield profits.

A description of the theory

Over the years, researchers have come up with various theories that attempt to explain the dynamics of business organizations. Some of the areas covered include decision-making in business organizations, power distribution, conflict resolution, and ways of achieving organizational change. According to Jeffrey Pfeffer, organizational theory studies interdisciplinary focus on the effects of social organizations on the behavior of people towards the organizations, the effects of individual actions on the organization’s performance, performance and success of organizations, and the effects of various environments such as political, economic, social, and cultural environment on the performance of organizations (Czarniawska-Joerges, 2006).

The open-system theory is the most common among the organizational theories covered by researchers. There are many other theories considered by various researchers based on the purpose of the study; some researchers blend the theories to develop the most valid argument on which to base their actions. Changes in organizational structures, operation environment, and competitive nature of operation also motivate the blending of organizational theories to match the situation under study.

A review of the literature based on the chosen theory that includes at least eight references. The review of literature should start with a broad scope and narrow down to your specific organization.

The modern organizational theory is based on the concepts developed in the 1900s during the industrial revolution. Most of the research in that period that is applicable in modern business is the research conducted by Max Weber, a German sociologist. According to his research, bureaucracies with bureaucrats as the staff perfectly represented the organizational structure (Lepsius & Wendt, n.d.). He believed that they applied legal and absolute authority, logic, and order in their operations. In such a structure, the responsibilities of workers are clearly defined, and there are clearly stated rules that define rules, policies, and procedures that control the behaviors of stakeholders. Like many other theories of that period, Weber’s theory reflected the impersonal focus on people’s character in the organization. Personal weaknesses and imperfections were viewed to be detrimental to the efficiency of the operation of an organization. This theory provided the basis for process efficiency, the division of labor, and authority.

Another 1900s theory that contributed to organization theory is Henri Fayol’s theory. This theory served as the basis for strategic planning, recruitment of staff, the motivation of employees, and employee guidance (Shafritz & Ott, 2001). The theory mainly focuses on important management functions in maintaining the success of an organization.

The two theories mentioned above got popular and were majorly implemented in most organizations in the mid-1900s. This was due to the influence of Fredrick W. Taylor in his book called Principles Of Scientific Management. Taylor outlined the theories in this book and applied them on American factory floors, clearly defining the role of training, employee incentives, employee recruitment, and work standards. He also outlined how these factors impacted the performance of the organization.

Towards the 1930s, research focused on the human influences on organizational performance rather than the previously considered mechanical view. This was motivated by the belief that human fulfillment greatly impacted an organization’s productivity. One of the research that majored in this area is the Hawthorn Studies. Hawthorn Works, a Western Electric Company plant, conducted this study in the mid-1920s and 1930s. The research was conducted under the direction of Harvard University researcher Elton Mayo. The main aim of the research was to determine how a firm’s productivity is affected by working conditions.

The research, surprisingly, failed to show a positive correlation between working conditions and productivity. In one research, for instance, it was indicated that productivity escalated when illumination was increased. However, it also indicated that productivity increased when the lighting was reduced. These were two contradicting results for one condition. The research indicated that the innate characteristics of humans have a greater influence on the organization’s performance than mechanistic incentives offered. This research mainly emphasized the importance of group interaction, human management skills, and other social relationships at the workplace and how they affect organizational performance.

Abraham Maslow’s hierarchy of human needs was introduced in organizations. The theory assumes that humans have different needs and, therefore, need to be motivated by different incentives and that the needs of humans change from time to time (Pichère et al., 2015). This meant that employees needed different forms of motivation at different times to boost their productivity.

In contrast to the organizational theory of the 1900s, Douglas McGregor developed theories X and Y in the 1950s. Theory X held the old view of workers as people who preferred to be directed, who wanted to avoid responsibility, and who cherished financial security over anything else. On the other hand, Theory Y held that humans could learn to accept responsibility, employees are capable of self-direction, and that self-actualization is the most valuable gift the organization can offer its employees. Studies showed that organizations which embraced theory Y were more successful.

Open system theory.

Traditional theories viewed organizations as closed systems unaffected by the outside world. In the 1960s, researchers realized that traditional theories failed to account for the outside influence on the efficiency of organizations. This led to the implementation of open systems in the running of organizations. The term open systems refer to the belief that organizations are unique due to their unique operating environment. Therefore, the organizations should be structured uniquely to accommodate unique problems and opportunities they encounter in their operations. This took into account the regional and cultural influences on the productivity of an organization.

In open systems, environmental influences can be classified as general or specific. Specific environment refers to the business suppliers and distributors, specific government agencies that influence the operation of n organization, and competitors that a given business organization has to face (Negandhi, 1975). General environment, on the other hand, refers to influences that relate to the geographical environment in which the business is located.

Description of your organization and how the selected theory relates to the organization. Try to analyze your organization based on topics from class. Is your organization efficient? How are the mission or objectives communicated? Would another theory be more applicable for your organization? If so, how could you try to facilitate change in the organization? If you are concerned about anonymity, you do not have to use your organization’s name.

The organization selected for this paper is an anonymous IT company. The discussion is based on how the outside world affects the organization’s performance, as assumed in the open system theory.

1. Influence of cultural values.

The organization recognizes that cultural values influence the ethical conduct of the organization. They, therefore, carry out their operations with respect to the cultural beliefs of the local society.

2. Economic environment.

Economic factors such as recessions, regional unemployment, and many other economic factors affect the profitability of the company. Therefore, the organization should take measures to cope with different economic situations.

3. Legal and political environment.

Legal and political systems have the mandate to allocate powers in society. They also affect the stability of society hence the organization’s future. The organization is, therefore, responsible for maintaining a positive relationship with these bodies through the payment of taxes.

4. Education system.

Quality education is vital for the technology firm, which requires highly trained staff to carry out its operations. The firm should, therefore, support education in its location to ensure continuity in its operations as old staff retires.

The open system theory is the most effective theory for the operation of this IT Company so far. It has ensured a good operation relationship between the organization and other factors in the environment. The company has kept its mission and objective clear, and they ensure that they integrate societal needs in its mission and objective statements, which are displayed on its premises and its products. They also ensure that their employees are their agents for propagating their mission and objectives.

References

Czarniawska-Joerges, B. (2006). Organization theory. Cheltenham: Edward Elgar.

Lepsius, M., & Wendt, C. Max Weber and institutional theory.

Negandhi, A. (1975). Organization theory in an open system. New York: Dunellen.

Pichère, P., Cadiat, A., & Probert, C. (2015). Maslow’s hierarchy of needs.

Shafritz, J., & Ott, J. (2001). Classics of organization theory. Fort Worth: Harcourt College Publishers.

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Final Paper 

Organizational Theory

You are to prepare a response to the assignment below. Your final paper should be double- spaced, between five to seven pages in length, not counting the cover page or any appendices. You should use 12-point type. You must cite relevant materials from readings and handouts. You should also present your own thoughts concerning this, using observations from your own experiences. You should document all material brought in from sources other than your own thinking using APA style.

The final paper will ask students to select a theory discussed in class or readings and conduct a literature review of that chosen theory, as well as an analytical section which compares their current organization (work, student group, etc.) to the chosen theory. The final paper is worth a total of 315 points and is due as a Microsoft Word document attachment in the assignment tool on or before 3/7/19 (Module 8). The paper should include:

• A description of the theory
• A review of the literature based on the chosen theory that includes at least eight references. The review of literature should start with a broad scope and narrow down to your specific
• Description of your organization and how the selected theory relates to the Try to analyze your organization based on topics from class. Is your organization efficient? How are the mission or objectives communicated? Would another theory be more applicable for your organization? If so, how could you try to facilitate change in the organization? If you are concerned about anonymity, you do not have to use your organization’s name.
• Use examples from the readings or outside material that supports your

Your assignment is due on or before 3/7/19. If you have a bona fide reason for requesting more time, you must do so by email.

Feel free to contact me with questions concerning your assignment. Good Luck.