Theories of Organization
Roots of IO are in the manufacturing plants and factories. Coming out of the 60’s it was time to move beyond the factories and formally embrace the cubicle.
Two theories of organizations
Classical theory
When different activities come to together towards a specific goal.
Four basic components to any organization
A system of differentiated activities
the processes – structural component
Work processes and how they are arranged
People
social component
Employees as individuals and the pattern of interactions among employees
Cooperation toward a goal
Authority
Four major structural principles
Functional principle
How to divide work
Organizations should be divided into units that perform similar functions
Enhances
coordination of activities
effectiveness
flow of work
Lateral growth
Scalar principle
Deals with supervising work
each subordinate should be accountable to only one superior
There is a clear chain of command that grows with levels added to the organization.
Communication amongst units is achieved through the people in hierarchy
Vertical growth
Line/staff principle
Dividing work into primary and support functions
Primary functions are line functions
Directly responsible for the primary goals of an organization
Staff functions
Support the line in its overall goal (e.g. administrative staff of the IT company)
Span of control principle
the number of subordinates for a given supervisor
large span
flat organization
Smalls spans
tall organizations
The classical theorists were not psychologists
Despite being antiquated, these principles in many companies are still used.
Neoclassical theory
Synthesis of experience and research in actual work environments.
Critique of the four major structural principles of classical theory
Functional principle
Creates depersonalized and routinized work.
Work has no meaning; they never see the end results
Scalar principle
It ignores informal, integral employee interactions. Cuts down on peer to peer interactions.
Line/staff principle
It’s a vague distinction, and provides little value
Span of control principle
It depends on leadership style, ability, and intensity
Goal wasn’t to create a whole new theory. They just wanted to make some corrections on the classical theory.
Applies more psychology and appreciates the people aspect of organizations
Developed from Hawthorne theories
Related articles
- What motivates you at work? (andrewhoff.com)