Organization Theory notes – University notes

ORGANIZATIONAL THEORY

INTRODUCTION TO COURSE

Organization theory is one of the cover units taught by the university’s business administration department. Until recently, it was taught in most as one of the functions of management covering both the process of building the structure of organizations and the study of human behavior in the work place. The two components have long been separated and they are now taught as separate courses.

The concepts, theories and principles covered under organization theory, are considered to be important because they provide the basis for the coordination and control of the organizations work activities. For organizations to function well there must be order. The activities that form the daily duties of each employee must be well defined. This helps in arranging the departments, sections and in some cases units of a firm in an orderly way to avoid interfunctional conflicts and the turnover of workers.

Organization theory has undergone along process of evolution including the evaluation of the bureaucratic theories, the administrative theories, the scientific management theories, the human relations theories and finally, the modern or systems theories.

COURSE OBJECTIVES:

By the end of this course the candidate should be able to:

  • Explain the nature of formal and informal organizations.
  • Explain the levels of organization relations in organization, and combination of functions in organization.
  • Explain the classical theories of organization.
  • Explain the neoclassical theories of organization.
  • Explain the modern theory of organization.

TABLE OF CONTENTS

RELATIONS IN ORGANIZATION

  • Introduction
  • Lecture Objectives
  • The Contributions of Organization Theories
  • Levels of Organization
  • Relationships in organization
  • Functional relations

THE ORGANIZATION STRUCTURE AND PROCESS

  • Introduction
  • Lecture Objectives
  • Theories of the structure of Organizations
  • Characteristics of bureaucracy according to Marx Weber
  • The organization process and the theory of cooperation in organization
  • Formal and informal control

INDIVIDUALS AND ORGANIZATIONS

  • Introduction
  • The exchange relationships
  • Approaches to need satisfaction
  • Formal organizations and their participants
  • Individuals and formation of coalition groups
  • Management by objectives
  • Ideology in Organization

FORMAL ORGANIZATION

  • Introduction
  • Characteristics of formal organizations
  •  Position description
  • Permanence of formal organization
  • Structuring organizational relationships
  • Power relations in organization
  • Authority relations in organizations
  • Status relations

DESIGNING ORGANIZATIONAL FORMATS

  • Introduction
  • Design by function
  • Design by production or by product line
  • The territorial design
  • The matrix organization design
  • Trends in formal organization design
  • Operations under stable environment
  • Variations within the environment
  • The significance of differentiation
  • Structure organization units
  • Technology and departmentation
  • Pooled interdependence
  • Sequential interdependence

INFORMAL ORGANIZATIONS

  • Introduction
  • Knowledge of approved behaviour
  • Characteristics of informal organizations
  • Individuals and groups in organizations
  • Human analysis of group formation
  • Sayles on industrial work groups
  • Intergroup conflicts and cooperation

THE CLASSICAL THEORIES OF ORGANIZATION

  • Introduction
  • The prevalence of bureaucracy in organizations
  • Elements of bureaucracy
  • The normative quality of bureaucracy
  • Functions of bureaucracy
  •  Dysfunctions of bureaucracy

THE ADMINISTRATIVE AND SCIENTIFIC MANAGEMENT SCHOOLS OF THOUGHT

  • Introduction
  • The elements of administrative theory
  • The principles of management according to Henri Fayol
  • Other contributions to administrative theory
  • General staff managers
  • The scientific management theory of organization
  • Introduction to the human relations movement
  • Development of the neoclassical theory
  • The hawthorne experiments
  • Elements of the neoclassical theory
  • The human relations approach to informal organizations
  • Criticisms of the human relations theory

THE STRUCTURALISTS MOVEMENT

Introduction

  • The multi factor approach to organization
  • The modern Organization theory
  • The parts of the system and their interdependency
  • The linking processes of a system
  • Development of the modern theory
  • Characteristics of the modern theory
  • The modern approach to goals of the firm
  • Criticisms of the modern theory

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