reflection 111
tao
class5-naturalorgtheory.pptxNatural Org Theories
Designing Effective Organizations
BUAD 422
Nathan A. Bragaw, PhD
1
Administrivia
Quiz 1 next Thursday, Sept 19th
2
Natural Theories
Firm as a social collectives
behaviors rather than stated actions
survival over org goals
governed over government
Assumptions
Goal complexity
Informal structure
Conformity
Role of Management
Inducing participation and shaping rules, values, norms of organization
3
Human Relations Approach
Elton Mayo (1880-1949)
Industrial Psychologist
Trained in Scientific Management;
focused on the workers rather than the work
Hawthorn studies (late 1920s-early 1930s):
Western Electric Co, Hawthorne Works Plant
Hawthorne Effect: change is interesting, attention is gratifying
Employees do not behave as individual actors, but as group members… understand the group to understand behaviors
4
Human Relations Contributions
Small-group behavior
Informal group processes affect individual behaviors
e.g., cohesiveness breeds conformity
Leadership
Mechanism for influencing the behavior of subordinates
e.g., consideration (trust, friendship, respect) and initiating structure (good organizer) improve performance
Individual differences
Variability of characteristics & behaviors are relevant
e.g., demographics (e.g., race, class, culture) predict work allocation
Organizational reform efforts
How Human Relations understanding can improve Org
e.g., supervisory skills; job rotation; participatory mgmt
5
Cooperative Systems Approach
Chester Barnard (1886-1961)
Executive of New Jersey Bell Telephone Co.
“The Functions of the Executive” (1938)
Assumptions
Organizations as cooperative systems that integrate contributions of individual participants
Authority is granted by participants… zone of indifference
Participation is not just material incentives, but rather psychological and social motivations
Goals
Compliance
6
Cooperative Systems Approach
Barnard’s Role of Management
Cooperation
Organizations rely on the willingness of participants to make contributions
Management should induce the participation
Purpose
THE distinctive function of the executive
Collective purpose becomes morally binding on participants
Communication
Formal & Informal… links all participants
Ties purpose, cooperation, and authority together
7
Institutional Theory
Philip Selznik (1919-2010)
Sociologist
Researched Tennessee Valley Authority (TVA)
Organizations may start as rational systems but evolve to take on “irrational” goals, notably survival and legitimacy
Institutionalism
process by which orgs take on special character and achieve distinctive competence, infused with values beyond the technical requirements at hand
Cooptation
Mechanism incorporating external elements into decision-making structures of organization
8
Neo-Institutional Theory
Resurgence in Institutional perspective in 1970s
Isomorphism
Why do organizations look the same?
Coercive – pressure from entities with critical resources
Normative – pressure from professional standards
Mimetic – pressure to imitate success of competitors
Legitimacy
Extent to which org’s actions are socially acceptable (internally & externally) and consistent with norms, rules, & beliefs
Opens access to resources needed for survival
9
Consensus vs. Conflict
Social order derives from
social consensus
shared understandings & values of participants
Dominant organizational perspective in U.S.
social conflict
suppression or coercion by powerful subgroups
Greater traction in Europe
Rooted in work by Karl Marx (1818-1883)
Alienation and subjugation of workers by industrialists
Focus on social class and how structures (rules of the game) benefit the privileged
10
Natural Theories
Firm as a social collectives
behaviors rather than stated actions
survival over org goals
governed over government
Assumptions
Goal complexity
Informal structure
Conformity
Role of Management
Inducing participation and shaping rules, values, norms of organization
11
Key Takeaways from Class
Natural theories view organizations more as collectivities systems
Focus on informal rules, values, & norms
Management is inducing participation & shaping informal structures
Today’s source material:
Scott, W.R. & Davis, G.F. (2007) Organizations and organizing: Rational, natural, and open systems
perspectives. Upper Saddle River, NJ: Pearson Prentice Hall.
12
For Next Class
Open Org Theories
13
