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Organization Theory

Organization Theory. Dr. Upul Abeyrathne Senior Lecturer Dept. of Economics, University of Ruhuna , Matara. Notion of Organization. Everybody has some idea of organization and neither is able to offer a satisfactory answer or definition

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Organization Theory

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  1. Organization Theory Dr. UpulAbeyrathne Senior Lecturer Dept. of Economics, University of Ruhuna, Matara

  2. Notion of Organization • Everybody has some idea of organization and neither is able to offer a satisfactory answer or definition • To overcome this situation, one can use the model approach to explain it. • A model is a tentative definition that fits the data available about a particular object.

  3. Notion of Organization • A model is not a definition of an object. • It does not represent an attempt to express the basic, irreducible nature of the object. • It is freer approach that can be adapted to situation as needed.

  4. Basic Characteristics of Organization • It is purposeful, complex human collectivity. • Is characterized by secondary or impersonal relationship. • Has specialised or limited • Is sustained by cooperative activity • Is integrated within larger social systems • Provides goods and services to the environment and dependent on environment.

  5. Typologies of Organizations • The scholars stressing different features of the above characteristics have produced vast literature and can be group into three broad categories. Closed Modelist, Open modelist and newer traditionist

  6. The Closed Model 1. Bureaucratic Theory (Max Weber) 2. Scientif Management (Taylor, the Gilbreths) 3. Administrative or generic Management (Mooney and Reiley, Gulick and Urwick, Fayol and Follett)

  7. Open Model • Human Relations (Roethisberger and Dickson, Maslow, Mayo and Herzberg) • Organization Development (Lewin, Mcgreggor, Argiris) • The organization as a unit of its environment (Barnard, Selznick)

  8. Bureaucratic Model • It is an ideal type. An ideal type is what an organization tries to be. When we know what something wants to become, we can predict the bahviour with some accuracy. • The proponent of this theory was Max Weber.

  9. Basic Features of Bureaucracy • Office, division of labor • Hierarchy • Promotion based on professional merit and skills, • Development of a career service • Reliance on and use of rules and regulations • Impersonal relationships among career professionals in the bureaucracy and with their clientele. • Subordination to political leadership

  10. Merit • Following this model was thought of as something that could achieve economy, efficiency and effectiveness. • He thought that this is the surest way to fulfill public interests in the face of politically fragmented Germany and arrogant Junker class

  11. Critics • This model is inhumane. • The principles of bureaucracy produced waste and inefficiency. They are contradictory

  12. Food for Thought • What is the validity of Bureaucratic model in a globalized and communicatively developed situation? • What would be the impact on office under communication revolution? • What would be the impact on division of labor? • What would be the impact on hierarchy? • What would be the impact on Impersonal order?

  13. Utility of This model in comparative Public Administration • It provides us a framework to compare and contrast different administrative systems of the world

  14. Changed Context of Society • Globalization : Financial impact • Cultural Globalization : de-territorialization and re-territorialization. • Transport Facility cum Communication through Cyber Space.

  15. Impact of these global processes on National Bureaucracies. • Transnational Communities are in need of transnational bureaucracies to implement public policies. This process make it extremely difficult to decide “Public Interests” • The importance of international bureaucracies within nation states is increasing.

  16. Communication Revolution on Bureaucracy • Fate of the Office • Traditional model of bureacracy requires a space for the office to be located accommodating a large number of offices. The communication revolution has made such office spaces irrelevant. • Division of Labour: It has to do only where paper works are involved. It is a difficult task. Doing things in earlier stages has to be manual.

  17. Computer has made doing things easy and easily accessible. At present, organizations requires people with multiple skills. What is the Implication? It has made division of labor or works or functions is irrelevant. • Hierarchy: The Hierarchies are been made irrelevant and team works have gained increasing importance.

  18. What is the impact on Impersonal order • The communication revolution has made boss to believe in members of the group. That is the force of trust. Mere Law is not sufficient.

  19. Prediction Regarding the Future of Bureaucratic Organization • There would be new method of working. i.e. distance working. • Office will become a thin and small space intended to coordinate distance working. • In most of the cases, work load assignment would be a possibility. • Career system of civil service will come to an end.

  20. Thank you

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