Tiêu đề IO Notes from Sir JP Buduan's Lectures (New TOS).pdf ✅

Organizational Theory Organization – a tool people use to coordinate their actions to obtain something they desire or value – to achieve a goal  Organization’s Inputs  Organization’s Conversion Process  Organization’s Outputs  Organization’s Environment  To increase specialization and the division of labor  To use large-scale technologies  Economies of Scale – cost savings that result when goods and services are produced in large volume on automated production lines  Economies of Scope – cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across several different products or tasks  To manage the organizational environment  To economize on transaction cost  To exert power and control Organizational Theory  is the study of how organizations function and how they affect and are affected by the environment in which they operate  principle that underlies the design, operation, change, and redesign of organizations to maintain and increase their effectiveness  a set of propositions that explains or predicts how groups and individuals behave in varying organizational structures and circumstances  Classical Theory o Bureaucracy – structure proposed by sociologist Max Weber to be the ideal form of organization; included a formal hierarchy, division of labor, and a clear set of operating procedures  Division of Labor – the division of tasks performed in an organization into specialized jobs and departmental functions  Delegation of Authority – information about which lower-level employees report to higher-level employees in an organization  Structure – the formal way an organization is designed in terms of division of labor, delegation of authority, and span of control; the number of levels–or height–of the organization  Span of Control – the number of positions or people who report to a single individual; that is, the width of the organization  Main assumption – there is a “right” structure for an organization  There was little concern for concepts such as participation, personality, or leadership style  Early organizational theories were large-scale versions of the behaviorist principles of B.F. Skinner  Assumes that there is one best configuration  Assumes that organizations affected the behavior of their member but ignored the possibility that the behavior of members affected the configuration of the organization  Human Relations Theory (Neoclassical) – adds a personal or human element to the study of organizations; considers the interrelationship between an organization’s requirements and characteristics of its members o McGregor’s Theory X and Theory Y – the beliefs that managers hold about their subordinates influence their behavior toward those subordinates  Theory X Managers – believed that subordinate behavior had to be cont5rolled in order to meet organizational ends - one of the basic propositions of classical organizational theory – and that a lack of focus would lead to apathy and resistance (Behaviorism)  Theory Y Managers – believed that subordinates were active and responsible and would be more motivated to meet organizational goals without unduly constraining organizational or managerial controls (Humanistic Theory) o The Growth Perspective of Argyris – proposed that growth was a natural and healthy experience for an individual; organizations that acknowledged and aided this growth would be more likely to prosper than those that ignored or actively inhibited this growth.  Passive to active organisms  Dependent to Independent  From organisms requiring immediate gratification to those capable of delaying gratification
 From organisms able to deal only with concrete operation to those able to deal with abstractions  From organisms with few abilities to those with many abilities  Alignment of organizational and individual goals  While it is probably true that most workers value the social rewards of teamwork, it is not clear that those same workers value quality to the same extent as the managers and strategic planners  Some organization environments may not benefit from this belief (construction, production  Contingency Theories (“It Depends” Theory) – the term “contingency” in the leadership context and “structure/process” in the organizational context implies that behavior must be selected to fit the particular circumstance; this answers the problem of both classical and neoclassical theory o Contingency Theory of Joan Woodward (Goals)  Small-Batch Organization – produce specialty products one at a time; smallest span of control  Large-Batch and Mass-Production Organization – produces large numbers of discrete units; assembly-line operations  Continuous-Process Organization – depends on a continuous process for output or product, including organizations such as refineries, chemical plants, and distilleries; largest span of control o Contingency Theory of Lawrence & Lorsch (Environment) – proposed that the stability of the environment dictates the most effective form of organization  Mechanistic Organization – an organization that depends on formal rules and regulations, makes decisions at higher levels of the organization and has small spans of control (schools, law firms, factories)  Organic Organization – an organization with a large span of control, less formalized procedures, and decision-making at middle levels (for unstable environment; thinktanks, advertising companies, sales companies)  Lawrence and Lorsch suggested that mechanistic and organic differences exist not only between companies and industries but also within organizations o Contingency Theory of Henry Mintzberg – one could describe an organization by looking at several categories of characteristics  The key mechanism used by the organization for coordinating its efforts  The functions and roles of people in the organization  The extent of centralization or decentralization in decision-making in the organization  The context in which the organization operates Mintzberg – Basic Forms of Coordination  Mutual adjustments based on informal communication  Direct supervision  Standardization of the work process  Standardization of KSAOs necessary for production  Standardization of outputs  Standardization of norms Mintzberg – Basic Functions or Roles  Operating Core – the people responsible for producing the good or service  Strategic Apex – chief executive, or group of senior leaders, to oversee the entire effort of the organization  Middle Line – the midlevel managers and supervisors who mediate the interactions between the strategic apex and operating core  Technostructure – analysts who perform specialized technical support functions, such as engineering or budgeting  Support Staff – employees who perform administrative functions varying from legal to compensation and benefit administration Mintzberg – Ideology  Ideology – an organization’s culture defined as idiosyncratic traditions and beliefs of the organization  The inherent tension or interplay between the importance or prominence of these parts creates the diversity of configurations that we see when we look across organizations
 The theory with so many “it depends” energy  One of the most intuitively appealing existing theories  Mintzberg’s theory makes the point that an organization is embedded in a larger reality (history and environmental forces)  Systems Theory/Open Systems Theory – it is the interplay between the internal reality of an organization and the external reality of its environment and history; it is called open system theory to emphasize the fact that an organization must be open to its environment if it is to be effective Input  Transformation  Output o Leadership and Systems Theory  Hierarchical Level  Nature of leadership required  Required cognitive abilities and skills  Required emotional abilities and skills  First-Level Supervision  Administration – the use of the existing structure  Technical knowledge – understanding of rules  Equity and fairness in applying rules and using sanction  Middle Management  Interpolation – supplements and piecing out the structures  Subsystem perspective – two-way orientation of leader Required emotional abilities and skills  Integration of the immediate work group with the larger system (good human relations)  Top Management  Organization – change creation and elimination of structures  Systemic Perspective – external and internal  Charisma o Sociotechnical Systems (Trist & Bamforth) – views and organization in terms of the interrelations between people and technology in the context of the organizational environment; deals with how people affect technology and how technology affects people o Sociotechnical System (Joint Optimization) – the idea that social and technological systems should be designed to fit one another as well as possible o Sociotechnical System (Unit Control of Variance) – concerns who handles work problems when they arise; should be handled by the employee or employees who encounter them; this approach enhances the motivation, self-efficacy, and skills of the employee, and it saves the time of the specialist and supervisor  Very useful because of the trend of downsizing in favor of advanced equipment/machinery/gadgets  Also, it reduces the lag time associated with too many moving parts  Motivation Theory o Intrinsic and Extrinsic Motivation o Job Characteristics Theory o ERG Theory o Self-Determination Theory  Autonomy  Relatedness  Competence Organizational Structure Organizational Structure – refers to the arrangement of positions in an organization and the authority and responsibility relationships among them Dimensions of Organizational Structure  Traditional Structures – have formally defined roles for their members, are very rule-driven, and are stable and resistant to change (mechanistic or bureaucratic structure) o Bureaucracy – a traditional organizational structure typified by a well-defined authority hierarchy and strict rules governing work behavior  Six Characteristics of Bureaucracy Specialization of Labor Well-Defined Authority Hierarchy Formal Rules and Procedures Impersonality Employment Decisions Based on Merit Emphasis on Written Records  The formal nature of the bureaucratic organization, with inflexible rules that stifle
individual creativity and initiative, may lead to dissatisfied employees  Growth and innovation are restricted in this structure o Line-Staff Organizational Structure – composed of one group of employees who achieve the goals of the organization (the line) and another group of employees who support the line (staff)  Line – employees in an organization who are engaged directly in tasks that accomplish its goals; service-oriented but are less open to change  Staff – specialized employee positions designed to support the line; better in managing relationships and are more open to change and innovation  Nontraditional Structures – are characterized by less formalized work roles and procedures; they tend to be rather flexible and adaptable, without the rigid status hierarchy characteristics of more traditional structures (organic structures) o Matrix Organization – structured both by product and function simultaneously; best suited for projects and products that require creativity and innovation but are less well suited for routine tasks that can be easily broken down into specialized components (why-not-both structure)  Workers have two reporting lines: one to a functional manager, a person responsible for the worker’s area of expertise, and one to a product manager, who is responsible for the particular product being produced  Have greater worker communication and job satisfaction due to high levels of responsibility and interaction among members  Major drawback – you have two sets of bosses  Team-Based Organization Structure – where team members are the focus of achieving an organization’s goals  Supports reduced adherence to the organization’s hierarchy, giving team members enough freedom and authority to perform their responsibilities  Similar to divisions but on a smaller scale and usually project-based  Team leaders supervise the team, set deadlines, and establish the organization’s goals and performance standards  Team members determine how the job achieves the goal  Advantage Innovative ideas Empowers team members Communication and efficiency Flexibility Collaboration  Disadvantage Hides underperformers Conflict prone Ineffective with some work environment  Contingency Models of Organizational Structure – there is no correct structure, it will always depend on factors like the organization, its members, the goal, and the environment o Woodward’s Classification of Manufacturing Organization  Small-Batch Production  Mass Production  Continuous Process Production o Perrow on Information Technology – refers to all aspects of jobs, including the equipment and tool used, the decision-making procedures followed, and the information and expertise needed Analyzable Work – refers to whether the technology can be broken down into simple, objectives steps or procedures Unanalyzable Work – work with many expectations has unfamiliar problems turning up often the work process  Routine – surprises are almost nonexistent and very predictable; tend to be formal, highly rule-driven, and centralized in structure  Engineering – surprises are there but are solvable; a combination of both traditional and nontraditional  Nonroutine – surprises are no surprises anymore and they may be difficult to deal with; less formal, highly flexible  Craft – surprises are rare but when they do, you’re in for a ride; usually, they work alone