Management and Organizational Theories

Organizational and Management Analysis

Organizational theories focus on the structure, productivity, quality and efficacy, and members of an organization.  The theories explore how an organization is affected by its environment in achieving goals as it faces challenges externally and internally.  This paper will explore Classical, Neoclassical, Contingency, and Systems theories.  Management theories will also be discussed including styles of management.  Organizational and management theories will be compared to current employment and suggestions to improve the organization.  

Organizational Theories

The classic structure of an organization can have a matrix or hierarchy structure.  The matrix structure has pathways added for employees to report.  Whereas, a hierarchy structure employees report to one person above them in the chain of command.  When an organization operates within the classic structure, managers put forward an issue to the proper department.  For instance, a clogged sink would be given to the maintenance department, an employee caught using drugs would be handed over to human resources, and a legal issue would be conveyed to risk management.  “Such organizations work best in a stable environment because they have limited flexibility, and they work well even if you or your managers have limited experience and expertise” (Houston Chronicle, 2014, n.p.).  

Classical Organization Theory

According to the Houston Chronicle (2014) “Classical Organization Theory was developed in the first half of the 20th century as a way of bringing together scientific management, bureaucratic theory and administrative theory” (n.p.).  This combination is very detailed and the motive for completing tasks is monetary incentives.  [Scientific management focused on getting the best people and equipment, and scrutinizing each production task.  Bureaucratic theory involved establishing a hierarchy to describe the division of labor in a company and recognizing the importance of specialization] (Houston Chronicle, 2014, n.p.).  Administrative theory introduces a set of managerial standards which are institutes to all organizations.

Neoclassical Organization Theory

Consistency is the key to this theory and the efficiency of the organization.  If there is a vision, mission, and values to abide by and respect, the efficacy of the organization will be more productive because it has a purpose, objective, and goal.  “Organizations can succeed with a cohesive environment where subordinates are accepting of managerial authority” (Houston Chronicle, 2014, n.p.).

Contingency Theory

According to Burn (n.d.) “the contingency approach to organizational design tailors the design of the company to the sources of environmental uncertainties faced by the organization. The point is to design an organizational structure that can handle uncertainties in the environment effectively and efficiently” (Burns, n.d., n.p.).  The Contingency Theory means the organization is always adapting to the needs of the current environment.  If you are within an organization that is based on this theory, flexibility in a structured environment is pivotal.

Systems Theory

The Systems Theory is based on the idea of dominoes.  It focuses on how one decision affects changes in other areas, big or small.  The communication within this theory throughout an organization must be cohesive and exceptional.  

Leadership Styles and Management Theories

Organizational theories examine ways an organization increases productivity, quality, and efficacy; management theories focus on increasing the quality, productivity, and efficacy in an organization.  Management theories cannot function solely.  A manager must be flexible and utilize several theories adjusting to the issue presented.  This approach is also suitable for the styles of management.  

There are many styles of leadership employed by managers.  The laissez-faire style does not provide direct supervision of employees which can hinder employees from a lack of feedback to correct misled actions.  This style can lead to poor productivity.  In contrast to the laissez-faire style, the autocratic leadership style allows managers to make all decisions and have total authority.  This style can be frustrating to an employee and create a micromanagement environment which can conflict with those employees who do not require close supervision.  Transactional leadership style is based on reward or punishment based on employee performance from goals established jointly between the manager and employees.  Participative leadership style “often called the democratic leadership style, participative leadership values the input of team members and peers, but the responsibility of making the final decision rests with the participative leader” (Houston Chronicle, 2014, n.p.).  This style builds morale with employees because employees have a sense of participating in decisions and their opinions matter.  In contrast to participative style, the transformational leadership style can increase efficiency through constant communication and acute visibility by motivating staff members to attain the goal.  Management concentrates on delegation to the staff to achieve the end objective.