Organization Theory and Behavior

U of the People

2/6/2018

Assignment I

Organizational Theory and Behavior

Assignment I

Introduction

        Organizational Theory is the foundation of how organizations and businesses function today.  We have some of the most famous organizational theories to thank for advancements in workplace safety, happiness, and career satisfaction, or dissatisfaction, as the case may be.  In this paper, we will briefly analyze the four main organization theories, The Bureaucracy Theory, The Administrative Theory, The Scientific Theory, and the Theory of Administrative Behavior.  All theories have trends that can be seen in today’s workplace and can be applied in various ways to different organizations.

Administrative

Theory

        This theory was founded by French Sociologist Fayol, who is known as the founder of Modern Management Theory.  This theory is based on a few principles:

• Hierarchical Structure
• Division of Labor
• Delegation of Power and Authority

        Employees and manager relations are important in administrative theory as Fayol stressed that the workers should have a close and working relationship with those who make decisions so that they too can understand the common goal and perform accordingly.  This has been the foundation of organizational structure for manufacturers in the 20th century. (Metcalf, n.d.)

Scientific Management Theory

        Frederick Taylor was an American Inventor who brought scientific management to the forefront of the industrial revolution. The focus of scientific management is efficiency and production.  This was based on 4 basic principles:

• Managers collected data from which they created laws or rules
• Employees were selected using a scientific process
• Work was distributed equally between managers and employees
• Assurance of quality, efficiency, and production

        Though Taylor’s focus was on efficiency over individuals, the methods of motivation were fascinating.  Employees were paid according to production. Taylor’s theory brought many efficiencies to organizations during this time and influenced how many runs today.  Taylor emphasized quality assurance and the importance of measuring efficiency and productivity. Taylor leaves out the human component in his theory which thankfully, our modern world strives to include in the workplace, thankfully.  

Bureaucracy Theory

        The Bureaucracy Theory was coined by Max Weber, a German Sociologist in the early 1900s.  Max Weber espoused that Bureaucratic Management was the most efficient way to run an organization. According to Investopedia, bureaucracy is a “specialized system and process of maintaining uniformity or authority within an organization.” It is comprised of two main ideas:

• Hierarchical Organization
• Laws and Rules

        Government bodies including the US Military are run in this manner as well as many larger private firms.  These ideas, as well as the entire organization focusing on one mail goal or objective, aid in the smooth function of complex organizations.  While many criticize the “red tape” and the inefficiency of this system, our government was founded upon a system of checks and balances with many rules and laws to protect not citizens and the interests of the United States.  Changing laws, rules, and firing or removing from office in this case, remain very difficult.  .5% of employees are terminated yearly from the Federal government. (Investopedia, n.d.)  It is a tedious and lengthy process to remove such inefficiencies.  However, this red tape provides a check and balance for the government and larger organizations. A common goal and objective as well as a strong chain of command can allow for effective communication and focus. Investopedia states that “over time. a rigid bureaucracy reduces operation efficiency, especially compared with rival organizations….   Losses in efficiency are most pronounced in circumstances where bureaucracy is also used to insulate established power structures from competition” (Investopedia, n.d.)  Perhaps a more efficient method that possesses a similarly solid structure would allow for competition to exist and increased efficiency and productivity, such as Fayol’s Administrative Management Theory.  

Theory of Administrative Behavior

        This theory was created by H. Simon, an American in the late 20th century and took into account the natural tendencies and flaws of individuals.  This is often referred to as the

“Administrative Man” who does have limitations of knowledge and perhaps motivation that does not necessarily match the main goal of the organization in so much that optimal efficiency and production are not met, but a term representative of Simon, “satisficing” occurs.  Satisficing is the making of a decision merely to meet adequate standards of production and efficiency by not to optimize or exceed them.  Therefore, this “Administrative Man” does not possess the capability or the desire to be the “Economic Man” who achieves unity with the organization’s goals and motives. (Laegaard and Bendsley, 2006) This idea that individuals have limited knowledge is very important and was the catalyst needed for organizations to improve training, establish Standard Operating Procedures, and to increase the flow of information and knowledge to workers.