Week 1 - POLS 5331

Bureaucratic Form - Max Weber

1. ) Division of labor: jobs are specialized, and individuals focus on specific tasks 2.) Hierarchy of authority: clear levels of authority and a chain of command are established 3.) Formal rules and procedures: standardized rules and procedures guide decision-making and actions. 4.) Impersonality: decisions are based on rules and not influenced by personal preferences. 5.) Employment based on merit: recruitment and promotion are based on qualification and competence 6.) Bureaucratic principles have been used as a basis for designing and structuring organizations, especially in large institutions and government agencies.

Open Systems Approaches

An "open system" in the context of organizational management refers to an organization that interacts with and is influenced by its external environment. The concept is derived from general systems theory, which views organizations as dynamic entities that exchange inputs and outputs with their surroundings. In an open system, there is a continual flow of information, resources, and energy between the organization and its external environment.

System

An ongoing process that transforms inputs into outputs. The outputs in turn influence subsequent inputs into the system in a way that supports the continuing operation of the process. One can think of an organization as a system that takes in various resources and transforms them in ways that lead to attaining additional supplies of resources. Systems have subsystems, such as communications systems or production systems within organizations, and the throughput processes, which are sets of internal linkages in the transformation process. The outputs of the system lead to feedback - that is, the influences that the outputs have on subsequent inputs. Inputs Outputs Transformation Process Resources Transformation Throughput Processes Subsystem Internal Linkages Feedback

Goals

An organization is a group of people who must work together to pursue goals.

Organization Theory

Based more in sociology. Focuses on topics that concern the organization as a whole, such as organizational environments, goals and effectiveness, strategy and decision-making, change and innovation, and structure and design. Some writers treat organizational behavior as a subfield of organization theory. The distinction between the two is primarily a matter of specialization among researchers; it is reflected in the relative emphasis each topic receives in specific textbooks and professional journals.

Luther Gulick

Best known for introducing the acronym POSDCORB, which stands for Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting. This framework aimed to provide a systematic and comprehensive view of managerial functions within organizations. Gulick emphasized the importance of clear organizational structures and effective communication in achieving organizational goals. His contributions were instrumental in refining administrative management principles, offering a practical approach to understanding and implementing managerial functions in a structured manner. Gulick's ideas have influenced the field of public administration and continue to be relevant in discussions surrounding organizational design and management practices.

Tom Burns and G.M. Stalker

Burns and Stalker classified organizations into two types: mechanistic and organic. Mechanistic organizations, with rigid structures and centralized decision-making, were seen as suitable for stable environments, while organic organizations, with more flexible structures and decentralized decision-making, were considered better suited for dynamic and uncertain environments. Their contingency theory perspective emphasized that the most effective organizational structure is contingent upon the level of environmental change and uncertainty. Burns and Stalker's contributions have had a lasting impact on discussions about organizational design, offering insights into how organizations can align their structures with environmental demands for optimal performance and adaptability.

Classic Literature

Classic theories often emphasized principles of efficiency, hierarchy, specialization of labor, and the establishment of clear organizational structures. Scientific Management, for example, focused on optimizing individual tasks and processes for increased productivity, while Administrative Management focused on principles of management applicable to all types of organizations. Classic theories, particularly Max Weber's Bureaucratic Theory, introduced the concept of bureaucracy as a rational and efficient organizational form. Specific job responsibilities and strong controls over people

Classical Management

Classical management refers to a set of theories and principles that emerged during the late 19th and early 20th centuries, aiming to enhance organizational efficiency and productivity. Rooted in the works of theorists like Frederick W. Taylor, Henri Fayol, and Max Weber, classical management emphasizes a structured, hierarchical approach to organizational design and operations. It is characterized by principles such as division of labor, scalar chain of command, unity of direction, and a focus on rationalizing work processes through scientific methods. Classical management theories laid the groundwork for modern management practices, shaping the understanding of organizational structures, managerial roles, and the importance of order and control within an organization.

Lyndall Urwick

Collaborated with Luther Gulick and contributed to the development of administrative management principles. Also emphasized the importance of coordination and integration in organizational management.

Contemporary Literature

Contemporary theories often address the dynamic and complex nature of modern organizations. They may focus on leadership styles, organizational culture, innovation, and adaptability to change. The human relations movement, represented by theories like Theory X and Theory Y, shifted the emphasis from pure task efficiency to the consideration of human factors, motivation, and employee satisfaction. Contemporary literature often delves into strategic management, emphasizing long-term planning, innovation, and the ability to respond to external challenges. The nature of human motivation How organizations respond to the increasing complexity and in context in which they operate Flexible adaptive organizations Horizontal communications Participation Empowerment Teamwork Flexible adaptable communications

Contingency Theory

Contingency theory is a management and organizational theory that suggests there is no one-size-fits-all approach to organizing and leading an organization. Instead, the most effective way to manage an organization depends on various external and internal factors, and the appropriate approach may vary based on the specific situation or context. Contingency theory acknowledges that different situations require different management practices and structures.

James Mooney

Contributed to the concept of organization as an integrated social system, emphasizing the importance of understanding the informal organization within the formal structure.

Abraham Maslow

Developed Maslow's Hierarchy of Needs, a psychological theory that explains human motivation. Argued that individuals have a hierarchy of needs, ranging from basic physiological needs to higher-order needs like self-actualization. His work influenced discussions on employee motivation and the design of jobs to fulfill higher-level needs.

Henri Fayol

Developed of the administrative management theory. Fayol's major contributions include identifying five key functions of management: planning, organizing, commanding, coordinating, and controlling. He also proposed 14 principles of management, emphasizing concepts such as unity of command, scalar chain, and division of labor. Fayol's work focused on the administrative aspects of organizations and provided a systematic framework for managing and organizing work. His principles have had a lasting impact on management practices, shaping the understanding of organizational structure, managerial roles, and the principles guiding effective administration in a variety of industries.

Luther Gulick

Developed the concept of POSDCORB, which stands for Planning, organizing, staffing, directing, coordinating, reporting, and budgeting

Chris Argyris

Developed the concept of double-loop learning, distinguishing between single-loop learning that addresses problems without questioning underlying assumptions and double-loop learning that involves questioning and modifying fundamental assumptions. His research also focused on the theory of action, exploring how individuals' beliefs and values influence their behavior in organizational settings. Argyris emphasized the importance of creating learning organizations that encourage open communication, reflection, and adaptation. His work has had a profound impact on organizational development, leadership practices, and the promotion of a culture of continuous learning within institutions. Argyris's ideas continue to shape discussions on organizational effectiveness, change management, and the relationship between individual and organizational learning.

Herbert Simon and his Critique of the Administration Management School

Does any increase in specialization increase efficiency? Theres no rule on whether specialization should occur by function or place. Unity of command is not compatible with specialization. Unity of command states that an individual cannot have more than one superior due to the need to avoid contradictory orders. However, members of organizations are bound to need specialized assistance from more than just their direct superior. Therefore, the principle of unity of command and the principle of specialization cannot coexist. Next, administrative efficiency should be improved by limiting the number of people who direct to any one supervisor (the span of control). This contradicts the principle of unity of command, as it would greatly increase the amount of red tape one has to get through in order to initiate any change within the organization. Simon also discusses the issues with the principle that states efficiency is increased when grouping workers by purpose, process, clientele, and place. Specialization cannot be simultaneously achieved in all four groups, as the advantages of three must be sacrificed for the advantages of the fourth.

Theory Y

Drawing on Maslow's conception of higher-level needs for self esteem and self-actualization, McGregor defined Theory Y as the view that employees are capable of self-direction and self-motivation. Underutilized as though it was at the time, management based on this approach would be more effective, because individual self-discipline is a more effective form of control than authoritarian supervision. McGregor advocated management approaches that would allow more worker participation and self-control, such as decentralization of authority, management by objectives, and job enlargement.

Human Relations School/Behavioral School/Neoclassical Theory

Emerged as a reaction to the mechanistic and rigid principles of classical management theories. Originating in the 1930s and gaining prominence in the mid-20th century, this school of thought shifted the focus from purely structural and procedural aspects to the human side of organizations. It emphasizes the importance of understanding human behavior, motivation, and interpersonal relationships in the workplace. Scholars like Elton Mayo conducted influential studies, such as the Hawthorne Studies, which demonstrated the impact of social and psychological factors on employee productivity. The Behavioral School emphasizes the role of leadership, communication, and group dynamics in fostering a positive work environment and enhancing organizational effectiveness. This school of thought has had a profound influence on contemporary management practices, promoting employee engagement, satisfaction, and the recognition of the social aspects within organizations.

One Best Way

Emphasized stable, clearly defined structures and processes, as if organizational goals were clear and managers' main challenge was to design the most efficient, machine-like procedures to maximize attainment of the organization's goals.

Chester Barnard

Emphasized the informal organization and the role of communication in organizations. Argued that effective organizations rely on cooperation and a shared sense of purpose.

Transaction Cost Theory

Emphasizes the costs involved when organizations provide a good or service for themselves, as opposed to attaining it form an internal source - a topic that has obvious relevance to the major trend toward outsourcing by government organizations.

Mary Parker Follett

Focused on the human aspects of organizations and emphasized the importance of understanding group dynamics and resolving conflicts through collaboration and integration. Advocated for the idea of "power with" rather than "power over" in management.

Administrative Management

Focuses on the formal structure and processes of organizations, emphasizing hierarchical authority, clear lines of communication, and the importance of order and control. This school laid the foundation for modern management practices and continues to influence discussions on organizational structure, managerial roles, and administrative efficiency.

Organization

Goals Environment Tasks and Technologies Effectiveness Leadership, Strategies, and Processes Structures Groups and Individuals Incentives

Theory X

Held that employees were basically lazy, passive, and resistant to change and responsibility. Hence management must direct, control, and motivate employees. McGregor felt that Theory X guided organizational practices in most industrial organizations and was at the heart of classic approaches to management, such as scientific management.

Hybrids and Quangos

Hybrids and quangos are organizational structures that blend elements of both public and private sectors. Hybrids, also known as social enterprises, seek to achieve social or environmental goals while operating with a business-oriented approach. They combine profit-making activities with a mission to address societal issues. On the other hand, Quasi-Autonomous Non-Governmental Organizations (quangos) are entities that possess characteristics of both government agencies and non-governmental organizations. Quangos operate at arm's length from the government but receive public funding and have a specific public service mandate. Both hybrids and quangos represent innovative organizational models that aim to balance economic sustainability with social or public service objectives, occupying a unique space between traditional for-profit and nonprofit structures.

Stewardship Theory

Individuals entrusted with leadership roles, such as top executives or managers, are considered stewards who act in the best interests of the organization and its stakeholders. Developed by Donaldson and Davis, this theory contrasts with agency theory by assuming that managers are inherently motivated to be responsible stewards rather than driven solely by self-interest. Stewardship theory emphasizes trust, mutual goals, and shared values between managers and stakeholders, fostering a collaborative and cooperative approach. Stewards are seen as acting in ways that prioritize the long-term well-being of the organization, aligning their interests with those of the stakeholders. The theory suggests that a positive organizational culture, effective communication, and a sense of ownership contribute to stewardship behavior, ultimately leading to enhanced organizational performance and sustainability.

Jeffrey Pfeffer and Gerald R. Salancik

Introduced the concept of resource dependence theory, emphasizing how organizations are influenced and controlled by their external environments. Pfeffer and Salancik argued that organizations must acquire and manage critical resources to survive and thrive, leading them to establish relationships with external entities to secure necessary resources. Their theory highlighted the interdependence between organizations and their environments, shaping discussions on organizational behavior, strategic management, and the need for organizations to navigate external dependencies to ensure sustained success. Pfeffer and Salancik's work has provided valuable insights into the dynamics of organizational relationships and the impact of external factors on organizational behavior and decision-making.

Scientific Management and Frederick Taylor (Taylorism)

Involved the systematic analysis of "every little act" in tasks to be performed by workers. Taylor asserted that the role of management was to gather detailed information on work processes, analyze it, and derive rules and guidelines for the most efficient way to perform the required tasks. Workers were then to be selected and trained in these procedures so they could maximize their output and their own earnings. Focuses on making work processes more efficient and productive by applying scientific methods to analyze and optimize each task. The main idea behind Taylorism was to apply a systematic and scientific approach to work, with the ultimate goal of maximizing efficiency and productivity. While these principles aimed to improve industrial processes, they also led to concerns about the dehumanization of work, as workers were often treated as replaceable parts in a larger machine. It's important to note that Taylorism was influential in shaping early management practices but has been criticized for its potential negative effects on worker well-being and job satisfaction. Over time, management theories have evolved, incorporating a more holistic understanding of organizations and recognizing the importance of employee motivation and engagement.

Elton Mayo

Made major contributions to management theory through his groundbreaking research known as the Hawthorne Studies. Mayo's work challenged the prevailing scientific management principles of the time by highlighting the significance of social and psychological factors in the workplace. The Hawthorne Studies demonstrated that factors such as group dynamics, informal relationships, and the attention given to employees had a profound impact on productivity and job satisfaction. Mayo's findings emphasized the importance of considering the human aspect of work, leading to a shift in management philosophy towards a more people-centric approach. His work laid the foundation for the human relations school of thought, influencing the understanding of motivation, leadership, and the social dynamics within organizations.

Douglas McGregor

Made major contributions to management theory with his Theory X and Theory Y. In his seminal work "The Human Side of Enterprise," McGregor proposed two contrasting views of human motivation and management. Theory X assumes that individuals inherently dislike work, avoid responsibility, and need to be controlled, while Theory Y posits that people are inherently motivated, enjoy work, and can be self-directed. McGregor's contributions sparked a shift in managerial thinking, encouraging a more participative and empowering approach to leadership. His work influenced human resource management practices, emphasizing the importance of creating work environments that trust and engage employees. McGregor's theories have had a lasting impact on organizational behavior, leadership styles, and the development of a more humanistic perspective in management practices.

James Thompson

Made major contributions to organizational theory with his work on organizations as open systems. In his influential book "Organizations in Action," Thompson introduced the concept of the "closed" versus "open" systems and emphasized the importance of organizations adapting to their environments. He proposed that organizations should be viewed as dynamic entities that engage in continuous interaction with their external environments, responding to changes and uncertainties. Thompson's contingency theory perspective highlighted the need for organizations to adjust their structures and strategies based on external demands. His contributions have had a lasting impact on organizational studies, influencing discussions on organizational adaptation, environmental influences, and the complex interplay between organizations and their external contexts.

Abraham Maslow

Made major contributions to the field of management through his development of the hierarchy of needs theory. Maslow's theory posits that human needs are arranged in a hierarchy, ranging from basic physiological needs to higher-order psychological and self-fulfillment needs. His contributions have had a profound impact on understanding employee motivation in the workplace. Maslow argued that as lower-level needs are satisfied, individuals are motivated to pursue higher-level needs, shaping their behavior and aspirations. His work has been instrumental in shaping human resources practices, leadership approaches, and organizational strategies that aim to fulfill employees' diverse needs for personal and professional growth, fostering a more holistic and human-centered perspective in management.

Chester Barnard

Made significant contributions through his work on organizational theory and the acceptance theory of authority. His major contributions include the development of the concept that organizations are cooperative systems, where individuals willingly contribute to achieving common goals based on the acceptance of authority. In his influential work "The Functions of the Executive," Barnard emphasized the importance of communication, informal organizations, and the role of executives in fostering cooperation. His ideas laid the foundation for understanding the social dimensions of organizations, and his concept of the executive as a moral agent highlighted the ethical responsibilities of leadership. Chester Barnard's work has had a lasting impact on management thought, influencing discussions on organizational behavior, leadership, and the interplay between formal and informal structures within organizations.

Paul Lawrence and Jay Lorsch

Made significant contributions to organizational theory by exploring the relationship between organizational structure and the external environment. Their research highlighted the importance of organizational differentiation and integration in adapting to environmental demands. Lawrence and Lorsch argued that organizations need to balance the need for specialization (differentiation) with the need for coordination and collaboration (integration) to effectively respond to environmental changes. Their contingency theory perspective emphasized that the most effective organizational structure depends on the level of environmental uncertainty. This work contributed to a better understanding of how organizations can align their structures with external demands and adapt to dynamic environments, influencing discussions on organizational design, flexibility, and responsiveness to change.

Frederick Taylor

Made significant contributions to the field of management through his development of scientific management principles. Taylor's major contributions include the introduction of systematic scientific methods to improve workplace efficiency, particularly through time and motion studies. He emphasized the importance of optimizing individual and collective work processes to enhance productivity. Taylor advocated for the use of standardized procedures, piece-rate incentives, and the scientific selection and training of workers. His focus on the application of scientific principles to management laid the foundation for the broader classical management school, influencing the understanding of organizational efficiency, worker productivity, and the role of management in shaping work environments.

Max Weber

Made significant contributions to the field of management with his development of the bureaucratic management theory. Weber's major contributions include the conceptualization of the ideal bureaucratic organization characterized by a formal hierarchy, clearly defined roles and responsibilities, systematic rules and procedures, and impersonal relationships. He introduced the idea of a rational-legal authority structure, emphasizing the importance of merit-based appointments and qualifications. Weber's work highlighted the efficiency and predictability that bureaucratic structures could bring to organizations. While he acknowledged the potential downsides, such as the risk of excessive red tape, his theories have had a lasting impact on organizational design and the understanding of administrative structures in both public and private sectors.

Kurt Lewin

Made significant contributions to the fields of psychology and management, particularly through his work on group dynamics and organizational change. Lewin's major contributions include the development of field theory, which explores the interplay between individuals and their environments. He introduced the concept of "unfreezing, changing, and refreezing" to describe the stages of organizational change, emphasizing the need to modify existing mindsets before introducing new behaviors or structures. Lewin's research on leadership styles and group dynamics has had a lasting impact on organizational development, influencing approaches to team building, leadership training, and change management. His work laid the groundwork for the field of organizational psychology and continues to be influential in understanding the complexities of human behavior within organizational contexts.

Generic Theme

Major contributors to this field have usually treated organizations and management as generally similar in all contexts, with little distinction between the public and private sectors.

Nonprofits and Foundations

Nonprofits are organizations that operate for purposes other than making profits, often dedicated to addressing social, cultural, environmental, or community needs. They can take various forms, including charities, advocacy groups, and educational institutions, and their primary goal is to serve the public interest. Nonprofits raise funds through donations, grants, and other sources, and their surplus revenue is reinvested into achieving their mission rather than distributed to shareholders. Foundations, on the other hand, are a specific type of nonprofit organization that typically provides financial support to other charitable organizations, initiatives, or projects. Foundations often have endowments and operate by distributing grants to address specific issues or causes, contributing to positive social impact. Both nonprofits and foundations play crucial roles in addressing societal challenges, fostering positive change, and contributing to the well-being of communities and the world.

Public Management

Often involves particularly complex objectives and especially difficult conflicts among them. In the debate over the performance of the public bureaucracy and whether the public sector represents a unique or generic management context, both sides are correct in a sense. General management and organizational concepts can have valuable applications in government. Unique aspects of the government context, however, must often be taken into account. In fact, the examples of effective public management show the need for both. Managers in public agencies can effectively apply generic management procedures, but they must also skillfully negotiate external political pressures and administrative constraints to create a context in which they can manage effectively.

Max Weber: Bureaucracy and an Ideal Construct

Often treated as one of the founders of organizational sociology - the analysis of complex organizations. His investigations of bureaucracy as a social phenomenon provided the most influential early analysis of the topic. Weber took to specify the defining characteristics of the bureaucratic form of organization, which he saw as a relatively new and desirable form in society. Weber introduced the concept of bureaucracy as a formal and rational organization structure characterized by specific features and principles. Bureaucracy, in Weber's view, was a systematic and efficient way to organize and manage large, complex organizations.

Effectiveness

Organizations perform by effectively organizing their activities.

Stakeholder Theory

Organizations should consider and balance the interests and concerns of various stakeholders, beyond just shareholders or owners. Developed by scholars such as R. Edward Freeman, this theory recognizes that organizations exist within a broader network of relationships involving customers, employees, suppliers, communities, and more. According to stakeholder theory, the success and sustainability of an organization depend on actively managing and fulfilling the needs and expectations of all relevant stakeholders. This perspective challenges the traditional focus on maximizing shareholder value and advocates for a more inclusive and ethical approach to decision-making. Stakeholder theory emphasizes the importance of fostering positive relationships with stakeholders, aligning organizational practices with ethical considerations, and contributing to the well-being of the broader community in which the organization operates.

Leadership, Strategies, and Processes

Organizing involves leadership processes, through which leaders guide the development of strategies for achieving goals and the establishment of structures and processes to support those strategies.

Generic Tradition

Pervades organization theory and behavior. Researchers work to build a general body of knowledge about organizations and management. Many current texts on organization theory and management contain applications to public, private, and nonprofit organizations. In addition, management researchers and consultants frequently work with public organizations and use the same concepts and techniques they use with private businesses. They argue that people working in government, nonprofit, and private business settings face similar challenges and follow generally similar patterns.

Kurt Lewin

Pioneered research on group dynamics and social psychology. Developed the concept of "action research" emphasizing the importance of collaboration between researchers and practitioners to bring about organizational change.

Incentives

Processes are less physically observable, more dynamic activities that address this imperative for coordination. They include such activities as power relationships, decision making, evaluation, communication, conflict resolution, and change and innovation. Within these structures and processes, groups and individuals respond to incentives presented to them, making the contributions and producing the products and services that ultimately result in effective performance.

Frederick Herzberg

Proposed the Two-Factor Theory of job satisfaction and motivation. Identified "hygiene factors" (such as salary and working conditions) and "motivators" (such as recognition and achievement) as separate factors influencing employee satisfaction and motivation. His research emphasized the importance of intrinsic motivators in enhancing job satisfaction.

Behavioral Theory of the Firm - Richard Cyert and James March

Provided a major step toward more recent approaches to organizational decision making. It is significant for challenging traditional economic models by incorporating psychological factors into the understanding of organizational decision-making. Departing from the assumption of perfect rationality, the theory introduces the concept of bounded rationality, recognizing that decision-makers have cognitive limitations. It emphasizes the political nature of decision-making within organizations, highlighting negotiations, conflicts, and power struggles among diverse stakeholders. The theory also introduces the notion of organizational learning, suggesting that organizations adapt and evolve based on experience. By emphasizing empirical research and descriptive approaches, the Behavioral Theory has had a lasting impact on organizational theory, contributing to a more realistic and nuanced understanding of how decisions are made within complex and dynamic organizational environments.

Resilience

Refers to the ability of an organization to effectively navigate challenges, disruptions, and adversity, and to adapt and recover from setbacks. A resilient organization can withstand and respond to unexpected changes in its internal and external environment, maintaining its core functions and even emerging stronger from adversity. Resilience involves proactive planning, flexibility, and the capacity to learn from experiences, enabling the organization to absorb shocks and continue operating effectively. It is not only about bouncing back but also about building the capacity to thrive in the face of ongoing uncertainties. Resilient organizations foster a culture that encourages innovation, continuous learning, and the development of adaptive strategies to ensure sustained success in dynamic and unpredictable business environments.

Improvisation

Refers to the ability of individuals or teams to spontaneously adapt, innovate, and respond to unforeseen situations or challenges without relying on predefined plans or formal structures. It involves creative problem-solving, quick decision-making, and resourceful action in dynamic and uncertain environments. Improvisation is often characterized by flexibility, experimentation, and the ability to make the most of available resources. Successful organizational improvisation requires a culture that encourages autonomy, risk-taking, and collaboration, allowing individuals to draw on their expertise and creativity to address emerging issues or opportunities. It is a valuable skill in navigating complex and rapidly changing business landscapes, fostering adaptability and resilience within the organization.

Change

Refers to the intentional and planned modification of structures, processes, strategies, or culture within an organization. Change can take various forms, including organizational restructuring, process redesign, technological implementations, leadership transitions, or shifts in corporate culture. It is driven by the need to adapt to external pressures, capitalize on opportunities, address challenges, or improve overall performance. Effective change management involves careful planning, communication, and consideration of the impact on employees. It requires leadership commitment, employee engagement, and a systematic approach to navigate the complexities associated with transitions. Change is a constant and integral aspect of organizational life, and successfully managing it is essential for organizational growth, innovation, and sustained competitiveness.

Learning

Refers to the process by which individuals, teams, and the organization as a whole acquire new knowledge, skills, behaviors, and insights that contribute to improved performance and adaptation. Learning can take various forms, including formal training programs, experiential learning, feedback mechanisms, and knowledge-sharing practices. It involves the absorption of information, the development of competencies, and the ability to apply new knowledge to enhance decision-making and problem-solving. Organizational learning is a continuous and dynamic process that facilitates the organization's ability to respond to changes in its internal and external environment, fostering innovation, agility, and overall improvement in performance and effectiveness.

Innovation

Refers to the process of introducing new ideas, methods, products, or services that result in positive change and contribute to the organization's growth and competitiveness. It involves the application of creative thinking and the development of novel solutions to address challenges or capitalize on opportunities. Innovation can manifest in various forms, including technological advancements, process improvements, business model changes, and the introduction of unique products or services. Successful innovation requires a supportive organizational culture, a willingness to take calculated risks, and mechanisms for generating, capturing, and implementing innovative ideas. It is a dynamic and iterative process that encourages experimentation, learning from failures, and continuous adaptation to the evolving business environment.

Knowledge Transfer

Refers to the process of sharing, disseminating, and applying knowledge within an organization. It involves the transmission of information, skills, and expertise from one individual or group to another, aiming to enhance organizational performance and capabilities. Knowledge transfer can occur through various channels, including formal training programs, mentorship, documentation, collaborative projects, and informal interactions among employees. The goal is to ensure that valuable knowledge and insights are effectively communicated and leveraged across different parts of the organization, fostering innovation, problem-solving, and continuous improvement. Successful knowledge transfer contributes to organizational learning, adaptability, and the development of a knowledge-sharing culture within the workforce.

Structures

Relatively stable, observable assignments and divisions of responsibility, achieved through such means as hierarchies of authority, rules and regulations, and specialization of individuals and subunits.

Mary Parker Follett

Renowned for her ideas on integration and the importance of group dynamics within organizations. Follett advocated for a more holistic and participative approach to management, emphasizing the power of collaboration and coordination. She believed that conflicts within organizations could be resolved through integration rather than domination, and she introduced concepts such as "power with" rather than "power over." Follett's ideas laid the foundation for modern theories of leadership, organizational behavior, and conflict resolution, promoting a more inclusive and humanistic perspective in management practices that continues to influence contemporary organizational thinking.

Organizational Behavior

Researchers concentrate on individual and group behaviors in organizations. They analyze motivation, work satisfaction, leadership, work group dynamics, and the attitudes and behaviors of the members of organizations.

Administrative Management School: Principles of Administration

Researchers in this school of thought sought to develop principles of administration to guide managers in such functions as planning, organizing, supervising, controlling, and delegating authority.

Henri Fayol

Researchers in this school of thought sought to develop principles of administration to guide managers in such functions as planning, organizing, supervising, controlling, and delegating authority.

Adaptive System

Same as open system

Herbert Simon

Simon introduced the concept of bounded rationality, challenging the traditional assumption of perfect rationality in decision-making. He argued that individuals, when faced with complex and uncertain situations, rely on heuristics and satisficing strategies rather than optimizing choices. Simon also developed the concept of administrative behavior, emphasizing the importance of understanding the cognitive limitations of decision-makers and the organizational context in which decisions are made. His work has had a profound impact on the fields of organizational behavior and management science, providing insights into how individuals and organizations make decisions in the face of complexity and uncertainty.

Natural Selection

Suggests that organizations evolve and persist based on their ability to adapt to environmental conditions and compete for resources. Similar to natural selection in biology, organizations that exhibit traits conducive to survival and success in a given environment are more likely to endure. The model emphasizes the role of environmental selection pressures, such as market demands and competition, in shaping the characteristics and survival of organizations. Over time, organizations that effectively respond to environmental challenges are more likely to proliferate, while those that fail to adapt may decline or exit the organizational population. The natural selection model provides a dynamic and evolutionary perspective on organizational life, highlighting the ongoing process of adaptation and competition in shaping organizational forms and structures.

Contingency Theory

Suggests that there is no universal or one-size-fits-all approach to organizational design, management practices, or decision-making. Instead, it posits that the effectiveness of these aspects depends on various internal and external factors, and what works in one situation may not work in another. Contingency theory emphasizes the importance of adapting organizational structures and managerial approaches to fit the specific circumstances and contexts faced by an organization. It recognizes that factors such as the environment, technology, and the nature of tasks can influence the most suitable organizational strategies. The theory encourages a flexible and adaptive management approach, where solutions are contingent upon the unique challenges and requirements of each situation, promoting a more nuanced understanding of organizational dynamics and effective management practices.

Closed System

Systems that are closed to their environment; the internal processes remain the same regardless of environmental changes. A thermostat is part of a closed system that transforms inputs, in the form of room temperature, into outputs, in the form of responses from heating or air-conditioning units. These outputs feed back into the system by changing the room temperature. The system's processes are stable and machinelike. They respond consistently in a programmed pattern.

Hawthorne Studies --> The path to Human Relations School Social Psychology

The Hawthorne studies (conducted by Elton Mayo) played a crucial role in shifting the focus of organizational research from a purely mechanistic approach to a more human-centered perspective. The recognition of the Hawthorne Effect and the importance of social and psychological factors laid the groundwork for the Human Relations School and contributed to the growth of social psychology within the field of organizational management. The studies were originally conducted to investigate the relationship between lighting conditions and worker productivity. Surprisingly, changes in lighting had inconsistent effects, and productivity often increased regardless of the lighting level. Instead, it was discovered that the behavior of individuals change simply because they are being observed (the Hawthorne effect). Researchers also found that social factors, such as group dynamics and interpersonal relationships, significantly influenced worker productivity. The studies also highlighted the importance of informal social interactions, group norms, and communication in the workplace. In all, the Hawthorne studies challenged the prevailing scientific management principles of Frederick Taylor and the emphasis on purely economic and technical factors. The findings shifted attention towards the importance of understanding and addressing the social and psychological needs of workers. The emphasis on the human element in the workplace laid the foundation for the Human Relations school of thought.

Groups and Individuals

The division of responsibility determined by the structure divides the organization's goals into components on which groups and individuals can concentrate - hence the term organization, referring to the set of organs that make up the whole. This division of responsibility requires that the activities and units be coordinated. Structures such as rules and regulations and hierarchies of authority aid coordination.

Chain of Command

The hierarchy of an organization; what individuals must go through in order to get things done.

Span of Control

The number of subordinates reporting to one supervisor. Should be kept narrow - limited to between 6 and 10 subordinates per supervisor.

Chester Barnard's Functions of the Executive

The organization as a system of consciously coordinated activities of two or more persons The role of the executive (leader) - Rather than emphasizing the formal authority of executive leaders, Barnard focused on how leaders induce the cooperative activities fundamental to an organization. The role of the executive is still essential, but there's less of an emphasis on formal authority and formal organizational structures. Emphasis on communications, inducement, persuasion Economy of Incentives - Individuals contribute their participation and effort in exchange for incentives that the organization provides. The executive must keep the economy in equilibrium by providing incentives to induce contributions from members; those contributions in turn earn the resources for continuing incentives. Typology of Incentives - Includes not just money, but also power, prestige, fulfillment of ideals and altruistic motives, participation in valuable work, and many others.

Tasks and Technologies

The people in the organization must transform the resources by accomplishing tasks and applying technologies to perform effectively, thereby attaining additional resources.

Systems Metaphor

The systems metaphor provides a framework for understanding the complexity and interconnectedness of organizations. It has been influential in shaping management thinking, especially in the fields of organizational behavior, strategic management, and organizational development. By applying systems thinking, managers can gain insights into how different elements of the organization interact and contribute to its overall functioning. In this metaphor, organizations are seen as a collection of interconnected and interdependent parts, where each part affects and is affected by other parts. The organization is viewed as a whole, and the behavior of the organization cannot be fully understood by examining individual parts in isolation. The focus is on the holistic understanding of how parts work together to achieve organizational goals. Systems thinking emphasizes the importance of feedback loops, where information about the output is used to adjust and improve the system's functioning. Feedback loops contribute to the adaptability and learning capacity of the organization. Organizations are dynamic entities that are subject to change and adaptation. The systems metaphor recognizes the need for organizations to respond to internal and external influences, adapt to changes, and evolve over time. Organizations are considered open systems that interact with and are influenced by their external environment.

Management

The term is used in a variety of ways, but we can think of this topic as involving the analysis and practice of functions such as leading, organizing, motivating, planning and strategy making, evaluating effectiveness, and communicating.

Douglas McGregor

Theory X and Theory Y

The "Vocabulary of Management" Commonly Used in Everyday

Theory X and Theory Y - McGregor Span of Control Chain of Command

Environment

To pursue goals, members of an organization must attain resources from the organization's environment. In negotiating the environment, people in the organization may engage in partnerships, collaborations, networks, contractual relationships, and other forms of engagement with other organizations.

Principle-Agent Theory

Used to understand how actors use information to their advantage in relationships. Political scientists have found this perspective useful in analyzing relations between government agencies and the political authorities seeking to control them. It has also been emphasized that the relationships involve mutual influences that work both ways, rather than simply involving control by the political authorities.

Public Bureaucracy

Usually depicted as significantly different from a private business. Political scientists concentrate on the political role of public organizations and their relationships with legislators, courts, chief executives, and interest groups. Economists analyzing the public bureaucracy emphasize the absence of economic markets for its outputs. In past decades, they often concluded that this absence of markets makes public organizations more bureaucratic, inefficient, change-resistant, and susceptible to political influence than private firms. Neither the political science nor the economics literature on public bureaucracy paid as much attention to internal management - designing the structure of the organization, motivating and leading employees, developing internal communications and teamwork - as did the organization theory and general management literature.

Population Ecology

Views organizations as part of a larger population subject to ecological dynamics. Drawing parallels with biological ecosystems, the model suggests that organizational populations face environmental constraints and competition for resources. Organizational forms and structures that are well-suited to their environments are more likely to survive and proliferate, while those less adapted may decline or exit the population. The model emphasizes the importance of environmental selection pressures in influencing the diversity, birth, and death of organizational forms. Population ecology highlights the role of isomorphism, where organizations within the same population tend to adopt similar structures over time due to environmental pressures and legitimacy concerns. This model provides insights into the ecological forces that shape the diversity and evolution of organizational forms within a given environment.

Joan Woodward

Woodward's research, particularly outlined in her book "Industrial Organization: Theory and Practice," classified organizations into three main types based on the complexity of their technology: unit production, mass production, and process production. This classification highlighted the connection between organizational structure and the technological requirements of different production processes. Woodward's work demonstrated that the most effective organizational structure is contingent upon the nature of the technology employed. Her contributions have had a lasting impact on organizational design theory, influencing discussions on the fit between organizational structures and the technological context in which they operate, shaping modern perspectives on organizational effectiveness and efficiency.

Hugo Munsterberg

Work focused on applying psychological principles to address issues within organizations and industries. Munsterberg emphasized the importance of understanding human behavior and motivation in the workplace, advocating for the use of psychological assessments in personnel selection. He also explored topics such as vocational guidance, employee training, and the psychology of advertising. Munsterberg's contributions laid the groundwork for the integration of psychology into management practices, influencing areas such as employee selection, training, and the creation of work environments conducive to individual and collective well-being.