Module 5 Lecture
Organizational Theory and Contemporary Ethical Issues in the Workplaces
Lecture Objectives
Understand different schools of thought in organizational management and their theories.
Address the ethical management of employees in organizations.
Components of Organization
Organizations consist of:
People
Rules, regulations, and policies governing operations
Boundaries and internal/external activities
Systems of management and leadership
Organizational goals, targets, and strategies to achieve them
Theory of Organization
Definition: The study of social organizations and their relationship with the environment.
Includes topics such as:
Managing the organization
Leadership
Organizational development
Human resources
Organizational theory evolves based on social environments, research trends, etc.
Key areas of focus include:
Goal management
Employee needs and motivations
Relationships with external environments
Schools of Organizational Thought
Classical School of Organizations
Emerged from issues related to the spoil system, which relied on political affiliations.
Emphasis on scientific management to maximize efficiency and productivity.
Characteristics of classical organizational management:
Hierarchical structure
Division and specialization of labor
Scientific Management
Based on the assumption that humans are rational, having all necessary information for decision-making.
Focus on developing general management principles applicable across sectors.
Key figures: Frederick Taylor and Max Weber.
Four Principles of Scientific Management by Taylor
Laws or formulas for efficiency:
Example: Time and motion studies to assess efficiency (e.g., making a box of 20 clocks).
Specialization:
Identify workers’ strengths and weaknesses and assign them accordingly for optimal performance.
Efficient work procedures:
Develop procedures based on scientific approaches and train employees accordingly.
Division of responsibility:
Balanced responsibilities between management (supervising) and workers (performing tasks) to enhance cooperation and reduce conflict.
Bureaucracy (Max Weber)
Reflects principles of scientific management.
Features:
Hierarchical structure with centralized authority
Written rules and uniform procedures
Focus on technical expertise and merit-based appointments.
Previous discussions noted correlations between bureaucracy and inefficiencies, ethical issues, and corruption.
Organizational Design Features
Tall vs. Flat Hierarchies
Tall Hierarchies:
Emphasizes vertical command and chain of communication.
Risks include distorted communication and one-dimensional perspectives.
Flat Hierarchies:
More horizontal spread among employees.
Promotes collaboration but may lead to confusion in command and accountability.
Centralization vs. Decentralization
Centralization:
Decision-making power centralized at the top.
Benefits include less complexity and higher efficiency but less flexibility.
Decentralization:
Power distributed across various individuals/teams.
Encourages participation and adaptability but increases the complexity of management.
Executive Responsibilities (Post Corp)
Based on principles by Gulick and Wirwick.
Responsibilities include:
Planning
Organizing
Staffing
Directing
Coordinating
Reporting
Budgeting
Critiques of Classical Organizational Theory
Assumptions of rationality questioned.
Treats workers as interchangeable machine parts, disregarding human emotional factors.
Bureaucracy criticized for red tape and strict adherence to rules, undermining individuality and responsiveness.
Neoclassical Organizational Theory
Emerged early to mid-1900s in reaction to classical theories.
Emphasized:
Democratic values in organizations
Non-monetary incentives
Main Scholars
Herbert Simon
Criticized rational assumptions; introduced the concept of "bounded rationality" suggesting that decision-making is limited by time and resources.
Argued organizations should focus on satisfying needs rather than maximizing profits.
Luther Gulick (Wardle)
Disagreed with the strict dichotomy between administration and politics.
Advocated that public administration involves values similar to politics.
Human Relations School of Thought
Developed in conjunction with the Hawthorne Experiments in the 1920s.
Focused on psychological social aspects and human behavior in organizations.
The Hawthorne Experiment revealed that attention from management impacted productivity, regardless of environmental settings.
Maslow's Hierarchy of Needs
Concept illustrating that basic needs must be satisfied before higher-level needs are addressed.
Levels include:
Basic needs
Safety needs
Social needs
Esteem needs
Self-actualization
Critique: Needs can be simultaneous and culturally variable, making the hierarchy difficult to universally apply.
Theory X and Theory Y (Douglas McGregor)
Theory X: Workers are viewed as lazy and needing strict supervision; motivated mainly by economic incentives.
Theory Y: Workers are considered self-motivated, responsible, and enjoy their work; managers foster environments for mutual goals.
Contemporary Organizational Theories
Structural Theory
Suggests an optimal organizational structure exists based on environmental conditions.
Mechanistic structure characteristics: specialization, hierarchy, centralization, and stability.
Organic Structure
Opposite of mechanistic; features include joint specialization, decentralization, collaboration, and adaptability to change.
Systems Theory
Focuses on how organizational inputs (resources) are processed and lead to outputs, with feedback loops to refine processes.
Contingency Theory
Asserts there is no single best way to organize.
Structural features depend on environmental factors like politics, societal demands, and regulations.
Ethical Management of Employees
Case Study: Don't Ask, Don't Tell
Originated under President Truman with a focus on discharging personnel for homosexual activities.
Introduced in 1994 by President Clinton; repealed by President Obama in 2011.
Policy aimed at allowing service while limiting discussions of sexual orientation.
Created an ethical dilemma regarding military culture and the personal lives of personnel.
Key Questions Raised
To what extent should organizations interfere with employees' personal lives?
Conclusion
Future discussions will focus on human resource management in public sectors.
Next lecture scheduled for next week.