Foundations and Open Systems - week 2

Foundation Theories in Organisational Behaviour

Organisational Behaviour (OB) is rooted in various foundation theories that have evolved through historical contexts, influencing how organisations operate today. Understanding these theories gives insights into traditional and contemporary management practices.

Historical Evolution of Organisation

• The journey of organisational structures begins with organized hunting and gathering.

• This primitive system of cooperation evolved into agriculture, setting the stage for more complex societal organisation.

• The Industrial Revolution followed, introducing power machinery, leading to significant shifts in organisational dynamics and management methodologies.

Classical Theory – The Main Players

Frederick Taylor (1856 - 1915) – Scientific Management

1. Scientific Selection of Workers: Emphasizes choosing the right individuals for the right tasks to enhance efficiency.

2. Worker Cooperation: Establishing prescribed methods for the workforce to maximize productivity.

3. Supervision of Trained Workers: Providing guidance to scientifically selected and trained laborers.

4. Task and Responsibility Division: Clearly defining the roles of management versus workers to streamline operations.

Henri Fayol (1841-1925) – Management Through People

• Forecasting and Planning: Identifying organizational objectives and creating a strategic plan to meet them.

• Organizing: Ensuring that resources are appropriately allocated and structured for effective operations.

• Command: Striving for maximum returns from employees to benefit the organization.

• Coordination: Aligning various activities and efforts for cohesive functioning.

• Control: Monitoring operations to confirm they adhere to established plans and guidelines.

Max Weber (1864-1920) – Bureaucracy

• Advocated for a Rule-Based System of organization, emphasizing structure, functional efficiency, and a hierarchical framework.

• Defined meritocracy as the principle that job positions should be filled based on qualifications and experience.

Elton Mayo (1880 - 1949) – The Human Factor

• Conducted the Hawthorne Studies at Western Electric Company, aimed at understanding workforce productivity.

• Emphasized environmental factors on worker output over the rigid time-motion studies of Taylor.

• Stressed the importance of recognizing workers as individuals and understanding informal organizational behaviors.

Definition of an Organization

• An organization can be simply defined as a collective of two or more individuals collaborating to achieve a shared objective.

• It embodies a group who work harmoniously for a common purpose in a structured manner.

Modern Organisational Theory

• Emerged in the 1960s, integrating concepts from classical theories alongside new models of human behavior.

• Characterized by less structured approaches, it incorporates Systems and Contingency Theories.

Systems and Contingency Theories

• These theories consider the impact of various interdependent variables, including economic, social, physiological, structural, and technological factors on the organizational setup.

• Management strategies should be adaptive and vary depending on the surrounding circumstances.

Simple Open Systems Model

• Illustrates how organizations function within their environment:

  • Inputs: Resources required for production and operations.

  • Internal Processes: Activities that transform inputs into outputs.

  • Outputs: The finished products or services delivered to the environment.

  • Systems Environment: External factors influencing the organization’s operation.

Elements of the Organizational Environment

1. General Environment: Overarching factors such as economic trends and technological advancements.

2. Task Environment: Specific external forces like competitors, regulators, and customers.

3. Internal Dimension: Includes the internal culture, employees, and organizational structure impacting operations.