Organizational theory lectures
Organizational Theory lectures
1
, Organizational theory lectures
Lecture 1: Intro + what is theory?
WHAT IS OT ABOUT → to understand organizations from different perspectives
- The phenomenon organization
- Why do organizations exist?
- How do organizations set goals?
- What are organizations different/similar?
- When and why do organizations collaborate?
Why so many different views?
→ organizations are very complex. There are multiple ways to explain what is
happening in organizations
OT LEARNING GOALS
● To reproduce correctly definitions of the main concepts
● To reproduction and explain the main assumptions
● To reproduce, explain and apply baseline conceptual models and advanced models on selected topics
● To correctly formulate the main hypotheses, and the arguments grounding these hypotheses
● To read and understand academic papers that empirically test these theories
CONTENT: 6 theories we will be discussed
1) Goal-setting theory (GST) → micro
2) Social interdependence theory (SIT) → micro
3) Dynamic capabilities theories (DCT) → macro
4) Legitimacy theory (LT) → macro
5) Inter-organizational theory (IOT) → between micro and
macro
Exercise: Observe a practical problem - come up with theoretical explanation
Goal interdependence: the extent to which a goal’s achievement is hinderend or facilitated by
other goals
→ Positive: the achievement of goal a facilitates the realization of goal b
→ Negative: the achievement of goal a hinders the realization of goal b
>>> produces rivalry.
Bv lowering costs + making higher quality products. You can not expect that your quality will
increase when you are trying to reduce the costs.
Negative goal interdependence induces rivalry between departments in organizations, and
consequently hampers <bellemert> collaboration.
What can a CEO do to combat the negative impact of the bonus trap?
- Better align the goals , so don’t have a quality goal and a cost reduction goal together.
2
, Organizational theory lectures
- The best recommendation is not always cost reduction! You need to learn new ideas
by making use of the learned theories. Different solutions are sometimes better.
There are different views on a thing, everyone sees something different and reacts
differently to a phenomenon. There are different paradigms.
→ theory helps us bring those perspectives together
Personal theories: We use theories all the time → interpretations of reality how the
world works (bv: women are smarter than men).
Challenge with “theory”
There is nothing so practical as a good theory!
- We need an integrated AND a focused view (understanding) to have/understand full
organization
- Most people contrast practice with theory AND prefer examples over theories
- BUT: practise, as we saw in our case, suffers from partial views that hinder more
complete observation, and thus (bettr) explanations
3
, Organizational theory lectures
Lecture 2: What is Theory?
Organizations:
1) Social entities (social processes = !, people have/set goals)
2) Goal-directed (strive common goals)
3) Designed as deliberately structured and coordinated activity systems
4) Linked to distinct external environments (political, natural, where suppliers
are,...)
→ interact, open system.
eisen van consumenten en beïnvloeden van organisaties op omgeving.
Tangible examples of organizations
→ an organized group of people who have a common goal and work together.
→ There are a lot of different kinds of organizations. profit/non-profit.
governmental/non-governmental etc. different forms as well.
→ There is a very broad view on what organizations are. Thuiszorg heeft bijv, geen
vast gebouw. Samenwerken tussen organisaties etc.
Corporations, Non-governmental (NGO), International, Not-for-profit, Secret societies,
Schools, Governments, Charities, Criminal, Voluntary associations, Political
Organizational forms: inter-organizations who work together, projects,
- hybrid organizations: financial and social goals at the same time→ building fully
electric cars (social goal), making it a profitable business (financial goal),
- inter-organisational project → parts of bv ship building - separated. A lot of
people who participate
Theory - a definition:
‘A theory consist of a set of interrelated concepts, definitions, and propositions that explain or
predict events or situations by specifying relations among variables’
‘The words “theorise” comes from the Greek word “theorein”. Comes from blend of “thea”
(see/observe) and “horan” (see a thing attentively/cibtenokate <thinking about it>)
A THEORY
● Typically focuses on a small part of reality
● Abstracts of many other relevance aspects
● Helps us see detail this way
● Helps us understand that limited part of reality better
● Is NOT the whole story, and needs to be seen in a larger theoretical context
4
Organizational Theory lectures
1
, Organizational theory lectures
Lecture 1: Intro + what is theory?
WHAT IS OT ABOUT → to understand organizations from different perspectives
- The phenomenon organization
- Why do organizations exist?
- How do organizations set goals?
- What are organizations different/similar?
- When and why do organizations collaborate?
Why so many different views?
→ organizations are very complex. There are multiple ways to explain what is
happening in organizations
OT LEARNING GOALS
● To reproduce correctly definitions of the main concepts
● To reproduction and explain the main assumptions
● To reproduce, explain and apply baseline conceptual models and advanced models on selected topics
● To correctly formulate the main hypotheses, and the arguments grounding these hypotheses
● To read and understand academic papers that empirically test these theories
CONTENT: 6 theories we will be discussed
1) Goal-setting theory (GST) → micro
2) Social interdependence theory (SIT) → micro
3) Dynamic capabilities theories (DCT) → macro
4) Legitimacy theory (LT) → macro
5) Inter-organizational theory (IOT) → between micro and
macro
Exercise: Observe a practical problem - come up with theoretical explanation
Goal interdependence: the extent to which a goal’s achievement is hinderend or facilitated by
other goals
→ Positive: the achievement of goal a facilitates the realization of goal b
→ Negative: the achievement of goal a hinders the realization of goal b
>>> produces rivalry.
Bv lowering costs + making higher quality products. You can not expect that your quality will
increase when you are trying to reduce the costs.
Negative goal interdependence induces rivalry between departments in organizations, and
consequently hampers <bellemert> collaboration.
What can a CEO do to combat the negative impact of the bonus trap?
- Better align the goals , so don’t have a quality goal and a cost reduction goal together.
2
, Organizational theory lectures
- The best recommendation is not always cost reduction! You need to learn new ideas
by making use of the learned theories. Different solutions are sometimes better.
There are different views on a thing, everyone sees something different and reacts
differently to a phenomenon. There are different paradigms.
→ theory helps us bring those perspectives together
Personal theories: We use theories all the time → interpretations of reality how the
world works (bv: women are smarter than men).
Challenge with “theory”
There is nothing so practical as a good theory!
- We need an integrated AND a focused view (understanding) to have/understand full
organization
- Most people contrast practice with theory AND prefer examples over theories
- BUT: practise, as we saw in our case, suffers from partial views that hinder more
complete observation, and thus (bettr) explanations
3
, Organizational theory lectures
Lecture 2: What is Theory?
Organizations:
1) Social entities (social processes = !, people have/set goals)
2) Goal-directed (strive common goals)
3) Designed as deliberately structured and coordinated activity systems
4) Linked to distinct external environments (political, natural, where suppliers
are,...)
→ interact, open system.
eisen van consumenten en beïnvloeden van organisaties op omgeving.
Tangible examples of organizations
→ an organized group of people who have a common goal and work together.
→ There are a lot of different kinds of organizations. profit/non-profit.
governmental/non-governmental etc. different forms as well.
→ There is a very broad view on what organizations are. Thuiszorg heeft bijv, geen
vast gebouw. Samenwerken tussen organisaties etc.
Corporations, Non-governmental (NGO), International, Not-for-profit, Secret societies,
Schools, Governments, Charities, Criminal, Voluntary associations, Political
Organizational forms: inter-organizations who work together, projects,
- hybrid organizations: financial and social goals at the same time→ building fully
electric cars (social goal), making it a profitable business (financial goal),
- inter-organisational project → parts of bv ship building - separated. A lot of
people who participate
Theory - a definition:
‘A theory consist of a set of interrelated concepts, definitions, and propositions that explain or
predict events or situations by specifying relations among variables’
‘The words “theorise” comes from the Greek word “theorein”. Comes from blend of “thea”
(see/observe) and “horan” (see a thing attentively/cibtenokate <thinking about it>)
A THEORY
● Typically focuses on a small part of reality
● Abstracts of many other relevance aspects
● Helps us see detail this way
● Helps us understand that limited part of reality better
● Is NOT the whole story, and needs to be seen in a larger theoretical context
4
