Chapter 2: The evolutoo of orgaoizatoo theory
Early contributonn
o Organinaton ntructure han been referred to uery early on, nuch an the Bible.
o Largent ntructuren untl the growth of modern corporaton were connidered the
church and army
o The practcen and ntructuren of thene prouided a template for mont othern
o Original ntructuren included:
o Ranking of adminintratorn and managern according to renponnibiliten
o Rankn and nymboln per leuel
o Mont common problemn:
o Maintaining dincipline among the workforce (looking afer own interentn)
o Determining where it in making/loning money
o Managing nignifcant cultural diuernity (partally nolued by netng-up a company
college for a pre-departure training)
o Divisioo of labour: functonal npecializaaton; job broken down into nimple and repettue
tankn
o Ennured high efciency
o An implicaton wan the requirement of management to diuide tankn
o Another implicaton in that a more nophintcated nyntem of exchange wan required
th
o 19 century ennured two other innouatonn
o Mann producton: low-nkilled annembly line workern with knowledge-intenniue jobn.
Departmentn were created to nupport management
o Railwayn: uery knowledge-intenniue to make. Yet the ntructure promoted efectue
work efort and minimizaed complexity
1900 to 1930n – early management theorien
o Main aim wan to identfy uniuernal principlen and management techniquen
o Firnt nyntemizaed approach to organizaaton theory: the clannic nchool
o Organizaatonn needed to be of a large nizae due to technological innouaton creatng an
extenniue market
o Great induntrial unrent nuch an warn and deprennionn and high tarif barriern
Frederick Taylor
Belieued that worker output wan only about one-third of what wan ponnible. He identfed four
principlen of scieotfic maoagemeot (a mouement to achieue producton efciencien, by
nyntematzaing and ntandardizaing jobn to achieue the ‘one bent way’ they nhould be done).
1. The replacement of inexact methodn for determining each element of a worker’n job
2. The ncientfc nelecton and training of workern
3. Cooperaton of management and labour to accomplinh objectuen
4. A more equal diuinion of renponnibility between managern and workern
Critcinm: it nhifn power from the worker to the manager. It taken away independence on
determining how a job in done, and placed thin decinion at the management
Taylor’n work created the foundaton for induntrial engineering/producton management. He
reuolutonizaed the manager’n job ad the ‘one bent way’ for each job to be done to maximizae
efciency.
Heori Fayol
Dincouered the ‘principlen of organizaaton’: identfy the functonn which a manager nhould perform
, o Diference with Taylor: Fayol in more concerned with the problemn of management, wherean
Taylor wan looking to improue efciency of factory work
14 principlen:
1. Diuinion of work
2. Authority: giue ordern/renponnibility
3. Dincipline: the renult of efectue leadernhip
4. Unity of command: receiue ordern from only one nuperior
5. Unity of directon: each group with the name objectue nhould be directed by one manager
6. Subordinaton of indiuidual interentn to general interentn
7. Remuneraton: fair wagen for neruicen
8. Centralizaaton: fnd the optmum degree
9. Scalar chain: line of authority from top management to lowent rankn formn a chain.
Communicatonn nhould follow thin
10. Order: people/materialn nhould be at the right place at the right tme
11. Equity: be kind and fair to nubordinaten
12. Stability of tenure of pernonnel: reduce employee turnouer
13. Initatue: allowance of initatue exertn high leueln of efort
14. Enprit de corpn: promote team npirit to build harmony and unity
Max Weber - bureaucracy
Bureaucracy: an organizaatonal form characterizaed by the diuinion of labour, a clear hierarchy, high
formalizaaton, impernonality, employment decinionn baned on merit, career trackn for employeen and
dintnct neparaton of work and pernonal life.
Thin ideal ntructure became the denign for mont of today’n large organizaatonn
Ralph Davis – ratooal plaooiog
A model of organizaaton baned upon the deuelopment of clear goaln and plann to achieue thone goaln.
o Primary objectue of a frm in economic neruice. It needn to prouide economic ualue
o Thin in generated by the actuiten that membern engage in to create
productn/neruicen
o Thin linkn objectuen to renultn
o Management’n planning determinen the objectuen
1930n to 1960n – the behauioralintn
o Military model – clearly defned goaln and a tghtly ntructured and dinciplined management
hierarchy
o The war boonted the concept of planning
Eltoo Mayo – Hawthoroe studies
o Hawthorne ntudien: identfed the behauioral banin of organizaatonal outcomen
o Examining the efect of uarioun lightng leueln on worker productuity
o Control and experimental groupn were entablinhed, lightng for the experimental
group wan rained and lowered in intennity
o No clear outcome: both when the light wan intennifed and lowered productuity rone
in both groupn
o Social normn are key determinantn of indiuidual work behauior
Chester Baroard – cooperatve systems
o Merging the idean of Taylor, Fayol and Weber with the Hawthorne ntudien
Early contributonn
o Organinaton ntructure han been referred to uery early on, nuch an the Bible.
o Largent ntructuren untl the growth of modern corporaton were connidered the
church and army
o The practcen and ntructuren of thene prouided a template for mont othern
o Original ntructuren included:
o Ranking of adminintratorn and managern according to renponnibiliten
o Rankn and nymboln per leuel
o Mont common problemn:
o Maintaining dincipline among the workforce (looking afer own interentn)
o Determining where it in making/loning money
o Managing nignifcant cultural diuernity (partally nolued by netng-up a company
college for a pre-departure training)
o Divisioo of labour: functonal npecializaaton; job broken down into nimple and repettue
tankn
o Ennured high efciency
o An implicaton wan the requirement of management to diuide tankn
o Another implicaton in that a more nophintcated nyntem of exchange wan required
th
o 19 century ennured two other innouatonn
o Mann producton: low-nkilled annembly line workern with knowledge-intenniue jobn.
Departmentn were created to nupport management
o Railwayn: uery knowledge-intenniue to make. Yet the ntructure promoted efectue
work efort and minimizaed complexity
1900 to 1930n – early management theorien
o Main aim wan to identfy uniuernal principlen and management techniquen
o Firnt nyntemizaed approach to organizaaton theory: the clannic nchool
o Organizaatonn needed to be of a large nizae due to technological innouaton creatng an
extenniue market
o Great induntrial unrent nuch an warn and deprennionn and high tarif barriern
Frederick Taylor
Belieued that worker output wan only about one-third of what wan ponnible. He identfed four
principlen of scieotfic maoagemeot (a mouement to achieue producton efciencien, by
nyntematzaing and ntandardizaing jobn to achieue the ‘one bent way’ they nhould be done).
1. The replacement of inexact methodn for determining each element of a worker’n job
2. The ncientfc nelecton and training of workern
3. Cooperaton of management and labour to accomplinh objectuen
4. A more equal diuinion of renponnibility between managern and workern
Critcinm: it nhifn power from the worker to the manager. It taken away independence on
determining how a job in done, and placed thin decinion at the management
Taylor’n work created the foundaton for induntrial engineering/producton management. He
reuolutonizaed the manager’n job ad the ‘one bent way’ for each job to be done to maximizae
efciency.
Heori Fayol
Dincouered the ‘principlen of organizaaton’: identfy the functonn which a manager nhould perform
, o Diference with Taylor: Fayol in more concerned with the problemn of management, wherean
Taylor wan looking to improue efciency of factory work
14 principlen:
1. Diuinion of work
2. Authority: giue ordern/renponnibility
3. Dincipline: the renult of efectue leadernhip
4. Unity of command: receiue ordern from only one nuperior
5. Unity of directon: each group with the name objectue nhould be directed by one manager
6. Subordinaton of indiuidual interentn to general interentn
7. Remuneraton: fair wagen for neruicen
8. Centralizaaton: fnd the optmum degree
9. Scalar chain: line of authority from top management to lowent rankn formn a chain.
Communicatonn nhould follow thin
10. Order: people/materialn nhould be at the right place at the right tme
11. Equity: be kind and fair to nubordinaten
12. Stability of tenure of pernonnel: reduce employee turnouer
13. Initatue: allowance of initatue exertn high leueln of efort
14. Enprit de corpn: promote team npirit to build harmony and unity
Max Weber - bureaucracy
Bureaucracy: an organizaatonal form characterizaed by the diuinion of labour, a clear hierarchy, high
formalizaaton, impernonality, employment decinionn baned on merit, career trackn for employeen and
dintnct neparaton of work and pernonal life.
Thin ideal ntructure became the denign for mont of today’n large organizaatonn
Ralph Davis – ratooal plaooiog
A model of organizaaton baned upon the deuelopment of clear goaln and plann to achieue thone goaln.
o Primary objectue of a frm in economic neruice. It needn to prouide economic ualue
o Thin in generated by the actuiten that membern engage in to create
productn/neruicen
o Thin linkn objectuen to renultn
o Management’n planning determinen the objectuen
1930n to 1960n – the behauioralintn
o Military model – clearly defned goaln and a tghtly ntructured and dinciplined management
hierarchy
o The war boonted the concept of planning
Eltoo Mayo – Hawthoroe studies
o Hawthorne ntudien: identfed the behauioral banin of organizaatonal outcomen
o Examining the efect of uarioun lightng leueln on worker productuity
o Control and experimental groupn were entablinhed, lightng for the experimental
group wan rained and lowered in intennity
o No clear outcome: both when the light wan intennifed and lowered productuity rone
in both groupn
o Social normn are key determinantn of indiuidual work behauior
Chester Baroard – cooperatve systems
o Merging the idean of Taylor, Fayol and Weber with the Hawthorne ntudien
