Summary Organization Theory

Chapter 1: introduction: definitions and conceptions

Organization: Elements, a Definition and Images
Scott’s Elements of Organization
- Instead of presenting a single definition of organization, Scott outlines the central elements
of an organization.
o Social structure
 In sociology relationships, and interactions that take place in a regular
pattern refer to social structure. Many aspects of the social structure are
defined in job descriptions and organizational charts. They are often
formally specified because they are there to accomplish an organizational
task. This is the formal social structure.
 The informal social structure contains those patterned activities and
relationships that emerge naturally and which are created by organizational
members. They do not exist in written documents, organizational charts, or
job descriptions.
 The social structure is very important to an organization. It divides a bunch
of people into an entity.
o Participants
 These are the humans who “people” the organization. A lot of organizations
rely heavily on the human factor of production.
 Because organization depend on human labor power (physical and mental)
and because humans (“participants”) do not automatically exert their labor
when they enter an organization, organizations and their owners face the
endless challenge of trying to figure out how to extract this human energy.
This is a persistent organizational problem.
o Goals
 The “conceptions of desired ends”  what is the organization trying to
achieve? Examples are: the production of a desired product, high-quality
customer service, or the efficient distribution of social services.
 Goals are often set by human, they are human goals. The goals of the
owners are not the goals of the managers, production workers, or support
staff. The fact that humans will have different goals, and that goal conflict
will take place, is further evidence of the challenge posed by organizational
participants.
o Technology
 Is the means used by the organization to transform the raw materials of the
organization – physical, informational, or human- into a final product.
Different organizations use different techniques.
o Environment
 Refers to all the things outside of the boundaries of the organization that
are either shaped by or influence a particular organization.
 Environmental factors are: interactions with other organizations, or political
and legal regulations that are imposed on organizations.
- Scotts element can be used to conduct a basic analysis of any organization.

, - Another thing Scott did, was taking on the difficult task of devising a scheme for categorizing
the vast number of organization theory: The scheme is based on three major perspectives
used to analyse organizations:
o Rational system perspective
 Most used approach to organizational analysis.
 “Organizations are collectives oriented to pursuit of relatively specified goals
and exhibiting relatively formalized social structures.
o Natural system perspective
 “Organizations as collectivities whose participants share a common interest
in the survival of the system and who engage in collective activities,
informally structured, to secure this end”.
o Open systems perspective
 “organizations are coalitions of shifting interest groups that develop goals by
negotiations; the structure of the coalition, its activities, and its outcomes
are strongly influenced by environmental factors”
- The three above mentioned perspectives represent a metatheoretical framework which
implies a grand theory of how people theorize about organizations. Such a framework seeks
to identify the major fundamental criteria that can distinguish one theory from another.

Hall’s Definition of Organization.
- Collectivity suggests a group of humans who have a common objective.
- There will always be some tension between the particular interests of individual members
and the larger organizational objective or goal.
- The additional characteristics of organization listed by Hall are: boundaries, norms,
authority, communication, and coordination. This are mechanisms designed to reconcile the
potential conflict between collective and individual interests.
o Boundaries distinguish who is inside or outside the organization. This establishes
common membership.
o The normative order, which is the cultural dimension, implies shared beliefs and
values about the appropriate way to behave and accomplish organizational
activities.
o Collectivity is a cohesive social group with a common set of ideas. To convert
individuals into a cohesive collectivity you need authority, communication, and
coordination systems.

Morgan’s Images of Organization
- A third approach to study organization theory, uses metaphors, images, or mental models.
- Morgan shapes an organization as a metaphor. The most common metaphors view
organizations as:
o Machine metaphor
 Views organizations as technical instruments used to produce some
outcome. The elements of the organization, including humans, are part of a
structure that work together with mechanical-like efficiency to achieve a
particular goal.
 Hierarchy and division of labor help to increase efficiency
 People are expected to behave in a predetermined way.
o Organism
 This implies that organizations are akin to living things that need resources
to stay alive and flourish. Those who employ the organism metaphor,
therefore, place a great deal of emphasis on the ability of organizations to
manage and cope with environmental conditions.