Organization Theory
Aantekeningen
Semester 1 2023, blok 2
Leon Oerlemans
,Inhoudsopgave
Organization Theory ......................................................................................................................................... 1
Aantekeningen ................................................................................................................................................... 1
Lecture 1 .......................................................................................................................................................... 4
Positioning Organization Theories ................................................................................................................. 6
Goal interdepence: ........................................................................................................................................ 6
Parabel Organization Theory ......................................................................................................................... 6
Lecture 2 .......................................................................................................................................................... 7
Organizations ................................................................................................................................................. 7
Theory ................................................................................................................................................................. 7
Whetten 1989 ................................................................................................................................................ 8
Lecture 3 + lecture 4: Inter-organizational theories part 1 – Transaction Cost Theory .................................... 11
Variables ...................................................................................................................................................... 18
What is a governance structure? ................................................................................................................. 18
Basic governance structures ........................................................................................................................ 20
Asset Specificity ........................................................................................................................................... 21
Transaction Cost Theory summary: ............................................................................................................. 24
Transaction Cost Theory a la Whetten: ....................................................................................................... 24
Lecture 5 + 6 Inter-Organizational Theories part 2: Resource Dependence Theory ........................................ 25
What is resource Dependence Theory? ...................................................................................................... 26
Main assumptions of RDT ............................................................................................................................ 27
What is an organization in RDT? .................................................................................................................. 27
What is an environment in RDT? ................................................................................................................. 28
Buffering ...................................................................................................................................................... 29
Bridging ........................................................................................................................................................ 29
What is the basic of RDT? ............................................................................................................................ 30
How to cope with resource dependence? (managerial roles)..................................................................... 30
How to cope with resource dependence? ................................................................................................... 31
Discussing Fink et al. .................................................................................................................................... 34
Working Lecture 1 .......................................................................................................................................... 37
Exam preparation ........................................................................................................................................ 37
Lecture 6: Population Ecology Theory ............................................................................................................ 39
Unit of Analysis ............................................................................................................................................ 41
Hawley’s model (the principle of isomorphism) .......................................................................................... 42
Discussion and takeaways ........................................................................................................................... 43
Institutional Theory........................................................................................................................................ 44
The three mechanisms ................................................................................................................................ 45
Discussion and takeaways ........................................................................................................................... 47
Lecture 7: Behavioral Theory of the Firm; General Perspective ...................................................................... 49
First, about the paper .................................................................................................................................. 49
Theoretical foundations .............................................................................................................................. 50
Theoretical foundations: Cognitive foundations ......................................................................................... 50
, Theoretical foundations: relational concepts .............................................................................................. 51
Assessment of research: cognition .............................................................................................................. 52
Assessment of research: Performance feedback ........................................................................................ 52
Lecture 8: Behavioral Theory of the Firm part 2: Routines and Performance feedback .................................. 54
Organizational routines ............................................................................................................................... 55
Prospect theory ........................................................................................................................................... 58
Performance feedback ................................................................................................................................ 59
Goals & opportunities.................................................................................................................................. 61
Working Lecture 2 .......................................................................................................................................... 64
Exam answers .............................................................................................................................................. 64
Clarifications ................................................................................................................................................ 64
Exam Questions ........................................................................................................................................... 64
Lecture 9: Goal Setting Theory part 1 ............................................................................................................. 67
Goals ............................................................................................................................................................ 67
Dimensions of goals ..................................................................................................................................... 67
Goal setting theory ...................................................................................................................................... 68
Main components of Goal Setting Theory ................................................................................................... 68
Goal Setting Theory Assumptions................................................................................................................ 69
Lecture 10: Goal Setting Theory Part 2 ........................................................................................................... 71
GST- management ....................................................................................................................................... 71
Stretch Goals ............................................................................................................................................... 72
Environment ................................................................................................................................................ 74
Family firms ................................................................................................................................................. 75
Lecture 11: Social Interdependence Theory part 1 ......................................................................................... 77
Main question within SIT ............................................................................................................................. 78
Basic assumptions SIT .................................................................................................................................. 79
Goal interdependence ................................................................................................................................. 81
Lecture 12: Social Interdependence Theory part 2 ......................................................................................... 82
Social Interdependence Theory ................................................................................................................... 82
Actions ......................................................................................................................................................... 84
Competitive Situations ................................................................................................................................ 84
Psychological processes ............................................................................................................................... 85
Interaction Patterns:.................................................................................................................................... 86
Leading to outcomes ................................................................................................................................... 87
Questions ..................................................................................................................................................... 90
Working group 3 – 1 december 2023 .............................................................................................................. 91
OT Question Session 4 december 2023........................................................................................................... 92
, Lecture 1
Exam: multiple choice and 6 open questions
During working groups you will have 3 small exam quizzes, if you get a sufficient grade for
these quizzes you will only have to answer the 6 open questions during the exam and get
excluded from the MC questions.
What the couse is about:
What is a theory (not)?
Organization Theory in the OT course is:
– Organization is the phenomenon that we will study.
– Theories explaining and increasing our understanding of organization(‘s) aspects. For
example:
Why do organizations exist?
How do organizations set goals?
How are organizations different/similar?
How do environmental pressures select in or out populations of organizations?
When and why do organizations collaborate?
Every theory has building blocks, has independent and dependent variables that might be
connected to each other
Take the word organization as a broad concept:
One and one is three. A place where you reach certain goals in a better way than all by
yourself. Collaborate in a way to achieve a higher goal.
Questions like when do we use markets and when do we use organizations?
• One of the most important theories to OT is Transaction Cost Theories. It asks and
answers the question: ‘Why do Organization exist?’
• Throughout the world you will see that organizations are structured the same way
(eg. Schools etc). Why are some organization similar and some are not? You will find
that when an organization deviates from the normal structure, it will be harder for
you as a organization. This is because people start asking questions because you are
different. (New organization theories is about this, it thinks in terms of legitimacy.
This is about am I accepted by others?). But whenever everyone is doing the same,
Aantekeningen
Semester 1 2023, blok 2
Leon Oerlemans
,Inhoudsopgave
Organization Theory ......................................................................................................................................... 1
Aantekeningen ................................................................................................................................................... 1
Lecture 1 .......................................................................................................................................................... 4
Positioning Organization Theories ................................................................................................................. 6
Goal interdepence: ........................................................................................................................................ 6
Parabel Organization Theory ......................................................................................................................... 6
Lecture 2 .......................................................................................................................................................... 7
Organizations ................................................................................................................................................. 7
Theory ................................................................................................................................................................. 7
Whetten 1989 ................................................................................................................................................ 8
Lecture 3 + lecture 4: Inter-organizational theories part 1 – Transaction Cost Theory .................................... 11
Variables ...................................................................................................................................................... 18
What is a governance structure? ................................................................................................................. 18
Basic governance structures ........................................................................................................................ 20
Asset Specificity ........................................................................................................................................... 21
Transaction Cost Theory summary: ............................................................................................................. 24
Transaction Cost Theory a la Whetten: ....................................................................................................... 24
Lecture 5 + 6 Inter-Organizational Theories part 2: Resource Dependence Theory ........................................ 25
What is resource Dependence Theory? ...................................................................................................... 26
Main assumptions of RDT ............................................................................................................................ 27
What is an organization in RDT? .................................................................................................................. 27
What is an environment in RDT? ................................................................................................................. 28
Buffering ...................................................................................................................................................... 29
Bridging ........................................................................................................................................................ 29
What is the basic of RDT? ............................................................................................................................ 30
How to cope with resource dependence? (managerial roles)..................................................................... 30
How to cope with resource dependence? ................................................................................................... 31
Discussing Fink et al. .................................................................................................................................... 34
Working Lecture 1 .......................................................................................................................................... 37
Exam preparation ........................................................................................................................................ 37
Lecture 6: Population Ecology Theory ............................................................................................................ 39
Unit of Analysis ............................................................................................................................................ 41
Hawley’s model (the principle of isomorphism) .......................................................................................... 42
Discussion and takeaways ........................................................................................................................... 43
Institutional Theory........................................................................................................................................ 44
The three mechanisms ................................................................................................................................ 45
Discussion and takeaways ........................................................................................................................... 47
Lecture 7: Behavioral Theory of the Firm; General Perspective ...................................................................... 49
First, about the paper .................................................................................................................................. 49
Theoretical foundations .............................................................................................................................. 50
Theoretical foundations: Cognitive foundations ......................................................................................... 50
, Theoretical foundations: relational concepts .............................................................................................. 51
Assessment of research: cognition .............................................................................................................. 52
Assessment of research: Performance feedback ........................................................................................ 52
Lecture 8: Behavioral Theory of the Firm part 2: Routines and Performance feedback .................................. 54
Organizational routines ............................................................................................................................... 55
Prospect theory ........................................................................................................................................... 58
Performance feedback ................................................................................................................................ 59
Goals & opportunities.................................................................................................................................. 61
Working Lecture 2 .......................................................................................................................................... 64
Exam answers .............................................................................................................................................. 64
Clarifications ................................................................................................................................................ 64
Exam Questions ........................................................................................................................................... 64
Lecture 9: Goal Setting Theory part 1 ............................................................................................................. 67
Goals ............................................................................................................................................................ 67
Dimensions of goals ..................................................................................................................................... 67
Goal setting theory ...................................................................................................................................... 68
Main components of Goal Setting Theory ................................................................................................... 68
Goal Setting Theory Assumptions................................................................................................................ 69
Lecture 10: Goal Setting Theory Part 2 ........................................................................................................... 71
GST- management ....................................................................................................................................... 71
Stretch Goals ............................................................................................................................................... 72
Environment ................................................................................................................................................ 74
Family firms ................................................................................................................................................. 75
Lecture 11: Social Interdependence Theory part 1 ......................................................................................... 77
Main question within SIT ............................................................................................................................. 78
Basic assumptions SIT .................................................................................................................................. 79
Goal interdependence ................................................................................................................................. 81
Lecture 12: Social Interdependence Theory part 2 ......................................................................................... 82
Social Interdependence Theory ................................................................................................................... 82
Actions ......................................................................................................................................................... 84
Competitive Situations ................................................................................................................................ 84
Psychological processes ............................................................................................................................... 85
Interaction Patterns:.................................................................................................................................... 86
Leading to outcomes ................................................................................................................................... 87
Questions ..................................................................................................................................................... 90
Working group 3 – 1 december 2023 .............................................................................................................. 91
OT Question Session 4 december 2023........................................................................................................... 92
, Lecture 1
Exam: multiple choice and 6 open questions
During working groups you will have 3 small exam quizzes, if you get a sufficient grade for
these quizzes you will only have to answer the 6 open questions during the exam and get
excluded from the MC questions.
What the couse is about:
What is a theory (not)?
Organization Theory in the OT course is:
– Organization is the phenomenon that we will study.
– Theories explaining and increasing our understanding of organization(‘s) aspects. For
example:
Why do organizations exist?
How do organizations set goals?
How are organizations different/similar?
How do environmental pressures select in or out populations of organizations?
When and why do organizations collaborate?
Every theory has building blocks, has independent and dependent variables that might be
connected to each other
Take the word organization as a broad concept:
One and one is three. A place where you reach certain goals in a better way than all by
yourself. Collaborate in a way to achieve a higher goal.
Questions like when do we use markets and when do we use organizations?
• One of the most important theories to OT is Transaction Cost Theories. It asks and
answers the question: ‘Why do Organization exist?’
• Throughout the world you will see that organizations are structured the same way
(eg. Schools etc). Why are some organization similar and some are not? You will find
that when an organization deviates from the normal structure, it will be harder for
you as a organization. This is because people start asking questions because you are
different. (New organization theories is about this, it thinks in terms of legitimacy.
This is about am I accepted by others?). But whenever everyone is doing the same,
