Summary Summaries all lectures of Organization Theory (including slides)

Organization theory
The course assessment basically consists of two components: an individual test at the end of
the course and an assignment for two or three students (an essay) to be handed in halfway.
There will be one re-take opportunity for each component.

Furthermore, to encourage a tmely start with self-study, there is an early partal test in
week 4, which is ofered only once (no resit). By doing this partal test students can take a
part of the fnal individual test in advance (20 of 75 points). If the result on this partal test is
satsfactory, they can skip the corresponding part at the fnal exam sitng. If students miss
the early partal sitng or achieve a low grade on it, they can do the corresponding part at
the fnal exam, in which case (only) the result for that corresponding part will count.

Your fnal grade for this course is based on your results on the group essay and the individual
test. This grade is determined in the following manner:
• Your result for the group essay is a grade between 0 and 10.  deadline end of week 6
• Your individual test result is expressed as a number of points, ranging from 0 to 75
points. (open test)
• Your fnal grade (0-10) is computed as 0.25*grade-for-essay +
points-for-individual-test/10.



Index
Organizaton theory....................................................................................................................................... 1

Lecture 1: What is organizaton theory?......................................................................................................... 2

Lecture 2 – The modernist perspectve: general principles..............................................................................3

Bureaucracy - Weber..................................................................................................................................... 5

Lecture 3 - Modernist perspectves 2: contngency theory and systems theory..............................................10

Lecture 4 – Neo-modernist approaches, human relatons and culture...........................................................17

Lecture 5 – Managerial control..................................................................................................................... 23

Lecture 6 – Organizatonal learning and innovaton......................................................................................25

Lecture 7 – Organizaton in a post-modern world.........................................................................................29

Lecture 8 – Post-modern organizatons......................................................................................................... 34

Lecture 9 – Chapter 9................................................................................................................................... 36

Lecture 10 – Critcal theory and managerialism............................................................................................40

,Lecture 1: What is organization theory?
What is organizaton
- The verb is ‘to organize’
- It’s about people
- The way they work together, interact
- An organizaton is not a material obeect (no reifcaton)
- An organizaton is not a number of people
- Organizaton refers to: structure, order, goals, functons
- Etymology: organs in the human body

Organizaton can exist at multple levels:
- Micro level: small group, classroom
- Mezzo level: school, company
- Macro level: society

Many forms of organizaton
- Informal, temporary
- Formal, insttutonalized

A trend of formalizaton (we want to know who is the boss, what is the structure)




Adam Smith  The Wealth of Natons (1776)
To what does the West owe it’s wealth?

Division of labour (arbeid)
- What is division of labour?
- Why does division of labour produce wealth?
 Not having to change what you are doing
 Repetton enhances skill
 Diferent eobs for people with diferent talents  specializaton
 Development of specifc tools/machines
+ free trade on markets  liberalism  the invisible hand (free market, no
government interrupton)

The Wealth of Nations, is the book of Adam Smith. First published in 1776, the book
offers one of the world's first collected descriptions of what builds nations' wealth, and is
today a fundamental work in classical economics. By reflecting upon the economics at the
beginning of the Industrial Revolution, the book touches upon such broad topics as
the division of labour, productivity, and free markets.

He analyzed the relationship between work and the production of a nation's wealth.

The unobservable market force that helps the demand and supply of goods in a free

, market to reach equilibrium automatically is the invisible hand. Description: The
phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations'

Division of labour, the separation of a work process into a number of tasks, with each
task performed by a separate person or group of persons. Adam Smith saw this splitting of
tasks as a key to economic progress by providing a cheaper and more efficient means of
producing goods.


How can this theory be of value to you as a future manager?
- Understand how a workplace functons
- Plan complex work processes: divide it into tasks
- Communicate within a frm: ‘’we need a beter division of labour’’
- Think about the positon of your frm in a market

Perspectves in Organizaton Theory
- Diferent ‘schools’
- Ontology (when you have an idea of about which things mater, like division of
labour, insttutons, organizaton of culture. What is important when you look at
organizatons?)
- Epistemology (how can we get through answers about what is happening, like ‘how
can we determine if people are happy at the workplace?’)

Organizatonal goals as an example of diferences in perspectves
- Do organizatons have goals?
- If so, how can these goals be determined

Lecture 2 – The modernist perspective: general
principles
Founding fathers of organizaton theory

Adam smith (1776)

 Division of labour
 Markets  liberalism
 Planning and coordinaton within frms

Understanding the Western world
- Renaissance, reformaton, enlightenment
- Philosophy, natural science, inventonss
- Shifs in authority (traditonal ‘’, charismatc ‘’, ratonal authority)

Ratonal authority
 Efectvity
 Efciency

,  Legality

Max weber (1992)

 The Protestant Ethic and the Spirit of Capitalism (1904)
 Economy and society (1921

Ratonal authority
- Efectvity
- Efciency
- Legality

Ideal type Bureaucracy (Weber, 1922)
 Quest for an organizatonal ‘Ideal type’
 What characteristcs are required for ratonal organizaton?

Essental requirements (in an organizaton) (Weber)
 Control by rightul owner/master:
- Specifcaton of goals
- Specifcaton of organizatonal design/structure
- Specifcaton of rules
 Personnel with knowledge and skills
 Loyalty
 Verifability (be able to verify what people are doing)
 Order and predictability


Essental characteristcs of ideal type bureaucracy (Weber)
1. Division of labour in ofces (separaton of tasks in any system so that partcipants
may specialize)
2. Hierarchy of authority
3. Rule-based decision making
4. Impersonality of decisions
5. Writen documents
6. Selecton and promoton based on merit (verdienste)
7. Separaton of ofce and incumbent (no ownership)

Weber on bureaucracy
 It’s the most ratonal form of organizaton
 Technically superior
 Functons like a machine: speed, precision, clarity
 Weber doesn’t argue bureaucracy is ‘’ideal’’  Iron Cage