"Organizational theory refers to a series of interrelated concepts that involve the sociological study of the structures and operations of formal social organizations."
An overview of the key ideas and concepts that have shaped organization theory over time.
Classical Management Theory: A theory developed during the late 19th and early 20th centuries which aimed to improve the efficiency of organizations by increasing productivity through worker specialization, hierarchy, and strict rules and procedures.
Scientific Management: Also known as Taylorism, it is a theory developed by Frederick Winslow Taylor that aimed to improve efficiency in the workplace by breaking down tasks into smaller, simpler components and improving worker productivity through training.
Bureaucracy: A type of organizational structure characterized by a hierarchical authority structure, formalized rules and procedures, and specialization of labor that aims to promote efficiency, consistency, and accountability.
Human Relations Theory: Developed during the 1930s and 1940s, this theory focused on the role of social and psychological factors in organizational behavior, emphasizing the importance of communication, employee motivation, and group dynamics.
Systems Theory: A theory that views organizations as complex systems made up of interdependent components that must work together to achieve specific goals, emphasizing the dynamic nature of organizations and the need for adaptive management.
Contingency Theory: This theory suggests that there is no one-size-fits-all approach to organizational management, and that different management strategies are required in different situations depending on a variety of internal and external factors.
Resource Dependence Theory: A theory that emphasizes the importance of external resources in organizational success, including the ability to acquire and manage financial, human, and technological resources to achieve strategic goals.
Institutional Theory: This theory suggests that organizations are shaped by the larger institutional contexts in which they exist, including social norms, cultural values, and regulatory environments, and that these factors play a critical role in shaping organizational behavior and success.
Organizational Culture: Refers to the shared values, beliefs, and behaviors that define a given organization, and the ways in which these cultural features impact organizational performance, employee behavior, and overall success.
Organizational Change: Refers to the process of transforming an organization’s structure, culture, or processes in order to address new challenges or opportunities, emphasizing the need for adaptive management and strategic planning in response to changing business environments.
Classical Organization Theory: Originated in the early 20th century, it focused on the formal structure of organizations, emphasizing the importance of clear lines of authority and standardized procedures.
Human Relations Theory: Developed in the 1930s, it emphasized the importance of social structures and relationships in organizations, and recognized the impact of employee attitudes and behavior on organizational performance.
System Theory: Emerged in the 1950s, it approaches the organization as a dynamic system of interdependent parts, where changes in one part can affect the entire system.
Contingency Theory: Developed in the 1960s, it argues that there is no single best way to manage an organization, and that the most effective management practices depend on the situational context.
Institutional Theory: Emerged in the 1980s, it examines the role of cultural and social pressures on organizations, and how organizations respond to those pressures.
Resource Dependence Theory: Developed in the 1970s, it explores the ways in which organizations depend on external resources, and how they manage those relationships.
Organizational Ecological Theory: Emerged in the 1990s, it views organizations as part of a larger ecological system, and examines how organizations compete for limited resources within that system.
Critical Theory: Emerged in the 1970s, it challenges traditional power relationships and calls for a more democratic and equitable distribution of power and resources.
Chaos Theory: Emerged in the 1990s, it challenges the traditional approach to understanding organizations as linear and predictable, and instead examines the role of randomness and unpredictability in organizational behavior.
Institutional Entrepreneurship Theory: Emerged in the 2000s, it explores how individuals and groups within organizations can initiate change and create new institutions.
"Organizational theory also seeks to explain how interrelated units of organization either connect or do not connect with each other."
"Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of an individual."
"The behavior organizational theory often focuses on is goal-directed."
"Organizational theory covers both intra-organizational and inter-organizational fields of study."
"In the early 20th century, theories of organizations initially took a rational perspective."
"In a rational organization system, there are two significant parts: Specificity of Goals and Formalization."
"The division of labor is the specialization of individual labor roles, associated with increasing output and trade."
"Modernization theorist Frank Dobbin wrote that 'modern institutions are transparently purposive and that we are in the midst of an extraordinary progression towards more efficiency.'"
"Max Weber's conception of bureaucracy is characterized by the presence of impersonal positions that are earned and not inherited, rule-governed decision-making, professionalism, chain of command, defined responsibility, and bounded authority."
"Contingency theory holds that an organization must try to maximize performance by minimizing the effects of various environmental and internal constraints."
"Dwight Waldo in 1978 wrote that '[o]rganization theory is characterized by vogues, heterogeneity, claims and counterclaims.'"
"Organization theory cannot be described as an orderly progression of ideas or a unified body of knowledge."
"Rather, developments in theory and descriptions for practice show disagreement about the purposes and uses of a theory of organization, the issues to which it should address itself (such as supervisory style and organizational culture)."
"Suggestions to view organizations as a series of logical relationships between its participants have found its way into the theoretical relationships between diverging organizational theories as well."
"[...] as explains the interdisciplinary nature of the field."