Organizational Theories Quarter 2 Week 1 Expectations

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Organizational Theories
Quarter 2 Week 1

Expectations

In this module, you are expected to know the following concepts:


1. Apply organization theories for effective business management

Pre-Test

Try to answer the following items below without going thru the module. Write your answers
on a separate sheet of paper. Match the statement (column on the left) to the correct term
(column on the right)

1. A structure will be suitable only if it is tailor made for an


organization
Organizational Theory
2. The process by which the managers select & manage aspects of
structure & culture so that an organization can control the Organizational Structure
activities necessary to achieve its goals
3. The set of shared values & norms that controls the
organizational members interactions
Organizational Design & Change
4. Formal system of task & authority Organizational Culture
5. Gives so much emphasis on the machines Organization
6. Viewed the organization as an open- system Neo-Classical Organization Theory
7. The study of the structure, functioning and performance of
organization and behavior of individual and groups within it
Modern Organization Theory
8. Focus on the importance of human relationship Contingency Approach
Classical Organization Theory

Looking Back To Your Lesson

Activity 1
On a sheet of paper, create one graphic organizer for each of the following concepts . Include the most
important concepts that you should remember for each. Use coloring materials for your label.

Brief Introduction

Organizational theory attempts to explain the workings of organizations, to produce


understanding and appreciation of organizations. These theories are drawn from various bodies of
knowledge and disciplines. Over the years, business analysts, economists, and academic researchers
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have pondered several theories that attempt to explain the dynamics of business organizations,
including the ways in which they make decisions, distribute power and control, resolve conflict, and
promote or resist organizational change.

Lesson 1: Organization Theories

Organizational Theory - the study of the structure, functioning and performance of organization and
the behavior of individual and groups within it.

A. Classical Organization Theory


(organization as a machine and human beings as components of that machine)

 emphasis was on specialization and co-ordination of activities


 efficiency at the top level and few at lower levels of organization

Pillars of Classical Organization Theory


1. Division of Labor - work must be divided to obtain specialization with a view to improve the
performance of workers
2. Scalar - the growth of chain of command, delegation of authority, unity of command and
obligation to report
3. Functional Process - division of organization into specialized parts or departments and
regrouping of the parts into compatible units
4. Structure - the framework of formal relationships among various tasks, activities and people
in the organization
5. Span of Control - the number of subordinates a manager can control; manager cannot
exercise proper control if the number of subordinates increases beyond a certain figure

B. Neo-Classical Organisation Theory


(organization as a social system composed of numerous interacting parts)

 Organizational situation should be viewed in social, economic and technical terms


 Informal organizations exist within the formal organisation. Both are affected by and affect
each other.
 Human being is independent and his behaviour can be predicted in terms of social factors at
work.
 Team-work is essential for higher productivity
 Communication is necessary as it carries information for the functioning of the organisation
and the feelings of the people at work
 Motivation is a complex process

1. Flat Structure - wide span of control helps in motivation, chain of communication is shorter
and it is free from hierarchical control
2. Decentralization - It allows autonomy and initiative at the lower level. It also develops people
to occupy higher positions in future
3. Informal Organisation - the social structure of the organization
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C. Modern Organization Theory


(the only meaningful way to study organisation is to study it as a system)

Systems Approach - studies the organisation in its totality; Organisation as a system can well be
understood by identifying various sub-systems within it. Each sub-system may be identified by certain
processes, roles, structures and norms of conduct

Contingency Approach - suggests an organisational design which suits a particular unit. A structure
will be suitable only if it is tailor made for an enterprise

The factors which influence an organisation


 Environment
 Technology
 Size of operations
 People

Organization System

Input – Information or resources that are needed to supply the organizational system
Throughputs – processes or activities within the organizational system that gets the work done
Output – Outcomes, goods/services created of delivered by the organization

Remember
1. Organizational Theories explains the workings of organizations, to produce understanding and
appreciation of organizations; this is under the perspective of Organizational Behavior (OB)
2. Classification of Organizational Theories – Classical, Neoclassical and Modern.
3. Classical Organizational Theories focuses on reaching maximum efficiency thru company processes’
4. Neo Classical Organizational Theories incorporated human behavior.
5. Modern Organizational Theories looks at an organization as a system.

Check your Understanding

Discuss your answers in not more than 5 sentences each. Be clear and concise, make sure to apply
concepts of Organizational Theories.

1. Think of a manufacturing company or a factory that is producing a certain product, then identify
business situations where you can apply 3 concepts of the classical organizational theory.

2. In the group where you belong (i.e. family, class, neighborhood) how can you apply the concept of
teamwork, motivation and informal structure.
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You may use the template below in answering.

Question 1 A. B. C.
(name of the company)
Question 2 A. Team Work Motivation Informal Structure
(identify the group where
you belong)

Rubrics

The output was able to provide ALL required concepts 15 points


The output was able to discuss and apply concepts correctly 15 points
The answer is clear, observed proper grammar and easy to understand 5 points
Output was submitted on time 5 points
Total 40 points x2 (80 points)

Post Test

Read the statement carefully, then identify if the statement belongs to, Classical Theory; Neo-
Classical Theory; Modern Organization Theory. Write your answer on a separate sheet of paper.

1. Gives so much emphasis on scientific methods


2. Focuses on the importance of human relationship
3. There is no single management approach
4. Viewed the organization as an open system approach
5. Uses the quantitative analysis
6. Considered as Behavioral Management Theory
7. Product – Oriented
8. People – Oriented
9. Gives so much emphasis on machines
10. Focuses on human behavior
11. Money is the only motivation for the employees
12. Gives importance on the role of people in the organization
13. Developed from 1900 – 1930
14. Developed from 1930 – 1950
15. Developed from 1950 up to the present time

Reference

Three Organisation Theories: Classical, Neo-Classical and Modern


Retrieved from: https://www.yourarticlelibrary.com/organization/three-organisation-theories-classical-neo-classical-and-modern/53221 Retrieved last:
Dec 2020

Organizational Theories
Retrieved from: http://www.fao.org/3/w7503e/w7503e03.htm Retrieved last: Dec 2020

Organizational Theory
Retrieved from: https://courses.lumenlearning.com/boundless-management/chapter/classical-perspectives/ Retrieved last: Dec 2020

Mrs. Madilyn Navora


VM Gerona

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