Leadership Theories
School: “Modern” Structural Organization Theory (197)
Time Line: post World War II. “Modern” structuralists are grounded in the thinking of Fayol, Taylor, GulickA, and Weber, and their underlying tenets are quite similar: Organizational efficiency is the essence of organizational rationality, and the goal rationality is to increase the production of wealth in terms of real goods and services.
Dominant Model, Metaphor, Underlying Assumptions:
1. Organizations are rational institutions whose primary purpose is to accomplish established objectives; rational organizational behavior is achieved best through systems of defined rules and formal authority. Organizational control and coordination are key for maintaining organizational rationality (p.197).
2. There is a “best” structure for any organization, or at least a most appropriate structure in light of its given objectives, the environmental conditions surrounding it (for example, its markets, the competition, and the extent of government regulation), the nature of its products and/or services (the “best” structure for a management consulting firm probably differs substantially from that for a certified public accounting firm), and the technology of the production processes (a coal mining company has a different “best structure” than the high-tech manufacturer of computer microcomponenets) (p.197).
3. Specialization and the division of labor increase the quality and quantity of production, particularly in highly skilled operations and professions (p197).
4. Most problems in an organization result from structural flaws and can be solved by changing the structure (p197).
“Structural organization theory is concerned with vertical differentiations – hierarchical levels of organizational authority and coordination, and horizontal differentiations between organizational units – such as those between product or service lines, geographical areas, or skills” (p. 197).
Tenants:
Time Line: post World War II. “Modern” structuralists are grounded in the thinking of Fayol, Taylor, GulickA, and Weber, and their underlying tenets are quite similar: Organizational efficiency is the essence of organizational rationality, and the goal rationality is to increase the production of wealth in terms of real goods and services.
Dominant Model, Metaphor, Underlying Assumptions:
1. Organizations are rational institutions whose primary purpose is to accomplish established objectives; rational organizational behavior is achieved best through systems of defined rules and formal authority. Organizational control and coordination are key for maintaining organizational rationality (p.197).
2. There is a “best” structure for any organization, or at least a most appropriate structure in light of its given objectives, the environmental conditions surrounding it (for example, its markets, the competition, and the extent of government regulation), the nature of its products and/or services (the “best” structure for a management consulting firm probably differs substantially from that for a certified public accounting firm), and the technology of the production processes (a coal mining company has a different “best structure” than the high-tech manufacturer of computer microcomponenets) (p.197).
3. Specialization and the division of labor increase the quality and quantity of production, particularly in highly skilled operations and professions (p197).
4. Most problems in an organization result from structural flaws and can be solved by changing the structure (p197).
“Structural organization theory is concerned with vertical differentiations – hierarchical levels of organizational authority and coordination, and horizontal differentiations between organizational units – such as those between product or service lines, geographical areas, or skills” (p. 197).
Tenants: