Organization Theory
Dr. Carrie Lee
MGT B344F (2014 Sept)
1
+ Understand the meaning of organization and its
importance.
+ Outline the evolution of organization theory.
+ Explain what organization theory can do for manager.
Dr. Carrie Lee
MGT B344F (2014 Sept)
2
+ We live in an organizational world
+ Organizations surround us and affect us
+ We also affect organizations (intentionally &
unintentionally)
+ Organizations make use of resources in society
& yield products / by-products
+ Need to understand how organizations function & how should they be managed (by organization theory)
Dr. Carrie Lee
MGT B344F (2014 Sept)
3
+ Diversity of Meaning …
+ Corporate group as a kind of organization involves ‘a
social relationship which is either closed or limits the admission of outsiders by rules, … so far as its order is enforced by the action of specific individuals whose regular function this is, of a chief or “head” and usually also an administrative staff.’ (Weber:
1947)
Dr. Carrie Lee
MGT B344F (2014 Sept)
4
+ Weber also points out that interaction in
organizations is ‘associative’ rather than ‘communal’
(136–39), and that organizations engage in continuous purposive activities of a specified kind
(151–52).
Dr. Carrie Lee
MGT B344F (2014 Sept)
5
+ Chester I Barnard (US) in his book “The Functions of
the Executive” defines organization as
“a system of consciously coordinated activities or forces of two or more persons”. (Barnard 1938, 73)
Dr. Carrie Lee
MGT B344F (2014 Sept)
6
+ Talcott Parsons (US) says all organizations
must :
1) adapt to the external environment,
2) define objectives and mobilization of resources to attain objectives, 3) coordinate and integrate the relations among members to achieve unity, and
4) carry out maintenance over time of the organization’s motivational and cultural patterns.