The influx of behavioral scientists into business schools brought different perspectives, research tools, and ideas. Their impact was felt on organization design and job design. Personnel management evolved into human resource management. Organizational theory evolved from a number of factors, internal and external. Better theory, it was suggested, can be built by examining successful practice.
THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen Chapter Twenty Organizational Behavior and Organization Theory Organizational Behavior People and Organizations Organizations and People http://www.bigphoto.com/themes/traffic/railway Gordon & Howell Report 1959 Triggered more interest in the behavioral and social sciences The behavioral/social scientists were trained differently in research methods and drew on a different body of literature Human relations thought was modified by these behavioral scientists, providing for a transition from human relations to organizational behavior Many contemporary “management laureates” are from non-business disciplines Keith Davis (1918-2002) Mr Human Relations Acts as a transition point for human relations and organizational behavior Defined human relations as “the integration of people into a work situation in a way that motivates them to work together productively, cooperatively, and with economic, psychological, and social satisfaction.” Modern Human Relations – Two Facets Chris Argyris (1923 Chris Argyris courtesy of the University of Western Ontario Argyris was influenced by the humanist approach of Abraham Maslow and the socio-technical process of E Wight Bakke Indicated his feelings about how organizations neglected human needs Influenced by W Chris Argyris – Personality vs Organization Certain organizational practices, such as the division of labor, interfered with the development of health human personalities These practices promoted immature, not mature behavior In an attempt to self-actualize, individuals ran into the obstacles posed by formal organizations The result was defensive behaviors, with management reacting by becoming more autocratic or by turning to sugar- Chris Argyris Douglas McGregor (19061964) Douglas McGregor Courtesy of University of Western Ontario Taught at the Sloan School of Management at MIT At Antioch College, McGregor found that his classroom teaching of human relations did not always work in practice From these experiences, his ideas evolve and led him to recognize the influence Theory X Management is responsible for organizing the elements of productive enterprise – money, materials, equipment, people – in the interest of economic ends With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, modifying their behavior to fit the needs of the organization Without this active intervention by management, people would be passive – even resistant – to organizational needs They must, therefore, be persuaded, rewarded, punished, controlled – their activities must be directed This is management’s task in managing subordinate managers or workers We often sum it up by saying that management consists of getting things done through other people Leadership Theories James McGregor Burns’ transactional and transformational leadership also reflects the trend toward personality traits of leaders George Graen and leader-member exchange theory has enriched our study of interpersonal relations Leader-member exchange theory furthers understanding of intra-organizational connections Leaders vs Managers What is the difference between leaders and managers? Are they always the same person? Cross Cultural Leadership Studies Project Global Leadership and Organizational Behavior Effectiveness ( GLOBE) Robert House led the15 plus year study of 17,300 managers in 950 organizations in 62 countries Leadership is culturally dependent Cultural “clusters” exist Some cultural factors predict what leadership style might work better “leader team orientation and the communication of vision, values, and Organizations and People The Roots of Organization Theory Organization theorists assumed a total organization of goals, structure, and the processes necessary to accomplish organizational goals Mooney and Reiley found “Organization is as old as human society itself Aristotle wrote of centralized and decentralized authority, division of labor, and departmentation Daniel McCallum gave the organizational structure of the Erie Railroad the appearance of a tree and developed ideas about authority, accountability, and communication Max Weber, a contemporary of Taylor and Fayol whose works were translated into English much later, described bureaucracy as an ideal form of organizations based on Organizations and People Organizations as Open Systems Ludwig von Bertalanffy’s (1901-1972) system theory furthered the idea of organizations as open systems He was a biologist Chester Barnard’s idea of the organization as including investors, suppliers, etc was an early example of viewing the organization as an open system Organizations as Open Systems Joan Woodward Joan Woodward researched the impact of technology on organizational structure Classified organizations by the complexity of the technology used Joan Woodward Organizations as Open Systems The Aston Group also considered technology but arrived at different findings than Woodward Paul Lawrence and Jay Lorsch's viewed the impact of environmental factors on structure Rate of change in environmental conditions Certainty of information Behavioral Theories of the Firm Emphasis on internal processes of coalitions, organizational learning, conflict resolution, and so forth was a new approach Representatives of this approach are Richard Cyert & James March, Daniel Katz & Robert Kahn, and Karl Weick Another emphasis was on external forces and factors as primary shapers of the organization Jeffrey Pfeffer & Gerald Salancik, Michael Hannan & John Economic and Business Theories of the Firm Adam Smith, Alfred Marshall and others had early ideas about the functions, purpose, and scope of a firm John Commons and others have an “institutional economics” approach Economic and Business Theories of the Firm Marshall and Ronald Coase explained why a firm was more efficient than a marketplace; Edith Penrose’s work led to resource and knowledge based views of firms; Oliver Williamson built notions to explain the internal operations of firms Chester Barnard offers yet another view The Paradigm Wars “Paradigm,” a model, example, or pattern to help us view organizations Disagreements about the number of contemporary paradigms exist — some indicating this as a sign of progress and others seeing this as creating an organization theory jungle John Miner’s analysis of 73 theories is important as he indicates no organization theory high in estimated scientific validity Strategy and Structure Chandler’s study led to the idea that “structure follows strategy.” Fayol saw the need for a “fit” between structure and the “objectives, resources, and requirements” of the firm In the 1960s and 1970s, economic and political factors influenced many mergers and acquisitions as firms diversified outside of their industry History Lessons on Firm Survivability The firms that grew and survived were able to take advantage of changing technologies and markets, They designed the appropriate corporate structures to seize the opportunities offered by these developments, and They fostered staying power by adapting to internal and external changes over the long term Oracle corporate headquarter Summary The influx of behavioral scientists into business schools brought different perspectives, research tools, and ideas Their impact was felt on organization design and job design Personnel management evolved into human resource management Organizational theory evolved from a number of factors, internal and external Better theory, it was suggested, can be built by examining successful practice .. .Chapter Twenty Organizational Behavior and Organization Theory Organizational Behavior People and Organizations Organizations and People http://www.bigphoto.com/themes/traffic/railway... orientation and the communication of vision, values, and Organizations and People The Roots of Organization Theory Organization theorists assumed a total organization of goals, structure, and. .. terms of the value (valence) of the reward and the expectancy of receiving the reward Victor Vroom Expectancy Theory Expectancy Theory Lyman Porter and Edward Lawler extended Vroom’s work with their