modern

• Modern Organization Theory


  Based on the concept that the organization is a system which has to adapt to changes in its environment
• Organization


  A designed and structured process in which individuals interact for objectives
• Systems Approach


  • Considers organization as systems - a system is an organized or complex whole, an assemblage or combination of things or parts which form a complex unitary whole
  • Subsystems: different parts of the system, which are interrelated
  • Open: interact with the environment
  • Closed: no interaction with the environment
  • Offers an open-system view of an organization and recognizes its environmental interface
  • Adopts multi-level and multi-dimensional approach, which considers both macro and micro aspects
  • 3 basic elements: Components, Linking Processes, Goals of Organization
  • Focuses on the internal dynamics of an organization's structure and behavior
  • Applicable to all situations
• Socio-Technical Approach


  • Every organization consists of the people, the technical system, and the environment
  • People use tools, techniques, and knowledge to produce goods or services valued by consumers or users
  • Equilibrium among the social system, technical system, and the environment is necessary to make the org more effective
  • Joint Optimization: the idea that the social and technological systems should be designed to fit one another as well as possible
  • Unit Control of Variance: concerns who handles work problems when they arise
  • Enhances the motivation, self-efficacy, and skills of the employee, and it saves the time of the specialist and supervisor
  • Very useful because of the trend of downsizing in favor of advanced equipment/machinery/gadgets
  • Reduces lag time associated with too many moving parts
• Contingency or Situational Approach


  • There cannot be universal guidelines suitable for all situations, thus, different environment requires different organizational relationships for optimum effectiveness, taking into consideration various social, legal, political, technical, and economic factors
  • Focuses on external determinants of the organization's behavior and structure
  • Works on the prescription which says that "it all depends"
• Open System Theory


  • Organization develop and change over time as a result of both external and internal forces
  • 3 Key Elements: Inputs (raw materials, human resources, energy, machinery), Throughputs (production processes, service, training), Outputs (products, services, knowledge)
  • The interplay between internal reality of an organization and the external reality of its environment and history
  • Organization must be open to its environment to be effective
  • Organizations thrive only as long as there is a continuous flow of energy from the external environment into the system and continuous export of products out of the system
  • Too much Negative Entropy (all forms of organization move towards disorganization or death, so orgs must avoid this movement)
  • The negative feedback loop provides information about where and how the organization is getting off-course; therefore, they could correct or adjust the course
  • Equifinality – a system can reach the same end state in different ways (there isn't just one way to achieve a particular outcome)
  • Surviving open systems are characterized by a balance in energy exchange
  • Open systems move toward more specialized functions
  • Bringing the system together as a unified process is necessary for the system to continue