Unit 9/Week 9 – PP 101 Instructor Flentroy-Parker

Unit 9: Organizational Management Key Concepts to be Covered: Read Chapter 5 Participate in the Discussion Board (Post a response and 3-4 additional responses) – 2 topics Attend and participate in this week’s 2 of 4 lectures/seminars Complete final exam

Organizational and Management Theory What is an organization? An organization is best defined as a structured social system consisting of groups of individuals working together to meet some agreed-on objectives. How and why organizations are created? An organization provides a means of using individual strengths within a group to achieve more than can be accomplished by the aggregate efforts of group members working individually. Business organizations are formed to deliver goods or services to consumers in such a manner that they can realize a profit at the conclusion of the transaction.

Organizational and Management Theory (cont’d) Organizational theory (OT) is the study of organizations for the benefit of identifying common themes for the purpose of solving problems, maximizing efficiency and productivity, and meeting he needs of stakeholders. Organization theory draws on the sciences, the humanities and the arts, and so presents the intellectual challenge of thinking in interdisciplinary ways. Modern organization theory is rooted in concepts developed during the beginnings of the Industrial Revolution in the late 1800s and early 1900s. During that period was the research of German sociologist Max Weber ( ).

Organizational and Management Theory (cont’d) Weber believed that bureaucracies, staffed by bureaucrats, represented the ideal organizational form. Weber based his model bureaucracy on legal and absolute authority, logic, and order. In Weber's idealized organizational structure, responsibilities for workers are clearly defined and behavior is tightly controlled by rules, policies, and procedures. Douglas McGregor contrasted the organization theory that emerged during the mid-1900s to previous views. In the 1950s, McGregor offered his renowned Theory X and Theory Y to explain the differences.

Organizational and Management Theory (cont’d) Theory X encompassed the old view of workers, which held that employees preferred to be directed, wanted to avoid responsibility, and cherished financial security above all else. Theory Y organizations were generally more productive and held that humans can learn to accept and seek responsibility; most people possess a high degree of imaginative and problem-solving ability; employees are capable of effective self-direction; and that self- actualization is among the most important rewards that organizations can provide its workers.

Organizational Theory Table 1.1 Some applications of organization theory Strategy/Finance - Those who want to improve the value of a company need to know how to organize to achieve organizational goals; those who want to monitor and control performance will need to understand how to achieve results by structuring activities and designing organizational processes. Marketing - Marketers know that to create a successful corporate brand they need to get the organization behind the delivery of its promise; a thorough understanding of what an organization is and how it operates will make their endeavors to align the organization and its brand strategy more feasible and productive.

Organizational Theory Information technology - The way information flows through the organization affects work processes and outcomes, so knowing organization theory can help IT specialists identify, understand and serve the organization’s informational needs as they design and promote the use of their information systems. Operations - Value chain management has created a need for operations managers to interconnect their organizing processes with those of suppliers, distributors and customers; organization theory not only supports the technical aspects of operations and systems integration, but explains their socio-cultural aspects as well.

Organizational Theory Human resources - Nearly everything HR specialists do from recruiting to compensation has organizational ramifications and hence benefits from knowledge provided by organization theory; organizational development and change are particularly important elements of HR that demand deep knowledge of organizations and organizing, and organization theory can provide content for executive training programs. Communication - Corporate communication specialists must understand the interpretive processes of organizational stakeholders and need to address the many ways in which different parts of the organization interact with each other and the environment, in order to design communication systems that are effective or to diagnose ways existing systems are misaligned with the organization’s needs.

Organizational and Management Theory (cont’d) Management theory A manager's style is determined by the situation, the needs and personalities of his or her employees, and by the culture of the organization. Managerial styles that focus on managers as technical experts who direct, coordinate and control the work of others have been replaced by those that focus on managers as coaches, counselors, facilitators, and team leaders. Successful management styles involve building teams, networks of relationships, and developing and motivating others.

Organizational and Management Theory (cont’d) Management theory is a set of ideas and rules designed to help supervisors/managers: 1) to know the goals of the organization; 2) to plan work required to achieve the goals of the organization in the most efficient and effective way possible; and 3) to understand what motivates people to work when achieving the goals of the organization.

Final Exam Review Review for Units 1 -9: Impoundment Diversity Taxes Outcome-based budgeting Pendleton Act The process of staffing Scalar principle Goal setting Collective bargaining

Final Exam Review Brainstorming Reward power Bureaucracy Discretionary spending Strategic management Leadership Reinforcement theory Affirmative action