Organization Theory and Change Management

Introduction

Organization theories involve study of the organization to try to discover common themes for solving problems, minimizing production cost, and increasing productivity of an organization. In this paper, I have analyzed the classical theory of organization. In the first section of this essay, I have analyzed the argument I would propose to support the theory however, in the second section, I have analyzed the argument against the theory. I have also looked at other possible theory that may be applied an organization. In this case, I have analyzed the elite theory.

What arguments would you give in support of this statement?

Argument in support of the classical theory

The following are some of the bases of the classical theory that I feel when implemented may help an organization achieve its prime objectives. The theory is based on the three assumptions (Alajloni, Almashaqba, Al-Qeed,, 2010, pg.38). First assumption is that the formal structured communication, defined task, and formalized procedure is what defines the relationship between the employer and the management. The second assumption of this theory is that the workers can be motivated by use of money. The third assumption is that workers are viewed as product of means of production. The basic components of scientific management as proposed by Fredrick Taylor include (Dzimbiri, 2009 pg.46):

1. One can determine the performance standard of an individual. This theory assumes that there is a way one can determine the performance of an individual.
2. There is a need to introduce a supervisor. The supervisor is supposed to plan work while the worker should only do the work planned.
3. The management role should mainly be planning, directing the operation of workers who have been trained scientifically (Dzimbiri, 2009 pg.46).
4. The management should ensure that the workers are paid differently according to the type and the level of work one performs. This helps to motivate the worker at each level to work hard to move to a higher salary levels.
5. The scientific management should bring a change in attitude among all the workers in an organization since everyone is motivated to work hard.

Henry Fayol also constructed some principle of the classical theory that would help to make an organization effective and efficient (Alajloni, Almashaqba, Al-Qeed, 2010, pg.36).

Division of work

The division of work assumes that each worker performs his or her own duty in an organization (Dzimbiri, 2009, pg.50). Division of work is essential since it helps to divide a large piece of work into small manageable jobs. The overall production of the company may increase since the workers are able to develop experience with time.

Equity

Fayol also asserted that there is a need to have fairness while dealing with issue relating to the employee (Alajloni, Almashaqba, Al-Qeed, 2010, pg.36). The management should always try to relate to the entire employee in accompany equally this helps to eliminate the problems associated with unequal treatment.

Order

Proper selection of the candidate may help to ensure there is social order in organization. Social order in the organization is important since it ensures there is the smooth flow of work. Therefore, it is important that each and every individual is able to perform his or her duty in a high degree of order to ensure that overall production activity is smooth (Dzimbiri, 2009, pg.51).

Unit of direction

The unit of direction means that all employee in an organization should work together to achieve the set objectives (Dzimbiri, 2009, pg.52.). When all the workers work toward a common target, it may lead to an increased sense of loyalty of the workers to the organization.

Subordination of individual interest of general interest

According to this principle, individuals should ensure that their own interest is in line with the interest of the organization. This implies that the organization objective should come first before individual interest.

Authority and responsibility

The authority is mainly concerned with giving the orders. According to this principle, the people in authority have the right to issue orders and they should be respected.

Discipline

The discipline should be applied at all level of the organization. Good supervision, accompanied by clear and fair agreement is some of the way of ensuring there is discipline among the employees.

Centralization of authority

According to Fayol there should be a proper balance between the centralization of authority and the decentralization of authority. The centralization of authority mainly depends on the type of organization.

Scalar chain

According to this principle, there should be a well-laid chain of command in an organization. The organization should therefore, establish its own set-up chain of command to ensure there is effective communication between the members in an organization.

Escript de corps

This refers to union in strength. According to this principle everyone needs to work together to ensure that the organization meets its set objectives (Alajloni, Almashaqba, Al-Qeed, 2010, pg36-38.).

Initiative

According to this principle, everyone in an organization should be given a chance to express his or her opinion (Dzimbiri, 2009, pg.50). This means that the management should also allow the subordinates to express their own idea. This helps to ensure that everyone to feel appreciated in an organization

When all the above principle of classical theory is implemented, the organization may be to achieve the following.

1. The organization may be able to have effective coordination between the employee and the management
2. The organization can be able to identify the talented individuals in an organization.
3. The organization may also be able to manage the threat of intense rivalry among the employee since all the employees are treated equally.
4. The organization may also able to manage continues change in the organization culture. \
5. The organization may be able to deal with the problem related workforce such absenteeism by effectively applying the classical theory (Alajloni, Almashaqba & Al-Qeed, 2010, pg.36).

Theories supporting the classical theory of organization and example of its application

Conflict theory

The conflict theory is one of the theories that supported the classical theory. The conflict theory recognized that there ought to be a formal and informal structure in an organization (Carter, 2011, pg.120). This was in agreement with the classical theory that assumes that there was need to have authorities responsible in issuing of orders. The conflict theory also agreed with the classical theory that in order for an organization to achieve its objective there is need to respect personal needs for its component. One example of application of the classical is the law organization agencies system found in country such as United State. The law enforcement agencies are organized in various units which are specialized in performing certain functions (Conser, Paynich, & Gingerich, 2010, pg.112). The progressive promotion from within is based upon merit. There is also a single line of authority from top to bottom.

What arguments are there against this statement?

Argument against of the classical theory application in an organization

The classical theory has some limitation when applied in an organization. Most of the limitations are based on the assumption from which the theory is developed. The classical theory is criticized by concentrating on the importance of structural organization functioning and disregarding issues relating to the human element. The first limitation is that the theory views the organization as a machine (Dzimbiri, 2009, pg.56). Regarding the organization as machine is wrong view since the organization is composed of human beings. Second, theory assumes that the employee can only be motivated by financial incentive. This is a wrong view since it disregards the respect of psychological need of an individual. The second assumption also ignores the fact the employee can also be motivated by interpersonal relation within an organization. The theory also assume that the efficiency of an organization can only be measured using by the productivity rate. However, viewing the organization this way is mechanistic (Dzimbiri, 2009,pg.56). One can argue that, there are other factors used in predicting the overall performance of the organization. These include determining whether the organization has achieved the set objectives. Finally, some managers have opposed the aspect of application scientific management. Most of the managers argue that application of scientific methods may hinder their own judgment (Naidu, 2005 pg. 74). The workers may also be opposed to the theory since it standardizes every aspect of their performance.   

Theory opposed to classical theory

Human relation theory

The human relation theory is one of the theories that were developed against the classical theory. The theory stressed on informal structure in an organization and that there are other methods used to motivate the workers (Carter, 2011, pg.121). The theory was opposed to the assumption of the classical theory that workers could only be only be motivated by money. The theory was best applied in the management of Japanese organization where other methods such singing the company songs, saluting the company flag were used to motivate the works. Using the human relation theory the Japanese’s organizations were able to increase their productivity.   

What other approaches would be more suitable and why?

Other approach that wound be more suitable

The other approach that I find more applicable is the elite organization theory. The concept of the theory is based on the idea that a few individuals dominate the organizations (Farazmand, 2002, pg.110). These individuals not only make decisions which affect the operation of the organization but also the decisions made are in line with the political and economic elite’s goals and direction. The elites are separated from the ordinary people and only respond to their demand only when they raise concern (Berberoglu, 2005, pg.34). The elite respond to the concern of the ordinary people using the methods such as implementation of reforms, bonus, and persuasion.

Major assumption of the elite theory of organization

The first assumption of the theory is that people make the organizations but only few individuals who control its operation. This implies that the elite make the critical decisions in an organization. The second assumption is that the organization operates on sociopolitical and economic environment that is determined by the elite. The third, assumption is that the elite must try to convince the large masses (Farazmand, 2002, pg.111). This is to ensure that the masses exercise loyalty. The fourth assumption is that the elite occupy the highest post in any leadership position. This implies that in most cases the average individual do not have access in vying for higher post. The fifth assumption is that the elites may extend the membership to the mass in order to recruit them as potential managers. The sixth assumption is that the ordinary masses are not involved in the decision making although they form the necessary pressure required to cause a change. The theory also assumes that any attempt for anyone from the mass to join the elite is must first proof loyalty, economic and personal qualification (Farazmand, 2002, pg.112).

The theory supporting the elite theory

One theory that supports the elite theory is the class theory. According to the class theory, the society is divided into several classes defined by broad division in resource control. The theory also views the state institution as arena where the class conflict takes place (Edgar, Sedgwick, 2007 pg.42). The public policies of the government intended to benefit the entire public differ with the interest of the political class. Thus, one can conclude the class theory in agreement with the elite theory that in organization there are certain class of people whose decision matters in an organization.

Significances and application of the elite theory

The theory is important in an organization in several ways. First, the theory is able to describe the organization power structure and explain the external power influences of the organization (Farazmand, 2002, pg.121). Second, the theory is also prescriptive in that it clearly describes what ought to be done by making suggestions how future leaders are selected. The theory also employs institutional, systems, ecological and other theory of organization therefore it most relevant theory. One of best application of the elite theory is in the management of large corporation such the General Motors. The executive board of management composed of elite who are solely entitled in developing the goals of the organization. This implies that elites make the most critical decisions in the organization.

Conclusion

From the above theories covered, I can conclude that the most applicable theory of organization is the elite theory. This is because the classical theory has several limitations when applied compared to its advantages. First, the theory assumes that the organization operate like a machine which is a very wrong assumption. The theory also stipulates that only money that can motivate an individual which is a wrong assumption. However, the elite theory approach is the most applicable since it is able to integrate the institutional, system and ecological theory in its operation.

 

 

 

 

 

 

 

 

Reference

Alajloni, M, Almashaqba, Z, & Al-Qeed, M 2010, 'The Classical Theory of Organisation and It's Relevance', International Research Journal Of Finance And Economics, 41, pp. 60-67,                         EconLit with Full Text, EBSCOhost, viewed 7 June 2012.

Berberoglu, B. (2005). An introduction to classical and contemporary social theory: a critical        perspective. Lanham, Rowman & Littlefield.

Carter, I. E. (2011). Human behavior in the social environment: a social systems approach.           Somerset, AldineTransaction.

Conser, J. A., Paynich, R., & Gingerich, T. (2010). Law enforcement in the United States. Burlington, Mass, Jones & Bartlett Learning.

Dzimbiri, L. B. (2009). Organisation and management theories: an African focus   integrating       structure, people, processes and the environment for human                                                                 happiness. Gottingen, Cuvillier.

Edgar, A. Sedgwick, R. (2007).Cultural Theory. The Key Concept. New York. Taylor & Fransis.

Farazmand, A. (2002). Modern organizations: theory and practice. Westport, Conn,          Praeger.

Naidu S.P.(2005). Public Administration: Concept And Theory. New York. New Age        international