Nov 20, 2020 in Health

Organization and Management analysis

Organization and Management Analysis

Organizational Theories


Organizational theories, guide an organization to create and regulate divisions of labor, scientific management and bureaucracy. These theories complement the studies of organization development, leadership, human resource, organizational behavior and industrial psychology. Each theory has distinctive advantages and disadvantages. The study illustrates the benefits and drawbacks of organizational and management theories.

Classical Organizational Theory

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Classical organizational theory consists of administrative and bureaucratic theories, and the merger of scientific management system. It was evolved in the first half of the century. Scientific management theory was developed by Fredrick Taylor in 1917. His method is known as Taylorism. The method consists of four basic principles. First of all, an organization should choose the best way to perform each task. Secondly, the organization should carefully match each worker for their tasks. Thirdly, management should closely supervise the workers, and they must use reward and punishment system. Nevertheless, the main task of management is planning and control (Walonick, 1993).

Taylors approach was successful in small companies. However, the theory had different issues, such as loss of pride in workmanship and dissatisfaction with works. Thus, Max Weber expanded Taylors theory in 1947. Webers bureaucratic theory gave particular interest in the ranking structure of power of an organization. Also, his method was focused on the human interaction at workplace. Further, Moony and Reiley developed administrative theory in 1931 (Walonick, 1993).

Classical organizational theories were mechanistic and rigid. These methods paid special attention to workers strict motivation.

Neoclassical Organizational Theory

Neoclassical organizational theory addressed various problems that inherent in classical theory. It displayed genuine concern in workers need. In 1920s Roethlisberger and Mayo used experimental method to manipulate work environment. Such approach was focused on friendly work environment. His theory proved that such strategies increase productivity. However, some people opposed the manipulation tricks (Rose, 2005).

In 1939, Barnard developed modern theories of organization that consciously coordinate activities. Also, he focused on creating leadership activities. Moreover, Simon made individual contributions to neoclassical theory. He described that deductive logic and reductionism are the efficient methods of increasing benefits (Walonick, 1993).

Contingency Theory

Classical and neoclassical theories had different conflicts. As a result, Chandler introduced contingency theory. The approach is aimed at avoiding the drawbacks of past theories. According to Chandlers theory, an organization should work in sequential, linear and rational manner to adapt the typical changes of society and environment. Moreover, Lorsch and Lawrence tried to improve the organizational environment. Contingency theory suggests that organizations should give resposibility to managers so that they could take fruitful decisions (Walonick, 1993).

Systems Theory

Ludwig von Bertalanffy proposed the systems theory in 1928. According to this theory, the principal components of an organization are interrelated with each other. Thus, a small change in the structure may impact the whole system. Bertalanffys theory assumed that an organization is an open system, and it continuously impacts its environment (Rose, 2005).

Comparison of Management Theories and Styles

During the twentieth century, experts recommended different management theories. These theories have helped people develop the business environment. Classical management theory and human relations theory are the renowned management theories and styles. These theories and methods are different from each other (Zeiger, n.d.).

Classical management theory provides more interest in the improvement of productivity, whereas human relations theory is more focuses on the stakeholders health, quality and safety. Classical management theory consists of strict rules, processes and procedures to increase productivity. On the other hand, human relations theory provides more interest working environment and external conditions (Zeiger, n.d.).

Moreover, classical theory does not pay interest in workers ranking system. Its levels are designed to maximize the productivity. The theory focuses on the impersonal sides of the business. It does not allow employees and managers to interact with each other (Zeiger, n.d.).

In contrast, human relations theory and style focuse on management team and supervisors. Its levels are designed to ensure workers safety and productivity. It allows employees and managers to create a warm environment. Workers are allowed to discuss their problems with supervisors or managers. The theory suggests the management to motivate their workers to increase productivity (Zeiger, n.d.).

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Nevertheless, classical theory follows strict rules. Hiring and firing relate with the skills of workers and productivity, but human relations theory suggests providing trainings and guidance to develop the workers skills.

Organizational Theory that Closely Resembles Our Organization

I believe that neoclassical organizational theory closely resembles our organization. It emphasizes human relations and group behavior. Our managers pay personal attention to the workers. The theory considers a worker as a distinctive social being. Moreover, it suggests motivating workers at workplace. Also, it gives interest in workers safety and security. Similarly, the organization recognizes the workers social and economic factors.

Neoclassical theory encourages working in groups, and it illustrates the advantages of teamwork. The theory advises management team to participate in the decision making process. Such participation helps the organization to increase its productivity. The views of our organization are almost similar with these strategies. Thus, neoclassical theory closely resembles our organization.

Management Theories and Styles that Closely Resemble Our Organization

Our management theories closely resemble human relations theory. The management group focuses on individuals developments. They follow human relations theory to fulfill stakeholders demands. The management often communicates with employees to take new decisions. The leaders and supervisors motivate employees to fulfill the tasks in time. The senior managers allow employees to interact with each other in working hours. They always try to make a motivational and emotional relationship with workers to increase productivity. Such strategies help the authorities to develop working environment.

In addition, human relations theory focuses on the group work. Experts believe that the teamwork can help employees to fulfill the task efficiently and comfortably. Also, it reduces personal work stress. Moreover, human relations theory suggests following similar policies at work. Thus, the theory resembles our organizational theories.

Effective Changes in the Organization

Our organization applies effective organizational and management theories to fulfill the work in time. However, it is possible to increase productivity by following some steps. For example, the management should make some limitations in human relations. In some conditions, they must work individually, instead of relying on employees information. They must make performance data of each employee. Such steps will help managers to understand the mistakes of employees. Moreover, the manager should be able to take individual decisions in complex situations. Also, the employees should respect the values of a superior to fulfill the project in time. Nevertheless, managers should notice and sustain the economic status of the organization. Thus, it is possible to create healthy working environment in the organization (Keep, n.d.).


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The above analysis draws the conclusion that organizational theories help an organization to sustain its productivity. Experts developed a number organizational and management theories and styles. Classical organizational theory was one of the earliest organizational theories. However, it has some drawbacks. Thus, the experts developed other organizational theories. Currently, neoclassical, contingency and systems theories are the most popular organizational theories. These theories focus on friendly work environment as well as workers safety and security. Moreover, it promotes teamwork and employees interactions at workplace.

In addition, experts developed a number of management theories to improve working environment and increase productivity. Experts believe that human relations management theory is one of the best theories. It focuses on individuals interactions, relations and productivity. Hence, these theories help an organization to improve its productivity.


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