1800s: Martineau · Tocqueville · Marx · Spencer · Le Bon · Ward · Pareto · Tönnies · Veblen · Simmel · Durkheim · Addams · Mead · Weber · Du Bois · Mannheim · Elias Organizational theory refers to a series of interrelated concepts that involve the sociological study of the structures and operations of formal social organizations.
Max Weber's conception of bureaucracy is characterized by the presence of impersonal positions that are earned and not inherited, rule-governed decision-making, professionalism, chain of command, defined responsibility, and bounded authority.
Contingency theory holds that an organization must try to maximize performance by minimizing the effects of various environmental and internal constraints,[1] and that the ability to navigate this requisite variety may depend upon the development of a range of response mechanisms.
"[3] Organization theory cannot be described as an orderly progression of ideas or a unified body of knowledge in which each development builds carefully on and extends the one before it.
[8] Some of the first New England factories initially relied on the daughters of farmers; later, as the economy changed, they began to gain workers from the former farming classes, and finally, from European immigrants.
Wage dependency, externalities, and growth of industries all played into the change from individual, family, and small-group production and regulation to large organizations and structure.
[10] A number of sociologists and psychologists made major contributions to the study of the neoclassical perspective, which is also known as the human relations school of thought.
"[11] The study, taking place at the "Hawthorne plant of the Western Electric Company between 1927 and 1932," would make Elton Mayo and his colleagues the most important contributors to the neoclassical perspective.
A 1959 symposium held by the Foundation for Research on Human Behavior in Ann Arbor, Michigan, was published as Modern Organization Theory.
Among a group of eminent organizational theorists active during this decade were E. Wight Bakke, Chris Argyris, James G. March, Rensis Likert, Jacob Marschak, Anatol Rapoport, and William Foote Whyte.
Weber begins his discussion of bureaucracy by introducing the concept of jurisdictional areas: institutions governed by a specific set of rules or laws.
[14] Weber argues that the development of a money economy is the "normal precondition for the unchanged survival, if not the establishment, of pure bureaucratic administrations.
"[14] Since bureaucracy requires sustained revenues from taxation or private profits in order to be maintained, a money economy is the most rational way to ensure its continued existence.
Weber posits that officials in a bureaucracy have a property right to their office and attempt at exploitation by a superior means the abandonment of bureaucratic principles.
[14] Michel Crozier reexamined Weber's theory in 1964 and determined that bureaucracy is flawed because hierarchy causes officers to engage in selfish power struggles that damage the efficiency of the organization.
)[18] Weber believed that a bureaucracy consists of six specific characteristics: hierarchy of command, impersonality, written rules of conduct, advancement based on achievement, specialized division of labor, and efficiency.
Not only does bureaucracy make it much more difficult for arbitrary and unfair personal favors to be carried out, it also means that promotions and hiring will generally be done completely by merit.
[21] "There is dangerous risk of oversimplification in making Weber seem cold and heartless to such a degree that an efficiently-run Nazi death camp might appear admirable.
Highest efficiency, in theory, can be attained through pure work with no regard for the workers (for example, long hours with little pay), which is why oversimplification can be dangerous.
If we were to take one characteristic focusing on efficiency, it would seem like Weber is promoting unhealthy work conditions, when in fact, he wanted the complete opposite.
"[28] In other words, everyone in a company or any sort of work environment has the opportunity and right to disagree or to speak up if they are unhappy with something rather than not voice their opinion in fear of losing their job.
Taylor identifies four inherent principles of the scientific management theory:[35] Division of labor is the separation of tasks so that individuals may specialize, leading to cost efficiency.
[36] Creativity will naturally suffer due to the monotonous atmosphere that division of labor creates; repeatedly performing routines may not suit everyone.
Middle Eastern countries believed that the media coverage of modernization implied that the more "traditional" societies have not "risen to a higher level of technological development.
[citation needed] For the ensuing decade, people analyzed the diffusion of technological innovations within Western society and the communication that helped it disperse globally.
Prominent professors in the research team included psychologist Elton Mayo, sociologists Roethlisberger and Whilehead, and company representative William Dickson.
These were: The Hawthorne studies helped conclude that "a human/social element operated in the workplace and that productivity increases were as much an outgrowth of group dynamics as of managerial demands and physical factors.
The Hawthorne Effect was the improvement of productivity between the employees, characterized by: Critics believed that Mayo gave a lot of importance to the social side of the study rather than addressing the needs of an organization.
Also, they believed that the study takes advantage of employees because it influences their emotions by making it seem as if they are satisfied and content, however it is merely a tool that is being used to further advance the productivity of the organization.
Niels Anders uses the elements of Luhmann's system theory to describe the differentiation of society and connect that to the evolution of the modern organization.