Organization Theories (Pols 216)

Introduction 

Organizations do not operate in a vacuum; various theories have been propounded to explain their dynamics — that is, how organizations operate and work. Some of these theories are propounded from specific disciplinary backgrounds, e.g. sociology, economics, political science, engineering, psychology, etc. Quite often, they emphasize specific aspects of organizations at a time, e.g. their formal structures, employees, or the context or environment within which they operate (social, economic, political, physical, historical, etc.).

Flags of sovereign nations on a walk way

There exist three interrelated categories of organization theories:

- Formal theories

- Human Relations theories

- Modern organization theories

These can further be classified into two broad categories:

- Formal/mechanistic/functionalist theory

- Human or social relations theory

1. Formal theory — These were propounded by the earliest writers on organization. They view organizations from a purely technical or mechanical perspective. In other words, organizations were viewed as machines with various interrelated parts performing various interrelated functions. This means organizations are formal structures, plants, and/or devices built up in accordance with clear-cut principles and rules, whose application enhances their efficiency, effectiveness, accountability, and economy in the pursuit of their overall objectives.

One example of the formal theories is Max Weber's theory of bureaucracy. Max Weber, a German sociologist, remains to date the most influential theorist of organization — most theories on the subject are either additions to or criticisms of his postulations. He studied various forms of organization, such as the military and religious bodies. He constructed an ideal or model of organization, referred to as bureaucracy. It was indeed an ideal, rational-legal formulation of what an organization is supposed to be, in terms of structure and operation — as an ideal type, no organization really operates 100% using the features identified by Weber.

According to Max Weber, the key elements or features of a bureaucratic organization include:

- Staff members observe only the impersonal duties of their offices — in other words, staff relations and offices are always characterized by formality.

- There is a clear hierarchy of offices, with authority and directives emanating from above downwards.

- The functions of the offices are clearly defined and specialized — in other words, there is specialization or division of labour.

- Recruitment into a bureaucratic organization is based purely on merit — that is, possession of certain qualifications, training, and experience, backed up by certificates. Officials' responsibilities are assigned based on qualifications, and promotion or advancement is also based on merit/performance.

- Employees are paid salaries and wages, and pensions after retirement, with grades based on positions, usually in hierarchical order.

- The official post is supposed to be the officeholder's sole employment and means of livelihood.

- There is a clear career structure, arranged in hierarchical order, which employees aspire to progress through, either by seniority or merit, according to the judgement of superiors.

Conclusion 

Weber's model thus remains the reference point against which nearly all subsequent organization theories — including the human relations and modern schools — have been developed, whether in support or in critique.