MEM 643- Organizational Development and Leadership Effectiveness

7/30/2019 MEM 643- Organizational Development and Leadership Effectiveness

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MEM 643- OrganizationalMEM 643- OrganizationalDevelopment and LeadershipDevelopment and Leadership

EffectivenessEffectiveness

By:By:Dr. Severino A. EspirituDr. Severino A. Espiritu


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Organizational Thought and TheoryOrganizational Thought and Theory


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IntroductionIntroduction

For most of our lives, we are member of oneFor most of our lives, we are member of oneorganization or other a college, a body politics,organization or other a college, a body politics,a sort team, a musical or theatrical group, aa sort team, a musical or theatrical group, areligious or socio-civic association, a branch ofreligious or socio-civic association, a branch of

the armed forces or a business.the armed forces or a business.These organizations are said to differ fromThese organizations are said to differ from

one another in many ways. Some maybeone another in many ways. Some maybeorganized formally-others may be more casuallyorganized formally-others may be more casually

structured and some maybe rigidly organized.structured and some maybe rigidly organized.But regardless of how they differ, all theseBut regardless of how they differ, all theseorganizations have peculiar reasons for theirorganizations have peculiar reasons for theirexistence and how they managed accordingly.existence and how they managed accordingly.


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IntroductionIntroduction

Franco (1988) defined organizations as aFranco (1988) defined organizations as asocial groups of individuals deliberatelysocial groups of individuals deliberatelycreated and maintain for the purpose ofcreated and maintain for the purpose ofachieving special objectives. In management,achieving special objectives. In management,

the term organizations is also used to refer tothe term organizations is also used to refer tothe process of determining the activitiesthe process of determining the activitiesnecessary to achieve the objective mostnecessary to achieve the objective mosteconomically structuring the relationshipeconomically structuring the relationship

among the roles thus creating and ensuringamong the roles thus creating and ensuringthe effective operation of the total system.the effective operation of the total system.


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Classical Organization TheoryClassical Organization Theory

Henri Fayol (1841-1925)Henri Fayol (1841-1925) He outlined the series of Principles ofHe outlined the series of Principles of

Management by which an organization mightManagement by which an organization mightbe effectively controlled.be effectively controlled.


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14 Principles of Management14 Principles of Management

ByBy

Henry FayolHenry Fayol(1841-1925)(1841-1925)


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Division of WorkDivision of Work Fayol saw specialization as a natural humanFayol saw specialization as a natural human

process, seen in every society. If work isprocess, seen in every society. If work isdivided according to skills and technicaldivided according to skills and technicalexpertise, each item of work can be given toexpertise, each item of work can be given tothe employee most able to deal with it.the employee most able to deal with it.

Authority and ResponsibilityAuthority and Responsibility Fayol defined authority as the right to giveFayol defined authority as the right to give

orders and the power to exact obedience.orders and the power to exact obedience. He emphasized the importance of linkingHe emphasized the importance of linking

authority to responsibility, which togetherauthority to responsibility, which togetherrequired increasing judgment and morality atrequired increasing judgment and morality at

senior levels.senior levels.


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DisciplineDiscipline It is defined as obedience, application,It is defined as obedience, application,

energy, behavior and outward marks ofenergy, behavior and outward marks ofrespect.respect.

Fayol regarded discipline as essential for theFayol regarded discipline as essential for the

smooth running of business without which ansmooth running of business without which anenterprise is unable to prosper.enterprise is unable to prosper.

Unity of CommandUnity of Command For any action whatsoever, an employeeFor any action whatsoever, an employee

should receive orders from one superior only.should receive orders from one superior only.


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Unity of DirectionUnity of Direction

one head and one plan for a group havingone head and one plan for a group havingthe same objective.the same objective.

Subordination of individual interests to theSubordination of individual interests to thegeneral interest.general interest. There should be no conflict of interestThere should be no conflict of interest

between individual ambition and the well-between individual ambition and the well-

being of the organization as a whole.being of the organization as a whole.


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Remuneration of personnelRemuneration of personnel Fayol looked for some basic principles in theFayol looked for some basic principles in the

method of payment:method of payment:

It shall assure fair remuneration;It shall assure fair remuneration; It shall encourage keenness by rewardingIt shall encourage keenness by rewarding

well-directed effort;well-directed effort; It shall not lead to over-payment goingIt shall not lead to over-payment going

beyond reasonable limits.beyond reasonable limits.

CentralizationCentralization Part of the natural orderPart of the natural order


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Scalar chain (line of Authority)Scalar chain (line of Authority) Hierarchic organizations regularly insisted thatHierarchic organizations regularly insisted that

department communicated with each otherdepartment communicated with each otherthrough their heads.through their heads.

OrderOrderA place for everyone and everyone in hisA place for everyone and everyone in his

placeplace

EquityEquity In order to obtain commitment fromIn order to obtain commitment from

employees, they must be treated equally andemployees, they must be treated equally andfairly.fairly.


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Stability of tenure of personnelStability of tenure of personnel A matter of proportion, but employees need a periodA matter of proportion, but employees need a period

of stability in a job to deliver of their best.of stability in a job to deliver of their best.

InitiativeInitiative Being allowed to think through a problem andBeing allowed to think through a problem and

implement a solution is a rewarding experience whichimplement a solution is a rewarding experience whichincreases motivation.increases motivation.

Esprit de corpsEsprit de corps Dividing enemy forces to weaken them is clever, butDividing enemy forces to weaken them is clever, but

dividing ones own team is a grave sin against thedividing ones own team is a grave sin against the

businessbusiness


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Historical Background ofHistorical Background of

Organizational BehaviorOrganizational Behavior

Certainly large numbers of people haveCertainly large numbers of people have

been doing work for a long time. Pyramidsbeen doing work for a long time. Pyramids

and many other huge monuments andand many other huge monuments andstructures were built, armies and governmentsstructures were built, armies and governments

were organized. Civilizations spread over vastwere organized. Civilizations spread over vast

territories. This took organization andterritories. This took organization andmanagement.management.


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Scientific ManagementScientific Management

Frederick Winslow TaylorFrederick Winslow Taylor(1856-1915)(1856-1915)

One of the first to attempt to systematicallyOne of the first to attempt to systematically

analyze human behavior at work.analyze human behavior at work. His model was the machine with its cheap,His model was the machine with its cheap,

interchangeable parts, each of which doesinterchangeable parts, each of which does

one specific function. This involved breakingone specific function. This involved breaking

down each task to its smallest unit and todown each task to its smallest unit and tofigure out the one best way to do each job.figure out the one best way to do each job.

The overall goal was to remove humanThe overall goal was to remove human

variability.variability.


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The Human Relations MovementThe Human Relations Movement

Despite the economic progress broughtDespite the economic progress brought

about in part by Scientific Management,about in part by Scientific Management,

critics where calling attention to thecritics where calling attention to the

seamy side of the progress, whichseamy side of the progress, whichinclude severe labor/management conflictinclude severe labor/management conflict

apathy, boredom, and wasted humanapathy, boredom, and wasted human

resources.resources.


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Elton Mayo (1880-1949)Elton Mayo (1880-1949)

One of the primary critics ofOne of the primary critics of

the time.the time.

He is known as the founderHe is known as the founder

of the Human Relation Movement.of the Human Relation Movement.

He claimed that this alienation stemmedHe claimed that this alienation stemmed

from the breakdown of the social structuresfrom the breakdown of the social structures

caused by industrialization, the factorycaused by industrialization, the factory

system, and its related outcomes likesystem, and its related outcomes likegrowing urbanization.growing urbanization.

Known for his research including theKnown for his research including the

Hawthorne Studies.Hawthorne Studies.


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The Western Electric (HawthorneThe Western Electric (Hawthorne

Works) Studies 1923-1933, Cicero Ill.Works) Studies 1923-1933, Cicero Ill.

It is the most famous studies of EltonIt is the most famous studies of Elton

Mayo.Mayo.

These studies, conducted in the 1920sThese studies, conducted in the 1920sstarted as a straightforward attempt tostarted as a straightforward attempt to

determine the relationship between workdetermine the relationship between work

environment and productivity.environment and productivity. It showed how work groups provideIt showed how work groups provide

mutual support and effective resistance tomutual support and effective resistance to

management schemes to increase output.management schemes to increase output.


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Neoclassical Organization TheoryNeoclassical Organization Theory

Displayed genuine concern for humanDisplayed genuine concern for humanneeds.needs.

The most serious objections to classicalThe most serious objections to classicaltheory are that it created over conformitytheory are that it created over conformityand rigidity, thus squelching creativity,and rigidity, thus squelching creativity,individual growth, and motivation.individual growth, and motivation.

Taylor, Weber, Barnard, Roethlisberger, andTaylor, Weber, Barnard, Roethlisberger, andSimon share the belief that the goal ofSimon share the belief that the goal ofmanagement was to maintain equilibrium.management was to maintain equilibrium.


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Contingency TheoryContingency Theory

Contingency theorists view conflict asContingency theorists view conflict asinescapable, but manageable.inescapable, but manageable.

Alfred Chandler (1962)Alfred Chandler (1962)

Studied four large United StatesStudied four large United States

corporations and proposed that ancorporations and proposed that anorganization would naturally evolve toorganization would naturally evolve tomeet the needs of its strategythatmeet the needs of its strategythatform follows function.form follows function.


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The foundation of system theory is that all theThe foundation of system theory is that all thecomponents of an organization are interrelated,components of an organization are interrelated,and that changing one variable might impactand that changing one variable might impactmany others.many others.

Ludwig von BertalanffyLudwig von Bertalanffy Hungarian BiologistsHungarian Biologists

Originally proposed the system theory inOriginally proposed the system theory in1982, although it has not been applied to1982, although it has not been applied toorganization until recently.organization until recently.


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Organizational StructureOrganizational Structure

Until recently, nearly all organization followedUntil recently, nearly all organization followedWebers concept of Bureaucratic Structure. TheWebers concept of Bureaucratic Structure. The

increase complexity of multinationalincrease complexity of multinational

organizations created a necessity of the neworganizations created a necessity of the new

structure that Drucker called (1974) federalstructure that Drucker called (1974) federaldecentralizationdecentralization

In Federal Decentralization Each unit has itsIn Federal Decentralization Each unit has itsown management which, in effect, runs its ownown management which, in effect, runs its own

autonomous business.autonomous business.


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Systems Theory views organizationalSystems Theory views organizationalstructure as the established pattern ofstructure as the established pattern ofrelationships among the parts of therelationships among the parts of the

organizationorganization

These includes themes of:These includes themes of:

1.1. IntegrationIntegration

2.2. DifferentiationDifferentiation

3.3. The structure of hierarchicalThe structure of hierarchical

relationshipsrelationships4.4. The formalized policies, procedures andThe formalized policies, procedures and

controls that guides the organization.controls that guides the organization.


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Organizational and Birth and GrowthOrganizational and Birth and Growth Cameron and Whetten (1983)Cameron and Whetten (1983)

Reviewed 30 life cycle models from the organizationalReviewed 30 life cycle models from the organizationaldevelopment literature.development literature.

They summarized the studies into an aggregate modelThey summarized the studies into an aggregate modelcontainingcontaining ..

EntrepreneurialEntrepreneurial CollectivityCollectivity Formalization and ControlFormalization and Control ElaborationElaboration


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Classical TimesClassical Times It is most concern with answering the who,It is most concern with answering the who,

what, when, where, and how. Questions thatwhat, when, where, and how. Questions that

concern a majority of students.concern a majority of students. Classical Education in this period alsoClassical Education in this period also

deprecated local languages and culture indeprecated local languages and culture in

favor of ancient languages and their cultures.favor of ancient languages and their cultures.


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From the 1950s to 1970s, many of theFrom the 1950s to 1970s, many of theproposed and implemented reforms in the USproposed and implemented reforms in the USeducation stemmed from the Civil Rightseducation stemmed from the Civil Rightsmovements and related trends.movements and related trends.

In the 1980s, some of the momentum ofIn the 1980s, some of the momentum of

education reform moved from the left to theeducation reform moved from the left to theright, with the release of A Nation at Risk,right, with the release of A Nation at Risk,Ronald Regans effort to reduce or eliminateRonald Regans effort to reduce or eliminatethe United States Department of Education.the United States Department of Education.


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Reform in the 1990sReform in the 1990s Most states and districts in the 1990s adoptedMost states and districts in the 1990s adopted

Outcomes Based education from or another.Outcomes Based education from or another. A state would create a committee to adoptA state would create a committee to adopt

standards, and performance basedstandards, and performance basedassessment to assess learning outcomesassessment to assess learning outcomes

which might look somewhat like a contentwhich might look somewhat like a contentbased test, or something that parents mightbased test, or something that parents mightviolently reject with very little recognizablyviolently reject with very little recognizablyacademic content.academic content.


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In this study, the group concluded thatIn this study, the group concluded that

organizational concept in an old as time itself.organizational concept in an old as time itself.During the olden days, organization can beDuring the olden days, organization can be

seen from the old products of mans work.seen from the old products of mans work.

As times goes by, great developments haveAs times goes by, great developments haveevolved. Taylor developed his so-calledevolved. Taylor developed his so-called

scientific management Fayol come next andscientific management Fayol come next and

focused his attention on the manager. Withfocused his attention on the manager. With

Taylor and Fayol, the world was said andTaylor and Fayol, the world was said andbecome an organizational society Weberbecome an organizational society Weber

then came after whit his ideas aboutthen came after whit his ideas about

bureaucracy.bureaucracy.


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After the studies of under human relationsAfter the studies of under human relations

movement, a systematic technique for analyzingmovement, a systematic technique for analyzing

the pattern of interaction between the membersthe pattern of interaction between the members

of the group was developed.of the group was developed.

However the group found out that traditionalHowever the group found out that traditional

organizational theory collapsed. The problemorganizational theory collapsed. The problem

confronting educational administration is theconfronting educational administration is thefocus.focus.

The group finally conclude that the differentThe group finally conclude that the different

theories, which are products of researches maytheories, which are products of researches mayreally bring out effective schools if the theoriesreally bring out effective schools if the theories

will be applied with correct attitudes and valueswill be applied with correct attitudes and values

incurred with consistency.incurred with consistency.


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The EndThe End

Documents

MEM 643- Organizational Development and Leadership Effectiveness