Theoretical Contributions and Today’s Organizations

BUS 5113 - Organizational Theory and Behavior

University of the People

Organization theory is a set of principles that provide a systematic study of structure,

functions and performance of an organization and individuals behaviour when working

together as a group of people. To understand modern business, it is important to examine the

theoretical frameworks that has gone into studying and developing on how we think of

business and its operations (Haggarty-Weir, 2018). This research analyses the four

organizational theoretical concepts and the most influential theory from both historical and

managerial perspectives.

A Brief Analysis of the Four Organizational Theoretical Contributions

The four theoretical contributions central to understanding modern organizations are:

Taylor’s school of scientific management, Fayol’s school of administrative theory, next is

Weber’s theory of bureaucracy, and finally Simon’s administrative behaviour (Lægaard,

2006).

Frederick Taylor was the primary contributor of the theory of scientific management. He was

an engineer by profession and had been honoured as the “Father of Scientific Management”.

Scientific management utilizes scientific methods and experiments to enhance output and

minimize inputs (Lægaard, 2006). There was no room for common sense or suggestions by

employees and managers only focused on training employees for tasks while employees

managed the tasks themselves. The theory was also categorised as a bottom up approach and

was adopted by industrial companies which value methods that would result in mass

production. A downside of scientific management theory today is that it symbolizes “one-

way” approach to accomplish many things resulting in conflicts with newer management

approaches which promote individual responsibility and creates decision-making at all levels

within an organisation.
The administrative theory was introduced around the same time as scientific management

from a rationalist perspective rather than a logical approach (March & Simon, 1958). The

administrative principles in the form of “top-down” approach were to function as the basis of

part of the organization where activities for the common goal was classified into departments

with the belief that tasks are accomplished with greater productivity. While the scientific

theory emphasized on minimizing task time and worker efficiency, the administrative theory

focused on management structure. Henri Fayol emphasized that managers should have

managerial skills such as planning, compliance, coordination, and compliance therefore

continuous education became important.

Bureaucracy makes it easier for management to make adjustments and to maintain control.

This is common in organizations where legislation is used as a tool to deliver a consistent

output therefore it is common in sectors like civil service. Max Weber saw organizations

gave considerations to prominent people when hiring and making decisions; therefore,

organizations lacked skill-based employees. In bureaucracy, an employee must take full

responsibility of the position they hold when employed with the organization. Weber

believed there should be clear rules and guidelines to enhance staff performance and job

appointments to lessen issues of workplace favoritism. A drawback of this model was slow

communication due to all the hierarchical layers which result in stress and employees found it

difficult to innovate due to restrictions set by regulatory and policy compliance.

Herbert Simon’s administrative behaviour theory focused on the process of decision-making

within an organization and how individuals are grouped into efficient departments to achieve

good results. He believed decision-making is the heart of the administration and humans

should utilize the information at hand to create good results rather than gaining all

information needed to make full logical decisions. Continuous improvements in emerging

government, suggest ideas introduced in Administrative Behaviour will influence practice in

public management and policy design for years to come (Mintrom, 2020).

Conclusion

After analysing the four theoretical concepts from both historical and managerial

perspectives, Max Weber’s Bureaucracy theory is most influential as it initiates the creation

of a proper hierarchy within an organization. An employee position demands the authority he

or she has in an organisation. Today organizations need to implement a good structure where

rules and regulations are put in place for the efficient organization operation, regardless of its

size and number of employees. Bureaucracy brought equal treatment for all employees

regardless of relationship to higher management as there are policies in place for most

organizations to iron out issues and assist in compliance, safety, and functionality. Multiple

departments and positions within organizations create a structure of limitations for

management and employees.

Haggarty-Weir, D. (2018). Organizational Theory: Then and Now. Retrieved September 3,

2021, from https://mostlyscience.com/2018/04/organizational-theory-then-and-now/

Lægaard, J. (2006). Organizational theory. Mille Bindslev & Ventus Publishing ApS &

bookboon.com.

March, G. J., & Simon, A. H. (1958). Organizations. New York : John Wiley & Sons.

Mintrom, M. (2020). Herbert A. Simon, Administrative Behavior: A Study of Decision-

Making Processes in Administrative Organization. Retrieved September 6, 2021, from

https://www.researchgate.net/publication/341371173