Evolution of Organizational Theory
Evolution of Organizational Theory
Scientific Management is based on the idea of improving economic efficiency through systematic study.
Taylor proposed that work should be scientifically analyzed to find the most efficient method. Tasks should be
broken down into smaller parts, workers trained for specific roles, and rewarded based on output. This theory
treats the organization like a machine, where efficiency and productivity are key.
clear hierarchy, formal rules, specialization, and merit-based advancement. Bureaucracy aims to eliminate
favoritism and ensure predictability and rationality. However, it can also lead to rigidity and dehumanization.
Fayol focused on the management process and developed 14 principles of management. He believed that
management was a skill that could be taught. Key functions include planning, organizing, commanding,
coordinating, and controlling. His work laid the foundation for modern management practices.
This theory arose as a response to the mechanistic view of Classical Theories. It emphasizes human needs,
motivation, and group dynamics. The Hawthorne Studies revealed that social factors and worker attention
significantly impact productivity. It laid the groundwork for organizational behavior and employee well-being.
Systems Theory views organizations as open systems that interact with their environment. It emphasizes
input-throughput-output cycles, feedback, and interdependence among subsystems. The theory helps
Contingency Theory argues there is no one best way to organize. Organizational effectiveness depends on
the fit between structure and environment. For example, stable environments favor mechanistic structures
Evolution of Organizational Theory
while dynamic environments require organic structures. It encourages flexible and context-specific designs.
Institutional Theory posits that organizations conform to societal norms and expectations to gain legitimacy.
Over time, similar organizations in a field become more alike through coercive, mimetic, and normative
This theory focuses on how external resource dependencies shape organizational behavior. Organizations
must manage power and negotiate with external actors to secure vital resources. Power dynamics are central
9. Population Ecology
Population Ecology applies evolutionary theory to organizations. It emphasizes environmental selection over
managerial adaptation. Organizational survival depends on variation, selection, and retention, much like in
biological systems.
Network Theory highlights relationships and interdependence among organizations. It examines how network
positions affect access to resources and information. Strong and weak ties, as well as structural holes, play
Senge's concept of the learning organization involves continuous learning and adaptation. It relies on five
disciplines: personal mastery, mental models, shared vision, team learning, and systems thinking. Such
These theories depict organizations as complex adaptive systems. They stress non-linearity, emergence, and
Evolution of Organizational Theory
unpredictability. Small changes can lead to massive impacts (butterfly effect). Organizations must be flexible
Critical theories challenge power structures and seek to uncover oppression and inequality in organizations.
Feminist theories highlight gender dynamics and advocate for inclusivity and equality in organizational
14. Postmodernism
Postmodern theory critiques objectivity, control, and universal truths. It sees organizations as fragmented,
socially constructed, and fluid. Focus is on narratives, symbolism, and deconstruction of dominant ideologies.