Bahçeşehir University Social Science Institutions Ph D. Business Program Management & Organization Organizational Th

1. Bahçeşehir University Social Science Institutions Ph D. Business Program Management & Organization Organizational Theory Prof. Dr. Atilla DİCLE Organizations as Natural System Prep. by: İlhan ÇİFTÇİ 28 December 2009

2. Evolution Of Management Thought 1890 1900 1910 1920 1930 1940 1950 1960 1970 2000 Contingency theory Systematic management Administrative management Quantitative management Systems theory Current and future revolutions Human relations Organizational behavior Scientific management Bureaucracy Classical Approaches Contemporary Approaches

3. Organizations as Natural System (Selected Schools) • Mayo and Human Relations School • Selznick’s Institutional Approach • Parsons’s AGIL Schema Bahçeşehir University - Organizational Theory

4. Organizations as Natural System Basic vs. Distinctive Characteristics Difference from Rational Approach: • Organizations are collectivities (not existed to rational) • Specificity and Formalization as characteristics differentiating organizations from other types of collectivities (rational) but shared with the social group (natural) Bahçeşehir University - Organizational Theory

5. Organizations as Natural System Basic vs. Distinctive Characteristics Goal Comlexity: • Organizational goals and their relation to the behavior of participants are much more problematic. Two general themes characterize of organizational goals: • There is frequently a disparity between the stated and the “real” goals pursued by organizations. • When the stated goals are actually being pursued, they are never the only goals governing participants’ behavior Bahçeşehir University - Organizational Theory

6. Organizations as Natural System Basic vs. Distinctive Characteristics Two Types of Explanations have been proposed to account for the survival instincts of organizations: • The Organizations are social systems charecterized by a number of needs that must be satisfied if they are to survive. • Other theorists reject such assumptions as being anthropomorphic at worst and unnecessary at best. They suggest instead that one does have to posit a survival need for the collectivity it self. Bahçeşehir University - Organizational Theory

7. Comparison of the Natural and the Rational System Scholoars: The main difference between the two perspective scholars background Bahçeşehir University - Organizational Theory

8. Comparison of the Natural and the Rational System Scholoars The rational and the natural analysts concentrated on different types of organizations The rational system analysts were more likely to investigate industrial firms and state bureaucracies, while the natural system analysts tended to focus on service and professional organizations-schools, hospital, and voluntary organizations Bahçeşehir University - Organizational Theory

9. Comparison of the Natural and the Rational System Scholoars Rational system theorists • only selected aspects of behaviors of participants are relevant to the organization. Natural system theorists: • Such behaviors have an impact on the task behavior of participants and hence are emprically relevant to an understanding of organizational behavior • Organizations as social contexs affect the participants’ well being, a situation that has normative significance to anyone concerned with bettering the human condition. Bahçeşehir University - Organizational Theory

10. Barnard’s Cooperative System • Barnard stressed that organizations are essentiallay cooperative systems, integrating the contributions of their individual participants. • Organizations rely on the willingness of participants to make contributions. • Many ideas that are consistent with a rational system conception of organizations what sets them apart is his insistence on the nonmaterial, informal, interpersonel, and, indeed moral basis of cooperation. Bahçeşehir University - Organizational Theory

11. Barnard’s Cooperative System • The most critical ingredient to successful organization is the formation of a collective purpose that becomes morally binding on participants. Developing and imparting a mission is the distinctive “function of the executive.” • The necessity of survival can override the morality of purpose. Bahçeşehir University - Organizational Theory

12. ”Hawthorne effect” • Between 1924 and 1932, at a factory called the Hawthorne Works, (a Western Electricmanufacturing facility outside Chicago IL, U.S.A.), a series of experiments on factory workers were carried out. • Hawthorne Works had commissioned a study to see if its workers would become moreproductive in higher or lower levels of light. It was found that the workers' productivityseemed to improve when changes were made and slumped when the study wasconcluded. It was suggested that the productivity gain was due to themotivational effectof the interest being shown in them. • However, it was then found that subjects improved their performance inresponse NOTto changes in experimental manipulation in illuminationof their task area BUT simply inresponse to the fact that they are being studied. In 1955, the term was coined by HenryA. Landsberger when analyzing the experiments from 1924-1932. Bahçeşehir University - Organizational Theory

13. ”Hawthorne effect” • In a 2009 reassessment of the original data, University of Chicago economists John Listand Steven Levitt found that productivity varied due to other factors such as the weeklycycle of work or the seasonal temperature and so the initial conclusions wereoverstated and the effect was weak or illusory. • Although illumination research of workplace lighting formed the basis of the Hawthorneeffect, other changes such as maintaining clean work stations, clearing floors ofobstacles, and even relocating workstations resulted in increased productivity for short periods of time. • In appropriate sense, the Hawthorne effect is a term used toidentify any type of shortlived increase in productivity. Bahçeşehir University - Organizational Theory

14. Parsons’s AGIL Schema He developed a very explicit model detailing the needs that must be met if a social system is to survive. The model is identified AGIL. Bahçeşehir University - Organizational Theory

15. Parsons’s AGIL Schema Adaptation: The problem of acquiring sufficient resources Goal Attainment: The problem of setting and implementing goals Integration: The problem of maintaining solidarity or coordination among the subunits of the system. Latencey: The problem of creating, preserving, and transmitting the system’s distinctive culture and values Bahçeşehir University - Organizational Theory

16. Parsons’s AGIL Schema Bahçeşehir University - Organizational Theory

17. Selznick’s Institutional Approach He was a student of bureaucrarcy under Merton at Colombia but an intellectual descendant of Michels and Bernard, developed his own unique system model, one that has recently been refurbished and elaborated to constitute an influential approach to the analysis of organizations known as institutional theory. Bahçeşehir University - Organizational Theory

18. Selznick’s Institutional Approach “The important thing about the organizations is that, though they are tools, each nevertheless has a life of its own.” He agrees rational system except: • individuals who participate in the organization as “wholes” rather than acting merely in terms of their formal roles • Organizational structures that include the formal aspects but also the complex informal systems that link participants with one another and with others external to the official boundaries Bahçeşehir University - Organizational Theory

19. Selznick’s Institutional Approach Institutionalization: The process by which an organization “takes on a special character” and “achieves a distinctive competence or, perhaps a trained or built – in capacity”(Selznick 1996) Thus institutionalization refers to a morally neutral process: “the emergence of orderly, stable, socially integrating patterns out of unstable, loosely organized or narrowly technical activities” Selznick argued that teh most significant aspect of institutionalization is the process by which structures or activities become “infused with value beyond the technical requirements at hand” Bahçeşehir University - Organizational Theory

20. Selznick’s Institutional Approach He views organizational structure as an adaptive organism shaped in a reaction to the characteristics and commitments of participants as well as to influences from the external enviroment Bahçeşehir University - Organizational Theory

21. Questions and Explanations Bahçeşehir University - Organizational Theory