Summary Organizational Theory: Organization Theory: concepts and cases. Author: Stephen Robbins Neil Barnwell. Co-author: Neil Barnwell Stephen P. Robbins. Publisher: Pearson Education Australia
Summary Organization / Economic Approaches to Organizations for the endterm
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Summary Organisatie voor Premaster
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Organisatie Theorie
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Chapter 1 – An overview
Definitions
Organisation An organisation is a consciously managed and coordinated social entity, with
an identifiable boundary, which functions on a relatively continuous basis to achieve a
common goal or set of goals. There is a management hierarchy. A social entity means that it
is composed of people or groups of people who interact. What the firm set out to achieve is
reflected in the organisation’s goals, and they are usually unattainable by individuals working
alone or, if attainable individually, are achieved more efficiently through group effort.
Structure Organisation structure defines how tasks are to be allocated, areas of
responsibility and authority, reporting relationships, and the formal coordinating
mechanisms and interaction patterns that will be followed. A structure has three
components: complexity, formalisation and centralisation. Complexity considers the extent
of differentiation within the organisation. The degree to which an organisation relies on rules
and procedures to direct the behaviour of employees is known as formalisation.
Centralisation considers where the responsibility for decision-making authority lies.
Design Organisation design is concerned with constructing and changing an organisation’s
structure to achieve the organisation’s goals.
Organisation theory Organisation theory includes the study of the structure and design of
organisations.
Organisational behaviour is the study of the way in which individuals and teams behave in the
workplace. Organizational theory focuses on the behaviour of organisations and uses a broader
definition of organisational effectiveness.
The biological metaphor
The biological metaphor means that organisations are assumed to be living organisms. The system
perspective views the organisation as a system which interacts with its environment in a repetitive
cycle of events. The life-cycle perspective view the organisation as a living organism which grows,
passes through predictable stages of development, undergoes a series of predictable transitions and
deteriorates if the energy used in daily activities is not replaced by new inputs.
System perspective A system is a set of interrelated and interdependent parts which
interact to produce a unified output. A system is differentiated into specialised functions.
Integration is typically achieved through coordinating. A closed system would be one that
received no energy from an outside source and from which no energy was released into its
surroundings. An open system recognises the interaction of a system with its environment
and its dependence upon it. All systems must have some interaction with their environments
if they are to survive. There are several characteristics of an open system:
o Environmental awareness: The organisation consistently interacts with its
environment.
o Feedback: The system adjusts to information from its environment.
o Cyclical character: The system consist of cycles of events.
o Tendency towards growth: Without active intervention, the system runs down or
disintegrates.
o Steady state: There is an input or energy to counteract the winding-down properties.
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