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Sociology of organizationsChapter 1; Organizations as rational systems
From the 1960s to the 1990s: perspectives on organizations have become more complex and
multiple: perspectives in organization theory
Macro; organizational ecology, neo-institutional theory
Micro; contingency theory, resource dependency theory, transaction cost theory
Content;
• The encapsulation of social life in organizational relationships
• Organizational problems and types of “publics”
• The elements of organizations: the essential ingredients
• Organizations as an area of study: common and divergent interests
• What is an organization? Rational system definitions
“…society has changed over the past few centuries in the very structural elements of which it is
composed”*
“When organizations are the characteristic structures in society, understanding how they
operate can shed much light on the biographies of their participants.”
Types of organizational problems and publics
- Types of publics (4):
• Ordinary employees (workers at the assembly line in a factory, demotivation,
alienation..)
• Employers and managers (dependence on lower ranked-employees)
• The contact public (direct relationship; invisible bureaucracies)
• The general public (indirect: cf. e.g. politicians, journalists, scientists -> political
parties, ngo’s..)
- Types of problems (4):
• Controllability: “decisions are made above people’s head” (control regarding the
decisions which affect daily working practices)
• Quality of working life: cf. work climate, nature of tasks (monotonous, varied,
challenging or not,...)
• Directing and planning: cf. power/influence to set goals, to direct the policy of
an organization
• Manageability: how to prevent or manage negative, often unintended,
consequences of the decisions that have been made
‘ordinary’ Managers/leaders The ‘contact’ The public in
employees public general
Controllability + +- + +-
Quality of life + +- +- -
Directing, planning +- + - -
Manageability +- + +- +-
1
, +/- indicates how much a type of problem is to be associated with a particular part of
the organization.
What is an organization?
Def 1; - “…have been deliberately established for a certain purpose.”
• to arise “naturally” vs. to design “consciously”
• goal setting is specific (e.g. making a family vs. startup of a record label)
Def 2; - “…organizations are social units (or human groupings) deliberately constructed and
reconstructed to seek specific goals.”
• change over time (cf. globalization, developments in ICT, etc.)
• the alignment of targets and resources assumes rational, calculated
action
Def 3; - “Any social arrangement in which activities of some people are systematically
planned by other people (who, therefore, have authority over them) in order to achieve
some special purpose…”*
• “Designers” and subordinates
=>…by definition: a difference in constitutional power among organizational members
• Some people have more decision power/ a more challenging job than
others, etc.
=> …the distribution of organizational problems is structured by the blueprint of an
organization, the nature of particular tasks, the organization setup:
cf. e.g. quality of life: train driver
cf. e.g. controllability: production facilities of shoes manufacturers
In sum: The blueprint of an organization determines the construction of social relationships
within an organization, and thus by definition, the potential for conflict, cooperation and
participation
Organizations; (other) essential ingredients
2
,An organization is a social entity characterized by a structured and coordinated set of activities,
tasks, or functions that are designed to achieve specific goals or objectives. Organizations can
take various forms, ranging from formal institutions, businesses, and government agencies to
informal groups and associations.
The study of organizations; from common to divergent features
i) Diverse organizations. The shift from manufacturing to service economy
• …new technological advances: labor-saving rather than labor-using
• …productivity gains in manufacturing -> lowered prices of manufactured goods
<-> didn’t induce a large enough increase in the demand for manufactured goods
• …the growth of China’s economy
• Etc.
ii) Diverse research interest and settings
iii) Diverse levels of analysis;
The behavior of; individuals, organizations, systems of organizations
Level of analysis evolution; the social-psychological level (early research on
organizations, 1950s), the organizational-structural level (since early 1960s), the
ecological level emerging in the late 1960s
iv) Different theoretical perspectives (rational, natural and open system)
3
, What is an organization? A rational system definition
Goal specificity; what is the goal of the organization?
Formalization; (2R’s);
- Rules; precise and explicit
- Roles and role relations; prescribed independently of personal attributes(ii)
Many organizations have formal rules, policies, and procedures that guide behavior and
decision-making. Formalization helps provide structure and consistency within the
organization.
Formalization; low and goal specificity; low -> e.g. communities
Formalization; high and goal specificity; low -> e.g. families
Formalization; low and goal specificity; high -> e.g. social movements
Formalization; high and goal specificity; high -> ORGANIZATION
“… organizations are collectivities oriented to the pursuit of relatively specific goals and
exhibiting relatively highly formalized social structures.”
Rational system definition:
• Specific goals: theory vs. Practice
• Formal role definitions : theory vs. practice
A rational system, also known as a formal or mechanistic system, views organizations as goal-
oriented entities that operate based on clear and explicit rules, procedures, and structures. The
rational system perspective assumes that organizations are designed to achieve specific
objectives efficiently and effectively.
Characteristics;
• Goal oriented: The primary focus is on achieving defined goals and objectives.
• Formal structure: There is a clear hierarchy, well-defined roles, and formalized
communication channels.
• Emphasis on efficiency: Decision-making is based on rational analysis, logic, and cost-
effectiveness.
• Bureaucratic elements: Characteristics of bureaucracy, such as rules and regulations,
are prevalent.
• Top-down authority: Authority and decision-making typically flow from the top of the
hierarchy.
Natural system definition
• => Normative -> behavioral structure (should do -> actually doing)
- Formal structures = decorating facade
- Informal and interpersonal structures > formal structures
A natural system, also known as an informal or organic system, views organizations as living
organisms with dynamic and evolving processes. This perspective recognizes the importance of
informal structures, culture, and human behavior in influencing organizational outcomes. It
contrasts with the more rigid and formal characteristics of a rational system.
Characteristics;
• Organic structure: The organization is seen as a living and adaptable system that
responds to changes in its environment
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