Summary Organization Theory - 5th edition (Stephen P. Robbins and Neil Barnwell)
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Course
Organization theory
Institution
Universiteit Twente (UT)
Book
Organisation Theory
Elaborate summary of the book Organization Theory: concepts and cases 5th edition. Can be used for the course Organization Theory for the first year (first module) of the program International Business Administration on the University of Twente. Contains chapters 1, 2, 3, 4, 5, 6, 7, 8, 9, 13 and H...
,Chapter 1
Organisation = a deliberate managed and coordinated social entity, with a relatively
identifiable boundary, which functions on a relatively deliberate basis to achieve a common
goal or set of goals
- Deliberate managed and coordinated: there is a management hierarchy involved in
decision making
- Social entity: the unit is composed of people or groups of people who interact with each
other
- Identifiable boundary: differentiates who is part of the organisation and who isn’t
- Continuing basis: members participate with some degree of regularity
Why an organisation?
Goals are unattainable when working alone or are achieved more efficiently when working
together.
Organisation structure = defines how tasks are to be allocated, areas of responsibility and
authority, reporting relationships, and the formal coordinating mechanisms and interactions
patters that will be followed
1. Complexity = the extent of differentiation within the organisation
2. Formalisation = the degree to which an organisation relies on rules and procedures to
direct the behavior of employees
3. Centralisation = considers where the responsibility for decision-making authority lies
* Centralised: problems flow upwards and just a few (or one) senior executives make
the relevant decision
* Decentralised: authority is dispersed downwards the hierarchy and a greater
number of people are involved in decision-making
These are 2 extremes, organisations tend to be one of these.
Organisation design = the construction and change of an organisation’s structure
Organisation theory = the discipline that studies the structure and design of organisations
Organisation behaviour = a field of study that investigates the impact of individuals and
small-group factors on employee performance and attitudes
, System = a set of interrelated and interdependent parts arranged in a manner that produces
a unified whole
Differentiation: distinct functions
Integration: to maintain unity and purpose among the differentiated parts
1. Closed system = a self-contained system that has no interaction with its environment
More of a conceptualization rather than something that actually exists.
2. Open system = a dynamic system that interacts with and responds to its environment
Characteristics of an open system
- Environment awareness = the organisation consistently interacts with its environment
- Feedback = the system adjusts to information from its environment
- Cyclical character = the system consists of cycles of events
- Tendency towards growth = without active intervention, the system runs down of
disintegrates
- Steady state = there is an input or energy to counteract the winding-down properties
- Movement towards growth and expansion = the more sophisticated the system, the
more it is likely to grow and expand
- Balance of maintenance and adaptive activities = to be effective the system must ensure
that its subparts are in balance and that it maintains its ability to adapt to the
environment
- Equifinality = there are a number of ways to achieve the same objective
Biological metaphor = suggests that organisations proceed through predictable life-cycle
stages (they will be conceived, live and die)
Organisational life circle = the pattern of predictable change through which the organisation
moves from start-up to dissolution
1. Entrepreneurial stage
o Ambitious goals
o High creativity
2. Collectivity stage
o Informal communication and structure
o High commitment
3. Formalisation-and-control stage
o Formalisation of rules
o Stable structure
o Emphasis on efficiency
4. Elaboration-of-structure stage
o More complex structure
o Decentralization
o Diversified markets
5. Decline stage
o High employee turnover
o Increased conflict
o Centralisation
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