Chapter 1, introducing the structure of ‘Organization theory: Challenges and Perspectives’
Organization theory: Organization theory is concerned with the study of the various theories
about organizations that have developed since the latter part of the nineteenth century. The
origins of organization theory lie in developing a social understanding of organization. Some
authors focus on bodies of the organization theory, whereas others (as in this text) explore
different bodies of organization theory in a more or less disinterested manner.
Organization studies: text that bear this title are typically concerned with the understanding
of different themes in the study of organizations to produce knowledge about organizations
that represent a contribution to social science.
Organization analysis: is typically the study of the processes that underpin the operation of
organizations, typically with the purpose of improving the operation of organizations.
Organization behavior: is typically concerned with developing an understanding of the ways
in which members of organizations can develop behaviors that enable their commitment to
the purpose of the organizations so that typical themes include theories of managing people,
motivation, leadership, creating effective work groups, managing diversity and so on.
Management theory: is typically concerned with the study of theories about the nature and
purpose of management that have developed since the latter part of the nineteenth century.
Text on management take an approach that looks at the subject in terms of particular
theories of management or epochs, periods in which a number of theories emerge, develop
into a level of maturity and either retains relevance or transforms into some new theory of
management. Although management theory has been generally supportive of the activity
known as management, the development of critical management studies takes a deeply
sceptical view of conventional approaches to management.
Management studies: are typically concerned with the understanding of different themes in
the study of management in order to produce knowledge about management that
represents a contribution to scientific approaches to, and understanding of, the activities
known as management and leadership. This knowledge may be generally supportive of these
activities or it may be deeply critical of them.
Chapter 2, Organization theory: what is it, and why does it matter?
Because organizations impact on so many aspects of our lives, organization theory is
important in two key respects. First, organization theory helps us to reflect upon and
understand who we are and why we are who we are. Secondly, organization theory is about
us and how we interact with others during our encounters in a cast array of different, often
deceptively ordinary and mundane, social context that we take for granted because we
cannot see or imagine any alternative to how things appear to be.
We can think of theories in three domains. Organization theory is the total body of
knowledge in which we van have access in order to develop our understanding of and
knowledge about organizations. Within this total body of knowledge exist a number of
,theories (such as modernism, critical theory, postmodernism etc.) that look at organizations
from different perspectives. Within these theoretical perspectives lie individual theories,
which provide different explanations for particular phenomenon.
Theories stipulate why things happen in terms of putting forward a causal relationship
between different phenomena. Theories help us to intervene and try to assert control over
the events that affect us.
Theories do the following seven things:
1. Theories are linguistic, conceptual devices that try to tell us things about the world by
representing it in a causal manner. In the case of any social science theory, including
organization theory, this is to do with the behavior of people in various contexts.
2. Theories define, classify or categorize aspects of the world – the what of that which
we are studying.
3. Theories propose reasons in the form of cause-and-effect relationships that explain
the variation of a particular phenomenon in terms of he effects of the action of, or
the variation in, another phenomenon – the why and how.
4. Theories identify the situation(s) or context when these causal relationships will or
will not operate, and thereby set the boundaries to where they applicable.
5. Based upon this what, why, how, when and where analysis, theories the van guide
our actions because they enable predictions and hence potentially enable us to
anticipate and try to influence or even control events. By intervening and changing
the independent variable the dependent variable should also change in a manner
predicted by the theory remains unnoticed.
6. Theories are not divorced from our everyday lives and behaviors. Indeed, we
regularly deploy theory, often in the form of ‘common sense’, to make sense of our
experiences and to guide our actions, it this process is usually tacit because the use of
theory remains unnoticed.
7. Theories matter because they influence what happens to people; they are used to
describe, explain and, equally significantly, justify the things that we do and how we
do them. Therefore, we need to be very careful about the theories we use to make
sense of what it is we think is going on, particularly when people present things as
‘there is no alternative’.
Management and organization theories have not been through a peer-review process
because they have highly influential upon what matters in organizations.
Organization (Talcott Parsons): As a formal analytical point of reference, primacy of
orientation to the attainment of a specific foal or purpose is used as the defining
characteristic of an organization which distinguishes it from other types of social system.
Organization (schein): An organization is the rational coordination of the activities of a
number of people for the achievement of some common explicit purpose or goal, through
decision of labor or function, and through a hierarchy of authority and responsibility.
Silverman: “We can ask an individual about his goals or purposes but it is legitimate to
approach an organization in the same way. It seems doubtful whether it is legitimate to
,conceive of an organization as having a goal except where there is an ongoing consensus
between members of the organization about the purposes of their interaction.”
Gouldner: “An organization as such cannot be said to be orientated towards a goal. A
statement that an organization is orientated towards certain goals often means no more than
these are the goals of its top administrators.”
It is important to realize that any scientific endeavor is underpinned by philosophical
assumptions about ontology and epistemology. No one is immune for their influence; it is
just that we do not often reflect upon how our tacit answers to these philosophical issues
influence how we understand the world. The meanings of epistemology and ontology are:
Ontology The way we think the world is
Epistemology What we think we can know about it
Ontology is concerned with the nature of phenomena and their existence. It raises the
questions regarding whether or not a phenomenon we are interested in actually exists
independently of our knowing and perceiving it. There are two kinds: the realist assumptions
and the subjectivist assumptions.
Realist assumptions: this entails the view that phenomena such as organizations exist, out
there independently of our perceptual or cognitive structures and attempts to know.
Subjectivist assumptions: this entails the view that what we take to be social reality is a
creation or projection of our consciousness and cognition.
Epistemology is the study of the criteria we deploy and by which we know and decide what
does and does not constitute a warranted claim about the world or what might constitute
warranted knowledge. Epistemology has to do with how we know when some claim about
the world is justified.
Epistemological objectivists are those who assume that it is possible to neutrally observe the
social world and the behavior of social phenomena such as organizations. What we see, hear,
touch, smell and taste is what there is.
Epistemological subjectivists assume that what we perceive is, at least in part, an outcome of
us and our conceptual understanding of the world that we bring to bear in order to make
sense of what we experience. They need to be trained in the methodology and methods of
the approach and to be deeply aware of the implications of the double hermeneutic and
reflexivity.
It is widely agreed that positivism is pivotal to management for two reasons. First, as Thomas
(1997) notes, ‘Positivism holds the promise of techniques for controlling the world’ with
which managers expect to be provided. Second, provided that managers appear practically to
use neutral scientific knowledge, their subsequent practices are more likely to be
authenticated as merely technical activities grounded in their objective representations of
reality.
Chapter 3, Modernist organization theory: back to the future?
, The modernist approach to organizations is based on a belief that if we adopt a rational,
scientific approach to organizational life, our organizations can be effective and efficient
machines for the delivery of industry, business and public services.
The way the term modernism is used in different context is sometimes concrete and definite
and sometimes elusive and contradictory. Modernism is sometimes used as a term to
describe a world of order and rationality that is at the same time challenging and exiting. At
other times, it is used to describe a world that is over controlled. It can also be used to
describe a world in which many are oppressed and elites are able to exercise power.
Some of the ways modernist organization theory fits into a general concept of modernism
are listed as follows:
1. Modernist organization theory claims to be global; it can be translated into any
culture.
2. A large body of modernist organization theory represents a rejection of the past: it
represents a new way of understanding organization.
3. Modernist theory van provide support for the development of fair and equitable
forms of organization in the sense that the modernist organization has clear lines of
authority as order that are based upon logic and reason. It can also be the means for
dictators to exercise power. The modernist organization can be portrayed as a force
for the general social good: it can be portrayed as evil. It can be aesthetically
satisfying or brutalist and ‘in your face’.
4. Deeply embedded within modernist organization theory, as it develops, is the
professionalization of the language of organization and of management. This
language is learnt through business studies courses, MBA programmes and
‘management development’.
The modernist ontology (what modernist believe to be the very core of organizations: F.O.
- The world is ordered and there are underlying systems that are there to be discovered.
- Individuals, organizations and societies can be ordered, rational and structured.
- The rational organization is preferable to organizations based on emotion or favourism.
The modernist epistemology (what modernist believe to be the way in which we know what
are the truths, the facts of organization life)
- We can use scientific techniques to understand and control the ways in which we can make
our organization ordered and systematic.
- We can rely on the collection of empirical data that enables us to make decisions in a
rational way.
- We constantly use systematic devices to understand what is happening in our organization
and in the environment.
- We can use performance measures and other scientific means to get the best out of
people.
- Truth is reached by rational thought rather than emotion and intuition.
The modernist technologies (what modernist believe to be the best ways to make sure that
organizations are ordered and controlled):
- The development of bureaucratic structure that is rational and ordered.