8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

1/14

GSM 6190 Theory in Management

Week 5 : Management Theory The Evolution ofScienti cManagement Theory The !ara"igm Shift

Title : The Short and Glorious History of

Organizational Theory

Authors : Charles Perrow, 197

Presented : !egat Shariffudin "# $ul%ifli &G! ' 9()* !oha+ad azif "# Ha-i A"dul !u"in &G! ' 9(.*

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

2/14

Presentation Outline Three segments :

The mechanical school

The human relations (HR) school

The systems model school of thought

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

3/14

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

4/14

The ri$e of $cienti c management Mechanical$chool of organi%ational theory or cla$$ical

management

'entralized authority

'lear lines of authoritypecialization and e pertise

*ar+ed division of la$or

Rules and regulations

'lear separation of sta, and line

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

5/14

Scienti c Management "ecline":

-a$or $ecame a more critical factor in the rm./s technology increased in sophistication it too+longer to train people& and re0uire specializeds+ills.

1ncreasing comple ity of mar+ets& varia$ility ofproducts and changes in technology re0uiredadaptive organization

Political& social& and cultural changes meant new

e pectations regarding the proper way to treatpeople.

/s mergers and growth& rm no longer $e viewedas the shadow of one man& a search for methods ofselecting good leadership.

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

6/14

&uman relation$ 'eginning$:

'hester 2arnard proposed the theory that organizationsare cooperative systems& not the products of mechanicalengineering.

He stressed natural groups within the organization&upward communication& authority from $elow ratherthan a$ove 3 leaders functions as cohesive force 3 4irststep to a search for the traits of good leadership

'oal miner study showed that 5o$ simpli cation andspecialization did not wor+ under conditions of

uncertainty and non#routine tas+s.6arren 2ennis $egan tal+ing a$out innovative& rapidlychanging organizations that were made up of temporarygroups& temporary authority systems& temporary

leadership and role assignments& and democratic accessto the goals of the rm.

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

7/14

&uman )elation$ $chool :

7elegation of authority

8mployee autonomy

Trust and openness

'oncerns with the whole person

1nterpersonal dynamics

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

8/14

*ureaucracy+$ ,ome'ack

4irst came the nancial analysts& proposing that

they were a$le to 5ustify the nancial aspects ofthe $ureaucracy.

*a 6e$er9s writings found their way into socialsciences.

tudies $egan to show that $ureaucraticorganizations could change faster than non#$ureaucratic one& and that morale could $ehigher where there was clear evidence of$ureaucracy.

This model stressed e pertise and e ciency

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

9/14

!o-er. con/ict an" "eci$ion$ ri$e ofSy$tem$ Mo"el

Politicians and others (Philip elznic+) were noting con%ictand di,erences in goals. 1n some organizations power andcon%ict were e pected.

R./. ;ordon and others spilled these ideas into economic

organizations. They argued for the presence oflegitimately con%icting goals and techni0ues ofpreserving and using power did not sit well with acooperative system view of organizations.

These ideas in ltrated $oth schools: Human relationists saw it # the mode of resolution that

counted& rather than prevention. 4or the $ureaucracy& it was easier to a$sor$ these new

ideas as something else to $e thrown in.

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

10/14

Her$ert imon and

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

11/14

The technological uali cation 7 should not.

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

12/14

Goal$. environment$. an" $y$tem$

1nstitutional school came to see that goals are noted3 con%icting goals can $e pursued

simultaneously& if there are enough slac+ resources&or se0uentially3 that goals were up for gra$s inorganizations& and units fought over them.

This helped organizations to $e seen as opensystems& 0uest for organizational e ciency ande,ectiveness = the systems model school of thought

This systems view says that everything is related toeverything else& though in uneven degrees oftension and reciprocity.

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

13/14

,onclu$ion$ / great deal of the variance in a rm9s $ehavior

depends on the environment

/ fair amount of variation in $oth rms and industries isdue to the type of wor+ done in the organization = thetechnology

2eyond a threshold level of ade0uacy it is e tremelydi cult to +now what good leadership is.

-eadership is highly varia$le and contingent upon the nature ofthe tas+& the size of the group& length of time the group e isted&type of personnel within the group and their relationships witheach other3 amount of pressure the group is under.

'hanging organizations structures may $e the moste,ective& 0uic+est and cheapest method solvingpro$lems.

8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973

14/14

Than+ you