Comparison and Contrast of Theories

Comparison and Contrast of Theories

Introduction

The assignment is based upon providing comparisons and contrast on the common themes in the three topics provided for reading. The topics include discussing rationality and rational behavior of organizations and the extent to which rationality effect the human decision-making within a formalized organizational structure. The arguments are supported by analyzing Webber and DiMaggio and Powell's work. The second topic is about discussing the value of formalization of organizational structures from the perspective of Burns and Stalker and DS Pugh. The last topic provides comparison and contrast on the work of Burns and Stalker, DS Pugh and Charles Perrow in the field of defining the nature of technology and the effects of technology on the behavior and structure of an organization.



Discussion

Topic 1: The rational structures and behaviors of organizations and to what extent the organizations make human decision making more or less rational.

The structures and behavior of an organization are considered as rational, when the organizational structures are more formally designed to achieve goals. Some common rational coordination, to achieve economic goals, are the division of labor, the hierarchy of authority and the division of function an responsibility among the employees. These coordinations can be formally written and the hierarchy of authority and differentiating in line versus staff can be represented through organizational charts. The important part of an organizational chart is the operating layer which, consists of employees who are directly involved in producing goods and services that directly contributes towards the essential output of the company.

In “The Iron Cage Revisied”, P. J. DiMaggio & W. Powell (1983) , the efforts to achieve rationality, in an organizational structure, without uncertainty and political constraints led to more flattened and homogeneity of the structure, which can be termed as institutional isomorphism”. Joan Woodward (1958) assumed that the formal organizational structures are directly dependent on the different technologies, to determine formal organizational attributes such as, centralization of authority, span of control and the standardization of rules and procedures (Woodward, 1965). However, Max Webber (1864-1920), a German theorist assumed that in order to achieve rational and efficient results, an organizational structure must need to be based upon the theory of bureaucracy and a hierarchy of command.

P. J. DiMaggio and W. Powell defined the isomorphism as a basis to achieve rational organizational structure. There are two types of isomorphism: competitive and institutional. P. J. DiMaggio and W. Powell assumed that organizations also compete for political power and institutional legitimacy for their social and economic benefits (Hickson & Pugh2007). Webber believed in hierarchy of command to make an organizational structure more rationalized. He defined three sets of authorities: charismatic authority, traditional authority and rational legal authority. Rational legal authority is based upon the set of rules and is generally the more predominant form of authority, today. However, according to Webber, the most rational structure of organization can be achieved through bureaucracy (Weber, 1947). However, Webber's concepts of rational organizational structure are found to be more ...