Organization Theory

Organization Theory

Introduction

This paper has been segmented in two parts. First part focuses on organizational theoretical perspectives and discusses how each perspective provides us different ways to analyze and understand organizations and organizational behavior. Second part of the report presents an applicative organization theory to understand its implication in the organization.

PART A: Modern Organization Theories

Modern organization theories have dominated the era of 1960s and 1970s. Different researchers contributed a valuable proportion in terms of explaining and expanding the concept of modern theories. Among these theorists, contribution of Von Bertalanffy (1950), Trist and Bamforth (1951), Boulding (1956), March and Simon (1958), Emery (1960), Burns and Stalker (1961), Woodward (1965), Lawrence and Lorsch (1967), and Thompson (1967) are widely known (Barkin, 2006).

Modern organization theories based models attempt to explain how an organizations goals structures, and strategies arc influenced by the broader external context in which it functions. Modern theories emphasize on numerous explanatory factors. First important element that modern organization theories emphasize on surrounds the general social and cultural milieu in which an organization operates (Miner, 2002). Second element of modern organization theory focus on the references and actions of individuals and organizations from which an organization acquires the resources it needs to sustain its operations. Third element of modern organization theory focuses on the preferences and actions of organizations with which an organization competes or cooperates. Fourth element of modern organization theory focuses on the preferences and actions of government agencies and other organizations that accredit, regulate, or certify an organization or otherwise report on its activities (Lomi & Larsen, 2001). Another element of modern organization theory focuses on the preferences and actions of an organization's customers or the individuals and organization that are the target of its actions. One of the valuable perspective of modern organization theories emphasize on the preferences and actions of groups that oppose an organization or some or all of its actions in order to analyze and understand organizations and organizational behavior (Cohen et al., 2002).

Unlike primitive organization theories, the modern organization theory places a high value on rationality, effectiveness and efficiency of an organization. It asserts that organization combines resources with people and constantly evaluating their performance, the organization pursues goals that benefit society (Burrell, 2003). Early theorists in the modern organization theory stressed that organizations, their goals, and their practices, can become infused with symbolic meanings for employees and supporters who are strongly vested in the organization. Organizational practices can then take on the characteristics of myth and ritual, a point also emphasized by the organizational culture perspective (Barkin, 2006).

Because of the taken-for-granted nature of institutionalized goals, strategies, and patterns of action—as well as their symbolic significance—organizations often follow them even when they are not optimally efficient. Moreover, modern organization theories highlight that the organizations frequently encounter resistance when they seek to alter institutionalized patterns (Lomi & Larsen, 2001). For example, environmental organization activists and donors who identify strongly with a specific goal or program may thus complain or reduce their ...