1. The priorities of organizations are important, and organizational theory defi
ID: 357661 • Letter: 1
Question
1. The priorities of organizations are important, and organizational theory defines the methods that organizations should use to determine and define their priorities and communicate them to stakeholders. Please briefly describe the priorities of an organization with which you are familiar. Describe how the highest priorities are communicated internally and externally. Would everyone who is asked about the organization agree with you on the top priorities of the organization? If so, why? If not, then why not?
2. The lifecycle of organizations is something not generally understood very well beyond organizational theorists. Often, the length of life cycle stages is influenced by the organizational (industry) sector to which the organization belongs. Briefly describe and analyze the industry sector of an organization with which you are familiar. Specifically describe the factors that you believe may influence the periodicity of its stages. Can you say anything about its future given your analysis of the industry in which the organization belongs?
Explanation / Answer
In other words, the organizational theory studies the effect of social relationships between the individuals within the organization along with their actions on the organization as a whole. Also, it studies the effects of internal and external business environment such as political, legal, cultural, etc. on the organization.
The term organization refers to the group of individuals who come together to perform a set of tasks with the intent to accomplish the common objectives. The organization is based on the concept of synergy, which means, a group can do more work than an individual working alone.
Thus, in order to study the relationships between the individuals working together and their overall effect on the performance of the organization are well explained through the organizational theories. Some important organizational theories are:
The Administrative Theory is based on the concept of departmentalization, which means the different activities to be performed for achieving the common purpose of the organization should be identified and be classified into different groups or departments, such that the task can be accomplished effectively.
The Bureaucratic Theory is related to the structure and administrative process of the organization and is given by Max Weber, who is regarded as the father of bureaucracy. What is Bureaucracy? The term bureaucracy means the rules and regulations, processes, procedures, patterns, etc. that are formulated to reduce the complexity of organization’s functioning.
The Neoclassical Theory is the extended version of the classical theory wherein the behavioral sciences get included into the management. According to this theory, the organization is the social system, and its performance does get affected by the human actions.
The Modern Theory is the integration of valuable concepts of the classical models with the social and behavioral sciences. This theory posits that an organization is a system that changes with the change in its environment, both internal and external.
An organizational structure plays a vital role in the success of any enterprise. Thus, the organizational theories help in identifying the suitable structure for an organization, efficient enough to deal with the specific problems.
Organizational lifecycle is the way of describing the organizational development over time.
Like other biological and social organisms, the organization creates, develops and changes. It goes through the growth, crises and eventually dies. There are many ways to describe the organizational development.
One of the most frequent models is the model of the enterprise lifecycle, which was published by Danny Miller and Peter Friesen. The model describes the mutual development of revenue and expenses during the cycle. The cycle consists of five phases (see figure):
The model is the result of long study of many businesses, but it is not applied generally. In the life of long-lived enterprises (organizations) different phases take their turn. Many companies have several repeat cycles and even after a long time may not get to the stage of termination, while many companies undergo only one cycle and then it terminates. Long-term maintenance of the organization in a stable phase is the main task of managers at all levels.
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