FAQ: What is an Organization?

Transcription

1 Question 1: What is the study of organizational behavior, and why is it important? Answer 1: An organization, by definition, is "a collection of people working together to achieve a common purpose" (Schermerhorn, Hunt, & Osborn, 2005, p. 6). That can take the form of a corporation, a faith-based group, or even the military. It does not, however, mean the entity is functioning well. The dysfunction of groups of people working together has led to the need for a body of work and a discipline called organizational development (OD). OD looks at organizational behavior and attempts to find ways to help groups of people achieve their collective organizational goals. Question 2: What are some areas of consideration for OD specialists? Answer 2: There are many areas of consideration for OD specialists. Topics within the OD field include organizational or corporate culture, individual behavior and performance, group dynamics and teamwork, leadership, management, organizational structure and design, and managing and leading change. Within each of these topics are many others, including communicating, decision making, conflict management and negotiation, motivation theories, and performance management. It is also important to consider cross-cultural implications as organizations become increasingly diverse and global. Question 3: How has organizational theory evolved over the years? Answer 3: Organizational theory has moved through several major eras beginning with Sun Tzu's The Art of War (trans. 1963, Samuel Griffith). In this work, the need for hierarchy, communication, and staff planning are explained. In Wealth of Nations (1776), Adam Smith uses a pin factory to describe the best way to organize for performance and makes an economic argument to justify the factory system and the division of labor. Ironically, current organizational theory attempts to provide ways of dealing with problems that these theories have produced. Frederick Taylor (1911), inspired by Henry Towne's (1886) work on scientific management, took the notion further with his work, The Principles of Scientific Management. In this work, Taylor likens management to keeping the gears in a machine oiled and aligned. Work is divided into tasks, and workers do not deviate from their specific duties. There is little, if any, sense of connection with the whole process or product. Again, this theory runs 1

2 against current thinking, which views such isolation and mechanistic thinking as a deterrent to motivation and morale building. Question 4: What role has the field of psychology played in organizational theory? Answer 4: As the field of psychology began to emerge and gain greater acceptance, the subject of management moved into the area of behavior rather than mechanics. Psychology was first applied to industry by Hugo Munsterberg in his work Psychology and Industrial Efficiency (1913). In 1924, the 8-year Hawthorne studies in Chicago conducted by Harvard researcher Elton Mayo (1945) lead to new thinking about the relationships among the work environment, human motivation, and productivity. One of his key findings was that productivity and morale increased when workers sensed that they were working together toward a collective goal. This ran against much of the other theoretical frameworks that were popular at the time. Question 5: When does organizational structure enter into the literature, and how does it relate to organizational purpose? Answer 5: Max Weber (1968) introduced the importance of organizational structure and an "ideal type" that characterized the most fully developed form of bureaucracy. Over the years, there has been much discussion about whether strategy should dictate structure or whether structure drives strategy. When strategy is viewed as the implementation of purpose, there can be no doubt that structure should be developed in response to, not in anticipation of, strategy and the goals and objectives needed to achieve it. Question 6: What role do goals and objectives play in organizations? Answer 6: In theory, goals and objectives provide the means for achieving organizational purpose. They emerge from a strategy, or plan, that has been identified as the means to the desired ends. Goals and objectives are more than a series of milestones leading to a result; they drive organizational activity. Therefore, to a large degree, organizations need them to know how to plan, schedule, and implement daily activities. They tell the organization what to do and when it needs to be done. There are implications to staffing, ordering of parts and inventory, and logistics (e.g., 2

3 transportation and communication). Though necessary, goals and objectives are only as achievable as organizational constraints will allow. In other words, there are characteristics that help or hinder the ability to reach a goal or objective. Additionally, goals and objectives must be periodically evaluated for their relevance, especially in industries that are experiencing rapid change. Question 7: What is organizational purpose? Isn't the purpose of all companies the same to make money? Answer 7: There is plenty of research to bring into question whether a solitary purpose related to profit is the best long-term strategy for a company. In truth, companies that focus on more than just financial gain and have other characteristics such as leadership through stewardship, a strong culture set around a distinct set of values, a willingness to experiment and innovate, and an understanding in the value of long-term survival prove to be, according to Collins and Porras (1997), visionary. These visionary companies have been shown to perform financially well above companies that have not achieved the same set of organizational characteristics. In a study of the cumulative stock returns on one dollar invested in 1926 and taken out in 1990, the general stock market produced a return of $415. The 18 visionary companies in the study produced an average of $6,356 on the one-dollar investment. Question 8: What is meant by the term learning organization, and what are the characteristics? Answer 8: A learning organization is one that is committed to expanding its own potential through taking risks and accepting that actions may not always lead to perfect outcomes. Learning organizations are willing to learn from mistakes and to support those in the organization in their efforts to move beyond the proven methods. Learning organizations have specific characteristics that support the development of this capacity (Senge, 1990): Systems Thinking: The view that the organization is a system within a larger system Personal Mastery: A commitment to continuous personal learning Mental Models: Acknowledgement of the assumptions that affect understanding and influence actions and reactions 3

4 Shared Vision: A genuine and clear vision shared by others in the organization Team Learning: Dialogue that helps members collectively reach higher intelligence levels Question 9: How does organizational theory help guide the way for managers? Is management theory not enough? Answer 9: Management theory is only part of the complex mix that exists in an organization. Managers need an understanding of motivational theory, communications techniques, how to enable and support effective group and teamwork, and how to identify potential management candidates. Organizational theory helps managers and leaders in all levels of the organization be better at what they do. Technology is rapidly changing, and it is important for organizations to stay current. This entails flexibility and the ability to maintain focus on the core purpose while adapting to a complex, changing environment. The global characteristics of today's business environment create the need for crosscultural competency. The frequent merger of companies points to the need for resilience and skill at blending different corporate cultures. To maintain a competitive position, it is imperative that organizations stay current with organizational theory and practice. References Mayo, E. (1945). The social problems of an industrialized civilization. Cambridge, MA: Harvard UP. Munsterberg, H. (1913). Psychology and industrial efficiency. Easton, PA: Hive. Schermerhorn, J. R., Hunt, J. G., & Osborn, R. N. (2005). Organizational behavior. Hoboken, NJ: John Wiley & Sons. Senge, P. M. (1990). The fifth discipline: The art & practice of the learning organization. New York, NY: Doubleday. Smith, A. (1776). The wealth of nations. London: Penguin Books. 4

5 Taylor, F. W. (1911). The principles of scientific management. New York, NY: Harper Row Publishers. Towne, H. R. (1886) The engineer as economist. Transactions of the American Society of Mechanical Engineers, 7, 425ff. Weber, M. (1968). Economy and society: An outline of interpretative sociology (G. Roth & C. Wittich, Trans.). New York, NY: Bedminster Press. 5