Kay 235: Introduction to Management. October 13, 2006 Subject: Theories of organization Public administration Reading: Polatoğlu, pages 34-58
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1 Kay 235: Introduction to Management October 13, 2006 Subject: Theories of organization Public administration Reading: Polatoğlu, pages 34-58
2 Why Theories of Organization? Increasing organizational efficiency Effectiveness vs. Efficiency Thories of Organization Classical theory Neo-classical theory Modern theories
3 Fredrick W. Taylor Father of scientific management One best way of doing things Time and motion studies Henry Fayol
4 Man Against the Machine
5 Classical Theory of Organizations Industrial revolution Large scale production and large scale organizations New patterns of relationships Emphasis on the formal structure Notion of economic man Emphasis on material rewards Strictly define and control the work processes Employees are lazy and unreliable Theory X versus Theory Y
6 Key Pillars of the Classical Theory Division of labor Scalar and functional processes Vertical and horizontal growth of the organization Delegation of power and authority Line and staff Blue-collar and white-collar Line: Initiators of key organizaitonal activities Staff does not direct, it advises and serves Reservoir of expert knowledge (A limited) Span of control The number of subordinates a manager can effectively supervise (5-6)
7 Neoclassical Theory of Organization Human relations movement Hawthorne studies ( ) Effects of changes in physical environment on output of workers Temperature, hours of sleep, humidity, etc. Importance of social systems, friendliness, etc. Importance of informal organization Natural groupings of people in work, a social need Worker satisfaction- increased output This school does not reject the principles of classical theory, but criticizes them Introduction of behavioral sciences to the study of organizations Studies on motivation, coordination and leadership
8 Criticisms of Classical Principles Division of labor Repetitive work causes industrial fatigue and monotony Scalar and functional processes Too much or insufficient delegation of authority Line and staff Problems of harmony and coordination Better communication techniques Span of control No single answer, depends on the organization and work
9 Modern Theories of Organization Looks like a synthesis of classical & neoclassical theories, but it is more than that Organization as a complex unit Various types of social groups interact Conflicts between Management and workers Formal and informal organizations Organizations as systems Environmental factors
10 Systems Approach to Organizations
11 Development of Systems Approach Increasing division of labor and expertise Every branch of science examining abstract areas Weakening of links between these branches Difficulty of understanding and solving complex problems Search for an integrating theory
12 Types of Systems Closed systems Not affected by external stimuli Exists only in theory Example: Electric circuit Open systems Interacts with the environment Example: Every living creature
13 Features of Open Systems 1. Input- Receiving energy Interpretation of stimuli Conforming to the environment, decisionmaking 2. Using energy Transformation 3. Output A good, service or a decision 4. Control/ Feedback Positive or negative Adaptation to changing conditions 5. Isomorphism Fit between the parts of the system
14 Public Administration the administration of public organizations in the implementation of public policy Why do we need a government? Market failures Public goods and services Monopoly- Oligapoly
15 Differences with Private/ Business Administration 1. Policies formulated by political bodies, supplemented by law 2. Government is more open to public criticism Spending tax money well 3. Profit motive versus public interest 4. Working conditions Hiring and firing, wages
16 Diversity of Activities The jack of all trades, the master of none Using knowledge and methods of a variety of disciplines Political science, law, sociology, pyschology, social-psychology, antropology, business administration Greatest strength and most serious limitation
17 Development of PA Greeks city states Plato, Aristotle... Confucius (5th Century BC) How to be an ethical ruler 15th Century: Enderun in Ottomans 1887 Woodrow Wilson Independent study of administration from politics
18 Traditional Approaches to PA Merit versus spoils/ patronage system Max Weber Bureaucracy as an ideal-type Luther Gulick POSDCORB Planning, organizing, staffing, directing, coordinating, reporting, budgeting Mooney and Reilly Coordination is the key
19 Behavioral Approaches to PA Herbert Simon Book: Administrative Behavior Understanding of rationality Bounded rationality Economic man (maximizes) versus administrative man (satisfices) Chester Barnard Book: The Functions of the Executive Importance of recognized managerial authority Mary Parker Follet Democratic leadership, voluntary cooperation, the law of the situation
20 Modern Approaches to PA Information technology Open systems Globalization Social equity and democratic administration Governance
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