continuation Report on Organizational Development and Change

HUMAN RELATION STUDIES (1920s)	o   Focus on importance of the attitudes and feelings of workers; o   Informal roles and norms influenced by performance
ADMINISTRATIVE THEORIES Henri Fayol (late 1800s to early 1900s) and Chester Bernard (1930s) Basic principles: work specialization, unity of command, scalar chain of command, coordination of activities.	o   Classical management concept of PLANNING, ORGANIZING, DEVELOPING, STAFFING, COORDINATING and BUDGETING. (Fayol) o   Organizations are communication systems. Factors that affect willingness of employees to accept authority: o   Employees understand the communication o   Employees accept the communication as consistent with the organization’s purpose o   Employees feel that their actions will be consistent with the needs and desires of other employees o   Employees feel that they are mentally and physically equipped to carry out the order of higher authorities. (Bernard)
CONTINGENCY THEORIES (1980s) Contingency theories include:	·        Similar to situation theory as both assume that there is no simple right way. Situation theory differs in that it is more focused on the behaviors that the leader should adapt, given, say, subordinate behavior, while contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation. ·        Emphasis on the fit between organization processes and characteristics of the situation. ·        Leader’s success a function of various contingencies: subordinates,  tasks, group variables. ·        Effective leader behavior dependent on situation. ·        Different styles of leadership for appropriate needs created by different organizational situations.
·        FIEDLER’S MODEL	·        Departs from trait and behavioral models; group performance is contingent on leader’s psychological orientation and on 3 contextual variables; group atmosphere, task structure, and leader’s power position. ·        Group performance is dependent on leadership style and situational favorableness.                     Leadership effectiveness results from the interaction between leadership style and his working environment
·        Hersey & Blanchard’s situational theory	·        Extended Blake and Mouton’s managerial grid model and Reddin’s 3-D management style theory ·        Expanded the notion of relationship and tasks dimernsions to leadership ·        Adds a readiness dimension.
·        VROOM AND YETTONS DECISION CONTINGENCY OR NORMATIVE DECISION THEORY	·        The effectiveness of a decision procedure depends upon a number of aspects of the situation: the importance of the decision quality and acceptance, the mount of relevant information possessed by the leader and the subordinates, the likelihood that subordinates accept an autocratic decision or cooperate in trying to make a good decision if allowed to participate, and the amount of disagreement among the subordinates with respect to their preferred alternatives.
NEW INSTITUTIONAL ECONOMICS	Analyzes social norms, organizational arrangements, and others
(SOCIAL) NETWORK ANALYSIS Encompasses theories, models, and applications expressed in relational concepts or processes Network methods focus on dyads (2 actors and their ties), triads (3 actors and their ties), subgroups of individuals, or entire networks.	·        Relationships among interacting units are important ·        Constraints on individual action ·        Structures are viewed as lasting patterns of relations among actors ·        Actors and their actions are interdependent rather than independent, autonomous unts. ·        Linkages between actors are channels for the flow of both material and non-material resources. ·        Instead of the individual, the unit of analysis is an entity consisting of a collection of individuals and the linkages among them.
ECONOMIC SOCIOLOGY Earliest economists recognized that economic institutions are of profound importance to society as a whole and the social context affects the nature of local economic situations.	·        Sociological analysis of economic phenomena ·        Economic forces are absolutely central to society and deeply influences its social structures. (Marx) ·        Economic processes as fundamental to the structure of society. (Weber et. al.) ·        Innovation and technological change in a nation comes from entrepreneurs (wild spirits, those who make things work in the economy of a country). (Joseph Schumpeter) ·        The actors that drive innovation and the economy are the big companies which have the resources and capital to invest in R & D. (J. Schumpeter)
ORGANIZATION ECOLOGY OR DEMOGRAPHY OF ORGANIZATIONS (Michael Hannan, Glenn Carrol and William Barnett - Stanford University)	·        Focused on explaining the rates of birth, growth and mortality of organizations in any       given environment. ·        Owing some intellectual debt to Darwin’s theory of selection, emphasizes concepts       not found in natural ecology, e.g. legitimation, economic competition, institutional       linkage, technological adaptation.
TRANSACTION COST THEORY/ TC ECONOMICS (Oliver Williamson)	·        Why firms exist or why some transactions are directed by managers in the contexts of a hierarchy rather than in an open market ·        The particular structure of firms – the extent to which it integrates vertically.

AGENCY THEORY OR PRINCIPAL- AGENT THEORY	·        Deals with the relationship between a principal (shareholder) and an agent of the       principal (the company’s managers) ·        Involves the costs of resolving conflicts between the principals and agents and aligning       the interests of the two groups.
STUDIES OF ORGANIZATION CULTURE (OC)	·        OC is the set of operating principles that determine how people behave within the context of the company ·        Observable behavior in people are influenced by belief, values and assumptions. ·        Managers need an accurate understanding of the organization’s culture in order to direct activities toward productivity and to cancel out destructive influence of employees who are not committed to company goals.
Labor-process theory	Explains the surplus value of top executives in the capitalism and the lowering of wages to support unproductive labor activities in a surplus-extractive division of labor. (Extraction of surplus, not quality is the goal of corporations and higher education.)
Garbage Can Model (Cohen, March and Olsen, 1972)	Defines an organization as “a collection of choices looking for problems, issues and feelings looking for situations in which they might be aired, solutions looking for issues to which they might be the answer, and decision makers looking for work”. Cohen, March and Olsen “are a bit more pessimistic on the value of charismatic leadership in these situations noting that leaders can make a difference in the Garbage Can Model by a)carefully timing issue creation, b) being sensitive to shifting interests and involvement of participants, c) recognizing the status and power implications of choice situations, d) abandoning initiatives that get hopelessly entangled with others, and e) realizing that planning is largely symbolic and an excuse for interaction.

References include “Report on Managerial Perspectives Organizational Behavior”  by Clarita P. Habana for DPA 723 [Seminar in Org Behavior]

Work these days are

·        more cognitively complex,

·        more team-based (collaborative),

·        more dependent on technological competence,

·        more time-pressured,  and

·        more mobile (less geography dependent)

Necessarily, today’s organizations are

·        leaner and more agile,

·        more focused on identifying value from customer perspective,

·        more tuned to dynamic competitive requirements and security,

·        less hierarchical in structure and decision authority,

·        less likely to provide lifelong careers and job security, and

·        continually reorganizing to maintain or gain competitive advantage.      What’s your work and workplace like?