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8/10/2019 The Short and Glorious History of Organizational Theory by Charles Perrow, 1973
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GSM 6190 Theory in Management
Week 5 : Management Theory The Evolution ofScienti cManagement Theory The !ara"igm Shift
Title : The Short and Glorious History of
Organizational Theory
Authors : Charles Perrow, 197
Presented : !egat Shariffudin "# $ul%ifli &G! ' 9()* !oha+ad azif "# Ha-i A"dul !u"in &G! ' 9(.*
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Presentation Outline Three segments :
The mechanical school
The human relations (HR) school
The systems model school of thought
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The ri$e of $cienti c management Mechanical$chool of organi%ational theory or cla$$ical
management
'entralized authority
'lear lines of authoritypecialization and e pertise
*ar+ed division of la$or
Rules and regulations
'lear separation of sta, and line
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Scienti c Management "ecline":
-a$or $ecame a more critical factor in the rm./s technology increased in sophistication it too+longer to train people& and re0uire specializeds+ills.
1ncreasing comple ity of mar+ets& varia$ility ofproducts and changes in technology re0uiredadaptive organization
Political& social& and cultural changes meant new
e pectations regarding the proper way to treatpeople.
/s mergers and growth& rm no longer $e viewedas the shadow of one man& a search for methods ofselecting good leadership.
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&uman relation$ 'eginning$:
'hester 2arnard proposed the theory that organizationsare cooperative systems& not the products of mechanicalengineering.
He stressed natural groups within the organization&upward communication& authority from $elow ratherthan a$ove 3 leaders functions as cohesive force 3 4irststep to a search for the traits of good leadership
'oal miner study showed that 5o$ simpli cation andspecialization did not wor+ under conditions of
uncertainty and non#routine tas+s.6arren 2ennis $egan tal+ing a$out innovative& rapidlychanging organizations that were made up of temporarygroups& temporary authority systems& temporary
leadership and role assignments& and democratic accessto the goals of the rm.
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&uman )elation$ $chool :
7elegation of authority
8mployee autonomy
Trust and openness
'oncerns with the whole person
1nterpersonal dynamics
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*ureaucracy+$ ,ome'ack
4irst came the nancial analysts& proposing that
they were a$le to 5ustify the nancial aspects ofthe $ureaucracy.
*a 6e$er9s writings found their way into socialsciences.
tudies $egan to show that $ureaucraticorganizations could change faster than non#$ureaucratic one& and that morale could $ehigher where there was clear evidence of$ureaucracy.
This model stressed e pertise and e ciency
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!o-er. con/ict an" "eci$ion$ ri$e ofSy$tem$ Mo"el
Politicians and others (Philip elznic+) were noting con%ictand di,erences in goals. 1n some organizations power andcon%ict were e pected.
R./. ;ordon and others spilled these ideas into economic
organizations. They argued for the presence oflegitimately con%icting goals and techni0ues ofpreserving and using power did not sit well with acooperative system view of organizations.
These ideas in ltrated $oth schools: Human relationists saw it # the mode of resolution that
counted& rather than prevention. 4or the $ureaucracy& it was easier to a$sor$ these new
ideas as something else to $e thrown in.
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Her$ert imon and
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The technological uali cation 7 should not.
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Goal$. environment$. an" $y$tem$
1nstitutional school came to see that goals are noted3 con%icting goals can $e pursued
simultaneously& if there are enough slac+ resources&or se0uentially3 that goals were up for gra$s inorganizations& and units fought over them.
This helped organizations to $e seen as opensystems& 0uest for organizational e ciency ande,ectiveness = the systems model school of thought
This systems view says that everything is related toeverything else& though in uneven degrees oftension and reciprocity.
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,onclu$ion$ / great deal of the variance in a rm9s $ehavior
depends on the environment
/ fair amount of variation in $oth rms and industries isdue to the type of wor+ done in the organization = thetechnology
2eyond a threshold level of ade0uacy it is e tremelydi cult to +now what good leadership is.
-eadership is highly varia$le and contingent upon the nature ofthe tas+& the size of the group& length of time the group e isted&type of personnel within the group and their relationships witheach other3 amount of pressure the group is under.
'hanging organizations structures may $e the moste,ective& 0uic+est and cheapest method solvingpro$lems.
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Than+ you