1. Management 337 / Summer 2005 / Organization Theories / Slide # 1 Organization Theories

2. Management 337 / Summer 2005 / Organization Theories / Slide # 2 Management Theories (I) Management Process “Traditional” approach Based on Fayol’s functions Empirical Case study approach Business schools Human Behavior Behavioral science approach (individuals and groups) Roots in psychology

3. Management 337 / Summer 2005 / Organization Theories / Slide # 3 Management Theories (II) Social System Behavioral science (groups & organizations) Roots in sociology Decision Theory Management as decision making Roots in economics Mathematical Modeling behavior Primarily (not exclusively) operations research

4. Management 337 / Summer 2005 / Organization Theories / Slide # 4 Some Disciplines Contributing to Management Social sciences Psychology (industrial, social) Sociology Anthropology Quantitative fields Economics Finance Mathematics

5. Management 337 / Summer 2005 / Organization Theories / Slide # 5 Systems Theory 5 related components: Input Transformation process Output External environment Feedback Synergy Equilibrium

6. Management 337 / Summer 2005 / Organization Theories / Slide # 6 Environment Systems Model Output Input Transformation Process Feedback

7. Management 337 / Summer 2005 / Organization Theories / Slide # 7 Every System is Made up of Subsystems One view: Boundary spanning Production Maintenance Adaptation Management Another view Technical Structural Psychosocial Managerial

8. Management 337 / Summer 2005 / Organization Theories / Slide # 8 Systems Theory and Organization Effectiveness How well the organization manages the interaction between internal and external environments Three basic principles: Organizations must have inputs to survive (or face entropy) One system’s output is another system’s input, and vice versa Organizations must respond to feedback (remain open, not closed)

9. Management 337 / Summer 2005 / Organization Theories / Slide # 9 Contingency Theory There is no “One Best Way” to manage organizations and people Every situation has different requirements