1. 1 Organizations as Rational Systems I. Introducing Rationality (1) The machine analogy –essential parts which are well designed into a functional whole (2) Technical or functional rationality –the extent to which a series of actions are organized in such a way to lead to predetermined goals with maximum efficiency

2. 2 Organizations as Rational Systems II. Defining Characteristics (1) Rational Calculation –information, efficiency, optimization, design, implementation (2) Cognitive Limitation –constraints, authority, rules, performance programs, and coordination (bounded rationality)

3. 3 Organizations as Rational Systems II. Defining Characteristics (3) Goal Specificity –providing unambiguous criteria for selecting among alternative activities –General Goals vs. Specific goals

4. 4 Organizations as Rational Systems II. Defining Characteristics (4) Formalization of Rules and Roles –The rules are precisely formulated, and roles are prescribed independently of the personal attributes and relations of individuals occupying positions in the structure. –Formalization involves organizational controls over individuals.

5. 5 Organizations as Rational Systems II. Defining Characteristics (4) Formalization of Rules and Roles The Benefits of formalizations a. Formalization increases predictability and accountability. b. Formalization reduces status battles or interpersonal tensions. c. Formalization objectifies the structure by making the roles and relations objective and external to participants.

6. 6 Organizations as Rational Systems II. Defining Characteristics (4) Formalization of Rules and Roles The Benefits of formalizations d. Formalization constitutes a functional alternative to the sociometric structure – the patterning of affective ties among participants. e. Formalization produces routinized and regularized structures independent of the participant of any particular individual.

7. 7 Organizations as Rational Systems III. Four Schools (1) Taylor’s Scientific Management Analyze jobs very carefully into their smallest aspects, and examine closely the capabilities of the workers, and then fit the two together to achieve the greatest economy (efficiency). Scientifically designed work procedures allow workers to work at peak efficiency. The assumptions of scientific management are: a.Tasks are calculable. b.Division of labor is efficient and productive. c.There is one best way to do a thing

8. 8 Organizations as Rational Systems III. Four Schools (2) Fayol’s Administrative Theory Coordination –scalar principle –unity-of-command principle –span-of-control principle –exception principle Specialization –departmentalization principle –line-staff principle

9. 9 Organizations as Rational Systems III. Four Schools (3) Weber’s Bureaucracy –The rationalization process is the guiding principle behind bureaucracy. Division of Labor Hierarchy of Authority Written Rules and Regulations Impersonality Employment Based on Technical Qualifications

10. 10 Organizations as Rational Systems III. Four Schools (4) Simon's theory of administrative behavior Economic Man vs. Administrative Man Organizations simplify participants' decisions and activities. Organizations also support participants in the decision they must make. bounded rationality: individuals can behave rationally, because their alternatives and choices are limited.