Organization Theory

Ann L Cunliffe, Author

• Publisher: SAGE Publications Ltd
• Year: 2008
• Print ISBN: 9781412935494, 9781412935487
• eBook ISBN: 9781473902992
• Edition: 1
• Topic: Business
• Subtopic: Organisational Behaviour
• Index: Business

The SAGE Course Companion on Organization Theory is an accessible introduction to a challenging subject area. This book helps readers to extend their understanding of theories and make the connection between them and organizational practice. It will enhance their thinking skills in line with course requirements and provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a organizational theorist but also to think about the subject critically.  

 

Designed to compliment existing textbooks for the course, the companion provides:

 

- Easy access to the key themes in Organizational Theory

 

- Helpful summaries of the approaches taken by the main course textbooks

 

- Sample questions and answers, with common themes that must always be addressed

 

- Short vignettes and a case study that runs throughout the chapters

 

- Guidance on the essential study skills required to pass the course

 

- `Taking It Further? sections that suggest how readers can extend their thinking beyond the `received wisdom?

 

The SAGE Course Companion in Organizational Theory is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.

 

part one
introducing your companion

How to Use the Book

This book provides a concise summary of the main topics, theories and issues in organization theory (OT). It also provides guidelines on how to make sense of course material, why it is important, and how to apply the theories and concepts to the design and management of organizations. It does not replace your textbook or lectures, which will go into the various aspects of organization theory in more detail, but it is designed as a supplementary text to be used to facilitate learning and enable you to get the most from your textbook and lectures. It also provides you with essential help revising for your course exams, preparing and writing course assessment materials, and enhancing your knowledge and thinking skills in line with course requirements. You may want to glance through it quickly, reading it in parallel with your course syllabus, and note where each topic is covered in both the syllabus and the Companion. The Companion will help you to anticipate exam questions and gives guidelines on what your examiners will be looking for. It should be seen as a framework in which to organize the subject matter, and to extract the most important points from your textbooks, lecture notes and other learning materials on your course.

There are a number of textbooks on organization theory and not all of them take the same approach. Some deal with OT from a systems and contingency perspective (e.g., Child, 2005; Daft, 2007; Jones, 2007), some take a critical or postmodern perspective (Hassard and Parker, 1993) or a multiple perspectives approach (Hatch with Cunliffe, 2006; Morgan, 1997; Scott, 1992). Your textbook might be an edited volume, with chapters written by different authors (e.g., Clegg and Hardy, 1998; Reed and Hughes, 1992). It’s impossible to cover all of the variations in this Course Companion. But we will focus on what is generally regarded as mainstream OT based on structuralist (organizations as objects) and contingency approaches, which formed the bulk of organization theory (and still does in the US) until 20 years ago, when European organization theorists began to explore different perspectives. This work addresses critical issues in organizations and organization theory, previously unconsidered: gender, race, ethnicity, the relationship between knowledge and power, organizations as socially constructed rather than objective entities, technoscience, the role and legitimacy of organizations in society, Marxist critiques, and so on. We will look at some of these contemporary approaches to OT in each chapter. If you are using a structuralist contingency-based book, this might whet your appetite to look at alternative approaches. If you are using a non-structuralist contingency book, this might help you make sense of some quite challenging concepts and ideas! Whichever textbook you are using, this Course Companion will help you fit all the pieces together and understand how OT actually applies to ‘real’ organizations. Whichever textbook you are using, the basics are the basics: read the Companion in parallel with your textbook and identify where subjects are covered in more detail in both your text and in your course syllabus.

Having taught Organization Theory for over 20 years to both undergraduate and graduate students, I understand the problems, issues and concerns that students have about the topic. These include: OT is an overly theoretical subject; that there is a lot of information to grasp; that the terminology is confusing; and that OT has no practical relevance. The book addresses these concerns, and is designed around my experience of what you need to know to get the most from your course, deal with the problems you might encounter in trying to understand OT, and help you navigate the course assessment process. So use it as a study guide.

Part 2 relates specifically to organization theory. It provides a framework for understanding the field, reviews the essentials of OT, and offers a way of integrating the various topics. Each section takes one or more of the main topics covered in OT textbooks, and focuses on: ‘What do I need to know about [the topic] – and why?’

In order to answer this question, the sections cover:

1Key concepts: a summary of the main theories, key themes, issues and what you need to know about the topic. How these fit together to help managers understand, design and manage organizations more effectively. Practical examples to aid your understanding and emphasize how managers use, or could use, the theoretical material.

2Contemporary approaches: current ideas and different approaches and theories relating to the topic.

3An integrative case: to help make the concepts more meaningful and help you understand how to apply them.

4Using the material: study tips and potential essay questions with ideas about how to answer them.

5Taking it further: Key questions, alternative approaches and debates on the topic.

You can use Part 2 in one of two ways, and this will depend on your preferred method of studying. You might find it helpful to read each section before you read your textbook and attend class or seminars. This will give you an overview of the topic prior to getting into the more detailed material in your textbook. Sometimes, if you understand the overall context and why the topic is important, it’s easier to fit in the details. A second approach might be to read your textbook first, and then read this book, to help you pull out the key issues and apply the concepts. Find the approach that makes most sense to you.

Part 3 provides some great information on study skills in general: how to organize yourself to get the most out of lectures, to contribute effectively to seminars, and how to study for and write papers and exams. It’s a good idea to read Part 3 before your course starts, because then you can be proactive in managing your learning process. It will make life much easier! There then follows a glossary of terms and references.

Before we jump into our introduction to organization theory, I want to offer a general guideline that I give to all of my OT students:

Keep up with your reading as assigned by your instructor – there is a lot of material, and if you get behind it’s difficult to catch up. Your lectures will also make a lot more sense if you know what the main theories and ideas are before you attend. And if you don’t understand any of them – you can then ask.

What is Organization Theory (OT) and Why Study It?

OT is a range of theories and models that attempt to explain how organizations function and relate to the environment. The driving force behind OT is the idea that if we understand this, then we can design organizations in such a way that they operate:

• efficiently – utilizing their resources in a cost-effective way
• effectively – achieving their goals
• responsibly – in a way that respects the community, society and the environment.

OT differs from organizational behaviour (OB) in three main ways: OT focuses on organizations – OB on people in organizations; OT takes a macro organizational perspective – OB looks at more micro behavioural processes; OT is concerned with structures, systems and processes – OB with the perceptions and behaviour of individuals and groups.

The term ‘organization’ implies that there is some sort of structure and order to the way things are done, and definitions often centre around the idea that organizations are entities in which individuals coordinate their actions to achieve specific goals. They can be small family-owned businesses or multinational corporations, for-profit or non-profit, private or public, service or product oriented, government agencies… We experience organizations on a daily basis as we go to college, buy a house, travel on holiday, eat in a restaurant, or visit a hospital. However, even though we come into contact with various parts of an organization (customer service, administration, accounting, etc.), we probably don’t think about how these parts work together, unless we have a problem – when we don’t receive the expected service, or the product we’ve purchased is faulty – which means something in the organization isn’t functioning the way it should be.

Many students think OT is a particularly theoretical and abstract discipline, when in fact it’s quite the opposite. Many of the theories are based on studies of what happens in organizations, so they are grounded in practice. And even though they may not be aware of it, managers use organization theory every day as they think about ways of organizing the work in their department (division of labour), about how the work needs to be coordinated with work in other departments (integration), about how to create a work environment that encourages organizational members to work together towards goals (culture), and so on. But unless they have studied OT, they might not have the explicit and systematic knowledge to enable them to do this in the most effective way. So OT gives managers a range of theories, concepts, models and tools that they can use to diagnose problems and help their department and organization function more effectively.

It’s particularly important for managers to understand the various elements involved in designing effective organizations – how to create a structure and culture that balance external and internal demands allows the organization to create value, and ensures its long-term survival. Ineffective organization structure reduces productivity and competitiveness, and can lead to low morale as employees struggle to achieve their goals. An effective organization structure and design allows organizational members to do the following:

• Deal with contingencies such as changing technology, markets and competition.
• Gain a competitive advantage by developing the core competencies and strategies to enable them to outperform other companies.
• Work in an effective, supportive and responsive environment.
• Increase efficiency and innovation.

Let’s begin with an example.

You own and manage a restaurant in your local town, which can seat up to 80 people, and is open for lunch and dinner. You serve an international cuisine, the price range of an entrée is moderate to high, and you offer elegant décor and a romantic atmosphere. You employ a staff of 30 people, which includes an Assistant Manager, chef and cooks, bar staff, waitpersons, cleaner and a cashier.
There is currently no real competition, with only a McDonald’s and a Chinese restaurant in the town, but you hear rumours that there may be a new chain restaurant opening soon…

You are already using organization theory in considering:

1What’s going on in terms of legal requirements, the national and local economy, competition, the availability of a skilled labour pool, etc., that might af fect your restaurant (i.e., the environment).

2How to best organize the work and coordinate the activities of your employees to make sure your customers enjoy their dining experience and return again and again (structure and design).

3What equipment you need, and how to design your restaurant layout so that you are using the space you have most efficiently and aesthetically. In other words, waitstaff have easy access to customers and the kitchen, and customers find the dining atmosphere and experience a pleasant one (technology).

4How you want staff to interact with each other and the customers (culture).

5How you are going to manage the organization (power, control, decision making, making ...

Table of contents

• Cover Page
• Title
• Copyright
• Contents
• Part One Introducing your companion
• Part Two Core areas of the curriculum
• Part Three Study, writing and revision skills
• Glossary
• References
• Index