Scholarly Research: Organization Theory
The paper will provide analysis of organization theory as the function of organization structure processes and functions. The discipline of organization theory studies how the external environment influences organizations. The major element of organizational theory includes the structure, culture, and designs. Organization design is crucial among the organizations as it promotes competitive advantage, increases organizational efficiency, and innovation. Organizational theory also identifies the crucial concepts of organizational effectiveness that is measured using the methods of control, efficiency, and innovation. Some of the fundamental aspects in enhance effectiveness include external resource, internal process and technical models (Greenwood & Miller, 2010). The organizations are required to come up with relevant technological aspects including technology, environment and processes.
Organization theory can be understood through the study of the organizational structures and processes. For instance, when people work together they are likely to achieve better results for the organization. When the organization achieves its objectives, the functions are determined. However, the organization theories require that personal needs should be assessed in order to promote the achievement of the various objectives. Thus, the organizational elements must be coordinated to a proper structural design relevant to achieve the objectives. Organization theory ensures that the external environment is well managed through checking the economic, political and social factors. Organization theory principles reduce the transaction costs and control the power and control exerted by the organizations (Jones, 2010).
In order to determine the functions of organizations, it is crucial to evaluate the process of departmentalization. In organization theory, departmentalization is an organization function that seeks to group related functions together. Departmentalization is an effective approach to form appropriate teams of item including their function, market, product, customer and geographical locations. Thus, organizational design is a core aspect of implementing appropriate organization’s strategy (Oswick, Fleming, & Hanlon, 2011). The aspects of organizational structure installed in the organizational theory relates to the formation of formal relationships relevant for organizing. Organizing includes the responsibility, authority and accountability. The different organization structures are relevant in bringing people together and other resources. It helps to understand the clarification and communication of the different aspects of responsibility, authority and accountability.
There are different types of organization structures as categorized in organizational theory. Line organization is one of the easily understandable organizational structures. It recognizes the organizational elements that drive work within the various units by producing and marketing the organization’s products and services. There are exists certain direct linkages between the various levels in the chain of command. Since, there are relevant authority structures relevant in making effective decisions (King, Felin, & Whetten, 2010). The line and staff organization is a relevant structure that promotes effectiveness and efficiency of the organization. The organizational functions including human resources management and research are appropriate. Committee organization is another type of organizations whereby the groups of people are elected to perform certain issues forming a committee. The operations of the committees can be permanent or temporary and they usually supplement the line and staff functions (Jones, 2010). The different types of organizations are crucial in understanding how different companies organize their organizations.
There are various organizational theories relevant in dealing with issues affecting the organizations. For instance, some of the studies conducted argue that the relationship between organizational structure and environment is relevant in creating appropriate structures. Thus, the theory was developed to enable the organization and its environment appreciates technological elements. Apart from the individuals and the environment, it also comprises of other existing variables. The contingency approach is an appropriate organization structure to understand the organizational objectives. This includes the understanding of the technology, the environment, and size of the organizational and other relevant factors in the organizations (Greenwood & Miller, 2010). The application of scientific management theory is appropriate performing analysis and problem solving to the major organizational problems.
Another organizational theory that identifies the process and functions of organizations is classical theory. Classical theory comprises of the various principles of management, concepts of line and staff, committees, and the functions and process of the management. Human relations theory also explains the aspects of neoclassical theory that identifies the organizational functions and processes. It emphasizes on the application of social and psychological elements among the individuals and workers. Moreover, the objectives of the organization are common among the different employees. Neoclassical theory has transformed the organizational processes and functions by instilling participative management and effective decision-making (King, Felin, & Whetten, 2010). Therefore, the organizational structures influence the organizations through the application of different crucial aspects in the society.
Organization theories and principles have played a crucial role in influencing the organization structure. The different organization structures are matched with the services provided and products produced by the organizations. The structures are also designed to withstand the technological changes by group employees based on their expertise. However, the structure would create problems for other sections of the company. The nature of organization theory appreciates the need for organizational structure (Greenwood & Miller, 2010). Organizational structure identifies the differentiation of activities and relationships in the organizations. The diverse orientation among the different employees is relevant in creating formal structures and integration. It also helps to specify the different job tasks and responsibilities.
Organization theory facilitates the implementation of the appropriate frameworks for authority relationships. Such organizational processes are crucial for understanding the hierarchy of authority and reporting of the different strategies. The selection of the organization’s strategy is guided by three main factors including the organization’s size, technology, and environmental factors. This implies the need to transform organizational performance and effectiveness. The size of organization is a significant structural variable that relates to improving performance among the different organization and productivity and quality aspects.
Researches indicate that the designs of the organizations are crucial in understanding the nature of organizational performance. However, there is a major concern environmental concern relating to the organizational designs including the environmental complexity. Environmental complexity outlines the relevant of problems and open opportunities to the organizations. Thus, organization theory illustrates the instability of environment that affects most organizations. It has been suggested that increased effectiveness among the organizations relate to increased environmental contingency (Oswick, Fleming, & Hanlon, 2011). The designs relates to the achievement of the organization’s goals and objectives, arrangement of the resources, and provisions of tasks and accountabilities among the different groups.
In summary, organization theory is a relevant function of processes, systems and functions among the organizations. Organization theory is crucial in understanding the nature of organization’s interactions with the outside environment. Over the years, the organizational theories and models were relevant in understanding the business functions and their characteristics. This facilitates the learning and development of knowledge appropriate for organizational efficiency and adaptation. The decision-making processes are formed by the organizational functions to enhance decentralization and centralization. The organizational structures and cultures are relevant factors in motivating the employees within the organizations. Thus, organization theory is appropriate in promoting continuous improvement through cooperation and teamwork. As a result, organization behavior is a discipline that illustrates the understanding of organizational variables among the organizational designs.
Greenwood, R., & Miller, D. (2010). Tackling design a new: Getting back to the heart of organizational theory. The Academy of Management Perspectives, 24(4), 78-88.
Jones, G. R. (2010). Organizational theory, design, and change. London, UK: Pearson.
King, B. G., Felin, T., & Whetten, D. A. (2010). Perspective-finding the organization in organizational theory: A meta-theory of the organization as a social actor. Organization Science, 21(1), 290-305.
Oswick, C., Fleming, P., & Hanlon, G. (2011). From borrowing to blending: Rethinking the processes of organizational theory building. Academy of Management Review, 36(2), 318-337.