Organizational Theory Of Organizational Management

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Organizational theory studies the various variables that influence the behavior of an individual(s) working within an organization, but also, “prescribes how work and workers ought to be organized and attempts to explain the actual consequences of organizational behavior (including individual actions) on work being performed and on the organization itself.” (Milakovich & Gordon, 2013, p.145). Of the many approaches to organizational analysis, Classical Organizational theory has been, even to this day, extremely influential by focusing on more formal concepts such as bureaucracy, rationalization and scientific management. Although, over the decades organizational management has taken on a more human relations approach to getting more productivity out of employees, it is contributors like Max Webber, Fredrick Taylor, and Luther Gulick that laid down the basic foundation organizational theories by recognizing the need for control and procedures. Weber’s bureaucratic approach focuses on the importance of hierarchy by putting great emphasis on the use of rules, procedures and making impartial personnel decisions when managing. He put great emphasis on the jurisdiction, explaining that work should be “divided according to type and purpose” staying within the correct working unit just as the organization’s rules and laws would state (Milakovich, et. al., 2013, p. 146). A hierarchy would be established with a chain of command clearly identifying a system of super- and
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