What is Organizational Theory

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Organizational Theories
Organizational theory deals with the study of the interaction of an organization with its environment. Emphasis on organizational theories has over time changed from the stiff and hierarchical structures, widespread during the industrial era to more broader and flexible structures prevalent in the modern, technological era. In this regard, organizational theories have attracted serious attention. This post focuses on three organizational theories of the 20th century and if or not they are applicable in the 21st century integrating organizational culture, structures, leadership and enabling technologies. These are classical organizational theory, human relation theory, and contingency theory.
Classical Organizational Theory
Classical organizational theory originated in the first half of the 20th century. This theory concentrated on formal organizations and ideas to increase efficiency in their management. This theory merged together the scientific, bureaucratic and administrative theories. Relative to structure, this theory was constructed on a hierarchical structure dividing workers based on functionality with various reporting paths on every working unit. That is, workers report to their respective manager(s) for their tasks as well as disciplinary matters. This theory puts the manager/owner of the organization in total control over the workers. Furthermore, this theory employed enabling technologies to increase efficiency. The classical
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