Choose an organizational management topic of interest to you
Many theory groups impact management and managers, including scientific theory, behavioral theories, economic theories, organizational theories, role theories, transactional theories and game theories, just to name a few. In Module 2 you learned about motivational theories associated with leadership. Many of the theories that apply to leadership also apply to management. As you have already covered some theories (Maslow’s Hierarchy of Needs and Self-Actualization and McGregor’s X-Y Theory, for example) we will explore other theories associated with management.
Theories are grouped in categories that reflect areas of business. Five theory groups reviewed in this module are discussed:
Organizational theories
Decision theories
Transactional leadership theories
Role theories
Economic theories
Organizational knowledge theories
Organizational Theories
Organizational Theory is the study of how people behave in organizations – individually and collectively – while attempting to explain the workings of organizations. Organizational theory draws from various knowledge areas and disciplines. Types of organizational theories include classical, neoclassical, contingency, systems and organizational structure. Variations among and between organizational theories are drawn from multiple perspectives, including modern and postmodern viewpoints.
Classical Organizational Theory combines aspects of scientific management, which we introduced earlier in this module, as well as bureaucratic and administrative theory. Scientific management involves effective and efficient management of people and resources while carefully maximizing performance at each phase of processes.
Neoclassical Organizational Theory contrasts with the very formal and authoritarian structure of classical organizational theory. Neoclassical theory emphasizes the needs of employees in the workplace, including creativity, individual growth and motivation. Managers utilizing the neoclassical approach value a culture of creativity and autonomy, and work to motivate and praise employees to achieve maximum performance.
Systems Theory focuses on the inter-relationships of all systems within the organization. Changes in one functional area may affect all other areas and operations of the organization. As organizations are dynamic, system theory helps leaders and managers understand the impact of change and how best to introduce and manage change. Organizational structure is a form of systems theory that has become increasingly important due to the increasing complexity of national and multinational organizations. The generation and exchange of information characterizes the relationship between organizational structure and environment. Instantaneous communication among units, divisions, and country operations requires an organizational structure that supports the activities of the organization. Organizational structure theories are continuing to be developed and tested, presenting a new area of study for leaders and managers.
Decision Theories focus on knowledge and related analytical techniques used to assist decision makers in identifying problems, determining possible solutions, and choosing the most appropriate solution in light of a set of variables and possible consequences. Decision theory informs management practice. Information, data, evidence, trends, environmental scanning, competitive intelligence, and market analysis data are all part of management and decision-making.
Split paths
Transactional Theories, also known as management theories, focus on the role of supervision, organization and group performance. These theories base leadership on a system of rewards and punishments. The transactional theory of leadership was first described by sociologist Max Weber, and further explored by Bernard M. Bass in the early 1980s. The leader views the relationship between managers and subordinates as an exchange: You give me something for something in return. When subordinates perform well, they receive some type of reward. When they perform poorly, they will be punished in some way.
Rules, procedures and standards are essential in transactional leadership. Followers are not encouraged to be creative or to find new solutions to problems. Research has found that transactional leadership tends to be most effective in situations where problems are simple and clearly defined. While transactional leadership can be effective in some situations, it is generally considered insufficient when the only consideration in leading or managing and may prevent both leaders and followers from achieving full potential.
Role Theories suggest that people in organizations take on roles that come with their positions and levels. Roles shape the way we see ourselves and help to define the behaviors we exhibit and don’t exhibit within organizations. Role conflict may arise when two roles intersect or collide. The conflict creates tension between people and causes issues within organizations. Role conflict can occur when the expectations/nature of the role is unclear or is direct conflict with that of another.
Economic Theories are based on theory reasoning math and supported by analysis of economics problems. There are more than 100 economic theories, which provide a lens through which to view and analyze various economic systems and models. The following list provides just a few of the economic theories utilized today:
Classical economic theory
Marxist theory
Free market capitalism theory
Shock therapy
New growth theory
New trade theory
Rational choice theory
Game theory
Public choice theory
Expected utility theory
Prospect theory
Economic theories make assumptions about cost, currency, purchasing power, supply and demand, labor, and other variables. Economic theory is about behavior – the behavior of individuals, markets, and societies in relation to the economy. It is easy to see how economic theories affect businesses across the globe.
Free Market Theory is an interesting topic for those who live in capitalistic, as well as socialistic, societies. This short video (about 7 minutes) provides an overview of free market theory and recent economic events:
Assignment 1
Provide a detailed overview of a particular theory used by managers to inform practice and review alternatives or solutions. Please be sure to choose a specific theory – not a theory group.
As part of the detailed overview, include the definition of the theory, the major thought leaders/theorists who have contributed to the development of the theory, and areas of business and management where the theory is often applied. Lastly, provide a scenario where the theory might inform management practice within an organization or the organization to which you belong.
As with all your Critical Thinking assignments you should have a cover page and a reference page, and follow APA guidelines.
The body of the paper should be two pages in length. Please cite at least three library articles in your paper from EBSCO, ProQuest, or LexisNexis. Include a reference page with links to articles and in-text citations. Remember, your thoughts, feelings, and opinions are not applicable in Critical Thinking assignments. Research and facts support critical thinking efforts.
Assignment 2
Choose an organizational management topic of interest to you and submit a 1page topic proposal explaining why you are interested in this topic and why it is important to research at this time.
……………………Answer preview……………………………
The organizational theories entail the study of organizational structure and design. It reveals how individuals behave and relate within the organization in an effort to meet its objectives. This paper focuses on scientific management approach, which is part of classical organizational theory…………………………..
APA
640 words
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