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ORGANIZATIONAL
THEORIES,
SCIENTIFIC MANAGEMENT
&
MARXIST ORGANIZATION ANALYSIS
PRESENTED BY:
ALLAND D. AGALOOS
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Organization
From Greek word Organon:
meaning a tool or instrument.
So, organizations are tools or
instruments to meet goals, objectives,to carry out tasks.
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What is Organization?
An organization is a pursues collective
goals, which controls its own
performance, and which has a boundaryseparating it from its environment.
In sociology "organization" is understood
as planned, coordinated and purposefulaction of human beings to construct or
compile a common tangible or intangible
product.
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Organizational structures
The study of organizations includes a focus on
optimizing organizational structure.
According to management science, mosthuman organizations fall roughly into four
types:
Pyramids or hierarchies Committees or juries
Matrix organizations
Ecologies
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Pyramids or hierarchies
A hierarchy exemplifies an
arrangement with a leader who leads
leaders. This arrangement is oftenassociated with bureaucracy.
in a hierarchy every employee tends to
rise to his level of incompetence".
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Committees or juries
These consist of a group of peers whodecide as a group, perhaps by voting.The difference between a jury and acommittee is that the members of thecommittee are usually assigned toperform or lead further actions after the
group comes to a decision, whereasmembers of a jury come to a decision.In common law countries legal juriesrender decisions of guilt, liability and
quantify damages.
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Staff organization or cross-
functional team
A staff helps an expert get all his work done. Tothis end, a "chief of staff" decides whether anassignment is routine or not. If it's routine, heassigns it to a staff member, who is a sort of juniorexpert. The chief of staff schedules the routineproblems, and checks that they are completed.
If a problem is not routine, the chief of staffnotices. He passes it to the expert, who solves the
problem, and educates the staffconverting theproblem into a routine problem.
In a "cross functional team", like an executivecommittee, the boss has to be a non-expert,because so many kinds of expertise are required.
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Matrix organization
This organizational type assigns eachworker two bosses in two differenthierarchies. One hierarchy is "functional"
and assures that each type of expert in theorganization is well-trained, and measuredby a boss who is super-expert in the samefield. The other direction is "executive" and
tries to get projects completed using theexperts. Projects might be organized byregions, customer types, or some otherschemes. matrix management
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Ecologies
This organization has intense competition. Badparts of the organization starve. Good ones getmore work. Everybody is paid for what they
actually do, and runs a tiny business that has toshow a profit, or they are fired.
Companies who utilize this organization typereflect a rather one-sided view of what goes on in
ecology. It is also the case that a natural ecosystemhas a natural border - ecoregions do not in generalcompete with one another in any way, but are veryautonomous.
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SCIENTIFIC
MANAGEMENT
BY FREDERICK W. TAYLOR
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is the process of allocating an
organization's inputs, including human
and economic resources, by planning,organizing, directing, and controlling
for the purpose of producing goods or
services desired by customers so thatorganizational objectives are
accomplished.
Management
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Scientific Management Theory
Evolution of Modern Management
Began in the industrial revolution in the late
19th century as:
Managers of organizations began seeking ways to
better satisfy customer needs.
Large-scale mechanized manufacturing began to
supplanting small-scale craft production in the ways
in which goods were produced.
Social problems developed in the large groups of
workers employed under the factory system.
Managers began to focus on increasing the
efficiency of the worker-task mix.
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Job Specialization & the Division of Labor
Adam Smith (18th century economist)
Observed that firms manufactured pins in
one of two different ways: Craft-styleeach worker did all steps.
Productioneach worker specialized in one step.
Realized that job specialization resulted in
much higher efficiency and productivity
Breaking down the total job allowed for the division
of labor in which workers became very skilled at
their specific tasks.
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F.W. Taylor and Scientific
Management
Scientific Management
The systematic study of the relationships
between people and tasks for the purpose of
redesigning the work process for higher
efficiency.
Defined by Frederick Taylor in the late
1800s to replace informal rule of thumbknowledge.
Taylor sought to reduce the time a worker
spent on each task by optimizing the way the
task was done.
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Four Principles of Scientific
Management
Principles to increase efficiency:
1. Study the ways jobs are performed now and
determine new ways to do them.
Gather detailed time and motion information.
Try different methods to see which is best.
2. Codify the new methods into rules.
Teach to all workers the new method.
3. Select workers whose skills match the rules.
4. Establish fair levels of performance and pay a
premium for higher performance.
Workers should benefit from hi her out ut
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Problems with Scientific
Management
Managers frequently implemented only the
increased output side of Taylors plan.
Workers did not share in the increased output.Specialized jobs became very boring, dull.
Workers ended up distrusting the Scientific
Management method.
Workers could purposely under-perform.
Management responded with increased use of
machines and conveyors belts.
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Frank and Lillian Gilbreth
Refined Taylors work and made many
improvements to the methodologies of time
and motion studies.Time and motion studies
Breaking up each job action into its components.
Finding better ways to perform the action.
Reorganizing each job action to be more efficient.
Also studied worker-related fatigue
problems caused by lighting, heating, and
the design of tools and machines.
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Marxist
OrganizationAnalysis
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Marxist Theory from Adam Smith
1. Social relationships are generated by exchange
2. A person can produce more than he requires for
his own subsistence
3. The power conferred by the ownership of money
is the power to buy other peoples labor
4. While supply and demand may cause the value of
a good to fluctuate, its true or natural value is
determined by the cost of the labor required to
make it.
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Marxism
Communism is a political philosophy whichargues that men should have equal rights towealth.
Marxism is a way of understanding andanalysing the organisation and structure of
society. It is also a way of understandinghow societies develop and change.
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Marxist Critics
Believe that society is based on a dialectic(or conflict) between employers (capital)
and employees (labor). The ruling class andworkers struggle for economic power.
Believe that the values of capitalism, suchas the primacy of profit and consumerism,
infuse all aspects of our society.
See the individual as a product of societysvalue system (The individual is constructed
by class and society.)
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Conflict theory
All societies are divided into two groups
Owners
WorkersOur society is capitalist.
Owners are bourgeoisie
Workers are proletarians
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Owners and workers
Owners exploit workers and live off themoney which the workers earn
Workers put up with this inequalitybecause:
They are oppressed wage slaves andcannot fight the system
They are indoctrinated by ideology andreligion into believing what they are toldby the powerful.
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Capitalism
Capitalism is the ideological base of the
United States and much of Western culture.
Discussion: What are the values and beliefs
of capitalism?
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Exploitation
One tenet of capitalism is exploitation.
Discussion: How might employers exploit
their employees?
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Exploitation
Employees/owners make money (or profit)by paying employee/workers less than thevalue of their production.
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Exploitation continued . . .
Profit: driving force of capitalism; privateinvestment and control of profit; money leftover after fixed costs and labor costs; many
make product (and earn wage); only onemakes profit (net proceeds)
Profit loss: Market saturation, lower
demand for product, raise in fixed costs,raise in labor costs, a change in supply anddemand can all eat into the profit.
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To further increase profits
Employers exploit their employees by
Speeding up work
Lowering wagesCreating dangerous working conditions
Not allowing labor a voice (unions)
Laying off/downsizing workforce
Providing shorter breaks
Driving workers with hard labor
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To further increase profits
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Exploitation leads to Alienation
Alienation: a withdrawing or
separation of a person or a person's
affections from an object or position offormer attachment
(Merriam-Webster Online)
Discussion: From whom or what might
workers feel alienated from?
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Employees feel alienated . . .
From product: soul not in it; not sure whatproduct is; no sense of ownership or pridein work
From self: drug addiction; insanity; lowerself-esteem; loss of identity; just a number
From others: other employees; employers;
familyFrom time: 9-5; watch the clock; no rest orrelax; clock in and out
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Marx and The Revolution
Marx predicted that wealth would belong to
fewer and fewer people.
The workers would eventually realise theirposition and overthrow the bourgeoisie
There would be an armed revolution which
would begin in Britain.It would happen in the very near future.
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What happened?
The biggest problem with Marxism is thatthe predicted revolution never occurred inthe form he said it would.
People are not poorer.
Wealth is not concentrated in the hands of afew rich people.
Britain hasnt had a Communist revolutionyet and is not likely to in the near future.
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Conclusion
Marxism is a political philosophyyour
views are your own and not required in
sociology.
Marxism is an understanding of the nature
of social relationships which you are
expected to evaluate. Recognize that it has
strengths and weakness as a tool of
understanding of our culture.
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and have a pleasant
Evening!
Thank you for Listening