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t is an attempt to improve classical organizational theory that argues employee satisfaction as well as economic effectiveness are the goals of organizational structure
While manipulating conditions in the work environment (e.g., intensity of lighting), they found that any change had a positive impact on productivity (Western Electric plant in Hawthorne, Illinois, (Mayo, 1933)).
Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity
Chester Barnard
Argued that managers must gain acceptance for their authority Advocated the use of basic management principles Cautioned managers to issue no order that could not or would not be obeyed
Chester Barnard
Barnard stressed the role of the executive in creating an atmosphere where there is coherence of values and purpose. Organizational success was linked to the ability of a leader to create a cohesive environment. He proposed that a manager's authority is derived from subordinates' acceptance, instead of the hierarchical power structure of the organization. Barnard's theory contains elements of both classical and neoclassical approaches. Since there is no consensus among scholars, it might be most appropriate to think of Barnard as a transition theorist.
Chester Barnard
Barnard formulated two interesting theories: one of authority and the other of incentives. He set the rules:
The channels of communication should be definite; Everyone should know of the channels of communication; Everyone should have access to the formal channels of communication; Lines of communication should be as short and as direct as possible; Competence of persons serving as communication centers should be adequate; The line of communication should not be interrupted when the organization is functioning; Every communication should be authenticated.
Herbert Simon
1947- Said of Classical Organization Theory Theory of bounded rationality of human beings who satisfice because they do not have the intellectual capacity to maximize
Criticism
There is no such thing as a single purpose. Purposes must be in a hierarchy (which to follow when they are in conflict) Purposes are interconnected Cannot see the forrest because of the trees There is no best way
2-33
leads to . . .
A management model that views the employee as socially motivated and operates from the assumption that a social need-satisfied worker is a productive worker.
Informal Organizations
Individuals tend to interact with each other outside formal government prescriptions and these interactions create informal organizations Informal organization - aggregate of personal contacts with a state of mind Informal Organizations are rather indefinite and structureless