Organizational theory refers to the behavioral and social theories which help in the understanding of both informal and formal organizations. It makes references to a number of fields - anthropology, sociology, psychology, semiotics, economics, communications science, history and cybernetics (Sage Publications, n.d). The field has become popular with sociological researchers. Many of these researchers, drawn from such fields as medical sociology, social movements, political sociology and education, have realized the need to study this concept because of the role in empirical research that big organizations play. Scholars out of this field have always found discussions regarding organizational theory arcane. These scholars also hold the view that all that organizational theory concerns itself with is firms and so it is not applicable in other social situations. The formal or complex organization is the study object in organizational theory. Assumptions are made that there exists goals, rules, hierarchy and definitions of membership in organizations. What organizational theory concerns itself with is how these structures function to have participants motivated to work towards helping the organization achieve its goals. Also of interest is how the external environment affects its operations. Lastly, it is also concerned with how the external world and the internal organization influence an organization's survival (Fligstein, 2001).
Areas:
A. Narrowing the Focus within Organization Theory
Organizational theory's development aim was to explain several organizational problems and behaviors, ranging from small issues concerning the organization of tasks and the reason personnel leave a company, to issues of a political nature concerning rivalries between organizations. Clearly, our inquiry will not focus on all of these. In finding out how to solve these problems by use of organization theory, we will focus on:
How organizations react to the uncertainty and complexity present in environmental and resource management.
What organizational interests related to formal institutions and agencies taking part in resource and environmental oversight, policy-making, resource management as well as exploitation (Ascher, 2000).
B. Complexity and Uncertainty
Several risks are posed by uncertainty to organizations managing natural resources. We can have uncertainty added to complexity since even though simple systems can give rise to uncertainty, much of it is as a result of complexity. Further, even if uncertainty is not due to complexity, it always elicits the same reactions and poses the same challenges to organizations that complexity does. In most occasions, complexity interferes with the efforts made by an organization to better understand the way social systems and ecosystem will respond to its actions, reduces the strength of its controls and engineers avenues for conflict in the organization. Organizations have adopted various means to cope with uncertainty and complexity. Such modes involve adaptation and structure; including specialization, strategic planning, departmentalization etc. (Ascher, 2000).
C. Organizational Interests.
Organization theory appreciates that players in an organization may pursue some interests that are not in harmony with the goals of the organization or the priorities of outsiders who hold formal authority and power to determine the agenda of the organization. 'Interests' here mean the interests of the organization's members. An organization in itself does not have interests. To gauge organization's theory usefulness in guiding reforms on management of resources, we determine whether it is able to •
reveal any promising routes to make reforms; and •
make warnings if the reforms are likely to fail
It is interesting to note that classic organization behavior conceptions are responsible for most of the problems encountered in resource management; and also that its guidelines - even when simplified as we have above - reveals so many clues on how to realize reforms (Ascher, 2000).
Organizational change refers to the process undergone by organizations in moving from their current state to their aspired future state so as to increase effectiveness. The aim of this metamorphosis is to discover better ways of utilizing resources to increase the value creation ability of the organization, and so increase its performance. Once more, organizational structure and culture are an important avenue that management uses for organizational change so that it can achieve its goals. This explains the interrelation between organizational change and design (Jones & Matthew, 2011).
Lessons:
Correct application of organizational theory can hugely benefit the society and the organization.
Developments happening in an organization create systems that advances capitalism in a society and so its economy.
When an organization spots an opportunity to expand, it starts growing and so shifts the economic equation by leaping forward. Such expansion causes changes in the organization's industry as well as the entire economy.
An example of the way...
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