Management

"Much of the pioneering work in organization theory was written about public organizations, or with public organizations in mind. When Weber wrote about bureaucracy, he was thinking of the Prussian civil service. Philip Selznick began his scholarly career writing about the New Deal in TVA and the Grass Roots (1953). Herbert Simon’s first published article (1937) was on municipal government performance measurement, and Simon also coauthored early in his career a book called Public Administration (1950) and a number of papers (e.g., Simon, 1953) published in Public Administration Review. Michel Crozier’s classic, The Bureaucratic Phenomenon (1954), was about two government organizations in France."

"The study of public administration must include its ecology. "Ecology," states the Webster Dictionary, "is the mutual relations, collectively, between organisms and their environment." J. W. Bews points out that "the word itself is derived from the Greek oikos a house or home, the same root word as occurs in economy and economics. Economics is a subject with which ecology has much in common, but ecology is much wider. It deals with all the inter-relationships of living organisms and their environment." Some social scientists have been returning to the use of the term, chiefly employed by the biologist and botanist, especially under the stimulus of studies of anthropologists, sociologists, and pioneers who defy easy classification, such as the late Sir in Britain."

"Public administration is that part of the science of administration which has to do with government, and thus concerns itself primarily with the executive branch, where the work of government is done, though there are obviously administrative problems also in connection with the legislative and the judicial branches. Public administration is thus a division of political science, and one of the social sciences."

"Weber's wide-ranging contributions gave critical impetus to the birth of new academic disciplines such as sociology and public administration as well as to the significant reorientation in law, economics, political science, and religious studies."

"Liberty and good government do not exclude each other; and there are excellent reasons why they should go together. Liberty is not a means to a higher political end. It is itself the highest political end. It is not for the sake of a good public administration that it is required, but for security in the pursuit of the highest objects of civil society, and of private life."

"Public administration is a process or a theory, not merely an accumulation of detailed facts. It is Verwaltungslehre. The object of administrative study should be to discover, first, what government can properly and successfully do, and secondly, how it can do these proper things with the utmost possible efficiency and at the least possible cost both of money and of energy."

"I present, for what it is worth, and may prove to be worth, the following bill of axioms or aphorisms on public administration, as fitting this important occasion."

"Whereas some ascetics and Brahmins remain addicted to attending such shows as dancing, singing, music, displays, recitations, hand-music, cymbals and drums, fairy-shows, acrobatic and conjuring tricks, combats of elephants, buffaloes, bulls, goats, rams, cocks and quail, fighting with staves, boxing, wrestling, sham-fights, parades, manoeuvres and military reviews, the ascetic Gotama refrains from attending such displays."

"Do not say: "When I am free, I will study"; perhaps you will never be free."

"An artisan busies himself with his work for three hours each day and spends nine hours in study."

"Dimidium facti qui coepit habet; sapere aude; / incipe!"

"Spend time on excellence, and love the right, And don’t let shameful profit master you."

"The organizational design is the responsibility of the CEO, and the designer's role is to act as midwife to aid in the rebirth of the organization."

"By far the most difficult skill I learned as a C.E.O. was the ability to manage my own psychology. Organizational design, process design, metrics, hiring and firing were all relatively straightforward skills to master compared with keeping my mind in check."

"Institutional theories of organization provide a rich, complex view of organizations. In these theories, organizations are influenced by normative pressures, sometimes arising from external sources such as the state, other times arising from within the organization itself. Under some conditions, these pressures lead the organization to be guided by legitimated elements, from standard operating procedures to professional certification and state requirement, which often have the effect of directing attention away from task performance."

"The modern period in organization theory is characterized by vogues, heterogeneity, claims and counter-claims."

"Organizational design is the body of knowledge and techniques that seeks to offer useful advice to organizations about their structures (and other aspects) needed to attain their goals."

"The domain of organization theory is coming to resemble more of a weed patch than a well-tended garden. Theories of the middle range (Merton, 1968; Pinder and Moore, 1979) proliferate, along with measures, terms, concepts, and research paradigms. It is often difficult to discern in what direction knowledge of organizations is progressing — or if, it is progressing at all. Researchers, students of organization theory, and those who look to such theory for some guidance about issues of management and administration confront an almost bewildering array of variables, perspectives, and inferred prescriptions."

"Classical organization theory suffers from "": It ignores the significance of the political, social, and economic milieu in shaping organizations and influencing managerial practice."

"From the beginning, the forces of light and the forces of darkness have polarized the field of organizational analysis, and the struggle has been protracted and inconclusive. The forces of darkness have been represented by the mechanical school of organizational theory— those who treat the organization as a machine. This school characterizes organizations in terms o£ such things as:"

"In today's volatile world, organizational design is an everyday, ongoing activity and challenge for every executive, whether managing a global enterprise or a small work team. Globalization, worldwide competition, deregulation, and ever-new technologies drive the ongoing reassessment of the organization. The executive response has been many new forms of organizational design: virtual, learning, modular, cellular, network, alliance, or spaghetti – to name a few. New organizational forms challenge old ways of organizing for efficiency and effectiveness. Yet fundamental design principles underlie any well-functioning organization. Organizations still require a formal design."

"Organizational theory is one of the most vibrant areas in sociological research. Scholars from many subfields, (medical sociology, political sociology, social movements, education) have felt compelled to study organizational theory because of the obviously important role that complex organizations play in their empirical research. But scholars who do not do organizational theory are often struck at how arcane the debates are within organizational theory. They also think most of organizational theory is about firms and thus, the theory does not seem to have much application to other kinds of social arenas."

"Today perhaps the most popular organizational theory is ."

"Organizational theories have three origins: Max Weber’s original work on bureaucracies which came to define the theory for sociologists, a line of theory based in business schools that had as its focus, the improvement of management control over the work process, and the industrial organization literature in economics. Unlike many fields in sociology, organizational theory has been a multidisciplinary affair since World War II, and it is difficult to understand its central debates without considering its linkages to business schools and economics departments."

"The concept of leadership has an ambiguous status in organizational practice, as it does in organizational theory. In practice, management appears to be of two minds about the exercise of leadership. Many jobs are so specified in content and method that within very broad limits differences among individuals become irrelevant, and acts of leadership are regarded as gratuitous at best, and at worst insubordinate"

"To some, organizational theory is a field of study; to others, it is the process of using metaphorical language to describe organizational processes."

"Organizational design often focuses on structural alternatives such as matrix, decentralization, and divisionalization. However, control variables (e.g., reward structures, task characteristics, and information systems) offer a more flexible approach. The purpose of this paper is to explore these control variables for organizational design. This is accomplished by integration and testing of two perspectives, organization theory and economics, notably agency theory. The resulting hypotheses link task characteristics, information systems, and business uncertainty to behavior vs. outcome based control strategy. These hypothesized linkages are examined empirically in a field study of the compensation practices for retail salespeople in 54 stores. The findings are that task programmability is strongly related to the choice of compensation package. The amount of behavioral measurement, the cost of measuring outcomes, and the uncertainty of the business also affect compensation. The findings have management implications for the design of compensation and reward packages, performance evaluation systems, and control systems, in general. Such systems should explicitly consider the task, the information system in place to measure performance, and the riskiness of the business. More programmed tasks require behavior based controls while less programmed tasks require more elaborate information systems or outcome based controls."

"Organization design is conceived to be a decision process to bring about a coherence between the goals or purposes for which the organization exists, the patterns of division of labor and interunit coordination and the people who will do the work."

"The models of management which individuals and organizations use come from a variety of sources. Sometimes the model comes from a theory. The theory may emerge from someone's thoughts about the desired characteristics of a manager, or about the characteristics of competent managers. Sometimes the model comes from a panel. A group of people, possibly in the job or at levels above the job within the organization, generates a model through discussion of what is needed to perform a management job competently."

"Until the mid-1970s, the prominent approach in organization and management theory emphasized adaptive change in organizations. In this view, as environments change, leaders or dominant coalitions in organizations alter appropriate organizational features to realign their fit to environmental demands (e.g. Lawrence and Lorsch 1967; Thompson 1967; Child 1972; Chandler 1977; Pfeffer and Salancik 1978; Porter 1980; Rumelt 1986). Since then, an approach to studying organizational change that places more emphasis on environmental selection processes, introduced at about that time (Aldrich and Pfeffer 1976; Hannan and Freeman 1977; Aldrich 1979; McKelvey 1982), has become increasingly influential. The stream of research on ecological perspectives of organizational change has generated tremendous excitement, controversy and debate in the community of organization and management theory scholars. Inspired by the question, Why are there so many kinds of organizations?"

"Organization theory is the branch of sociology that studies organizations as distinct units in society. The organizations examined range from sole proprietorships, hospitals and community-based non-profit organizations to vast global corporations. The field’s domain includes questions of how organizations are structured, how they are linked to other organizations, and how these structures and linkages change over time. Although it has roots in administrative theories, Weber’s theory of bureaucracy, the theory of the firm in microeconomics, and Coase’s theory of firm boundaries, organization theory as a distinct domain of sociology can be traced to the late 1950s and particularly to the work of the Carnegie School. In addition to sociology, organization theory draws on theory in economics, political science and psychology, and the range of questions addressed reflects this disciplinary diversity. While early work focused on specific questions about organizations per se – for instance, why hierarchy is so common, or how businesses set prices – later work increasingly studied organizations and their environments, and ultimately organizations as building blocks of society. Organization theory can thus be seen as a family of mechanisms for analysing social outcomes."

"If you peruse the table of contents of a textbook on organizational theory or search the web for courses in organizational sociology, you cannot help but notice how many of the key contributors to the field spent time at Stanford between 1970 and 2000, as faculty members, post-docs, or graduate students... Of the five most influential macro-organizational paradigms in play today — institutional theory, network theory, organizational culture, population ecology, and resource dependence theory (in alphabetical order) – Stanford served as an important pillar, if not the entire foundation, for all but network theory. By the 1990s, it became an important site for network theory as well."

"Traditional organizational theories have tended to view the human organization as a closed system. This tendency has led to a disregard of differing organizational environments and the nature of organizational dependency on environment. It has led also to an over-concentration on principles of internal organizational functioning, with consequent failure to develop and understand the processes of feedback which are essential to survival."

"The purpose of spending years developing an organizational theory is the hope that it will lead to improvements in organizations."

"Theory is a dirty word in some managerial quarters. That is rather curious, because all of us, managers especially, can no more get along without theories than libraries can get along without catalogs — and for the same reason: theories help us make sense of incoming information."

"Technology has always been a central variable in organizational theory, informing research and practice. Despite years of investigative effort there is little agreement on the definition and measurement of technology, and no compelling evidence on the precise role of technology in organizational affairs. I will argue that the divergent definitions and opposing perspectives associated with technological research have limited our understanding of how technology interacts with organizations, and that these incompatibilities cannot be resolved by mutual concession. What is needed is a reconstruction of the concept of technology, which fundamentally re-examines our current notions of technology and its role in organizations."

"Another forerunner of modern organization theorists was Andrew Ure, a professor of chemistry. An enthusiastic proponent of “the factory system,” Ure (1835) took a step beyond Adam Smith. Whereas Smith’s pin factory was solely an example of division of labor, Ure pointed out that a factory poses organizational challenges. He asserted that every factory incorporates “three principles of action, or three organic systems”: (a) a “mechanical” system that integrates production processes, (b) a “moral” system that motivates and satisfies the needs of workers, and (c) a “commercial” system that seeks to sustain the firm through financial management and marketing. Harmonizing these three systems, said Ure, was the responsibility of managers."

"“Organization theory,” a term that appeared in the middle of the twentieth century, has multiple meanings. When it first emerged, the term expressed faith in scientific research as a way to gain understanding of human beings and their interactions... The term “organization theory” also indicated an aspiration to state generalized, abstract propositions about a category of social systems called “organizations,” which was a very new concept."

"The process of theory construction in organizational studies is portrayed as imagination disciplined by evolutionary processes analogous to artificial selection. The quality of theory produced is predicted to vary as a function of the accuracy and detail present in the problem statement that triggers theory building, the number of and independence among the conjectures that attempt to solve the problem, and the number and diversity of selection criteria used to test the conjectures."

"Organizational theory is based on a culture's answers to questions about the self."

"The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge. This transformation was signalled by McGregor, but we must go further."

"Hierarchical organizations are typically run by... little Napoleons and Napoleonettes; especially at mid-organization level... A hierarchical organizational design draws leadership focus and energy away from problem solving and progressive thinking by encouraging those climbing the organizational food chain to focus instead on protecting their positions, perks, and territory."

"The management system of an organization must have compatible component parts if it is to function effectively. This conclusion has a very important implication; experiments in organizations must involve internally consistent changes. The traditional atomistic research design is not appropriate for experiments involving organizational theory or management systems. Every aspect of a management system is related to every other part and interacts with it. The results obtained by altering a single variable or procedure while keeping all others the same usually will yield quite different results from those obtained when that variable is changed along with simultaneous and compatible changes in all other aspects of the management system. The true influence of altering one aspect of the system cannot be determined by varying it and it alone... In experiments involving organizational theory and management systems, therefore, a systems approach must be used. The organic integrity of each system must be maintained while experimental variations are being made."

"Organizations and institutions provide the general stimuli and attention - directors that channelize the behaviors of the members of the group, and that provide those members with the intermediate objectives that stimulate action."

"The office of director … a man ought not to fill without qualification."

"The writer, who as an engineer has spent most of his life in factories, is inclined to look at the basis for investment from a technological point of view... Consider … the class of industrial investments only... The situation is one of entrepreneurs and boards of directors considering, from time to time, various ’possibilities of investment’, such as extra lathes or looms, an extension to a factory, a venture in some completely new product, and so on. It is helpful to think of these ’opportunities for investment’ as existing, in a given situation, in great number and variety, whether they are at that moment under active consideration or not. When any such possibility is considered it is assessed in respect of ’expected profitability’. One may conveniently think of all possibilities of investment as ’quanta’ that can be placed in a schedule of small ranges of expected profitability according to these assessments. The placement of a given ’opportunity for investment’ on this schedule has some ’margin of uncertainty’ (a curious analogy with the case of the quanta of physics)."

"We certainly have at present the dismal situation that the most imaginative men are directed by a group, the top managers, who are among the least."

"I believe that science is best left to scientists, that you cannot have managers or directors of science, it's got to be carried out and done by people with ideas, people with concepts, people who feel in their bones that they want to go ahead and develop this, that, or the other concept which occurs to them."

"I do not wish in any way to depart from the principle that a wrongdoing director, whether he be morally or legally wrong, should be made liable for the highest amount which could have been obtained from the property wrongly taken by him while it was in his hands."

"A director must be a policeman, a midwife, a psychoanalyst, a sycophant and a bastard.”"