Organizational theories and management styles are key factors in the success of an organization. These theories can determine the structure of the organization by defining the best way to organize and work employees and by helping the organization adapt to its environment. Organizations and managers are unique in their own way; however most organizations and managers can be grouped into categories or types depending on their organizational or management styles.
Organizational Theories
Organizational theory, defined as “the study of the structures of organizations”, developed in the early 20th century during the industrial age (Wright, n.d.). There are four major organizational theories today. They are the classical theory, the human relations or neoclassical theory, the contingency theory and the modern systems theory. Classical organizational theory was the first recognized organizational theory and is considered to be a combination of scientific management, bureaucratic theory and administrative theory. It is thought to be rigid and has declined in popularity over the years.
Developed in 1911 by Frederick Taylor, scientific management involves using scientific methods to determine the best way to complete a job utilizing the best equipment and the best person. Taylor was successful in improving productivity by finding the most efficient way to perform a task, matching the right person to each task, ensuring that the worker followed instructions exactly and using rewards and punishments as a motivator (Robbins & Coulter, 2012). Bureaucratic theory is based on a hierarchical system which has a clear division of labor utilizing regulations and impersonal relationships between managers and employees. An employee’s competence or ability to do the work is the sole basis for hiring, job assignments and promotions (Barton, n.d.). Administrative theory