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Organizational theory
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==Rational system perspective== A rational organization system has two significant parts: (1) specificity of goals and (2) formalization. Goal specification provides guidelines for specific tasks to be completed along with a regulated way for resources to be allocated. Formalization is a way to standardize organizational behavior. As a result, there will be stable expectations, which create the rational organizational system.<ref>{{cite book|last= Taylor|first= Frederick|title= Scientific Management|url= https://archive.org/details/theprinciplesofs06435gut}}</ref><ref>{{cite book |title=General and industrial management |date=1949 |publisher=Pitman |location=London |oclc=825227 |url=https://www.worldcat.org/oclc/825227}}</ref> [[Scientific management]]: [[Frederick Winslow Taylor]] analyzed how to maximize the amount of output with the least amount of input. This was Taylor's attempt to rationalize the individual worker by: # dividing work between managers and workers # providing an incentive system (based on performance) # scientifically trained workers # developing a science for each individual's responsibilities # making sure work gets done on time/efficiently Problems arose out of scientific management. One is that the standardization leads workers to rebel against mundanes. Another may see workers rejecting the incentive system because they are required to constantly work at their optimum level, an expectation that may be unrealistic. === Formal Organization === The concept of [[formal organization]] has been touched upon by a number of authors in the subject of organizational theory, such as [[Max Weber]], whose bureaucratic models could be said to be an extension of the concept. In [[Chester Barnard]]'s book [[The Functions of the Executive]], formal organization is defined as "a system of contributors' activities that are consciously coordinated by the organization's purpose." This differs from informal organization, such as a human group, that consists of individuals and their interactions, but do not require these to be coordinated toward some common purpose, although formal organizations also consist of informal organizations, as sub-parts of their system.<ref>{{cite book|last= Isomura|first= Kazuhito|year= 2020|title= Organization Theory by Chester Barnard|url= https://www.springerprofessional.de/organization-theory-by-chester-barnard/18523048}} Springer Singapore, Chapter 3.</ref> === Scientific management === {{Main article|Scientific management|The Principles of Scientific Management}} The scientific management theory was introduced by [[Frederick Winslow Taylor]] to encourage production efficiency and productivity.<ref>{{cite journal|last1=Hertz|first1=D.|last2=Livingston|first2=R.|year=1950|title=Contemporary Organizational theory: A review of current concepts and methods|journal=Human Relations|volume=3|issue=4|pages=373β394|doi=10.1177/001872675000300403|s2cid=145470263}}</ref> Taylor argues that inefficiencies could be controlled through managing production as a science. Taylor defines scientific management as "concerned with knowing exactly what you want men to do and then see in that they do it in the best and cheapest way."<ref name="Taylor">[[F. W. Taylor|Taylor, F. W.]] 1911. ''[[The Principles of Scientific Management]]''. New York: Harper Brothers.</ref> According to Taylor, scientific management affects both workers and employers, and stresses control of the [[labor force]] by management. Taylor identifies four inherent principles of the scientific management theory:<ref name="Taylor" /> # The creation of a scientific method of measurement that replaces the "[[Rule of thumb|rule-of-thumb]]" method # Emphasis placed on the training of workers by management # Cooperation between manager and workers to ensure aforementioned principles are being met # Equal [[division of labor]] between managers and workers
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