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Chapter Three: Organizational theory

1. Organizational structure 2. Organizational design 3. Organizational culture 4. Organizational behavior 5. Organizational change 6. Organizational effectiveness 7. Organizational performance 8. Organizational strategy 9. Organizational development 10. Organizational leadership 11. Organizational dynamics 12. Organizational systems 13. Organizational theory models 14. Institutional theory 15. Contingency theory 16. Resource dependence theory 17. Transaction cost theory 18. Agency theory 19. Stakeholder theory 20. Organizational ecology

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5 days ago

welcome and thank you very much uh everyone visiting this uh tutorial uh this tutorial is about the third chapter of the course organizational behavior and Theory uh previously we seen about the first chapter and the second chapter and in the first chapter we discussed about organizations right from the meaning of organizations the forms of organizations characteristics of organizations s and Associated issues uh in the second chapter we have seen uh about organizational behavior and we defined
organizational behavior and we have seen uh the historical evolution of um organizational behavior the field of discipline and we have seen uh different issues that are related with um organizational behavior and in generic uh we said that organizational behavior is a human aspect of management it doesn't represent the whole management but it is about uh the individuals and groups Behavior attitude values and overall behavior of um uh the individuals and uh groups uh in the organizational settin
g and uh in this third chapter of the course um we will will be dealing about organizational Theory organizational theory is u u one of the main uh themes in the course organizational behavior and theory and uh we will be looking uh in detail uh into the subject of organizational Theory let us start from uh definition and scope of organizational Theory um organizational theory is a fi okay it is it is um management it is you know one of the branch of management study and it is a Phil ofy study t
hat examines the structure management and behavior of organizations okay uh let us make a comparison and we have say last time that um organizational behavior is about human um a human aspect okay about human aspect in the organizational setting in in this in this um uh organization in this chapter we will be looking into organizational Theory and organizational theory is about organizations themselves about organization itself okay in a sense organizational Theory examines about uh structure ma
nagement behavior of organizations okay not behavior of individuals not behavior of groups but behavior of uh in behavior of organizations themselves okay uh organizational design how organizations fation um organizational work processes organizational um setting okay it it is a study of organizations okay not um you know but but that doesn't mean um it doesn't touch uh to some extent about human behavior it touches but uh in in in in larger part it concerns out or in it in it um uh virtual tota
lity it uh it is um attributed to the study of organizations behavior of organizations how organizations are structured how organizations are managed how organizations are LED how organizations um you know are managed how organizations you know are designed okay all this are the concern of organizational Theory uh it is concerned with understanding how organizations fation okay how they achieve their goals and how they can be improved okay so it understands organizations in many dimensions and u
m it it is it deals about how organizations can achieve their goals and objectives and how the performance of organizations can be improved can be progressed and it is a systematic study okay organizational theory is not something arbitrary it is not something that is random but organizational theory is scientific orderly and systematic study of the structure processes and outcomes of organizations including their internal Dynamics and relationship with their environment okay um organizations la
st time okay you can by the way you can go back and um listen to the previous uh tutorials uh regarding the first chapter and the second chapter and in one way or in another way this um chapter is also related with um uh with the previous two chapters um and last time we said uh organizations fun in the wide respectrum of U their environment okay both internal and external environment and uh when one study is about um organizations he or she has to understand in a well manner the internal Dynami
cs okay the internal environment okay the internal setup of the organizations and also the external connection of the organization with its stakeholders depending upon the form and the size of the organization organizations uh could have a wide stakeholders or uh a narrow um scope of stakeholders it depends but uh whatever it is uh organizational theory is about the study of structures processes outcomes designs management leadership of organizations to the extent of analyzing it internal Dynami
cs and its relationship with external environment okay um organizational theory is also the study of how organizations are designed managed and elate that is what uh we are um saying and how they influence the behavior and performance of their members okay the the concern of organizational theory is not just about organizational design organizational management organizational leadership organizational you know um outcomes organizational uh aspect is but it also concerns about how the things infl
uence the behavior and performance of the of the employees of the employees either individually or in groups okay either individually or in groups how the structure how the management how the leadership how the structure how the work processes how the outcomes of the organization influences the behavior and performance of employees either individually or in group The Influence could be positive influence negative influence it Reish okay um it is organizational um theory is the study of how organ
izations achieve their goals and objectives and how they can be made more effective and efficient okay so when uh one studies about organizations and uh understand this you know exerting effort is to uh understand about how organizations achieve their goals and objectives then alongside this effort he or she must Destin to discover how uh the the course of achieving goals and objectives can be met effectively and efficiently okay achieving goals and objectives is one thing but making them effect
ively and efficiently is more important it's more important so organizational Theory concern is about how to effectively and efficiently achieve goals and objectives of U uh the organization of a particular organization next is the scope of organizational Theory okay organizational theory is not an an isolated discipline or an isolated field of study rather it is uh interconnected uh with other fields of of of study and other um disciplines so under this section we will be looking into uh the sc
ope of organizational structure organizational theory in a sense uh with um what field of studies and disciplines organizational Theory Associates itself or relat the scope of organizational Theory broad is wide and encompasses a wide range of topics including organizational design Human Resource Management organizational culture leadership communication motivation and decision making all the topics fall under the SC of organizational Theory okay in one way or in another way this topics are rela
ted to organizational Theory it examines the relationship between organizations and their environment what we have already said including the impact of external factors such as politics economics and social trends okay therefore organizational Theory um sends its truth even uh to uh the concern of politics economics and social trends culture values norms Customs okay because organizations function in the wide spectrum of a political economic social cultural environmental and um variety of the as
pects of human civilization so you know the scope of organizational Theory goes to set to that extent uh the key aspect of organizational the is it's focus on structure and design of organizations okay that is what we said at the outset and we said organization organizational Theory concerns about how organizations are structured how organizations are designed how organizations are managed okay so the key aspect is about structure design and this includes a stud of organizations are organized an
d how they allocate resources even how you know the allocation of resources at or organizational level is the concern of organizational Theory okay falls under the scope of organizational Theory and how they manage internal relationships and you know work processes is a concern of organizational Theory organizational Theory examines how different organizational structures and Designs affect performance and efficiency how um they can be optimized to achieve their goals okay so uh it weighs okay i
t ways it Compares and contrasts different organizational structures and designs from the point of view of their effect on the performance and efficien efficiency uh while um uh achieving organizational goals and and objectives and uh once it compared and contrasted different structures and designs from the point of view of their effect on performance and efficiency then uh it also recommends or put forward prescriptions of how to optimize how to improve those organizational structures and Desig
ns uh to effectively achieve and efficiently achieve um goals of the organization another important aspect of organizational theory is its focus on behavior and per performance of individuals and groups within organizations but last time we said that organizational behavior is is concerned about individuals and groups behavior in an organization and here you may be confused that this is the scope of this is a scope of organizational behavior not organizational Theory and you're right but as I've
told in as I've told you in in the at the outset organizational Theory and organizational behavior are closely related in fact uh they def in extent okay in their scope organizational theory is a macro issue while organizational behavior is micro issue organizational Theory concerns about strategic issues of the organization while organizational behavior is uh not strategic not this much strategic concerned strategically concerned and and are closely related okay okay what I wanted to say is th
ey are closely related and the concern of organizational behavior to some extent falls under the scope of organizational Theory and you know to to some extent the concern of organizational Theory falls under the scope of organizational uh Behavior you know they they share uh some characteristics features and even roles and and and and uh features so in this uh in this aspect organizational theory is also concerned about the behavior of behavior and performance of individuals and groups within or
ganizations and this includes how individuals and groups interact within organization how they are motivated and influenced how they make decisions okay when organizational structures designs process work processes leadership when this are designed it is designed they are designed from the point of view of how it will contain individuals and groups in such a way that individuals and groups will give their atmost effort uh for the sake of achieving organizational goals and objectives okay um orga
nizational Theory examines how individuals individual and group Behavior affects the overall performance of organizations and how this can be improved through par management uh practices okay you know how individual and group Behavior affects the performance of the organization and how uh the this performance can be achieved through a better management is a concern of organizational theor it's still under the scope of organizational Theory organizational Theory also examines how organizations ca
n adapt to changes in their environment and how they can create opportunities for growth and development okay as I've said as I've said as the outset organizational Theory is the macro level study of organizations and it concerns about change management in the organizations change management is about advancing organizations alongside the everchanging Contex of the wallet this world in this wallet what is constant is change and organizations should keep changing while politics economy social cult
ural issues are Chang in and one of the way okay that organizations can manage their change with the changing world is through this through studies through studies research and development programs and This falls under the scope of organizational Theory okay how opportunities could be consumed how opportunities could be you um you know used all this um falls under the concern of organizational Theory and um another point that warant to be seen under this chapter is the historical evolution of or
ganizational Theory organizational Theory as a concept as a discipline is not a spontaneous issue rather it has evolved over time over different decades and many authors and many scholars contributed their own share arum is developed okay theor is proved and disproved and and organizational theory in it today's content has come through such successive evolutionary processes of argument proof and a disproof okay Theory after Theory and different Logics okay so the history of organizational Theory
can be tracked back to the early 20 20 Century okay 20th century you know it is with it is it is in the early period of 20th century that the study of organizations began okay the study of organizations began before 20th century organizational study study about organizations fall under other disciplines like sociology economics anthropology okay and the like and it was more of about understanding the social and economic functions of organizations however with Time advance keep finger like Max w
ber Durham and Henry file okay wrote a lot argued a lot about organizational Theory and they come up with concepts of organizational Theory like progy division of labor and management principles let's look uh you know the highlight of their contribution Max Weber developed the concept of pracy okay he was a German sociologist historian jist and political Economist who developed the concept of progy and progy is the system of rules and procedures to manage organizations okay to manage organizatio
n system should be there and maxw has developed it the concept of progy uh which hold this the prescriptions of how rules and procedures can manage organizations in a formal way formal system we argued that pry is an efficient and effective way to organize large organizations and that was essential for modern society okay his argument is that organizations are indispensable social entities for organ for for people and if organizations should exist they should exist with system if organizations s
hould function they should function with system system should be developed especially for large organizations effective and efficient way okay to organize organizations is M and that procures and the rules of establishing a system for organizations is now is technically known as pry im a French sociologist French sociologist developed the concept of social solidarity he argued that social solidarity is messed in organizations and social solidarity means you know having a communal understanding c
ommunal um values beliefs and knows okay in an organization employees individual employees come together and they may work in the same department or a different departments uh those who work in the same um Department should share the common values beliefs and Norms in the department so that uh one they can collaborate they can cooperate with each other and and the same thing is is is true for those who are working throughout different departments so at Department level at group at group level at
individual level employees managers groups in the organization uh need to share a common goal and the objectives of the organization they should impress the vision and missions of the organization that is what is called solidarity there should be social solidarity social Unity social string social support for each other in the organization so that organizations can effectively and efficiently achieve their goals that social solidarity is essential for the smooth functioning of organizations wit
hout social solidarity there is no smooth functioning of organiz there there won't be uh smooth functioning of organizations okay an organization wherein individuals are not um cooperating collaborating agree with each other then that organization is a failed organization other things remain constant okay so um you know social solidarity when the people working in the organization um are collaborative working team and share common values normous believes then individual and Collective interests
will be Bal balanced balance otherwise no maybe individual interests overtake Collective interests or Collective interests overtake individual interests and both both extremes are um are dangerous both extreme dangerous so balance is necessary and social solidarity is the means is an instrument to maintain the balance between individual and Collective interests in the organization in a such a way people who work in the organization at individual level at group level should share values beliefs a
nd knowledge impress impress the vision and missions of the organization the development of organiz ition theory was also largely influenced by the work of American sociologists such as Charles K and Herber clamber who developed the concept of social interaction and the study of social uh organizations many scholars over the world contributed toward the development of organizational theory in 1950s and 1960s organizational Theory began to evolve into a more analytical and scientific field with t
he development of management science and the study of organizational behavior you know it evolved right from uh the early 20th century uh till 1950s and 1960s the focus uh was on another issues but right from 1950s and 1960s um it become more scientific it become more analytical it become more advanced the studies um start to expand uh and even send the roots into other um aspects of management uh looking for integration of organizational Theory with other disciplines and field of studies uh and
the the search the discovery was um Advanced and uh looking for um different approaches to organizational Theory and as a result a contingency Theory and System Theory and related other theories come into play and we will be looking more into this contingency Theory System Theory and other theories of organizational um study uh in the later part of the course maybe uh chapter 5 of chapter six if I'm if I'm not mistaken we will be looking uh today organizational Theory okay this uh in this perio
d okay of our time organizational Theory continues to evolve and expand the development of organizational Theory um you know is is continuing it's continuing it never stops okay and new approaches and perspectives are emerging all the time continuously okay one argument come and overturn another and and build itself and yet another will come and and overturn the existing and add some um inputs and add some um sort of knowledge into the already existing body of knowledge about organal Theory you
know the evaluation is continuous and non stoping okay till today and it continues to develop and evolve it remains vital okay today um organizational Theory remains a vital and dynamic field of study that continue to influence or understanding of organizations and how they function in the moral World um next is approaches in organizational Theory and uh we have um um different approaches and the first one is classical approach but let us stop here and uh in the next um video we will be covering
the um approaches in organizational Theory okay so uh my advice to you followers of this uh video is that uh if you haven't followed the first chapter and second chapter uh of um the course um please go back and start from the first chapter and then you will understand about organizations and you know the details of organizations um exist in the first chapter and in the second chapter you will understand uh organizational behavior okay before you understand before you understand um you know I m
ean without understanding the first and second chapter of the course it would be difficult for you to understand this third chapter so my advice is go back and search into my channel uh you'll find chapter one chapter 2 tutorials and then follow them and uh you will be more um you know more capable more able to understand this s chart thank you very much once again

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