BCB 317 - organizational Theory-1.doc - ;pp BCB 317...

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;;pp BCB 317: ORGANIZATIONAL THEORY Organizational theory is the sociological study of formal social organizations, such as businesses and bureaucracies, and their interrelationship with the environment in which they operate. It complements the studies of organizational behavior and human resource studies. Organizational theories; Theory of bureaucracy Scientific management theory Administrative management theory Pre-human relations theory Human relations theory Natural systems theory Structural-functional theory Open systems theory Quality management theory Organizational culture and leadership theory History of Organizations Organizations, which are defined as social units of people that are structured and managed to meet a need or to pursue collective goals. Organizations are said to have risen in the United States within a variety of social and historical contexts. Several of those factors are credited with making organizations viable and necessary options for citizens, and they built on one another to bring organizations to the level of importance that they are at today. In 1820, about 20% of the United States population was dependent on a wage income . That number increased to 90% by 1950. farmers and craftsmen were the only ones by 1950 who were not dependent on working for someone else; prior to that, most people were able to survive by hunting and farming their own food, making their own supplies, and remaining almost fully self-sufficient. As transportation became more efficient and technologies were further developed, self-sufficiency became an economically poor choice In addition to a shift to wage dependence, externalities from industrialization also created a perfect opportunity for the rise of organizations. 1
Various negative effects such as pollution, workplace accidents , crowded cities, and unemployment became rising concerns. Rather than small groups such as families and churches being able to control these problems as they had in the past, new organizations and systems were required in order to keep their heightened effects down. The smaller associations that had contained various social issues in the past were no longer viable, and instead were collapsed into larger formal organizations. These organizations were less personal, more distant, and more centralized; but, what they lacked in locality, they made up for in efficiency. Along with wage dependency and externalities, growth of industry also played a large role in the development of organizations. Markets that were quickly growing and expanding needed employees right away because of that, a need developed for organizational structures that would help guide and support these new employees. Some of the first New England factories relied on daughters of farmers at their onset; later, as the economy changed, they began to gain work from the farmers, and finally, European immigrants. Many Europeans left their homes for the promises of US industry, and about 60% of those immigrants stayed in the country. They became a permanent class of workers in the economy,

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