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1 ORGANIZATIONS AND ORGANIZATIONAL CHANGE Organizations and Organizational Change: Overview • Theories of Organizations • Organizational Structure • Components of Social Systems • Organizational Change Overview • Organizations are – „Alive‟ – Under constant pressure to change – Able to shape the behavior of their members • Major activity of I/O psychologists is to help with change • Must look at how organizations are structured to understand change Organizations: A coordinated group of people who perform tasks to produce goods or services. 2 Major Schools of thought: 1. Classical Theory 2. Neoclassical Theory Two Theories of Organizations Two Theories of Organizations : Classical Theory Developed in early 20 th century Describes form and structure 4 components: 1. A system of differentiated activities 2. People 3. Cooperation toward a goal 4. Authority 4 Structural Principles: 1. Functional Principle 2. Scalar Principle 3. Line/Staff Principle 4. Span-of-Control Principle Two Theories of Organizations : Classical Theory
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2 Functional and Scalar Processes Span-of-Control Classical Theory: Psychology Department Functionally divided : Neuro, I/O, Clinical, Social, School, etc. Scalar: Professors, Department head, Deans Line/Staff: Professors and Graduate Students, Departmental staff (advisors, office staff, tech support) Span of control: relatively small in academics (more leaders than followers) • Developed in the 1950s • Describes psychological and behavioral processes • Argued for less rigid – more humanistic work • Main contribution: fitting in the reality of human behavior Two Theories of Organizations : Neoclassical Structure : arrangement of work functions within an organization designed to achieve efficiency and control. • Various types • Organizations seek the optimal match Organizational Structure Basic elements: 1. Mutual adjustment 2. Direct supervision 3. Standardization of work processes 4. Standardization of work output 5. Standardization of skills and knowledge Organizational Structure : Coordinating Mechanisms
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