Introduction
In every organization, specific behavioral patterns exist within its premises that guide how activities occur. Organizational theories explain the relationships between the business and its environment and how it affects its operation mode (Ferdous, 2016). Organizations apply various approaches that facilitate functionality and effectiveness within their operations. The paper examines how classical, neo-classical, and modern organizational theories play a crucial role in improving functions in an organization.
Classical Organizational Theories
Classical organizational theories are the traditional theories explaining the process and behavior of organizations. These theories entail examining the foundation of organizations and viewing the business as a unit with employees as a part of this unit (Haveman & Wetts, 2019). The classical theories include the scientific management approach theory, Webber’s bureaucratic theory, and administrative approach theory. The division of labor in an organization: through specialization, an organization can define the tasks and responsibilities of each employee (Haveman & Wetts, 2019). In health care institutions, divisions and labor and precise definition of tasks help improve employees’ performance. Classical theory improves operations in organizations through the coordination of activities. The departments within an organization must work in harmony to meet the set objectives and goals. Classical organizational theory encourages various tasks and activities into departments for easier management (Ferdous, 2016). Creating departments that handle the diverse functions facilitates an overall improvement in how operations occur within the organization. Organizations ensure better coordination of activities in the departments as proposed by the classical organizational theory.
Classical organization theory improves an organization’s operations by creating relationships between the management and subordinates. The hierarchy of relationships in organizations facilitates communication, which helps define each person’s duties and responsibilities and the delegation of responsibilities by the superiors in the organization (Dörrenbächer & Geppert, 2017). Functional processes define how an organization creates a hierarchy of relationships that helps to define authority. The classical theory proposes organizations employ a basic structure that defines the relationships among the different elements (Ferdous, 2016). Designing positions in the organization facilitates the division of tasks and delegation of authority, improving the efficiency with which the employees accomplish tasks. Efficiency ensures organizational effectiveness.
Neo-Classical Organization Theory
The neo-classical organization theory examines the behavioral aspect of the human element in organizations. The neo-classical organizational theory promotes an understanding of human behavior and how people impact the activities in organizations affecting the effectiveness of the businesses (Őnday, 2016). An organization can be considered a social system made up of many elements that interact with one another and must coordinate to ensure that it can achieve its goals. Neo-classical organizational theory helps to understand the relationship between the goals of an organization and the goals of employees to reconcile them, which is essential in improving the effectiveness of operations (Birken et al., 2017). All activities within an organization involve the interaction of the human element with the tasks and activities. People impact the organization’s success as they are responsible for accomplishing tasks and activities (Blanco, 2017). Organizations can achieve higher effectiveness in their operations when they can understand the relationship between employees, including teamwork. Communication between the personnel in an organization is an essential part of ensuring high productivity in operations. The neo-classical organization theory helps in understanding the importance of the human element in an organization.
Modern Organizational Theories
Modern organization theory comprises two theories: contingency theory and systems approach theory. System approach theory proposes examining an organization as a system with numerous parts that interrelate to facilitate operations (Teece, 2019). In organizations, all the factors are considered systems that work towards attaining the set goals and objectives, but they function independently. The functions in an organization work towards achieving the overall goal, but each is different from the rest. The organization is flexible to accommodate the needs of the environment in which it operates to achieve its goals. System approach theory helps to improve the operations in an organization through understanding the nature of the interdependence that exists within the different parts and how to improve the diverse processes (Teece, 2019).
Organizations encounter problems that require several ways for the management to them accordingly. The contingency approach theory proposes that an organization can adopt practices to solve its problems based on its nature. There are no two challenges that are the same (Boehe, 2016). In contingency theory, the management of an organization can make the best decision that will suit the organization’s situation. Various factors in the business environment impact the operations of an organization, including both internal and external. The unpredictability of an organization’s problems makes it challenging to develop solutions that apply to all situations. Hence, organizations must develop suitable solutions that will help tackle the organization’s challenges (Boehe, 2016). Contingency approach theory helps improve operations as it provides for the management of the health organization to develop solutions that fit the facility’s problems.
Conclusion
Numerous theories are applicable in organizations to boost functionality and efficiency. The theories help to explain the importance of the processes and behavior patterns within the organization. Organizations utilize different theories since there is no single theory that can cater to all the organization’s needs. Knowledge of organizational theories is vital for management as it plays a huge role in elevating various activities’ performance; it facilitates organizations’ functions such as decision-making, communication, and delegation of authority.
References
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