In this modern era, the global business environment is changing so fast that organizations need to manage differently to suit customers’ unlimited wants. Organization theory is an area of study where organizations are the phenomenon of interest for theory that applies to everybody. Organization are defined as a consciously coordinated social entity, with a relatively, identifiable boundary that performs upon consciously basis to accomplish a mutual goal. Organizations are structured the way they are because different organization perceive and do things differently. Effectiveness of an organization is based on how they are being run: culture, structure and power. Nowadays, flexibility and creativity are primary elements of the changing environment, creating virtual organization other than conventional organization: Google is successful because of diversity, organization structure and innovative. The purpose of theories is to explore organization from modernist to symbolic interpretative perspective by using culture, power and structure. How modernist and symbolic interpretive are different and similar from each will be discussed in this essay. Modernist perspective
Modernist states that goals can be achieved by discovering the truth. The effectiveness of an organization to make profit is based on the CEO’s leading and decision making ability. However, this statement was proven wrong because of the existence of charity organizations and also churches. Modernists are objectivists who believe in reality of fact which is independent to our knowledge. Its epistemology is positivism which is build based on valid conceptualization and the theorization that allows us to test knowledge against an objective world. There is always clear explanation on how things occur, through statistical method, such as hypothesis testing. The model of reasoning for modernism is deductive approach. Its objective is to govern rules in organization to ensure smooth process and maintain power. Fayol’s administrative principals (span of control, depart mentation, unit of demand, scalar of principals) sets out job for individual in different hierarchy. The manager’s job is more task-centered rather than people- centered. Power
Power is define as, A has power which can get B to do something that B is not willing to do.(Dahl, 1957) There are five types of social powers which are legitimate, coercive, referent, reward and expert power; where legitimate and coercive power are obvious in modernism. According to Weber, the higher the position in hierarchy, the powerful the individual is compared to others. Taylor’s scientific management assumes that managers have power to control work and movement of labors. The usage of scientific management has resulted in increases of both productivity and economic efficiency. Scientific management can still be seen, where it focuses on the central task of economic efficiency for example Stig Jiangsu Light& Textile Import& Export Company. Modernism also practices managerial control by using the cybernetic model, agency theory and clan control to monitor performance which can improve organizational efficiency and effectiveness. The Agency theory is a mechanism to ensure that owner’s interest is protected from discretionary management decisions. This can be achieved by rewarding, control of information, surveillance and contract. However, agency problem might occur when the information given is too little to sustain profitability. The cybernetic control identifies the difference between actual and desired individual and performance in organization. The clan control is to achieve cooperation among organization members by interaction in terms of symbolic control. Decision making that only involves the executive team is called unity- of- command principle by Fayol. According to Mintzberg, organization is formed by five main parts which is simple structure, machine bureaucracy, professional bureaucracy,...
References: 6. Rehn H.J, 2007, Scientific management and the cotton textile industry, University of Chicago
8. Inglis F, 2004, Culture, Cambridge
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