Organizational Theories
Organizational theory forms the foundation for decision making and problem solving in the realm of business management. It may be argued that the effectiveness and success of business operations is fundamentally tied to leadership quality of the organization. The ease, efficiency and profitability with which a business functions relies on factors tied in with structural organization on several levels including top-management personnel, share-holders, executives, and employees. Several theories have been posited throughout history that attempted to conceptualize the nature of organization and how it relates to business. These theories demonstrate the important role that organizations, and thus businesses, play in society and provide a basis from which leadership, decision making and problem solving within the business context can take place. Hinings and Greenwood (2002) investigated the history behind the study of organization and focused in on two factors. The first factor was the way that organizations affect patterns of privilege and disadvantage that exist in society. The second factor was the way that privilege and disadvantage can be observed within organizations. A major historical figure in the study of organizati
It is essential to conceptualize the direction and then effectively implement it in order to achieve true leadership. These systems expand upon the vision set forth by the strategic direction, which include "leadership and employee development, culture monitoring and internal communications (Llewellyn, 2002)". This element is of the utmost importance considering the fact that most pathologies within organizations are rooted in poor communication (Llewellyn, 2002). The first element involved in effective organizational and leadership practices I strategic direction. This element entails the ability of leaders to enhance employee performance through goal setting, performance coaching, and performance feedback (Llewellyn, 2002). Hinings & Greenwood (2002) described how "actual behavior of organizational members is determined more by the conflict between opposing factional interests within an organization, or between those factional groups and such groups outside ad organization, than by any overarching goals or unified, legitimate structures (p. These factors would prove beneficial to any management program. The third and final way that consequences are conceptualized is through the use of stakeholder models, which emphasize that the analysis of stakeholders and their needs results in effective and profitable organizations (Hinings & Greenwood, 2002). Included in strategic direction are measures that can assess progress and results (Llewellyn, 2002). Supply chain management practices are activities that are proactive and cooperative, and they necessitate joint forecasting and planning, the sharing of information, joint management and joint control to enhance operations and customer service in order to benefit the entire chain as a whole rather than just one firm (Min, 2004). Goals are set that are aligned with the developed direction. This process contributes to effective leadership and organizational practices within the business. Other theorists, such as Selznick, Etzioni, and Gouldner all used Weber's theory as a foundation for there own suggested concepts regarding organization and society (Hinings & Greenwood, 2002). However, it has been found that this type of program does not consistently result in deep and sustained change within business organizations. Organizations hold great importance in society, and this is reflected in the emergence of organization theory as a fundamental component of business education and practice (Hinings & Greenwood, 2002).
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