Course Outline

1. Introduction to organization theory

2. Systems perspectives in Organization
3. Organizational design and structure
4. Organization effectiveness
5. Inter-organizational relations
6. Social constructivist/ Interpretive perspectives
7. Organization culture through interpretive lenses
8. Power, control and conflict from critical perspectives

Table of content
Chapter 1: Introduction to Organizations and Organization Theory................................. 3
Chapter 2 : Introduction to Perspectives of Organization Theory..................................... 5
Chapter 3 : History of Organization Theory and Modern Organization Theories..............8
Chapter 4: Systems Perspectives in Organization Theory............................................. 10
Chapter 5: Organizational Design (OD)..........................................................................12
Chapter 6 : Contingency Theory of Organizational Design............................................ 14
Chapter 7 : organizational effectiveness.........................................................................16
Chapter 6 part 2 : organizational structure..................................................................... 20
Chapter 8 : Organizational Effectiveness (OE)............................................................... 22
Chapter 9 & 10 : Interpretive Perspective of Organization Theory................................. 28
Chapter 11 : Introduction to Power, Control, and Conflict in Organizations.................... 34
 2. Goal-directed – structured to
Chapter 1: Introduction to achieve specific objectives.
Organizations and Organization 3. Deliberately designed and
Theory structured – include coordinated
systems of activities.
Theories and Theorizing 4. Linked to the external
Organizations environment – operate in relation
to external factors like market
● What is a Theory?
conditions, regulations, and
Theories are systematic explanations of society.
phenomena, built from abstractions ● Core Element of Organizations:
called concepts.
The fundamental component of an
A concept represents an idea formed organization is not its physical aspects
through the process of abstraction and (buildings, policies, procedures) but
provides mental categories for sorting, rather people and their relationships.
organizing, and storing experiences in
Why We Need Organizations
memory.
1. Aggregate resources to achieve
The phenomenon of interest is chosen
common goals.
as the main focus for theorizing, with
2. Enable efficient production of
related concepts defined to explain it.
goods and services.
● The Role of Experience in 3. Foster innovation.
Concepts: 4. Utilize modern technology to
advance operations.
Concepts without real-world 5. Adapt to changing environments.
experiences can seem abstract or 6. Create value for stakeholders
“empty.” and society.

To enrich concepts, relate them to

personal experiences, giving them
meaningful context. What is Organization Theory (OT)?

● Definition of Organization Theory:

Definition of Organizations Organization theory is the study of how

organizations function, including their
Organizations are: structures, behaviors, and the
processes that drive them.
1. Social entities – groups or
collectives of people.
OT can be studied from multiple emphasizing structure, rules,
perspectives, each offering a unique standardization, and routine.
approach to understanding
organizations. 2. Symbolic Perspective
○ View of Organizations:
Importance of Studying Organization
Theory Organizations are socially constructed
realities created through interactions
OT knowledge is valuable across and shared meanings.
various domains, such as:
Organizational life unfolds in rituals and
1. Finance symbolically mediated activities (e.g.,
2. Marketing organizational dramas).
3. Human Resources (HR)
4. Operations ○ Focus of Theory:
5. Information Technology (IT)
Examines the meanings, symbols, and
6. Communication
rituals within organizational culture.

Aims to interpret symbols and reveal

Perspectives in Organization Theory organizational culture through
assumptions, values, artifacts, and
OT can be approached through three practices.
main perspectives:
3. Postmodern Perspective
1. Modern Perspective ○ View of Organizations:
○ View of Organizations:
Organizations are sites where power
Organizations are real entities operating relations manifest, often giving rise to
in a tangible, real-world context. oppression, irrationality, or falsehoods,
but also humor and irony.
When properly designed and managed,
they function as systems of decision and Organizations are texts or dramas that
action focused on rationality, efficiency, can be deconstructed to challenge
and effectiveness. traditional modes of organization.

○ Focus of Theory: ○ Focus of Theory:

Identifies universal principles and laws Deconstructs organizational structures

governing organizations. to reveal managerial ideologies.

Aims to define theories explaining Encourages marginalized viewpoints

organizational performance, and reflexive, inclusive forms of
theorizing, aiming to empower and ● This awareness helps individuals
emancipate individuals within better understand both their own
organizations. reasons for actions and the
reasons behind others' actions.
4. (Source: Hatch & Cunliffe, 2013, ● Philosophical Foundations:
p.15) ○ Perspectives differ based
on two main philosophical
assumptions:
Levels of Analysis in Organization Ontology: Concerns assumptions about
Theory reality.
OT examines organizations at multiple Epistemology: Concerns knowledge
levels: generation and validation.
1. Individual level – focuses on
individual behaviors and roles
within the organization. Key Assumptions in Organization
2. Group level – studies the Theory
dynamics within teams or groups.
3. Organizational unit level – 1. Ontology
analyzes specific departments or
functional areas. Definition: Ontology addresses our
4. Inter-organizational level – beliefs about reality.
explores relationships and
● Types:
networks between different
organizations. Objectivist Ontology: Belief that an
objective reality exists independent of
perception.
Chapter 2 : Introduction to
Subjectivist Ontology: Belief that reality
Perspectives of Organization Theory
exists only when it is experienced and
given meaning.

Why Different Perspectives? 2. Epistemology

● Using multiple perspectives Definition: Epistemology concerns how

allows for greater awareness of knowledge is acquired and validated
underlying assumptions and (distinguishing true from false or valid
values in organizational theory from invalid).
and practice.
● Types:
Positivist Epistemology: Emphasizes 2. Symbolic Interpretivism
reason, truth, and validity, using
methods adapted from the natural View on Knowledge: Extends empirical
sciences to understand organizations as reality beyond the senses, incorporating
objective entities. subjective experiences like emotion and
intuition.
Interpretive Epistemology: Holds that
knowledge can only be created and Approach to Theory: Focuses on
understood from the perspective of understanding and meaning within
individuals within a particular culture or specific contexts rather than
organization, based on their generalizable findings.
experiences and expectations.
Key Beliefs:

Organizations are communities

Major Perspectives of Organization sustained by human relationships.
Theory
Organizations are not just objects but
1. Modernism are “webs of meaning” co-created by
members.
View on Knowledge: Knowledge is
derived from empirical evidence Theoretical Focus: Studies how people
perceived through the five senses (sight, create meanings through stories, rituals,
hearing, smell, taste, and touch). symbols, and interactions within
organizations.
Approach to Theory: Emphasizes
efficiency, effectiveness, and objective 3. Postmodernism
performance measures.
View on Knowledge: Rejects the pursuit
Key Beliefs: of absolute truth, emphasizing that all
knowledge is relative and
Organizations should balance internal context-dependent.
and external pressures.
Approach to Theory: Critiques power
Effective organizations develop core structures and challenges
competencies and adapt to changes. taken-for-granted assumptions in
organizational theory.
Theoretical Focus: Structure, control,
and improvement of organizational ○ Key Beliefs:
performance.
Organizations are characterized by
uncertainty, complexity, and
contradiction, rather than order and contingencies) like size,
unity. environment, and technology.

Encourages skepticism toward dominant

theories and focuses on uncovering
sources of power and domination. Symbolic Interpretivism

Theoretical Focus: Deconstructs 1. Social Construction Theory

organizational structures to reveal Suggests that reality within
hidden power dynamics and challenges organizations is constructed
traditional approaches. through social interactions and
shared meanings. People create
Modernism and sustain their organizational
realities through language,
1. General Systems Theory symbols, and routines.
Organizations are viewed as 2. Sensemaking Theory and
complex systems with Enactment Focuses on how
interdependent parts that work people interpret and make sense
together to achieve common of events and changes within
goals. Each part affects and is organizations. Through
affected by others, and the sensemaking, individuals enact
organization’s success depends or bring forth organizational
on maintaining harmony and structures and practices based
balance among its parts. on their interpretations.
2. Socio-Technical Systems Theory 3. Institutionalization Theory
Emphasizes the interrelation of Examines how certain practices,
an organization’s social and norms, and behaviors become
technical systems. For optimal established and taken for granted
performance, both the people within organizations. Over time,
(social system) and the tools and these practices become
technology (technical system) "institutionalized" and are seen as
must be designed to support standard or legitimate.
each other.
3. Contingency Theory Argues that
there is no "one-size-fits-all"
approach to organizational Postmodernism
structure. Instead, an
organization’s design and 1. Language and Language Games
management depend on Investigates how language
situational factors (or shapes and limits our
understanding of organizations.
Different groups use different
 "language games" that create Chapter 3 : History of Organization
unique realities, often leading to Theory and Modern Organization
diverse interpretations of the Theories
same events or issues.
2. Grand Narratives and Giving Key Thinkers and Their Contributions
Voice Challenges overarching,
dominant narratives (grand 1. Adam Smith (1723–1790)
narratives) in organizations,
Introduced the division of labor
suggesting that these narratives
concept, arguing that dividing work into
often marginalize alternative
specific tasks could increase economic
voices. Postmodernists advocate
efficiency and social progress.
for giving voice to these
suppressed perspectives. 2. Karl Marx (1818–1883)
3. Discourse and Discursive
Practices Focuses on how Developed theories around capitalism
language and discourse create and social conflict. He noted that
power relations and shape capitalism often creates tension
organizational identities and between labor (workers) and capital
practices. Discursive practices (owners), especially over profit sharing,
influence how employees leading to worker exploitation and
perceive roles, hierarchy, and alienation.
organizational culture.
4. Deconstruction A method of 3. Émile Durkheim (1858–1917)
critically examining texts,
Emphasized the importance of social
language, and assumptions
structures like hierarchy and task
within organizations to reveal
interdependence in industrial society.
hidden contradictions and biases.
Introduced the idea of informal
Deconstruction seeks to expose
organization, highlighting workers'
underlying power structures and
social needs.
question dominant
interpretations. 4. Max Weber (1864–1920)
5. Simulacra and Hyperreality
Suggests that in modern Examined how industrialization
organizations, representations or changed authority structures, moving
simulations (simulacra) often from traditional and charismatic
become more important than the authority to rational-legal
actual reality. Hyperreality occurs authority—a merit-based system
when the simulated version of supported by rules and laws. He
something feels more "real" than developed the concept of bureaucracy
the original. for efficient organization.
 5. Frederick Winslow Taylor Modern perspectives on organization
(1856–1915) theory evolved from modernism—an
approach rooted in the Enlightenment's
Created scientific management to focus on human progress through
improve productivity. This method reason. Modern thinkers aimed to use
standardized tasks, developed work rational knowledge to improve
standards, and placed workers based organizations’ efficiency and
on skill, aiming for high efficiency adaptability. This perspective sees
through structured processes. organizations as systems interacting
with their environments, where changes
6. Mary Parker Follett (1868–1933)
in any part affect the whole system.
Advocated for workplace democracy
and collaboration, suggesting that power
should be shared rather than imposed. Systems Theory
She emphasized conflict resolution
through integration, aiming for creative General Systems Theory by Ludwig
solutions benefiting all. von Bertalanffy (1951) proposes that all
systems, from cells to societies, follow
7. Henri Fayol (1841–1925) similar principles. This theory applies to
organizations by treating them as
Developed administrative principles
interconnected systems made up of
for effective management, which later
parts (or subsystems) that work together
influenced the structure of
to achieve common goals.
organizations.
Closed vs. Open Systems: Earlier
8. Luther H. Gulick (1892–1992)
theories focused on internal
Proposed seven management functions: organization (closed systems), while
POSDCoRB (Planning, Organizing, modern systems theory includes
Staffing, Directing, Coordinating, environmental influences (open
Reporting, and Budgeting). systems). Open systems recognize the
organization’s need to interact with its
9. Chester Barnard (1886–1961) environment.

Suggested that successful management Subsystems and Super Systems: A

includes overseeing the informal system is made of subsystems (smaller
organization and creating a parts) that affect each other. For
cooperative system focused on worker example, an organization has
motivation and communication. subsystems like finance, operations,
and HR. Each subsystem must work
Modern Organization Theories together, considering the external
environment for optimal performance.
Socio-Technical Systems Theory ● To analyze organizations at
different operational levels: It
Eric Trist and Ken Bamforth studied helps in breaking down complex
how technology and social factors (like organizations into components or
worker relationships) impact productivity subsystems for better
and satisfaction. They found that work management and understanding.
settings that integrated both social
needs and technical requirements (such
as teamwork and self-management) led
to better outcomes. This theory Types of Systems in Organization
suggests that for success, both Theory
technical efficiency and worker needs
must be balanced. 1. Organizations as Closed
Systems

Assumptions:
Contingency Theory
Organizations function like machines
Contingency Theory emerged in the with clearly defined goals.
1960s, emphasizing that there is no
There is a "prime mover" who decides
one-size-fits-all way to organize an
organizational goals, structures, and
organization. Instead, effective
resources.
organization depends on the situation
(contingencies) such as environment, Description:
technology, and goals. Organizations
should adapt their structure and A closed system is isolated from its
strategies based on these specific environment, focusing solely on internal
factors to ensure success. processes. Although a truly closed
system doesn't exist, early
Chapter 4: Systems Perspectives in organizational studies emphasized
Organization Theory internal efficiency, assuming stability in
the external environment.
Why is the Systems Perspective Used in
Organization Theory? 2. Organizations as Open
Systems
● To understand and explain
organizational actions: Systems Assumptions:
perspectives provide insights into
how organizations behave and Organizations interact with their
respond to both internal and environment to obtain resources and
external factors. survive.
Characteristics: Assumptions:Organizations are
goal-oriented and function based on
Importation of Energy: Organizations formal structures.
rely on external resources for survival.
Description:
Throughput: Resources are transformed
into products or services. Inspired by thinkers like Taylor, Fayol,
and Weber, this view focuses on
Output: Organizations produce outputs organizations as instruments designed
that are returned to the environment. to achieve specific objectives,
emphasizing structure and rational
Cycles of Events: Activities are cyclic,
decision-making.
creating continuity.
4. Organizations as Natural
Negative Entropy: To avoid
Systems
disorganization, organizations need
constant energy input from the Assumptions:
environment.
Organizations aim to survive and satisfy
Information Input and Feedback: internal needs while adapting to external
Organizations receive information that influences.
helps them adjust to the environment.
Description:Organizations are seen as
Steady State and Dynamic complex systems that prioritize survival
Homeostasis: There’s a balance of and equilibrium. This natural systems
inputs and outputs to maintain stability. view recognizes that organizations may
adapt and change over time, sometimes
Differentiation and Specialization:
even altering or neglecting their original
Organizations create specialized roles
goals to survive.
for efficiency.
5. Organizations as Social
Integration and Coordination: Different
Systems
parts of the organization are
synchronized. Assumptions:Organizations consist of
patterned activities among individuals,
Equifinality: Organizations can achieve
forming a social structure.
the same outcomes through different
paths. Description:Social systems in
organizations are maintained by
3. Organizations as Rational
psychological bonds, mutual goals, and
Systems
control mechanisms. They depend on
structured, yet flexible, interactions
among individuals to function effectively.
 6. Organizations as Autopoietic OD emphasizes both technical efficiency
Systems and a supportive work environment for
employees.
Assumptions:Organizations have a
self-generative, autonomous nature. Key Components of Organizational
Design
Description:
Structural Dimensions – Internal
Derived from biology, the autopoietic characteristics that help define the
view describes organizations as organization:
systems that create and sustain
themselves through internal processes, ● Formalization: The extent to
maintaining their identity independently which rules, procedures, and
of the external environment. written documentation govern
tasks and behavior.
Key Concepts: ● Specialization: The degree to
which tasks are divided into
Recursivity: The system's structure
specific roles or functions.
develops in a self-reinforcing way.
● Hierarchy of Authority: The chain
Operational Closure: The organization is of command or reporting
internally determined and not directly structure, showing who reports to
influenced by external forces. whom.
● Centralization: Whether
Self-Referentiality: The organization’s decision-making is concentrated
operations reinforce its identity. at the top (centralized) or
distributed to lower levels
(decentralized).
● Professionalism: The level of
education and training required
Chapter 5: Organizational Design
for employees in the
(OD)
organization.
Organizational Design (OD) is the ● Personnel Ratios: The
process of structuring an organization distribution of employees across
so it can effectively meet its goals and various roles and functions within
adapt to changes in its environment. the organization.

The goal is to identify and address any Contextual Dimensions – External and
dysfunctional aspects in the internal factors that influence the
organization’s workflow, structures, and organization’s structure:
systems and make adjustments to align
● Size: Typically measured by the
with current business objectives.
number of employees, which can
 affect how complex the competitive, and culture is often
organization becomes. rigid.
● Organizational Technology: Tools, ● Learning Organizations are
systems, and processes that help more adaptive and collaborative,
transform inputs into outputs. with a horizontal structure and
● Goals and Strategy: The empowered roles. These
organization’s purpose and the organizations encourage shared
competitive approach it takes to information, collaborative
reach its objectives. strategies, and an adaptive
● Culture: Shared values, beliefs, culture, making them more
and norms among employees responsive to changes.
that shape behavior and work
style.
● Environment: External elements
like industry trends, customer
demands, and regulations that
impact the organization.

Traditional vs. Learning

Organizations

● Traditional Organizations focus

on efficiency, with a vertical,
hierarchical structure. Tasks are
routine, formal control systems
are in place, strategy is
Historical Perspectives on OD control, specialization, and centralized
decision-making.
OD has evolved through various
approaches: Rapidly Changing Environment: In
unpredictable environments,
● Scientific Management: organizations benefit from flexible
Focused on improving efficiency structures with horizontal coordination,
and productivity. teamwork, and decentralization.
● Administrative Principles:
Emphasized unity in command 2. Size and Life Cycle:
and direction.
● Human Relations: Found that Small and Young Organizations: Tend to
positive treatment of employees be informal with fewer rules, less
improves motivation and division of labor, and flexible systems.
productivity (Hawthorne Studies).
Large and Established Organizations:
● Modern Flexibility: Encourages
Use more structured systems,
flatter hierarchies, participative
specialized roles, numerous rules, and
management, and quick
standard procedures for better control.
responsiveness to customer
needs. 3. Technology:

Mass Production Technology: Focuses

on efficiency, formal processes,
Chapter 6 : Contingency Theory of specialization, and central control.
Organizational Design
E-Business and Modern Tech: Requires
The contingency theory suggests there’s flexibility, decentralized decision-making,
no single perfect way to structure an and more informal processes to adapt
organization. The best structure for an quickly.
organization depends on
4. Organizational Culture:

Collaborative Culture: Encourages

Key Contingency Factors Affecting teamwork, creativity, open
Organizational Design communication, and flexibility.

1. Environment: Rigid Culture: Focuses on hierarchy,

strict rules, and a vertical structure.
Stable Environment: In stable situations,
organizations often use traditional 5. Strategy:
structures focused on efficiency, vertical
Goal Setting: Clear goals help an Does not necessarily mean offering the
organization know where it wants to go. lowest prices but emphasizes being
Example: aiming for 15% annual sales cost-effective.
growth.
Often involves efficient facilities, tight
Strategy Execution: Strategy defines cost controls, and standard procedures.
how the organization will reach its goals,
such as by boosting advertising, 2. Differentiation:
expanding customer base, or acquiring
Aims to make products or services
businesses.
stand out as unique.

Differentiation could come from unique

Organizational Goals and Strategy features, branding, superior service, or
technology.
● Goals define where an
organization wants to go (the Typically targets customers who are less
desired outcome). sensitive to price and more interested in
● Strategy is the plan to get there, unique value.
including specific actions or
Requires strong marketing and
methods to reach these goals.
creativity, with an emphasis on
● Strategic Intent: This is the
continuous innovation.
focus and energy that an
organization directs toward 3. Focus Strategy:
achieving a particular goal.
Having a clear strategy helps Focused Low-Cost: Targets a specific
focus resources and market segment with lower costs.
decision-making.
Focused Differentiation: Tailors
products or services to meet specific
tastes and needs within a niche market.
Porter’s Generic Strategies

Porter identifies three main strategies

organizations can use to compete in How Strategies Affect Organizational
their markets: Design

1. Low-Cost Leadership: The choice of strategy impacts how an

organization is structured and operates:
Focuses on keeping production and
operational costs lower than ● Low-Cost Leadership:
competitors.
Emphasizes efficiency with centralized Efficiency: Doing things economically
control, tight cost management, and (less waste), using fewer resources to
routine tasks. get results. It’s about input/output ratio
or “doing things right.”
Often includes detailed reporting,
efficient procurement, and limited Effectiveness: Achieving the right
employee empowerment. goals, or “doing the right things.” It’s
about goal attainment.
● Differentiation:
Example: A company can be efficient in
Requires flexibility and adaptability to production (low-cost processes) but
stay innovative. ineffective if customers don’t want the
product.
Encourages horizontal coordination,
strong customer focus, and rewards
creativity.
Factors for Organizational
Promotes a learning orientation, where Effectiveness
employees are empowered to contribute
ideas and take risks. To be effective, organizations often
consider factors like:

● Technology level and employee

Chapter 7 : organizational skills
effectiveness ● Financial strength and customer
satisfaction
Organizational Effectiveness (OE) ● Employee satisfaction and social
responsibilities
Organizational Effectiveness refers to
● Profitability and market position
how well an organization achieves its
goals. But measuring OE can be
Organizational Efficiency and
challenging because:
Effectiveness
Effectiveness is multi-dimensional,
● Efficient organizations use fewer
meaning different measures apply
resources to achieve goals.
based on context.
● Effective organizations meet their
goals, which might or might not
involve high efficiency.
Efficiency vs. Effectiveness
Examples:
Understanding the difference is crucial:
● High efficiency, low effectiveness:
An organization produces goods
 cheaply (efficiency) but can’t sell Approaches to Measure Organizational
them (ineffective). Effectiveness
● High effectiveness, low efficiency:
An organization achieves high 1. Goal Approach
sales but uses excessive
Measures how well an organization
resources (inefficient).
meets its output goals (e.g., profit, client
satisfaction).

Characteristics of Effective Focuses on operative goals (practical,

Organizations measurable goals) over abstract mission
statements.
Effective organizations often show:
2. Systems Resource Approach
● Flexibility: They respond well to
changes. Focuses on the organization’s ability to
● Efficiency: They use resources acquire necessary resources from its
wisely. environment.
● Adaptability: They proactively
Useful for non-profits and social
prepare for change.
organizations where output is hard to
measure.

3. Internal Process Approach

Measuring Organizational
Effectiveness Examines internal operations and
efficiency within the organization.
Measuring OE is complex:
Looks at internal health: trust,
Efficiency can be measured directly.
teamwork, communication, and smooth
Effectiveness is harder to measure, functioning.
especially because organizations are
4. Behavioral Approach
diverse, pursue multiple goals, and
produce varied outcomes. Measures the alignment between
individual and organizational goals.
Indicators can be divided into:
Higher effectiveness is achieved when
● Hard Indicators: Quantitative, like
personal and organizational goals are
profit or sales numbers.
aligned.
● Soft Indicators: Qualitative, like
employee satisfaction or brand
reputation.
Activity 1: Questions and Sample ○ Profit margin
Answers ○ Revenue growth
○ Market share
1. Distinguish efficiency and ○ Cost per unit
effectiveness. ○ Employee turnover rate
○ Productivity rates
Efficiency: Refers to using the least
amount of resources to achieve a task. Soft Indicators (qualitative measures):
It’s about minimizing waste and ensuring
the process is cost-effective. Example: A ○ Employee satisfaction
factory that produces more goods with ○ Customer loyalty and
less energy and fewer materials is satisfaction
considered efficient. ○ Brand reputation
○ Workplace culture
Effectiveness: Refers to achieving the ○ Innovation and adaptability
desired outcome or goal. It’s about 4. “Organizational efficiency does
doing what’s necessary to meet not always lead to organizational
objectives, regardless of resource use. effectiveness.” Do you agree with
Example: A company that reaches its this statement? Discuss.
sales targets and keeps customers
satisfied is effective, even if it used more Yes, I agree with this statement. While
resources than expected. efficiency focuses on minimizing
resource use, it doesn’t guarantee that
2. What do you understand by the organization meets its goals or
organizational effectiveness? satisfies customers. For instance:
Organizational Effectiveness (OE) A company might produce a product at
means an organization’s ability to reach a low cost (efficient) but fail to sell it if
its goals successfully. It shows how well the product doesn’t meet customer
an organization is performing overall needs (ineffective).
and indicates the organization’s success
in meeting both short-term and A hospital may be highly efficient in
long-term objectives. Effective treating patients quickly but might lack in
organizations not only meet their own providing quality care if resources are
internal goals but also align with overly constrained.
external demands and expectations.
Thus, an organization needs a balance
3. List some hard and soft indicators between efficiency (resource use) and
to measure organizational effectiveness (goal achievement) to truly
effectiveness. succeed.

Hard Indicators (quantifiable measures):

Activity 2: Organizational Effectiveness minimizing operational costs and
in Various Sectors optimizing transaction processes.
● Manufacturing (e.g., Garments,
● Hospitals: Effectiveness here is Food): Effectiveness here means
patient satisfaction and producing high-quality products
successful treatment rates. that meet customer needs, while
Efficiency might involve reducing efficiency is about reducing
wait times and making better use material and production costs.
of medical supplies.
● Police Departments:
Effectiveness involves crime
reduction and community trust, Summary of Diverse Approaches
while efficiency might focus on
minimizing resources used per Here’s how different approaches can be
incident. used to measure effectiveness, tailored
● Hotels/Restaurants: Effectiveness to the needs of each organization type.
could mean high guest
1. Goal Approach: Best for
satisfaction, while efficiency
profit-oriented sectors like banks
focuses on resource
or manufacturers. Measures
management like reducing food
success based on clear goals,
waste.
like profit, growth, and market
● Plantations: Effective plantations
share.
would maintain crop quality and
2. Systems Resource Approach:
yield, while efficient ones
Useful for non-profits or public
minimize resource use in farming
organizations that rely on
processes.
external resources. Effectiveness
● Universities: Effectiveness is
is seen in how well they acquire
measured by student success
resources.
and graduation rates, while
3. Internal Process Approach:
efficiency involves resource
Works well for teams focused on
allocation, such as faculty time
internal health, such as a
and facilities.
research department or HR.
● Retail Supermarkets:
Effectiveness is measured
Effectiveness is about customer
through communication and
satisfaction and sales, while
employee morale.
efficiency involves inventory
4. Behavioral Approach: Good for
management and cost controls.
organizations where employee
● Financial Organizations/Banks:
goals align with organizational
Effectiveness is customer
goals, such as in consulting or
satisfaction and loan
creative firms.
performance; efficiency includes
Chapter 6 part 2 : organizational 5. Multinational (MNC) and Global
structure Matrix Structure:

Overview of Traditional Organizational Allows organizations to operate

Structures internationally with decentralized
regional control.
1. Simple Structure:
Requires balancing global efficiency with
Small, often new organizations with a local responsiveness.
low hierarchy, centralized authority, and
informal work culture.

Works well for small-scale businesses Moving Beyond Traditional

like entrepreneurial ventures and Boundaries
single-person practices.
Organizations today expand to global
2. Functional Structure: markets, requiring adaptation in
structure. This transition often involves:
Groups employees based on functions
(e.g., HR, marketing). ● Developing self-contained units
for different regions.
Effective for organizations where ● Creating hybrid structures like the
specialized knowledge is critical but may global matrix, where local units
lead to limited horizontal balance regional interests with
communication. corporate goals.
3. Divisional or Multi-divisional
(M-form) Structure:
New Forms of Organizations
Organizes units by product, service, or
geographical area. 1. Virtual Organization:Operates
largely online with outsourced
Promotes flexibility but can lack functions, requiring minimal
coordination across divisions. physical presence.
2. Network Organization:Composed
4. Matrix Structure:
of legally independent units
Integrates both product and functional working together on projects,
structures; employees report to two sharing strengths and reducing
managers. risks through contracts.
3. Self-managed Teams:Teams
Suitable for complex, dynamic empowered to manage their
environments but can be challenging
due to dual authority.
 processes and roles to achieve Activity: Nature and Characteristics of
goals independently. the Organization
4. Modular Organization:Operates
with separate modules that can An organization’s nature and
function independently or characteristics are closely tied to its
collaboratively, providing structure and purpose. For example:
flexibility.
1. Traditional Structures: These
5. Self-designing
are often hierarchical and
Organization:Continuously
function-focused. They provide
adapts its structure based on
clarity in roles and
feedback and environmental
responsibilities, which is ideal for
changes, emphasizing shared
stability and efficiency. However,
values and customer focus.
they may be slower to adapt to
6. Boundaryless
change. The functional
Organization:Removes traditional
structure suits companies
hierarchical and departmental
focused on depth of expertise in
boundaries to promote flexibility
specific areas, while the
and responsiveness.
divisional structure benefits
those with diverse product lines.
2. New Structures: New forms,
Characteristics of New Organizations such as network and virtual
organizations, emphasize
● Flatter, decentralized structures. flexibility, innovation, and
● Emphasis on capability, inter-organizational collaboration.
adaptability, team orientation, and They thrive in dynamic industries
employee involvement. by utilizing resources and
● Highly responsive to external expertise across various entities.
changes. These structures prioritize
adaptability and are often organic
and decentralized, promoting
employee autonomy and
Problems with New Forms innovation.
3. Hybrid Structures: Combining
● Coordination challenges.
aspects of both traditional and
● Difficulties in maintaining control.
new forms, hybrid organizations
● High reliance on trust and
can meet unique demands by
managing external
blending stability with flexibility.
dependencies.
Large corporations may adopt
hybrid structures to balance
efficiency in core functions with
 agility in specialized projects or 2. Systems Resource Approach
geographic regions.
● Focus: Acquiring resources.
● Meaning: This approach
measures effectiveness based on
how well an organization can
secure necessary resources, like
money, skilled employees, or
technology, from its environment.
Chapter 8 : Organizational
● Examples: A university's
Effectiveness (OE)
effectiveness might be seen in its
Organizational effectiveness (OE) refers ability to attract funding and
to how well an organization achieves its high-quality students.
goals, adapts to its environment, and ● Limitations: It doesn’t directly
meets the needs of its stakeholders (like measure outcomes, just inputs.
employees, customers, and society). Having resources doesn’t
There isn’t a single way to measure OE; guarantee effective use of them.
instead, there are various approaches.
Here, we’ll look at nine major
approaches.
3. Internal Process Approach

● Focus: Internal efficiency.

● Meaning: Effectiveness is judged
1. Goal Approach
by smooth internal operations,
● Focus: Achieving goals. like efficient workflows and
● Meaning: Effectiveness is employee morale.
measured by how well an ● Examples: A well-coordinated
organization meets its objectives. team or efficient communication
● Examples: A business might set within a department shows
a sales target or a hospital might effectiveness.
aim to improve patient recovery ● Limitations: Focusing only on
rates. If these goals are met, the internal processes might ignore
organization is considered customer satisfaction or market
effective. competition.
● Limitations: Organizations have
many goals, some of which can
change, making this approach
4. Behavioral Approach
limited in certain cases.
● Focus: Participant satisfaction.
 ● Meaning: Measures effectiveness ● Focus: Fairness and participant
based on how satisfied and welfare.
motivated employees are, as well ● Meaning: This approach,
as the strength of their developed by M. Keely, sees
commitment to the organization. organizations as entities that
● Examples: High job satisfaction, should benefit society, focusing
strong teamwork, and low on meeting the needs of all
turnover indicate effectiveness. participants fairly.
● Limitations: This approach mainly ● Examples: An effective
looks at employee needs but organization ensures fair
might overlook other important treatment for employees and
goals, like profitability or avoids negative impacts on
customer service. stakeholders.
● Key Measure: Minimizing regret
and dissatisfaction among
participants.
5. Natural Systems Approach ● Limitations: Hard to satisfy
everyone equally, especially
● Focus: Survival and adaptability.
when conflicting interests are
● Meaning: Here, the focus is on an
involved.
organization’s ability to survive,
adapt, and self-maintain over
time, even if specific goals aren’t
met. 7. Competing Values Approach
● Examples: A company adapting
its strategy in response to a Focus: Balancing diverse values.
recession, or a non-profit
continuing its work despite Meaning: Developed by Cameron and
funding cuts. Quinn, this approach combines different
● Key Measures: Adaptability, performance criteria based on
employee morale, and survival. competing values, like:
● Limitations: Long-term survival
● Internal vs. External Focus (e.g.,
doesn’t always mean the
employee well-being vs.
organization is achieving its
customer satisfaction)
purpose or satisfying all
● Flexibility vs. Stability (e.g.,
stakeholders.
adaptability vs. consistency)
● Process vs. Outcome (e.g.,
planning vs. achieving goals)
6. Social Justice Approach
Examples: A flexible, innovative
company is effective in a changing
market, while a stable company is ● Meaning: Measures effectiveness
effective in a predictable environment. based on how well the
organization meets the needs
Limitations: Can be complex to balance and expectations of its
all competing values effectively. stakeholders (e.g., owners,
employees, customers, suppliers,
and the community).
● Examples: A company satisfying
8. Life Cycle Approach
customers with quality products,
Focus: Organizational stage. ensuring job security for
employees, and making profits
Meaning: Effectiveness is measured for shareholders.
based on the organization’s life cycle ● Key Measures: Satisfaction levels
stage: of key stakeholder groups.
● Limitations: It’s hard to satisfy all
● Entrepreneurial stage: Start-up, stakeholders at the same time,
focus on growth and resource especially when their interests
acquisition. conflict.
● Collectivity stage: Building
teamwork and employee
satisfaction.
● Formalization stage: Stability, Key Takeaways:Each approach has
efficiency, and productivity. strengths and limitations:
● Elaboration stage: Adapting to
market changes. ● Some focus on internal
● Decline stage: Trying to innovate operations (e.g., internal process
or find new resources to survive. approach), while others consider
external environment (e.g.,
Key Measures: Growth, stability, systems resource approach).
flexibility, depending on the stage. ● Some prioritize employee
satisfaction (e.g., behavioral
Limitations: Effectiveness criteria approach), while others focus on
change as the organization evolves, long-term survival (e.g., natural
making this approach complex. systems approach).
● Some measure effectiveness
based on values and ethics (e.g.,
social justice approach), while
9. Stakeholder Approach (Strategic
others focus on meeting diverse
Constituencies Model)
stakeholder needs (e.g.,
● Focus: Satisfying stakeholders. stakeholder approach).
Answers to Questions and Activities: Activity 2: Questions and Their Answers

Activity 1: Measures in Stakeholder 1. What are the diverse measures

Approach of OE available for
organizations?
For each stakeholder in the
organization, here’s how effectiveness Organizations can measure
can be measured: effectiveness through multiple
approaches:
1. Owners: Return on investment,
profitability, and growth in equity Goal Approach: Achievement of specific
value. objectives.
2. Employees: Job satisfaction,
work-life balance, opportunities Systems Resource Approach: Ability to
for advancement, and job acquire and maintain necessary
security. resources.
3. Customers: Product/service
Internal Process Approach: Efficiency of
quality, customer satisfaction,
internal processes.
value for money, and brand
loyalty. Behavioral Approach: Satisfaction and
4. Creditors: Financial stability, commitment of employees.
ability to repay debts on time, and
creditworthiness. Natural Systems Approach: Adaptability,
5. Community: Corporate social self-maintenance, and survival.
responsibility (CSR)
contributions, environmental Social Justice Approach: Fair treatment
impact, and community support of all stakeholders.
initiatives.
Competing Values Approach: Balancing
6. Suppliers: Reliable payments,
internal vs. external focus, stability vs.
long-term partnerships, and fair
flexibility, and means vs. ends.
contract terms.
7. Government: Compliance with Life Cycle Approach: Based on the
laws and regulations, tax organization’s stage in its life cycle.
contributions, and support for
local employment. Stakeholder Approach: Satisfaction of
8. Management: Achieving various stakeholder groups.
organizational goals, operational
efficiency, and a motivated, 2. How could each approach to OE
skilled workforce. differ from another?

Each approach emphasizes different

aspects of effectiveness.
The Goal Approach focuses solely on Competing Values Approach: Balances
achieving objectives, while the Systems multiple aspects but can be complex
Resource Approach is about obtaining and hard to manage.
resources.
Life Cycle Approach: Matches
The Internal Process Approach looks effectiveness to the organization’s
inward at operations, while the maturity level but may be hard to
Stakeholder Approach considers the implement for dynamic industries.
satisfaction of external groups.
Stakeholder Approach: Aims to satisfy
Social Justice Approach prioritizes multiple stakeholders but may face
fairness and ethical concerns, unlike the conflicts between stakeholder interests.
Competing Values Approach, which
balances multiple values like flexibility, 4. How will achieving these goals
stability, and competition. help the organization to become
more effective?
3. What are the strengths and
limitations of each approach? Achieving these goals can improve
organizational effectiveness by:
Goal Approach: Clear and focused but
can overlook adaptability and Goal Approach: Ensuring the
satisfaction of stakeholders. organization meets its primary purpose.

Systems Resource Approach: Highlights Systems Resource Approach: Securing

the importance of resource acquisition necessary resources for continuity and
but doesn’t measure actual outcomes. growth.

Internal Process Approach: Improves Internal Process Approach: Enhancing

internal efficiency but may ignore internal efficiency, reducing waste, and
external changes and customer needs. improving workflow.

Behavioral Approach: Improves Behavioral Approach: Building a

employee morale and satisfaction but motivated workforce, leading to higher
may neglect other business goals. productivity and retention.

Natural Systems Approach: Focuses on Natural Systems Approach: Ensuring

survival but may downplay immediate long-term survival and adaptability to
goals. changes.

Social Justice Approach: Ethical and Social Justice Approach: Building a fair
inclusive but challenging to meet all and ethical work environment, leading to
stakeholder needs equally. better public perception and employee
satisfaction.
Competing Values Approach: Balancing Competing Values Approach
competing needs and adapting to both (balancing service quality and
internal and external demands. profit).

Life Cycle Approach: Allowing the 4. Plantations -

organization to set relevant goals based
on its maturity level, thus focusing on Life Cycle Approach (stages from
suitable outcomes. growth to harvest) and
Stakeholder Approach
Stakeholder Approach: Meeting diverse (community, employees,
stakeholder needs, which builds trust, customers).
loyalty, and support for the organization.
5. Universities -
Activity 3: Applying OE Approaches to
Different Organizations Systems Resource Approach
(funding and faculty), Stakeholder
For each type of organization below, Approach (students, faculty,
identify which approach may best employers), and Life Cycle
measure OE: Approach (growth, adaptation,
and maturity).
1. Hospitals -
6. Schools -
Internal Process Approach for
efficient patient care; Stakeholder Goal Approach (educational
Approach to satisfy patients, outcomes) and Stakeholder
employees, and regulatory Approach (students, parents,
bodies. teachers, community).

2. Police Departments - 7. Airlines -

Goal Approach (crime reduction), Systems Resource Approach

Stakeholder Approach (public (fuel, planes, staff), Stakeholder
trust), and Social Justice Approach (passengers,
Approach (fair treatment of all regulators, employees), and
communities). Competing Values Approach
(safety vs. profitability).
3. Hotels/Restaurants/Fast Food
Chains - 8. Mobile Telecommunication
Organizations -
Goal Approach (customer
satisfaction), Stakeholder Goal Approach (customer base
Approach (customers, growth), Stakeholder Approach
employees, suppliers), and (customers, investors,
 government), and Competing Competing Values Approach
Values Approach (service (balancing flexibility and stability).
innovation vs. stability).
14. Automobile Manufacturers -
9. Media Organizations -
Systems Resource Approach
Stakeholder Approach (audience, (supply chain), Internal Process
advertisers, regulators) and Approach (production efficiency),
Competing Values Approach and Stakeholder Approach
(balancing sensationalism vs. (customers, suppliers).
credibility).
15. E-business Organizations -
10. Retail Supermarkets -
Goal Approach (market share
Stakeholder Approach growth), Stakeholder Approach
(customers, suppliers, (customers, employees), and
employees) and Internal Process Competing Values Approach
Approach (supply chain (innovation vs. customer service).
efficiency).

11. Financial Organizations/Banks -

Goal Approach (profitability),

Stakeholder Approach
(customers, investors,
regulators), and Internal Process
Approach (risk management).

12. Manufacturing Organizations

(e.g., garments, food, beverages) Chapter 9 & 10 : Interpretive
Perspective of Organization Theory
Internal Process Approach
(production efficiency), The interpretive perspective in
Stakeholder Approach organization theory focuses on
(customers, employees, understanding the subjective and
suppliers), and Goal Approach contextual meanings within
(profit and growth). organizations. It emphasizes the role of
human interaction, symbolism, and
13. IT Firms/Software Manufacturers social constructs in defining
organizational reality. This approach is
Goal Approach (innovation),
distinct from the modern perspective,
Systems Resource Approach
which treats organizations as
(talent acquisition), and
measurable, objective entities. Instead, they are specific to the particular context
interpretivism regards organizations as in which they were produced.
"webs of meaning" that are jointly
created, appreciated, and ● Organizations as Communities:
communicated through social This perspective treats
interaction. organizations as communities
sustained by human
relationships, rather than
objective entities.
Key Distinctions: Modernism vs. ● Focus on Human Interaction:
Symbolic Interpretivism vs. Symbolic interpretive theorists
Postmodernism are interested in how people
within organizations interpret
1. Modernism: Treats organizations
symbols, rituals, actions, and
as objects that can be measured,
stories.
studied, and controlled.
● Cultural Contexts and
2. Symbolic Interpretivism:
Subcultures: Different
Focuses on subjective meanings,
individuals and groups
emotions, and experiences that
(subcultures) within an
are unique to specific contexts.
organization produce varied
Interpretive theorists study how
meanings and interpret these
people within organizations
meanings within their unique
create and understand meanings
cultural contexts.
through symbols, stories, rituals,
and interactions.
3. Postmodernism: Challenges the
traditional structures of power Interpretivism and Social Construction
and encourages critical analysis
of established truths, highlighting Interpretive scholars argue that the
diversity, contradictions, and social world cannot be understood in the
multiple perspectives. same way as the natural or physical
worlds. Humans make meaning, which
means that understanding people in
social situations requires looking at how
Symbolic Interpretivism Explained they develop, express, and
communicate meaning.
Symbolic interpretivism extends
empirical reality to include emotions and Key Concept: Social Construction of
intuition, focusing on meaning-making in Reality
specific contexts. The findings under
this perspective are not generalizable as ● Peter Berger and Thomas
Luckmann (1966): Proposed that
 the social world is constructed by Application Example: Convocation at the
our interpretations of objects, University of Colombo (UOC)
words, actions, and events,
communicated through symbols. For example, the convocation ceremony
For them, symbolism—not at UOC is interpreted differently by
structure—maintains social order. various stakeholders. For students, it
may symbolize achievement and a
Everyday Constructivist Thinking milestone, while for faculty, it may signify
(Schwandt, 1994) the success of their educational mission.
Each interpretation adds to the
● Constructivism: Believes that collective meaning of the event.
knowledge is actively
constructed, not passively
observed. It asserts that
individuals create concepts, Organizational Environment from the
models, and interpretations to Symbolic Perspective
make sense of their experiences,
continually revising these The environment is viewed as a social
constructions with new construction shaped by the interactions,
experiences. symbols, and meanings created within
and outside the organization.

● Spa Ceylon Example: Spa

Symbolic Interactionism Ceylon initially used black
packaging, but when sales
Symbolic interactionism is central to declined in Malaysia and China,
interpretive theory. It suggests that they discovered that black was
individuals use language and symbols in viewed as inauspicious in these
communication, and that: cultures. This example shows
how organizations must interpret
1. Individuals Act Based on and adapt to cultural contexts to
Meanings: People act according be successful.
to the meanings they assign to
objects, people, and situations.
2. Social Context Shapes
Interaction: Meanings emerge Organizational Structure from an
from interactions within particular Interpretive Perspective
social and cultural contexts.
3. Meaning Creation and In contrast to modernists who see
Recreation: Meanings are structures as rigid entities, symbolic
continuously developed and theorists view organizational structures
revised through social interaction. as dynamic and shaped through social
interactions and collective organizations interpret symbols, rituals,
meaning-making. Structures evolve actions, and interactions to create a
through routines and improvisations shared understanding.
rather than remaining static.
2. How is the interpretive
perspective different from the
modern perspective?
Organizational Culture and Symbolic
Interaction The interpretive perspective differs from
the modern perspective in that it
In the interpretive approach, culture is emphasizes the subjective, human side
understood through the subjective of organizations rather than treating
meanings attributed by organizational them as measurable objects.
members. Modernism focuses on quantifiable,
observable facts and objective
Thick Description: This method measurements, while the interpretive
involves detailed observation and approach values the meanings and
description to understand the symbolic experiences that individuals and groups
meanings within cultural practices, such create through their interactions. The
as distinguishing between a wink interpretive approach considers
(symbolic behavior) and a twitch organizations as "webs of meaning"
(non-symbolic behavior). jointly created by their members,
whereas modernism views them as
entities that can be analyzed
Question & Answer Section scientifically.

1. What is the interpretive 3. How can the interpretive

perspective in organization perspective be used to explore
theory? organizational phenomena?

The interpretive perspective in The interpretive perspective can be

organization theory focuses on the used to explore how individuals and
subjective meanings and experiences groups within an organization assign
within organizations. Unlike the meanings to their actions, interactions,
modernist perspective, which treats and symbols. For example, by observing
organizations as objective entities that rituals, stories, and cultural artifacts, we
can be measured, the interpretive can understand the values, beliefs, and
perspective views organizations as norms that shape organizational
communities made up of human behavior. This perspective also helps us
relationships and meaning-making analyze how different groups or
processes. It looks at how people within subcultures within an organization
create multiple interpretations of the interactions to create meaning. In the
same event, thus revealing a richer and interpretive perspective, symbolic
more nuanced understanding of interactionism explains how meanings
organizational life. emerge from social interactions within
specific cultural contexts. According to
4. Reflective Question: Drawing this theory, individuals act based on the
on your experience as a meanings they assign to objects,
university student, explain how people, and situations. These meanings
people create meanings are continuously created and recreated
through their interpretations of through interactions. This aligns with the
stories, rituals, symbols, interpretive perspective's focus on
actions, and interactions. subjective meaning-making within
organizations.
As a university student, one example of
meaning-making can be found in the 6. Reflective Question: How can
ritual of a convocation ceremony. For we analyze the culture of
graduating students, the convocation Facebook interpretively?
represents an achievement, a milestone
that marks the completion of their To analyze Facebook's culture
academic journey. For parents and interpretively, we would focus on the
families, it symbolizes pride in their meanings that employees and
loved ones' accomplishments. Faculty stakeholders assign to symbols, rituals,
and staff may see it as the culmination and interactions within the company. For
of their educational mission. Each of instance, we could look at how the
these groups assigns a unique "move fast and break things" philosophy
interpretation to the convocation, shapes the company's identity and
reflecting the different roles and influences employees' approaches to
emotions they bring to the ceremony. innovation and risk-taking. Observing
These multiple interpretations blend to Facebook's internal rituals, stories about
create a shared yet varied its founding, or how employees view
understanding of what the convocation workplace flexibility would provide
means to the university community. insight into the shared values and
assumptions that define its culture.
5. What is symbolic
interactionism, and how does it 7. Reflective Question: How can
relate to the interpretive we analyze the culture of the
perspective? University of Colombo
interpretively?
Symbolic interactionism is a theory that
focuses on how individuals use Analyzing the University of Colombo's
language and symbols in their social culture interpretively would involve
looking at the rituals, symbols, and 9. Describe how interpretive
shared experiences of students, faculty, organizational theorists view
and staff. For example, we might organizational structure.
examine how convocation ceremonies
or graduation attire symbolize Answer: Interpretive organizational
achievement and honor, or how specific theorists see organizational structures
buildings on campus represent as dynamic constructs shaped by
academic excellence or tradition. By human interactions and collective
understanding the stories, ceremonies, meaning-making. Structures are not
and day-to-day interactions that shape static but can be adapted, reshaped,
the campus environment, we can gain and recreated through routines, roles,
insight into the university’s cultural and social interactions. Unlike
identity and the meanings that members modernists, who view structure as a
of the community attach to their fixed entity, interpretivists see it as fluid,
experiences. constantly evolving based on the
experiences and interpretations of
8. Explain how organizations organizational members.
adapt to their institutional
context according to the 10. How do interpretive
interpretive perspective. organizational theorists
analyze culture?
From an interpretive perspective,
organizations adapt to their institutional Answer: Interpretive theorists analyze
context by interpreting and responding culture by examining the subjective
to cultural and social expectations within meanings that organizational members
their environment. For instance, an attach to symbols, artifacts, rituals, and
organization may change its practices stories within their unique contexts.
based on societal norms or consumer They use methods like thick description
preferences to remain relevant. The to observe these cultural elements in
interpretive perspective sees these their natural settings, allowing them to
adaptations as arising from shared capture the deeper, symbolic meanings
beliefs and symbols that shape an behind behaviors. For example, the
organization’s identity. For example, Spa difference between a wink (symbolic)
Ceylon adapted its packaging when it and a twitch (non-symbolic) shows how
discovered that black was an interpretive theorists look beneath
inauspicious color in certain Asian surface behaviors to understand the
markets, showing sensitivity to cultural cultural significance of actions.
beliefs.
Chapter 11 : Introduction to Power, Personal Characteristics: Charisma and
Control, and Conflict in Organizations personality traits.

● Critical Perspective: Expertise: Knowledge or skills that

others need.
For critical theorists, organizations are
spaces where domination and control Coercion: The ability to use fear or
occur as one group asserts influence threats.
over another.
Control of Resources: Access to
Unlike modern or symbolic-interpretive materials or information.
perspectives, critical theorists focus on
how organizations reflect broader Normative Sanctions: Cultural
societal power dynamics. expectations and informal rules.

This perspective seeks opportunities for Opportunity: Access to influential people

emancipation and freedom for or networks.
marginalized and oppressed individuals
within the organizational context.
Power Relationships in Organizations

● Domination and Privilege:

Understanding Power in
Organizations Power relationships can lead to patterns
of domination, favoring certain identity
● Definition of Power:
groups (e.g., gender, race, age, sexual
Robert Dahl (1957) defines power as orientation).
the ability of one party, "A," to get
In Western societies, age may be a
another party, "B," to do something that
negative characteristic, while in Eastern
"B" would not otherwise do.
cultures it is often positive.
● Key Aspects of Power:
● Power Imbalances:
Relational Nature: Power exists in
Privileged groups secure higher-status
relationships between actors and does
roles, while marginalized groups are
not reside within individuals.
often relegated to lower-status positions.
Forms of Power:
This dynamic reinforces societal power
Formal Authority: Official power imbalances within organizational
associated with one’s role. settings.
What is Control? Steven Lukes' Three Faces of Power

Control is closely linked to power and 1. Decision-Making Involves open

often serves as its expression. forums where all parties fully
participate in decision-making.
Examples of Control: 2. Non-Decision-Making: Occurs
when powerful individuals or
● Coercion: Using threats or force.
groups limit the participation of
● Reward Power: Exercising
others by controlling agendas
control over material resources
and discussions.
valued by others.
3. Shaping Preferences and
Purpose: Control mechanisms help Perceptions (Hegemony):
certain groups maintain power, directing Involves influencing less powerful
others to sustain organizational and groups to act against their own
societal hierarchies. interests through social practices
and internalized beliefs.

Critical Studies on Power and

Conflict Organizational Politics

● Modernist vs. Critical Definition:Organizational politics involve

Perspectives: activities within organizations aimed at
acquiring, developing, and using power
Modernist scholars focus on power to achieve specific outcomes.
distribution and effective usage within
politics and control contexts. Political Behavior:Motivated by the
uncertainty and competing interests that
Critical and postmodern scholars exist within organizational environments.
explore how power relations are
embedded in culture, knowledge, and Examples of Political Behaviors:
ideology.
● Informal Influence: Control not
● Goals of Critical Scholars: officially sanctioned.
● Selective Information Sharing:
Seek to establish ethical, inclusive Withholding or shaping
decision-making. information.
● Ingratiation: Using flattery to gain
Challenge elite-centric ideals often favor.
valued by modernists. ● Associating with Influential
Individuals: Leveraging powerful
connections.
 ● Covert Manipulation:
Behind-the-scenes maneuvering.
● Forming Coalitions and Summary of Critical Perspectives on
In-Groups: Building supportive Power and Conflict
networks.
Power as a Mechanism of
Domination:Critical theorists see power
as a means for domination, often
Confronting Power perpetuating social, economic, and
class inequalities.
● Gramsci's Theory of Hegemony:
Organizations as Networks of Power
To alter hegemonic power relationships, Relations:Organizations, in this
one must understand how these perspective, reflect broader societal and
relationships are upheld through historical power dynamics.
structures and practices.
Critical theorists advocate uncovering
● Acts of Resistance: and addressing material inequalities
within organizational contexts.
Resistance does not always require
open rebellion; it may take subtle forms
like reduced effort, passive withdrawal,
or sharing stories of injustice.

Through these means, oppressed

groups can resist dominant structures.
Reflective Questions

1. How do critical organizational

theorists view organizations?

Critical theorists see organizations as

environments where power dynamics
mirror societal structures. For example,
in a large corporation, management may
exercise control over employees
through hierarchical authority and
structured incentives, which reflect
broader societal power hierarchies.

2. Critique the statement

"Organizations are neutral
spaces where individuals work
to achieve collective
organizational objectives" from
a critical perspective.

From a critical perspective,

organizations are not neutral; they
reflect societal inequalities and power
struggles. For instance, within many
organizations, those in managerial
roles—often from privileged
backgrounds—make decisions that
benefit their status, while lower-level
employees are expected to comply,
reflecting broader societal inequalities.
Critical theorists argue that
organizations perpetuate the dominance
of elite groups rather than serving
merely as neutral entities for collective
achievement.