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MBA 704 Exam 2 Notes Questions and Answers
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MBA 704 Exam 2 Notes Questions and Answers
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MBA 704 Exam 2 Notes Questions andAnswers
Historical Roots of Organizational Theory
o Chester Barnard
o Classical thinking on organization structure
o Formal Organization:
o Critical of the existing classical organization theory because it was too
descriptive and superficial.
o Maintained that authority really should come from the bottom up, rather than
the top-down bureaucratic approach
o Stressed the cooperative aspects of organizations
Formal Organizations
> system of consciously coordinated activities of two or more person
o People, not boxes on an organization chart make up a formal organization.
Who plays the most important role in the creation and perpetuation of formal
organizations?
Human beings
Developments of Organization Theory
1. View the Org as a system made up of interacting parts.
2. Analysis of orgs in terms of their ability to process information in order to
reduce the uncertainty in managerial decision making
3. Contingency Approach - there is no single best way to organize.
4. One of the modern theoretical approaches is a natural selection—or
,ecological—view of organizations.
5. Information Processing and Organizational Learning
Open-Systems Concept
- stresses the input of the external environment
- has had a tremendous impact on modern organization theory.
Learning Organization
- Represents contemporary org theory and is compatible with and is relevant to
the paradigm environment facing today's organizations.
Early Stages of Learning Organization
- Chris Argyris
- Made the distinction between first-order, or "single-loop," and second-order, or
dentero or "double-loop," learning.
Single-Loop Learning
- involves improving the organization's capacity to achieve known objectives.
- It is associated with routine and behavioral learning.
- the organization is learning without significant change in its basic assumptions.
Double-loop Learning
- reevaluates the nature of the organization's objectives and the values and
beliefs surrounding them.
- This type of learning involves changing the organization's culture.
- Consists of the organization's learning how to learn.
Peter Senge (Adaptive and Generative Learning)
- Portrayed the learning organization from a systems theory perspective and
made the important distinction between adaptive and generative learning.
Adaptive Learning
, - 1st stage of the learning organization, adapting to environmental changes
Banks, insurance firms, and old-line manufacturing companies made adaptive
changes:
o Total Quality Management
o Benchmarking (comparing with best practices)
o Lean Six Sigma (goal of virtually no defects in any process)
o Customer Service
o B2B initiatives
Generative Learning
· Involves creativity and innovation, going beyond just adapting to change of being
ahead of and anticipating change.
· The generative process leads to a total reframing of an org's experiences and
learning from that process.
3 Dimensions of Learning Organizations
-Presence of Tension
-Systems Thinking
-Culture Facilitating Learning
Presence of Tension
-This tension stems from the gap between the organization's vision and reality
and suggests the learning organization's continually questioning and challenging
the status quo.
· Senge calls it "creative tension"—serves as a catalyst or motivational need to
learn.
Systems Thinking
-recognizes the shared vision of employees throughout the whole organization
and the openness to new ideas and the external environment
Culture Facilitating Learning
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