Assignment 1: Organizational Theory

By
Franco Suarez
BMGT 394
Prof. Green

Introduction
Recycled Furnishings, a division of international company, Thor Enterprises is a leader in
its class. Recycled Furnishing specializes in making glass sofas for outdoor use from recycled
bottles and glass. Their furniture are artistically designed, useful and affordable, and its materials
are environmentally friendly. At the forefront of this company is Robert, the shipping manager
who has been with the company since it opened its doors thirty years ago. Robert has been a
successful leader who has brought value to Recycled Furnishings by contributing and changing
his management styles to best manage the shipping division. Reflecting the Classical School of
Thought, Robert first contributed by improving the methodology of furniture assembly as well as
the shipping processes. Later, in the 1980s and early 1990s, shifting his management style to one
that focused more on organizational culture, Robert adjusted to changes in technology, the
organization joining a union, change in value systems, organizational design and globalization,
which directly impacted the culture of Recycled Furnishings. After thirty years of excellent
service, Robert is ready to retire and Franco has been hired to be his replacement. Franco
describes himself as a 21st century manager who wants to turn the firm into a learning
organization, decentralize leadership, empower employees and build constructive relationships
with all members. Franco steps in at a time when the company plans to go international and
become a world leader in its class.

Part I: Initial School of Thought

Robert, the Shipping Manager of Recycled Furnishings subscribed to the Classical
Organizational Theory School of Thought when he first arrived at the company. This school of
thought developed the first theory of management, and its main focus was on structure or design
and production processes. Under this school of thought, the best theorist that depicts Roberts
management style is Frederick Taylor, who was known as The Father of Scientific
Management, and focused on figuring out the one best way to complete any task, eliminating
any waste of time and resources in the process. Proceeds from increased productivity would be
shared among management and workers (Sidorick, 2016). The Scientific Management theory
removed autonomy from expert craftsman for how to complete a task and transferred it to
management who was responsible for coming up with the process (Sidorick, 2016).
Frederick Taylors contributions to the field of management were important because they
highlighted the need to eliminate waste, reduce costs and increase worker productivity by finding
the most efficient way to complete a task. His ideas were particularly important during the Great
Depression because of the need to cut costs (Sidorick, 2016). Frederick Taylors theory speaks
directly to what Robert did at Damco where he optimized the way tasks were performed and
implemented processes so workers could be trained to perform their specialized sequence of
motion in one best way.
The Shift in School of Thought
In the late 1980s and early 1990s, Robert shifted to the Reform through Changes of
Organizational Culture School of thought due to advances in technology, the organization joining
a union, change in value systems, organizational design and globalization, which impacted the

culture at Recycled Furnishings. The central idea behind this school of thought was changing a
companys culture to increase productivity to compete globally. Under this school of thought, a
theorist that depicts Roberts new style of management is William Ouchi, who introduced Theory
Z, which combined the best of Japanese and American management theories of the time (Barnett,
2016). Given the changes in value systems, organizational design and the organization join a
union, Theory Z management style was the best for Robert. At that time in the company, he
needed to appeal to the new employee values of job satisfaction, commitment and motivation.
He did so by encouraging consensual decision making, slow evaluation and promotion
procedures, informal control with formalized measures and individual responsibility within the
context of a group. All of these measures created a greater commitment from employees to stay
with the company.
Compare & Contrast Initial and New Schools of Thought
The Classical Organizational school of thought and the Reform through Changes in
Organizational Culture school of Thought are different in many ways. The classical school
focused on processes and tasks, whereas the Reform through Changes School focused more on
people and business culture. Under the classical, people were seen as part of an assembly line,
not as humans. They were timed and instructed on how to complete a task without any regards
to the peoples expert knowledge, skill and sentiments. People who could not perform at the
scientific levels were let go (Sidorick, 2016). In the other hand, under the Reform through
Changes School of Thought, theories aim to create job satisfaction, commitment to the company
and motivation in employees. Workers experience consensual decision making (Barnett, 2016).
Also, unlike the Reform through Changes in Organizational Culture School of thought, where
continual improvement of a process was the norm, the Classical Organizational school of thought

concerned itself with the one best way to complete a task. Once this process was discovered,
there was no room for changing or improving it. Finally, under the Classical Organizational
School, workers limited to their specialization, whereas with the Reform through Changes
School, workers tasks and career paths were more flexible (Barnett, 2016).
Part II: 21st Century Manager Comparison
Describing himself as a 21st century manager, Franco will bring a new and different management
style than Robert. Unlike Roberts management style, Franco will have more formal control and
measures to review employee performance using the Management by Objectives method by
Peter Drucker (2013, November). In addition, Franco will focus on innovating current products
and processes to compete in a global scale, using the same management style as Peter Ducker
(2013, November). Robert, in the other hand, focused on competing nationally and establishing
a good business culture. Unlike Robert, Franco will work with upper management on revising
the companys mission and vision statement to reflect the international expansion and innovation
approach. Finally, Franco will decentralize management by allowing front line employees to
come to him with new ideas for change. In the other hand, Robert did not encourage this type of
interaction, although he did have consensual decision making.
Implications for Change Management for the Future of Thor
Francos approach to management by objectives means that he needs to build good relationships
with his employees so that they can agree to the objectives of the company and be willing to
accomplish them. Also, Francos willingness to innovate will require employees to come up with
new ideas for how to cut costs while maintaining a good corporate culture. Part of innovating

will include launching a strong digital marketing campaign to establish the company brand in the
new markets that will open internationally.
Change to the Shipping Department
Francos leadership will bring changes to the shipping department in many ways. Because of the
MBO method, Franco will have to monitor and evaluate the employees to see how well they are
keeping on track to their goals ( 2013,November). In addition, because the company is going
international, shipping operations will expand, meaning that employees in this division will have
to become familiar with foreign rules and regulations, international time zones, and fees. A new
computerized system will be required to track and deliver the goods around the world. Finally,
employees in the shipping division will have direct access to Franco because he will encourage
them to come up with ideas for innovation of goods and services.

References
Barnett, T. (2016, March 02). THEORY Z. Retrieved June 04, 2016, from
http://www.referenceforbusiness.com/management/Str-Ti/Theory-Z.html
Essays, UK. ( 2013,November). Peter Druckers Contribution To Management Management
Essay. Retrieved from https://www.ukessays.com/essays/management/peter-druckerscontribution-to-management-management-essay.php?cref=1
Sidorick, D. (2016, February 19). Encyclopedia of Greater Philadelphia. Retrieved June 04,
2016, from http://philadelphiaencyclopedia.org/archive/scientific-management/