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MEM 643- Organizational Development and Leadership Effectiveness

By: Dr. Severino A. Espiritu





To discuss the birth and development of organizations; To explain the non-theoretical influences on organizational thought and; To describe the school reform movement.

Organizational Thought and Theory

For most of our lives, we are member of one organization or other a college, a body politics, a sort team, a musical or theatrical group, a religious or socio-civic association, a branch of the armed forces or a business. These organizations are said to differ from one another in many ways. Some maybe organized formally-others may be more casually structured and some maybe rigidly organized. But regardless of how they differ, all these organizations have peculiar reasons for their existence and how they managed accordingly.

Franco (1988) defined organizations as a social groups of individuals deliberately created and maintain for the purpose of achieving special objectives. In management, the term organizations is also used to refer to the process of determining the activities necessary to achieve the objective most economically structuring the relationship among the roles thus creating and ensuring the effective operation of the total system.

Classical Organization Theory

Henri Fayol (1841-1925)

He outlined the series of Principles of Management by which an organization might be effectively controlled.

14 Principles of Management By Henry Fayol (1841-1925)

Division of Work

Fayol saw specialization as a natural human process, seen in every society. If work is divided according to skills and technical expertise, each item of work can be given to the employee most able to deal with it.

Authority and Responsibility

Fayol defined authority as the right to give orders and the power to exact obedience. He emphasized the importance of linking authority to responsibility, which together required increasing judgment and morality at senior levels.


It is defined as obedience, application, energy, behavior and outward marks of respect. Fayol regarded discipline as essential for the smooth running of business without which an enterprise is unable to prosper.

Unity of Command

For any action whatsoever, an employee should receive orders from one superior only.

Unity of Direction

one head and one plan for a group having the same objective.

Subordination of individual interests to the general interest.

There should be no conflict of interest between individual ambition and the wellbeing of the organization as a whole.

Remuneration of personnel

Fayol looked for some basic principles in the method of payment:


shall assure fair remuneration; It shall encourage keenness by rewarding well-directed effort; It shall not lead to over-payment going beyond reasonable limits.


Part of the natural order

Scalar chain (line of Authority)

Hierarchic organizations regularly insisted that department communicated with each other through their heads.


A place for everyone and everyone in his place


In order to obtain commitment from employees, they must be treated equally and fairly.

Stability of tenure of personnel

A matter of proportion, but employees need a period of stability in a job to deliver of their best.


Being allowed to think through a problem and implement a solution is a rewarding experience which increases motivation.

Esprit de corps

Dividing enemy forces to weaken them is clever, but dividing ones own team is a grave sin against the business

Historical Background of Organizational Behavior

Certainly large numbers of people have been doing work for a long time. Pyramids and many other huge monuments and structures were built, armies and governments were organized. Civilizations spread over vast territories. This took organization and management.

Scientific Management
Frederick Winslow Taylor (1856-1915)

One of the first to attempt to systematically analyze human behavior at work. His model was the machine with its cheap, interchangeable parts, each of which does one specific function. This involved breaking down each task to its smallest unit and to figure out the one best way to do each job. The overall goal was to remove human variability.

The Human Relations Movement

Despite the economic progress brought about in part by Scientific Management, critics where calling attention to the seamy side of the progress, which include severe labor/management conflict apathy, boredom, and wasted human resources.

Elton Mayo (1880-1949)

One of the primary critics of the time. He is known as the founder of the Human Relation Movement. He claimed that this alienation stemmed from the breakdown of the social structures caused by industrialization, the factory system, and its related outcomes like growing urbanization. Known for his research including the Hawthorne Studies.

The Western Electric (Hawthorne Works) Studies 1923-1933, Cicero Ill.

It is the most famous studies of Elton Mayo. These studies, conducted in the 1920s started as a straightforward attempt to determine the relationship between work environment and productivity. It showed how work groups provide mutual support and effective resistance to management schemes to increase output.

Neoclassical Organization Theory

Displayed genuine concern for human needs. The most serious objections to classical theory are that it created over conformity and rigidity, thus squelching creativity, individual growth, and motivation. Taylor, Weber, Barnard, Roethlisberger, and Simon share the belief that the goal of management was to maintain equilibrium.

Contingency Theory

Contingency theorists view conflict as inescapable, but manageable.

Alfred Chandler (1962)

Studied four large United States corporations and proposed that an organization would naturally evolve to meet the needs of its strategythat form follows function.

System Theory

The foundation of system theory is that all the components of an organization are interrelated, and that changing one variable might impact many others.

Ludwig von Bertalanffy

Hungarian Biologists Originally proposed the system theory in 1982, although it has not been applied to organization until recently.

Organizational Structure

Until recently, nearly all organization followed Webers concept of Bureaucratic Structure. The increase complexity of multinational organizations created a necessity of the new structure that Drucker called (1974) federal decentralization In Federal Decentralization Each unit has its own management which, in effect, runs its own autonomous business.

Systems Theory views organizational structure as the established pattern of relationships among the parts of the organization

These includes themes of:

1. 2. 3. 4.

Integration Differentiation The structure of hierarchical relationships The formalized policies, procedures and controls that guides the organization.

Organizational and Birth and Growth

Cameron and Whetten (1983)

Reviewed 30 life cycle models from the organizational development literature. They summarized the studies into an aggregate model containing four stages .
Entrepreneurial Collectivity Formalization Elaboration

and Control

Education Reform

Classical Times

It is most concern with answering the who, what, when, where, and how. Questions that concern a majority of students. Classical Education in this period also deprecated local languages and culture in favor of ancient languages and their cultures.

Reforms of the Civil Rights era in the United States

From the 1950s to 1970s, many of the proposed and implemented reforms in the US education stemmed from the Civil Rights movements and related trends.

Reform in the 1980s

In the 1980s, some of the momentum of education reform moved from the left to the right, with the release of A Nation at Risk, Ronald Regans effort to reduce or eliminate the United States Department of Education.

Reform in the 1990s

Most states and districts in the 1990s adopted Outcomes Based education from or another. A state would create a committee to adopt standards, and performance based assessment to assess learning outcomes which might look somewhat like a content based test, or something that parents might violently reject with very little recognizably academic content.

In this study, the group concluded that organizational concept in an old as time itself. During the olden days, organization can be seen from the old products of mans work. As times goes by, great developments have evolved. Taylor developed his so-called scientific management Fayol come next and focused his attention on the manager. With Taylor and Fayol, the world was said and become an organizational society Weber then came after whit his ideas about bureaucracy.

After the studies of under human relations movement, a systematic technique for analyzing the pattern of interaction between the members of the group was developed. However the group found out that traditional organizational theory collapsed. The problem confronting educational administration is the focus. The group finally conclude that the different theories, which are products of researches may really bring out effective schools if the theories will be applied with correct attitudes and values incurred with consistency.

The End