INTRODUCTION TO ORGANIZATION AND EVOLUTION OF ORGANIZATION THEORY

ORGANIZATION - DEFINED

• Organization can be defined as a collective social unit deliberately created by a group of people to accomplish specific goals and purposes within loosely delineated boundary on continuing basis with enabling factors for sustained growth.

TYPES OF ORGANIZATION

• The types of Organization can be based on a number of factors such as function, purpose, primary beneficiary and the like

Type of organization1. Mutual benefit association2. Business organization3. Service organization4. Commonwealth organization

Primary beneficiary1. Members2. Owners3. Clients4. Public at large

NTPC – Vision, Mission, Core Values and Corporate Social Responsibility

Vision

“To be the world’s largest and best power producer, powering India’s growth.”

Mission

“Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society.”

Core Values – BE COMMITTED

B Business EthicsE Environmentally & Economically SustainableC Customer FocusO Organisational & Professional PrideM Mutual Respect & TrustM Motivating Self & othersI Innovation & SpeedT Total Quality for ExcellenceT Transparent & Respected OrganisationE EnterprisingD Devoted

NTPC – Vision, Mission, Core Values and Corporate social Responsibility

Corporate Citizenship

NTPC is fully committed to achieving high standards of corporate governance and developing mutual trust via expansive CSR initiatives.

Rehabilitation & ResettlementNTPC has been a committed and socially responsible corporate citizen since its inception and formulated specific guidelines for the welfare of Project

Empowering PeopleNTPC has marked 15-20% of its CSR-CD budget for education to individual stations

ITI AdoptionStudents of wiremen trade concentrating on practical at ITI Olpad Adopted by NTPC

Scholarship programme:35 SCHOLARSHIPS FOR SCHEDULED CASTE/ SCHEDULED TRIBE/ PHYSICALLY CHALLENGED ENGINEERING STUDENTS (SCHEME XXIII)

Sustainable Development PolicyWe at NTPC Limited, commit ourselves to generate and provide reliable

IMPORTANT CONCEPTS IN ORGANIZATION

• Departmentalization: The basis by which jobs in an Organization are grouped together.

• Chain of command: The unbroken line of authority that extends from the top of the Organization to the lowest level and clarifies who reports to whom.

• Unity of Command: The idea that a subordinate should have only one superior to whom he or she is directly responsible.

• Span of Control: The number of subordinates a manager can efficiently and effectively direct.

• Centralization: The degree to which decision making is concentrated at single point of an Organization.

• Formalization: The degree to which jobs with in Organization are standardized

Organizational Life cycle

Classical school Theory

1. Frederick Taylor and Scientific Management:- Frederick Winslow Taylor’s proposed four principles of

Scientific Management, that would result in significant increases in productivity.

1. The replacement of rule-of- thumb methods .2. The scientific selection and training of workers.3. The co-operation of management and labor to accomplish

work objectives.4. More equal division of responsibility between managers and

workers.

2.Henri fayol and Principles of Organization:He proposed fourteen principles ..1.Division of work2. Authority3. Discipline4. Unity of Command5. Unity of Direction6.Subordination of individual interests to the general interests7. Remuneration8. Centralization9. Scalar Chain10. Order11. Equity12. Stability of tenure of personnel13. Initiative14.Esprit de Corps

3. Max Weber and bureaucracy: He called this ideal structure bureaucracy. It was

characterized by division of labor, a clear authority hierarchy, formal selection procedures, detailed rules and regulations,

and impersonal relationships.

4. Ralph Davis and Rational Planning: Davis stated that the primary objective of a business firm is

economic service. Business can’t survive if it doesn’t provide economic value.

The rational planning perspective offered a simple and straightforward model for designing an organization.

Type 2 Theorists ( Social nature of organizations)

1. Elton mayo and the Hawthorne Studies:

2. Chester Barnard and Cooperative Systems: Merging the ideas of Taylor, Fayol, and Weber with the results

from the Hawthorne studies led to the conclusion that organizations are cooperative systems. so manager need to organize around the requirements of the tasks to be done and the needs of the people who will do them.

3.Douglas McGregor and Theory X- Theory Y

He concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mold his or her behavior toward

subordinates according to these assumptions.

4. Warren Bennis and the Death of Bureaucracy The strong humanistic theme of the Type 2 theorist

culminated with a eulogy to the passing of bureaucracy.

Type 3 Theorists• Herbert Simon and Principles Backlash:

He argued that organization theory needed to go beyond superficial and oversimplified principles to a study of the conditions under which competing principles were applicable.

• Katz and Kahn’s Environmental Perspective:

Daniel Katz and Robert Kahn’s book The Social Psychology Of Organization ,was a major impetus toward promoting the Type 3 open- systems perspective to organization theory.

• The case for Technology

James Thompson , have made an impressive case for the importance of technology in determining the appropriate structure for an organization.

• The Aston Group and Organization Size

In addition to advocates of environment and technology, the Type 3 theorists include those who advocate organization size as an important factor influencing structure.

Type 4 Theorists

• March and Simon's Cognitive Limits to rationality

They argued that most decision makers selected satisfactory alternatives-alternatives that were good enough.

• Pfeffer’s organizations as Political Arenas Jeffrey Pfeffer has built on March and Simon’s work to create

a model of organization theory that encompasses power coalitions, inherent conflict over goals and organizational–design decisions that favor the self-interest of those in power.

• The Changing Face of organizational Theory

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