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Organisational Theory

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The organization theory is a study of organizations with respect to number of disciplines such as Economics, Psychology, sociology, Systems theory etc. WEBER?S THEORY Alfred Weber was a German economist and sociologist and lived during the period of 1868to 1958. The organizational theory was found and influenced for the time line of the 19th century. According to his theory, the location of the firm/organization should be determined with attempts in order to minimize the costs. It means the productions of costs will be same in everywhere but the transportation costs will decide the choice of location of the firm.

The Weber theory continued to consider the defects effects on labor costs when least-cost location has been established. . He identified and explained the theory for which the industries with low material index would be pulled towards market whereas industries with high material index would be pulled towards raw material. TAYLOR?S THEORY Frederick Winslow Taylor known as ?father of scientific management?. He lived during the period of 1856-1915. Most of his life runs with the production sector. He worked as laborer for 8 years with Chief Engineer and performed exhaustive experiments on worker productivity named as TASK SYSTEM.

The task system thereafter developed as Taylor system and in turn converted as scientific management. His theory has clear meaning to which established division between management and employees. But nowadays such difference is not acceptable as the employees termed as assets the company. The Human resources of the company are also assets like other assets. The principles of scientific management are quite acceptable which are more suitable to enhance the skills of the employees. The scientific management system consists supervising employees, improving methods, providing incentives through piece rate system etc. In modern days mere providing financial incentives are not attractable and hence facilities of social security measures such as pensions, provident funds, and medical benefits have been established. FOLLETT?S THEORY Mary Parker Follet was one of the earliest person of behavioral movement during the period of 19th century. She mostly concentrated on work placed issues as she was social worker. She encourages increasing the problem solving ability among working groups.

Her assumption is that the power among them should be shared cooperatively to resolve the conflict. Consequently she has found method for conflict resolution with three choices like domination, compromise or voluntary submission. Her theory indicates creative conflict resolution. But in modern days, such conflict resolutions are not suitable. The government makes it mandatory to have conflict resolution committees to resolve the disputes among workers and management, yet many of the disputes are in before of the court steps. Of course the system established by her will be base to establish new methods to resolve the conflicts.

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