PA 5 0 3

ADMINISTRATION
O R G A N I Z AT I O N
CHRISTELLE MARIE ALIPIS
F R I T Z I E M A E TA N D OY
J O C E L V I L L A F LO R
Administration Organization

• Definition of Organization
• Nature & Development of
Organization
• Different Theories on Organization
• Trends on Organization
Development

PA 503
Administration Organization

What is
Organization?
According to Max Weber, An organization is a
structured group of individuals working together
to achieve common goals or objectives. This
structured group typically has a defined hierarchy,
roles, and responsibilities for its members.
Organizations can vary widely in size, scope,
purpose, and structure, encompassing everything
from small businesses and non-profit groups to
multinational corporations and government
agencies.

PA 503
Nature & Development of Organization
• Formation: Organizations emerge in response to a need or opportunity, with founders conceptualizing a
vision and assembling resources to establish the entity. This stage involves defining goals, acquiring
funding, and establishing initial structures.
• Growth: Successful organizations experience periods of growth characterized by expanding operations,
increasing revenues, and enlarging their workforce. Growth may involve market expansion, product
diversification, or geographic reach.
• Maturity: Mature organizations stabilize their operations, refine processes, and solidify their market
position. They focus on optimizing efficiency, managing risk, and sustaining competitive advantage. This
phase may include strategic alliances, mergers, or acquisitions.
• Decline or Renewal: Organizations may face challenges leading to decline, such as market saturation,
technological disruption, or managerial inertia. However, decline can spur renewal efforts, including
restructuring, innovation initiatives, or strategic repositioning.
• Adaptation: Resilient organizations continuously adapt to changing circumstances. They embrace
innovation, leverage emerging technologies, and anticipate future trends to remain agile and
competitive.

Nature
Nature & Development of Organization
• Social Systems: Organizations are complex social systems where individuals interact and
collaborate to achieve common goals. They involve social relationships, communication
networks, and shared norms and values.
• Goal Orientation: Organizations are purposeful entities with specific objectives, whether they
are profit-driven for businesses, service-oriented for non-profits, or mission-focused for
governmental agencies.
• Structured Entities: They possess formal structures delineating roles, responsibilities, and
hierarchies. This structure facilitates coordination, decision-making, and resource allocation.
• Adaptive and Dynamic: Organizations must adapt to internal and external changes to remain
effective and relevant. They evolve in response to shifts in technology, market trends,
regulatory environments, and societal expectations.
• Open Systems: Organizations interact with their environment, exchanging resources,
information, and feedback. They are influenced by factors such as competitors, customers,
suppliers, and socio-political forces.

Development
Different Theories
of Organization
• Classical Theory
• Human Relations Theory
• Systems Theory
There are several prominent theories of • Contingency Theory
organization that offer insights into how
organizations function, how they are structured,
and how they can be managed effectively.
Classical Theory
• developed in the late 19th and early 20th centuries by
theorists such as Frederick Taylor, Henri Fayol, and Max
Weber.
• emphasizes principles of rationality, efficiency, and
hierarchical authority.
• Taylor's scientific management focused on optimizing
worker productivity through time-and-motion studies
and standardized processes, while Fayol's
administrative theory outlined principles of
management functions such as planning, organizing,
commanding, coordinating, and controlling.
• Weber's bureaucratic theory highlighted the
importance of formal rules, impersonal relationships,
and division of labor in large organizations.
Human Relations Theory
• Human relations theory emerged in the 1930s and
emphasized the social and psychological aspects of
work.
• It challenged the mechanistic view of organizations
presented by classical theorists, arguing that factors
such as employee morale, motivation, and group
dynamics significantly impact organizational
performance.
Systems Theory
• Systems theory views organizations as complex,
interconnected systems composed of various
subsystems (e.g., departments, teams) that interact
with each other and with their environment.
• It emphasizes the interdependence of parts within the
organization and how changes in one part can affect
the entire system.
• Systems theory provides a framework for
understanding organizational dynamics, feedback
loops, and adaptation.
Contingency Theory
• Contingency theory posits that there is no one-size-fits-
all approach to organizing and managing organizations.
Instead, effective organizational structures and
practices depend on various situational factors such as
the organization's size, environment, technology, and
strategy.
• Contingency theorists advocate for aligning
organizational structures and practices with the
specific demands of the situation.
Trends on
Organization Development • Digital Transformation
• Remote Work and Virtual
Collaboration
• Diversity, Equity, and
Inclusion
Organization development (OD) is a field that
continuously evolves in response to changes in the
• Agile and Adaptive
business environment, technology, workforce Organizational Models
demographics, and societal trends.
Digital Transformation
• With the rapid advancement of technology,
organizations are increasingly adopting digital tools
and platforms to streamline operations, enhance
productivity, and improve customer experiences.
• Digital transformation initiatives encompass areas such
as cloud computing, big data analytics, artificial
intelligence, and automation.
• Organization development interventions focus on
helping employees adapt to digital changes,
developing digital skills, and fostering a culture of
innovation and agility.
Remote Work and Virtual
Collaboration
• The COVID-19 pandemic has accelerated the shift
towards remote work and virtual collaboration.
• Organizations are rethinking traditional office-centric
models and embracing flexible work arrangements to
accommodate remote teams and distributed
workforces.
• Organization development efforts now focus on
building virtual leadership capabilities, fostering team
cohesion in remote settings, and leveraging digital
tools for effective communication and collaboration.
Diversity, Equity, and Inclusion

• Organizations are increasingly recognizing the

importance of fostering diverse, equitable, and
inclusive workplaces.
• Organization development efforts focus on
implementing policies and practices to promote
diversity, eliminate bias, and create a culture of
belonging. This includes initiatives such as unconscious
bias training, inclusive leadership development, and
diversity recruitment strategies.
Agile and Adaptive
Organizational Models
• In today's fast-paced and uncertain business
environment, organizations are embracing agile and
adaptive organizational models to respond quickly to
change and innovate effectively.
• Agile principles, originally developed in software
development, are now being applied more broadly
across various industries.
• Organization development efforts focus on promoting
cross-functional collaboration, empowering self-
managing teams, and fostering a culture of
experimentation and learning.
Administration Organization

References:
• Weber, M. (1947). The Theory of Social and Economic Organization. Free
Press
• Daft, R. L., & Marcic, D. (2015). Understanding Management. Cengage
Learning.
• Taylor, F. W. (1911). The Principles of Scientific Management. Harper &
Brothers.
• Mayo, E. (1933). The Human Problems of an Industrial Civilization.
Macmillan.
• Katz, D., & Kahn, R. L. (1966). The Social Psychology of Organizations. Wiley.
• Lawrence, P. R., & Lorsch, J. W. (1967). Organization and Environment:
Managing Differentiation and Integration. Harvard University Press.
• Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading Digital: Turning
Technology into Business Transformation. Harvard Business Review Press.
• Golden, T. D., Veiga, J. F., & Dino, R. N. (2008). The Impact of Professional
Isolation on Teleworker Job Performance and Turnover Intentions: Does Time
Spent Teleworking, Interacting Face-to-Face, or Having Access to
Communication-Enhancing Technology Matter? Journal of Applied
Psychology, 93(6), 1412–1421.
• Thomas, R. R., Jr. (1990). From Affirmative Action to Affirming Diversity.
Harvard Business Review, 68(2), 107–117.
• Sutherland, J. (2014). Scrum: The Art of Doing Twice the Work in Half the
Time. Crown Business.