MGT4000 - Session 6

Organizational Structure
 - Theory X vs Theory Y
 - Self-fulfilling prophecy?

Theory X: people are inherently lazy, need to be monitored and controlled, abuse responsibility
 - Associated with older, functional organizations
 - Employees need to be controlled so they work, responsibility shouldn't be given
 - Employees sometimes fear working better (because mistakes cost them)
 - "Punitive" system that takes a lot of effort to control

Theory Y: employees want to be empowered, they can be given responsibility
 - Theory Y tends to be more productive
 - Leadership needs to be behind change
 - More fulfilling/empowering for employees

Bureaucratic Models
 - Reaction to nepotism models?
 - Clear differentiation of tasks and responsibilities
 - Hire people to become "experts" and retain them
 - Coordination through strict hierarchy of authority
 - Vertical separation of planning (high) and execution (low)
 - Use of technical criteria for recruitment and promotion
 - Make organizations more rational and efficient
 - "Why bureaucracies exist"

Organizational Structure
 - Evolution of bureaucratic models
 - Happens when models become extremely large

Central concepts: managers have more discretion over these
 - Division of labor - allows many people to undertake many activities
 - Coordination of mechanisms
 - Decision right distribution - who does what?
 - Organizational boundaries - rules?

More central concepts: managers have little influence over these
 - Informal structure
 - Political structure
 - Legitimate basis of authority