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Organization development (OD) is the study and implementation of practices, systems, and techniques that affect organizational change. The goal of which is to modify a group's/organization's performance and/or culture. The organizational changes are typically initiated by the group's stakeholders.
Organizational theory also seeks to explain how interrelated units of organization either connect or do not connect with each other. Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of an individual. The behavior organizational theory often focuses on is goal-directed.
The theories of organizations include bureaucracy, rationalization (scientific management), and the division of labor. Each theory provides distinct advantages and disadvantages when applied. The classical perspective emerges from the Industrial Revolution in the private sector and the need for improved public administration in the public sector.
Numerous outcomes have been associated either directly or indirectly with organizational culture. The relationships between organizational culture and various outcomes include organizational performance, employee commitment, and innovation. A healthy and robust organizational culture is thought to offer various benefits, including: [54] [55]
Researchers have developed models for understanding an organization's culture or developed typologies of organizational culture. Edgar Schein developed a model for understanding organizational culture. He identified three levels of organizational culture: (a) artifacts and behaviors, (b) espoused values, and (c) shared basic assumptions.
Hofstede's cultural dimensions theory is a framework for cross-cultural psychology, developed by Geert Hofstede.It shows the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis.
Schein's model of organizational culture originated in the 1980s. Schein (2004) identifies three distinct levels in organizational cultures: artifacts and behaviours; espoused values; assumptions; The three levels refer to the degree to which the different cultural phenomena are visible to the observer. Artifacts include any tangible, overt or ...
When performing an organizational analysis, many details emerge about the functions and capacity of the organization. All of these details can make pinpointing what is efficient and inefficient difficult. Using theoretical organizational models can help sort out the information, and make it easier to draw connections.