Organizational Theory

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  • There is no single theory of organizations. Rather, there are many theories that have examined organizations, their structures, designs, and environments and the behavior of individuals who work in them. This collection of theories is referred to as organizational theory.

    Classical organizational theory was popular through the 1930s. Its foundations lay in the Industrial Revolution of the 1700s and the areas of mechanical and industrial engineering and economics. The basic princi ples of the theory are (1) organizations exist to accomplish production-related and economic goals; (2) there is one best way to organize for production, which can be found through systematic, scientific inquiry; (3) production is maximized through specialization and division of labor; and (4) people and organizations behave according to rational economic principles.

    From World War ...

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