Before getting into the newer organization theories and designs, there is a need to deliver a somewhat thorough understanding of different avenues that brought the organizational world to the point is is today ( Luthans, 1995). First, the bureaucratic model is presented and analyzed (p.465). The bureaucratic theory and designed are attributed to Max Weber, one pioneer of modern sociology. He formulated this approach to organization in the early 1900's and his work was first translated from German to English in the 1940”s. Weber presented what he thought was an ideal organization structure that he called bureaucracy (Luthans, 1995). His concern for the ideal was a natural extension of his interest in the development and change of Western society (p.465). Weber specified several characteristics of his ideal organization structure. The four major ones are the following: (1) specialization and division of labor, (2) positions arranged in a hierarchy, (3) a system of abstract rules, (4) and finally, impersonal relationships. Unfortunately, Weber theory fail short of what was needed in order to advance organizational opportunities.
Next came the classical perspective which ( Frederick W. Taylor ) emerged in the nineteenth and early twentieth centuries ( Daft, 2010). This perspective contain three subfields, each with a slightly different emphasis: scientific management, bureaucratic organizations, and administrative principles (p. 37). Consequently, the classical perspective was brought to a impetuous halt when internal issues began to affect development and brought about dissatisfaction resulting in strikes.
Once again, the organization theory was reconstructed in order to provide the organizational world with what it lack, improvements in labor productivity, thus the scientific management theory was chartered. So, in 1886, an engineer named Frederick W. Taylor
presented a paper at a national meeting of engineers entitled, “ The Engineer As an Economist”. This paper and others prepared by Taylor expressed his philosophy of scientific management. Taylor's major thesis was that maximum good for society can come only through the cooperation of management and labor in the application of scientific methods. He stated that the principles of management were to: Develop a science for each element of an employee's work, which replaces the old rule-of-thumb method Scientifically select and then train, teach, and develop the worker, whereas in the past a worker chose the work to do and was self-trained Heartily cooperate with each other to ensure that all work was done in accordance with the principles of science Assure an almost equal division of the work and responsibility between management and nonmanagers. The scientific method also brought about the importance of people rather than machines, hence, Mary Parker Follett stepped forward and established and emphasized the importance of human relations, human resources, and behavioral approaches. This school of thought recognized and directly responded to social pressures for enlighten treatment of employees (Daft, 2010).
The previous theories, approaches, and methods in no form or fashion constitute the numerous conversions that the organization theory has undergone, but, how it has survived and taken past and present input and re-invented itself to somehow still exist today, to be discussed even to this point.
Organization theory represents a young and complex field of study related to environmental relations, the ecology of humans, the contingency theory, economics, and resource based views. Through particular methods, analysis, generalizations and observations, the organization theory determines how companies and organizations will behave in internal and external settings of various situations.
Relationships within corporate environment represents the neural network of the organization; they