A Business Encyclopedia

Organizational Theory

Definition: The Organizational Theory refers to the set of interrelated concepts, definitions that explain the behavior of individuals or groups or subgroups, who interacts with each other to perform the activities intended towards the accomplishment of a common goal.

In other words, the organizational theory studies the effect of social relationships between the individuals within the organization along with their actions on the organization as a whole. Also, it studies the effects of internal and external business environment such as political, legal, cultural, etc. on the organization.

The term organization refers to the group of individuals who come together to perform a set of tasks with the intent to accomplish the common objectives. The organization is based on the concept of synergy, which means, a group can do more work than an individual working alone.

Thus, in order to study the relationships between the individuals working together and their overall effect on the performance of the organization is well explained through the organizational theories. Some important organizational theories are:

  1. Classical Theory
  2. Scientific Management Theory
  3. Administrative Theory
  4. Bureaucratic Theory
  5. Neo-Classical Theory
  6. Modern Theory

An organizational structure plays a vital role in the success of any enterprise. Thus, the organizational theories help in identifying the suitable structure for an organization, efficient enough to deal with the specific problems.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

define the term entrepreneursimultaneous meaning in hindimeaning of pure competitionadvantages of hrpguerilla war definitionexamples of participative leaderswhat are the three types of motiveswhat is law of diminishing marginal utilityadvantages of relationship marketingsteps of recruitment process in hrmmodel black scholes360 degree marketing definitionformula for debtors collection perioddistribution of the sample proportiondefine cobbfactors to consider when delegatingadvantages and disadvantages of financial leveragepromotional mix marketingtypes of factoring servicescollective bargaining definition economicsfactors that influence elasticity of demandtravelling chequethe 4ps of marketing definitionguerilla strategyfixed asset turnover ratio analysisdisadvantages of job enlargementordinal defineblack scholes put option calculatorwhat does autocracy meanequity linked savings schemeansoff growth strategyvalence instrumentality expectancy theorydefinition payback periodinterval defmeaning of ideal selfwhat is the definition of rationingsegmentation meaning in marketingdefine manpower planningliquidity ratio formula for bankspropound definitionspanning meaning in teluguassumptions meaning in urdumeaning of franchiseewhat is autocratic leaderpayback period definitionparent country nationalsdemand pull inflation cost push inflationkeynesian theory of inflationsemantic differentialdefinition of planning by henry fayolsemantic barriers examplesmeaning of ideal selfdefinition of compensation in hrmindustrial relation meaningmicroenvironmental factors in marketingmeaning of oligopolisticmirr definitionlikert's leadership stylesassumptions of cardinal utility theorycontractual vertical marketing systeminformal networks definitiondemand function in economicscharacteristics of oligopoly marketstraddling positionkanban binconsumer buying behavior is affected byfayol theorymeaning of stratified samplingflanker brandteleological theorywhat is whistlattrition meaning in hrdifferential pricingsnowball marketingchit funds meaningdelfi technique