PATTERNS OF BUSINESS ORGANIZATION J O'Shaughnessy ROUTLEDGE LIBRARY EDITIONS: ORGANIZATIONS: THEORY & BEHAVIOUR www.ebook3000.com ROUTLEDGE LIBRARY EDITIONS: ORGANIZATIONS: THEORY & BEHAVIOUR PATTERNS OF BUSINESS ORGANIZATION www.ebook3000.com This page intentionally left blank www.ebook3000.com PATTERNS OF BUSINESS ORGANIZATION J O’SHAUGHNESSY Volume 23 Routledge Taylor & Francis Group LONDON AND NEW YORK www.ebook3000.com First published in 1976 This edition first published in 2013 by Routledge Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 1976 George Allen & Unwin (Publishers) Ltd All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-0-415-65793-8 (Set) eISBN: 978-0-203-38369-8 (Set) ISBN: 978-0-415-82474-3 (Volume 23) eISBN: 978-0-203-38386-5 (Volume 23) Publisher’s Note The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent Disclaimer The publisher has made every effort to trace copyright holders and would welcome correspondence from those they have been unable to trace www.ebook3000.com Patterns of Business Organization J O'Shaughnessy London George Allen & Unwin Ltd Ruskin House Museum Street www.ebook3000.com First published 1976 This book is copyright under the Berne Convention All rights are reserved Apart from any fair dealing for the purpose of private study, research, criticism or review, as permitted under the Copyright Act, 1956, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, electrical, chemical, mechanical, optical, photocopying, recording or otherwise, without the prior permission of the copyright owner Enquiries should be addressed to the publishers ©George Allen & Unwin (Publishers) Ltd 1976 ISBN 04 658222 hardback 04 658223 paperback Acknowledgements I am indebted to Professor Derek Pugh of the London Graduate School of Business Studies, and my colleagues at Columbia, Professors William Newman, Margaret Chandler, Kirby Warren, David Lewin, Noel Tichy and Michael Tushman, for their criticism and advice on drafts of various parts of this book My thanks are also due to former colleagues at Columbia, Professor Larry Cummings for his detailed comments on an earlier book of mine on organization, and Professor Karl Magnusen for his discussions with me on the contingency theories of organization Printed in Great Britain in 10 point Times Roman type by Butler and Tanner Ltd Frome and London www.ebook3000.com Contents INTRODUCTION Approaches to Organization Business Objectives and Strategy: A First Step in Business Organization PART I THE CLASSICAL A P P R O A C H THE C L A S S I C A L A P P R O A C H : I N T R O D U C T I O N G R O U P I N G INTO SECTIONS, DEPARTMENTS AND HIGHER ADMINISTRATIVE UNITS Span of Control Grouping to Achieve Economies of Scale Grouping to Achieve Co-ordination Grouping by Nature of Activity (Keyness, Goal Conflict, Function) Conflict of Factors Co-ordination and Committees Case Study Co-ordination and Divisionalization JOB S T R U C T U R I N G Delegating Authority Decentralization and Divisionalization Specifying Responsibility Establishing Relationships Role of Specialist Departments Criticism of the Principles of Organization Work Organization PART II THE H U M A N R E L A T I O N S AND THE B E H A V I O U R A L SCIENCE APPROACHES THE H U M A N R E L A T I O N S A N D THE BEHAVIOURAL SCIENCE A P P R O A C H E S : INTRODUCTION Classical Approach Based on a Mechanical Model www.ebook3000.com page 11 11 15 25 27 30 31 38 41 44 47 48 49 53 57 57 59 61 67 71 72 73 79 81 81 Contents Bureaucracy The Human Relations and Behavioural Science Approaches INDIVIDUAL MOTIVATION AND GROUP BEHAVIOUR Maslow's Hierarchy of Needs McClelland's Need Categories of Power, Achievement, and Affiliation Herzberg's Two-Factor Theory of Motivation Expectancy Theory McGregor's Theory X and Theory Y An Overview Behaviour of Work Groups: Hawthorne Studies The 'Majority' Effect Problem Solving in Groups Hawthorne Today SUPERVISORY LEADERSHIP AND INTERGROUP BEHAVIOUR Supervisory Leadership Ohio and Michigan Leadership Dimensions Lewin's Classification Evidence Fiedler's Theory Reddin's Model Concluding Comment Inter-Group Behaviour ORGANIZATIONAL GROUPINGS AND AUTHORITY DISTIRBUTION Flat v Tall Structures Sectional Over-Specialization Choice of Team Members The Link-Pin Theory Participation Industrial Democracy Delegating Authority Work Group Authority ROLE D E L I N E A T I O N A N D PERFORMANCE Specifying Responsibility: A Critical Reappraisal Organizational Rules and Policies Management by Objectives Role Relationships www.ebook3000.com page 82 85 89 89 91 92 94 96 99 99 105 106 106 109 109 110 111 113 117 120 121 121 123 123 128 129 130 131 139 145 152 154 154 160 162 166 Contents Work Organization: Job Enlargement and Job Enrichment General Comment PART III THE SYSTEMS A P P R O A C H 10 SYSTEMS: I N T R O D U C T I O N Systems Definition Classification of Systems Behavioural Theory of the Firm Under Conditions of Uncertainty Buffering Core Technical Functions Systems and Organization 11 DETERMINING INFORMATION NEEDS Specifying Objectives Listing the Subsystems, or Main Decision Areas Analysing the Decision Areas and Establishing Information Needs 12 D E S I G N I N G THE C O M M U N I C A T I O N C H A N N E L S FOR THE I N F O R M A T I O N F L O W Communication Communication Networks Grouping Decision Areas to Minimize Communications Burden Communication Channel Overload/Excess Flat v Tall Structures Matrix and Project Management Systems and Classical Organizational Issues PART IV C O N T I N G E N C Y OF O R G A N I Z A T I O N 13 CONTINGENCY THEORIES THEORIES Technology and Organization Structure Innovation and Organization Uncertainty and Organization Structure Action/Information Technology and Organization Context and Organization Structure Structure, Technology, Co-ordination and Control Strategies for Dealing with Upward Communication Overload in Conditions of Task Uncertainty www.ebook3000.com page 168 172 175 177 177 180 181 184 184 186 186 186 187 209 209 211 214 219 219 222 224 233 235 235 241 244 249 252 255 257 ... LIBRARY EDITIONS: ORGANIZATIONS: THEORY & BEHAVIOUR PATTERNS OF BUSINESS ORGANIZATION www.ebook3000.com This page intentionally left blank www.ebook3000.com PATTERNS OF BUSINESS ORGANIZATION J O’SHAUGHNESSY... Deficiency of Strategy Relevancy of Strategy Redundancy of Strategy Fig Objectives Strategy Objectives v strategy 22 Patterns of Business Organization If strategy is thus a means to the attainment of. .. build an effective organization Where wrong 12 Patterns of Business Organization choices are made, then deficiencies in organization occur, which in turn, give rise to a number of inefficiencies: