Types of Organizational Theories

TYPES OF ORGANIZATIONAL THEORIES A. Classical Theory a) Definition of Classical Theory Concepts about organizations have developed since the 1800s. These concepts are now known as classical theories or traditional theories. According to Baoman (1988), there are several basic assumptions of classical theories about organizations, namely: • Organizations are primarily for completing goals that have been implemented. • For an organization there is an appropriate structure for its goals, environment, technology and participation. • Organizational work is most effective when environmental challenges and personal interests are hindered by norms of rationality. • Specialization will increase the level of individual expertise and performance. • Coordination and control are best through the practice of authority and rules that are not personal. • Structures can be designed systematically and can be implemented. • Organizational problems usually reflect structures that cannot and can be solved through design and reorganization (Muhammad, 1989:37). Daniels, Spiker, and Papa (1997) call this classical school of thought Scientific and Classical Management. Theories in this paradigm view organizations as something that resembles a machine, which is driven by plans and control from management. Scientific and classical management theories show early attempts to overcome the complexity of organizations in the 20th century. Common things in scientific and classical theories: • Organizations are run by management authority. Employees are tools for implementing management plans. The implication is that organizational communication is a tool for managerial control and coordination of organizational processes. • Scientific and classical theories believe that people behave according to rational and economic models. The main motivation to work is money. Social and political motivations in organizational behavior are considered irrelevant or detrimental to organizational effectiveness. A rational system of organizational structure and function will reduce the adverse effects of group conflict, personal competition, resentment, power struggles, and egotism. • Each theorist advances a recipe for designing organizations to resemble machines. • The perspective of traditional/classical theories on organizations is that organizations are driven by management authority, employees are only tools to carry out management plans, so this all has implications for the communication process within the organization. The communication process that occurs within the organization is seen only as a tool for coordination and control from the managerial side. Communication activities related to the planning and decision-making stages are centralized around the upper ranks of the organization. Only Fayol's concept is flexible on the issue of decision-making. b) Classification of Classical Theories There are several theories included in the classical theory, namely: 1) Social Organization Barlo (1990), as quoted by Pace and Faules (2006:42-43) suggests that communication is related to social organizations in three ways: • Social systems are produced through communication. • When a social system develops, it determines the communication of its members. The social system influences how, where and from whom, and with what influence communication occurs between members of the system. • Influence on a social system can help us make accurate predictions about people without knowing much more than the roles they play in the system. 2) Formal Organization Formal organizations are formed or established intentionally to achieve certain achievements. The characteristics of a formal organization are popularly called bureaucracy. Max Weber (1964-1920), a German sociologist, is one of the main pioneers of the study of organizations. He developed a theory about organizations as an ideal type. He developed that bureaucracy is an organization that shows a combination of characteristics. The ideal type of bureaucracy as put forward by Weber has the following principles (Arie Ambarwati, 2018:22-23): • The rules or regulations in the bureaucracy are very clear and firm. Such things are needed in the bureaucracy, especially to uphold order and the continuity of the bureaucracy itself. • There is a clear scope of competence. People in the bureaucracy have tasks and jobs that are clearly and firmly formulated, and have the authority needed to carry out the tasks or jobs given. So the principle of division of labor is an integral aspect of bureaucracy. • The source of authority or authority is technical skills, competence and expertise. This is an objective measure and applies to anyone who meets the qualifications and requirements that exist can be promoted to a certain position or position in the bureaucracy. • The implementers or administrative staff are strictly separated from the owners of capital or means of production. Ownership of means of production and capital is separated from this leadership as an effort to be able to make rational and objective decisions. • The principle of hierarchy shows that each lower position is always under the orders and always under the supervision of a higher position. The line of communication is more vertical than horizontal. • Actions, decisions and rules are all administered and archived in writing. The process of implementing organizational functions is something that can be known by anyone and is public. • The flow of communication in an organization is a guideline for where someone can communicate. Formal communication flows in an organization can be divided into four, namely communication from top to bottom from bottom to top, horizontal and diagonal. Can be described as follows (Erni Murniarti, 2019): • Top-down communication. Top-down communication is a flow of communication from the top level to the bottom level through the organizational hierarchy. The form of communication flow from top to bottom is in the form of organizational procedures, instructions on how to perform tasks, feedback on subordinate performance, explanations of organizational goals and so on. One of the weaknesses of top-down communication is the inaccuracy of information because it has to go through several levels. Messages are conveyed in a language that is appropriate for a level, but not appropriate, for the lowest level that is the target of the information. • Bottom-up communication Bottom-up communication is designed to provide feedback on how well the organization has functioned. Subordinates are expected to provide information about their achievements, practices and organizational policies. Bottom-up communication can be in the form of written or oral reports, suggestion boxes, group meetings and so on. The main problem that occurs in bottom-up communication is bias and filtering of information conveyed by subordinates. Bottom-up communication is used to monitor organizational performance. • Horizontal communication Horizontal communication is the flow of communication to people who have the same hierarchy in an organization, for example communication that occurs between the marketing manager and the production manager or between production employees and finance employees. • Diagonal communication Diagonal communication is the flow of communication from people who have different hierarchies and do not have a direct relationship of authority. For example, communication between the marketing manager and the head of the quality control subsection. 3) Taylor's Scientific Management Scientific management was developed starting around 1990 by Frederick Winslow Taylor in his book entitled Princeples in scientific management. This theory emphasizes the division of work to obtain maximum results at the most efficient cost possible. Frederick Winslow Taylor (in Pace and Faules, 2006: 49-52) approaches management around 4 key elements that are analyzed using Sofer's analysis (1972), namely: • The division of labor in this case concerns how tasks, obligations and organizational work are distributed. • Scalar and Functional Processes, in this case related to the vertical and horizontal growth of the organization. • Tall Structure and Flat Structure, there is a division of organizational structures but basically divided into two, namely tall structure (vertical) and flat structure (horizontal). • Span of Control, in this case shows the number of subordinates under the supervision of a superior. 4) Administrative Management Henri Fayor is one of the most influential contributors to the concept of modern management or administrative science because he is known as the "father of Modern Management". The most famous legacy is about the 5 main functions of management, namely planning, organizing, and controlling. 5) Bureaucratic Theory Max Weber, a German sociologist, wrote a reason that describes the form of bureaucracy as an ideal way to organize government organizations through the principles of bureaucratic forms, among others, there must be: • Formal hierarchical structure • Management with clear rules • Organization with special functions • Have a target mission to be achieved or that is being implemented • Treat it interpersonally. B. Transitional Theory a) Understanding Transitional Theory The shift from classical theory to transitional theory is a major paradigm shift pioneered by Chester Bernard (1938) Elton Mayo (1933) Roethlishherger, and Dichson (1939) who rejected the principles of classical theory and opposed the mechanical view of organizations that were not sensitive to the social needs of organizational members, but were only interested in organizational profits. b) Classification of Transitional Theory The following are included in this group of transitional theories: 1) Authority Communication Theory Chester Bernard (1938) has opened new minds about formal organizations where previously according to Perrow (1973) there were concerns about the implications of classical theory on organizations and scientific management doctrines. Bernard (Romli, 2014:33-34) also formulated a set of premises known as the Theory of Acceptance of Authority which has the intention that nominal authority where authority becomes real when accepted, the premises are: • The person understands the intended message • The person that the message does not conflict with the goals of the organization. • The person believes when he decides to cooperate, that the intended message is in accordance with his interests. • The person has the physical and mental ability to carry it out. Apart from the close relationship between authority and communication Bernard considers communication techniques (written and oral) important to achieve organizational goals, but also considers these techniques as a source of organizational problems. 2) Human Relations Theory There are 3 important key implications in this study that seem to provide a basis for the development of human relations theory, as a perspective of choice for classical theory to study organizations and study organizational communication, namely: • The influence of research on work production in light research, begins to show the influence of human communication on the behavior of organizational members. • The positive influence of interviews with workers leads to the identification of upward communication or communication from the bottom up and vice versa from work to the top as a useful organizational activity. • The discovery of social norms for workers leads to the identification of the influence of information channels from communication to organizational members. 3) Bakke and Argyris Function Theory Quoting the opinion of Pace and Faules (2006:61) about the function theory of Bakke (1950) began with the awareness of the many problems in order to satisfy different human interests and in meeting the important provisions of the bureaucratic structure. 4) Likert's Connecting Pin Theory Rensis Likert developed a model related to the term connecting pin model which describes the organizational structure. The type of connecting pin structure shown in the picture below, uses a committee consisting of people whose group membership overlaps or is related in the organization to help coordinate efforts upward, downward and cross-system. The picture above shows that the relationship between the parts of the organization that follow the direction of the arrow will produce a good general function of connecting the parts of the organization. 5) General System Theory Scott (1961) as quoted by Pace and Faules (2006:63) stated that "the only meaningful way to study an organization is as a system". He said that the important parts of the organization as a system are the individuals and personalities of each person in the organization; formal structure; informal interaction patterns; status and role patterns that give rise to expectations; - expectations; and the physical work environment as seen in the picture. These parts are configurations or relationships between the parts. However, although there are other theories about how the parts are related, the main connecting process is communication. The system concept focuses on the arrangement of the parts, the dynamics of the relationship that creates unity or wholeness. The assumption of general system theory on organizations says that organizations are complex systems that have subsystems. Each organization has four main subsystems, namely: • Production Subsystem functions to transfer inputs from the organization into the system so that they can be used as outputs. • Boundary Subsystem is a subsystem that functions to find and follow various environmental needs or resources, so that the production system can work. • Adaptive Subsystem is the intelligence or brain of the organization that collects information about things related to organizational operations, and helps the organization to be able to adapt to the needs of the organization that are always changing in an uncertain environment. (Liliweri, 2014: 160) • Management Subsystem can work across all subsystems to coordinate staff activities, staff appearance, and mediate internal and external environmental demands. (McNamara & Liliweri, 2013: 160). C. Current Theory This theory emerged in 1950 as a result of dissatisfaction with two previous theories, namely classical and transitional/behavioral. Modern theory is often referred to as the "System Analysis" or "Open Theory" theory which combines classical and transitional theories. Modern organizational theory sees all elements of the organization as a unit that is interdependent and inseparable. Current Theory was born as a reflection of changes in organizational theory that has been adopted so far which describes subjective aspects and discusses some of its implications for communication organizations. 1) Organizing Process Weick (1979) mentions three main stages in the organizing process, namely: • The Role Stage simply means that members of the organization recreate their environment by determining and negotiating special meanings for an event. • Selection stage, communication rules and cycles are used to determine and negotiate specific meanings for an event. • Retention stage allows the organization to store information about how the organization responds to various situations. 2) Organizational Culture Theory Organizational culture theory is a communication theory that includes all communication symbols (actions, routines, and conversations) and the meanings that people attach to those symbols (Richard West and Lynn H. Turner, 2008). 3) Assumptions of Organizational Culture Theory The theory of organizational culture according to Richard West and Lyn H. Turner has several basic assumptions: • Organizational members create and maintain shared feelings about organizational reality, which results in a better understanding of the values of an organization. • The use and interpretation of symbols are very important in organizational culture. • Culture varies in different organizations, and the interpretation of actions in this culture also varies. 4) Communicative Performance Communicative performance is one of the important concepts discussed in organizational culture theory. Performance is a metaphor that describes the symbolic process of understanding human behavior in an organization. Communicative performance is divided into 5, namely: • Ritual Performance All communication performances that occur regularly and repeatedly are called ritual performances. Rituals consist of four types: personal, task, social, and organizational. Personal rituals include everything you do routinely at work. For example, many employees in a company turn on and work on office tasks on their respective work computers every day. Task rituals are routine behaviors associated with a person's work. Task rituals help get the job done. • Passion Performance Passion performance is stories about the organization that are often enthusiastically told by members of the organization with others. Usually, this passion performance, often people in the organization are so enthusiastic in telling stories, that whatever happens in an organization, will always be told. • Social Performance Social performance is an extension of politeness and politeness to encourage cooperation among members of the organization. As the saying goes, “small things start big things,” meaning that even the smallest values of politeness and courtesy are the most important things when we interact with other people. • Political Performance When organizational culture communicates political performance, it is exercising power or control. Gaining and maintaining power and control is a hallmark of corporate life in the United States. They will do anything to maintain their power and control whatever happens in each country, in order to maintain the stability of their power. • Enculturation Performance Enculturation performance refers to how members gain knowledge and expertise to become members of an organization that can contribute. 5) Japanese Court In the 1970s and 1980s, many American industries lost their markets due to the emergence of competitors, namely Japanese companies. Therefore, experts began to investigate the secrets of Japanese management that could compete with the power of the superpower. Many articles began to appear about the success of these Japanese companies. And the secret of success was discovered, which was named Theory Z. Theory Z is a management approach based on a combination of American and Japanese management philosophies, characterized by, among others, long-term permanent employment, decision-making by consensus, slow evaluation and promotion procedures, and individual responsibility in a group context.