Key Terms

• Classical Organizational Theory: Focuses on the structure, hierarchy, and formal relationships within organizations.
• Scalar Principle: The clear chain of command; authority flows from top to bottom.
• Hierarchy/Chain of Command: Organizational levels with increasing authority and responsibility.
• Taylorism (Scientific Management): Emphasizes finding the one best way to do a job through data and standardization.
• Henri Fayol: Developed 14 principles of administrative management, like division of work, authority, discipline.
• Hawthorne Effect: Workers improve performance when they know they are being observed.
• Systems Theory: Views organizations as interdependent parts of a larger system interacting with their environment.
• Contingency Theory: Suggests management approaches depend on situational factors.
• Fiedler’s Contingency Model: Leadership effectiveness depends on style and situational favorableness.
• Weber’s Bureaucracy: Promotes efficiency through strict rules, clear hierarchy, and rational procedures.
• Human Relations Approach: Highlights social and psychological needs influencing productivity.
• McGregor’s Theory X & Y: Managers' assumptions about employees (lazy vs. motivated) shape management style.
• Path-Goal Theory: Leaders clarify path and remove obstacles to goal achievement; includes styles like directive and supportive.
• Transformational Leadership: Inspires followers to change their values and beliefs.
• Lewin’s Change Model: Consists of unfreezing (prepare for change), moving (change), refreezing (stabilize change).
• Organizational Culture: Shared values, beliefs, and behaviors in a workplace.
• Role Conflict/Ambiguity/Overload: Issues employees face regarding unclear, conflicting, or excessive demands.

Main Ideas

• Classical, bureaucratic, and scientific management theories focus on organizational structure, efficiency, and hierarchy.
• Human relations and motivation theories emphasize social needs, individual motivation, and psychological factors.
• Leadership models like Fiedler’s Contingency and Path-Goal highlight how effectiveness depends on style and situation.
• Change management theories (Lewin, Kotter) describe how organizations adapt through stages of change.
• Organizational design varies: functional, divisional, matrix, team-based, and network structures each have advantages and challenges, affecting flexibility, communication, and control.
• Motivation theories (ERG, Maslow, Vroom) explain how employees are driven by different internal needs and external rewards.
• Norms and organizational climate influence behavior and performance.
• Role issues (conflict, ambiguity, overload) can hinder productivity and job satisfaction.
• Organizational culture, with its observable artifacts and core assumptions, shapes workplace environment and behavior.

Important Data

• Fayol’s 14 Principles: Authority, Discipline, Unity of Command, etc.
• Hawthorne Effect: Productivity increase = "People perform better when observed."
• Fiedler’s Model: Effectiveness depends on Leadership Style + Situational Favorableness.
• Lewin’s Model Stages: Unfreezing, Moving, Refreezing.
• Vroom-Yetton Strategies: Autocratic I/II, Consultative I.
• Maslow’s Hierarchy of Needs: Physiological, Safety, Social, Esteem, Self-actualization.
• ERG Theory: Existence, Relatedness, Growth needs can be pursued simultaneously.
• Expectancy in Motivation: Belief effort leads to performance.
• Reinforcement schedules: Fixed Ratio, Variable Ratio, Fixed Interval, Variable Interval.
• Job Enrichment: Increases variety and skill usage.
• Span of Control: Narrow or Wide (number of employees reporting to a manager).

Key Takeaways for Your Exam

• Theories of management and motivation influence how organizations are structured and led.
• The effectiveness of leadership depends on matching style to the situation (Fiedler’s contingency).
• Organizational change is a process best managed through Lewin’s three stages.
• Different organizational structures (functional, divisional, matrix, network) suit different strategies and environments.
• Motivation is driven by both external rewards and internal needs; understanding these helps improve productivity.
• Organizational culture and norms shape employee behavior, positive climates promote performance.
• Recognizing role conflict, ambiguity, and overload helps in designing better jobs and clearer expectations.
• The Hawthorne Effect reminds us that attention and observation impact worker productivity.
• Transformational leadership and a strong organizational culture foster innovation and change.
• Control mechanisms like span of control, delegation, and formal procedures determine organizational efficiency and flexibility.