Contradictions in Organizations

 

Contradictions Contradicti ons in Organizations

 The contradictions in organizations organizations may arise in areas areas such as labor-power labor-power and its manifestations in terms of skills and knowledge, the object of labor (complexity of task), the means of labor (technology), the division of labor, the control of labor, and the organization of labor !rganizational !rganizational contradictions can also arise between functional and historical phases of the work "or example, administrative and technical innovations designed to increase productivity tend to come into contradiction with strategies of established authority structures, thus impeding or nullifying various organizational reform e#orts Theories Contingency Contingenc y Theory

$ontingency Theory assumes that structures have an impact upon an organization%s e&ciency and e#ectiveness but that there is not one universally e&cient organization form Thus, organizations organizations have to adapt their structures stru ctures to the particular situation they are in to gain e&ciency e&ciency Property Rights Theory

- 'roperty rights determine who, when and in which form one has the right to dispose of a distribution certain resource The cognitive ofrights the theory is as to the analyze theof  generation, and modications ofinterest property as well e#ects di#erent forms and distributions of property rights upon the behavior of economic actors and factor allocations  The following basic basic assumption is at the centr centre e of property rights rights theory theory * +conomic actors strive for the maximization of their individual benet Principal Agent Theory

'rincipal agent theory examines the contractual conguration of the relationships between the principal and the agent under conditions of uneual un eual distribution of information, insecurity and risk allocation The theory analyses typical problems occurring in contractual relationships and investigates via which incentive, control and information mechanisms problems can be handled e&ciently  The basic assumptions of agency agency theory can be summarized a as s follows efore efore the contract is fullled and during fulllment of the contract, the principal does not have complete information to be able to deduce the performance e#orts of the agent  The limited observability observability of the agent%s behavior behavior leads to a reduction reduction of his performance and respectively to an opportunistic usage of the principal%s resources in those cases where the order fulllment does not completely correspond correspond to the agent%s interest y means of incentive systems, directive steering of behavior and by an improvement of information systems, the principal can work against the opportunistic behavior of the agent Institutionalist Approaches Approaches

.n many organization theories it is presumed that the success of organizations is primarily dependent upon the e&cient steering and coordination of activities by decision makers /owever, institutionalists retort that organizational design

 

corresponds less to an e&ciency criterion but rather to structural stru ctural elements dictated by the environment  The term 0isomorphism1 describes describes a process that obliges obliges the entity within a population to resemble other entities confronted with the same environment  Three isomorphism mechanisms •

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 The rst mechanism, coercive coercive isomorphism, results fr from om the formal and informal pressure that organizations exert on dependent organizations and fromsecond the expectations society hasprocesses, towards organizations organizatio  The mechanism, mimetic is causedns by uncertainty uncertainty !rganizations that are confronted with serious problems and unclear solutions have the tendency to copy another organization which seems to cope successfully with the problem because the search for new, alternative solutions is associated with high uncertainty, risks and costs  The third mechanism, normative normative pressures, mainly mainly comprises personal aspects /ere, it is supposed that professional standards as well as the establishment of inter-organizational inter-organizational networks support the exchange of the same ideas and thus reduce the potential for idea generation Centralization and Decentralization in Organizations

Defnitions

$entralized organizational structures relybusinesses on one individual to make and provide direction for the company company  2mall often use this structure stdecisions ructure since the owner is responsible for the company%s business operations 3ecentralized organizational structures often have several individuals responsible for making business decisions and running the business 3ecentralized organizations rely on a team environment at di#erent levels in the business .ndividuals at each level in the business may have some autonomy to make business decisions Advantages o centralization: centralization:

$entralized organizations can be extremely e&cient regarding business decisions usiness owners typically develop the company%s mission and vision, and set objectives for managers and employees to follow when achieving these goals •

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4o 5eplication of work - $entralized training and standardization of work leave no scope for replication of tasks or actions This eliminates additional expenditure on excessive labor for duplication of work "lexibility - .n a crisis or an emergency, standardization standardization of work takes just one step to revise all the activities at once 5educed $on6ict - 7hen only one person or a small group at the top makes important decisions, companies experience less con6ict and dissent among lower to mid-level employees "ast +xecution - 7ith fewer people involved in discussing and deciding on strategy and action, centralized organizations typically react more uickly to a dynamic marketplace marketplace $ontrol and 8ccountability - 7hen centralized leaders are in charge of all major decisions they retain more control over operation of the company and development of the its culture 8dditionally, little uestion exists over who is accountable for results of those decisions

 

Disadvantages o centralization: •

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usiness owners responsible for making every decision in the company may reuire more time to accomplish tasks, which can result in sluggish business operations 3ictatorship - 8n employee is always expected to work according to what has been dictated to him 4o employee at the subordinate level is given the authority to take a decision on a particular issue, in the absence of the lead

Advantages o decentralization:

3ecentralized organizations organizations utilize individuals with a variety of expertise and knowledge for running various business operations 8 broad-based management team helps to ensure the company has h as knowledgeable direc directors tors or managers to handle various types of business situations  There is less burden burden on the $hief +xecutive +xecutive .n decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities This way the organization is able to process reserve of talents in it .n decentralization, diversication and horizontal can be easily implanted .n decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up u p Disadvantages o decentralization:

3ecentralized organizations organizations can struggle with multiple individuals having di#erent opinions on a particular business decision 8s such, these businesses can face di&culties trying to get everyone on the same page when making decisions

2ources http99smallbusinesschroncom9centralized-vs-decentralized-organizational-structure-:; ?aiser @ A 7olf $ontradictions 7ithin and etween !rganization Theories http99onlinelibrarywileycom9doi9*B****9j*=CC-