In: Operations Management
In 3 paragraphs, explain How can a knowledge of organization theory, systems thinking and organization behavior improve the practice of leading and managing organizations in the 21st century?
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Organization theories include perspective of rational system, division of labours, bureaucratic theory, and contingency theory. The rational system deals with Specificity of Goal settings and their Formalization, which is the first step for any organization to grow in a certain direction. The division of labour is concerned with labour roles and responsibilities, tasks assigned to get output and do business. While bureaucracy is concerned with governed decision-making, chain of action and command, designated responsibilities. The contingency theory tells that an organization should maximize it’s business performance by minimizing the effects of environmental and internal constraints. Overall these theories need to be implemented by leadership ship to develop and organization in 360 degree.
Systems thinking help to see and understand wholes, interrelations and change patterns occurring on daily basis in the dynamic world. It can avoid organizations breakdowns by generating new ideas and developing innovative products or services plus utilizing the talents of employees to deliver maximum productivity as a whole. It helps to manage the complexity in era of information overload and allows leadership teams to take risks on different levels to approach and solve problems in different possible ways.
Organizational behaviour is about the ways people interact with each other, within groups. Idea and goal is to create more efficient business organizations. It enables management and leadership teams to maximize the output from individual group members and work towards a common productivity goal with higher level of efficiency and efficacy. It makes their job to well communicate, see the pros and cons of the people, analyse the strengths and weakness of team members to make them better managers, improve their way of thinking and working and so to the managers to develop them into better future leaderships. As more business verticals expand day by day, more challenges come, so need much better managers to handle them.