Which leadership style is effective in enhancing an organizations performance between transactional and transformational style? Research Objectives Leaders have direct impact on their followers commitment and motivation to meet the common goals, which means they influence the performance of their organizations. Committed and motivated followers or employees lead to improved performance. Therefore, different leaders elicit different impacts to the employees commitment and motivation, meaning that they influence the performance of their organizations.
Classical Organization Theory Classical organization theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory. Frederick Taylor developed scientific management theory often called "Taylorism" at the beginning of this century.
His theory had four basic principles: Initially, Taylor was very successful at improving production. His methods involved getting the best equipment and people, and then carefully scrutinizing each component of the production process. By analyzing each task individually, Taylor was able to find the right combinations of factors that yielded large increases in production.
While Taylor's scientific management theory proved successful in the simple industrialized companies at the turn of the century, it has not faired well in modern companies. The philosophy of "production first, people second" has left a legacy of declining production and quality, dissatisfaction with work, loss of pride in workmanship, and a near complete loss of organizational pride.
Max Weber expanded on Taylor's theories, and stressed the need to reduce diversity and ambiguity in organizations. The focus was on establishing clear lines of authority and control. Weber's bureaucratic theory emphasized the need for a hierarchical structure of power.
It recognized the importance of division of labor and specialization. A formal set of rules was bound into the hierarchy structure to insure stability and uniformity. Weber also put forth the notion that organizational behavior is a network of human interactions, where all behavior could be understood by looking at cause and effect.
The emphasis was on establishing a universal set of management principles that could be applied to all organizations. Classical management theory was rigid and mechanistic. The shortcomings of classical organization theory quickly became apparent.
Its major deficiency was that it attempted to explain peoples' motivation to work strictly as a function of economic reward. Neoclassical Organization Theory The human relations movement evolved as a reaction to the tough, authoritarian structure of classical theory. It addressed many of the problems inherent in classical theory.
The most serious objections to classical theory are that it created overconformity and rigidity, thus squelching creativity, individual growth, and motivation. Neoclassical theory displayed genuine concern for human needs. One of the first experiments that challenged the classical view was conducted by Mayo and Roethlisberger in the late 's at the Western Electric plant in Hawthorne, Illinois Mayo, While manipulating conditions in the work environment e.
The act of paying attention to employees in a friendly and nonthreatening way was sufficient by itself to increase output. Uris referred to this as the "wart" theory of productivity. Nearly any treatment can make a wart go away--nearly anything will improve productivity.
The Hawthorne experiment is quite disturbing because it cast doubts on our ability to evaluate the efficacy of new management theories. An organization might continually involve itself in the latest management fads to produce a continuous string of Hawthorne effects.
Pascale believes that the Hawthorne effect is often misinterpreted. It is a "parable about researchers and managers manipulating and 'playing tricks' on employees. Writing inBarnard proposed one of the first modern theories of organization by defining organization as a system of consciously coordinated activities.
He stressed in role of the executive in creating an atmosphere where there is coherence of values and purpose. Organizational success was linked to the ability of a leader to create a cohesive environment. He proposed that a manager's authority is derived from subordinates' acceptance, instead of the hierarchical power structure of the organization.
Barnard's theory contains elements of both classical and neoclassical approaches.Published: Mon, 5 Dec As a definition, critical success factors refer to “the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department, or organization”.
Index Organizational Theory and Behavior © , David S. Walonick, Ph.D. Classical Organization Theory. Classical organization theory evolved during the first half. The impact of managers on workplace engagement and productivity We all know the mantra: people leave managers, not companies.
The role of the manager in the workplace is perhaps the most significant in terms of impact . Trader Joe's: Motivation, Management, Leadership & Development Words | 7 Pages. Trader Joe’s (MMLD): Motivation, Management, Leadership & Development Trader Joe’s is a major food retailer who has developed quite the name for themselves.
Keywords: Employees commitment, Employees motivation, Leadership style, Organizational performance, Transactional leadership, Transformational leadership.
Chapter I. Introduction. General. This chapter entails the background of the research as well as the research question and research objectives. This study focuses on a research topic - Impact of motivation on organizational change, on the basis of the theories of Research Methodology for Business.
The outline of the project will cover: Chapter 1 provides the background of the study underlining main objectives, questions and hypothesis of the study. Chapter 2 focuses on general .