Barnard viewed organizations as systems of cooperation of human activity, and noted that they are typically short-lived. According to Barnard, organizations are generally not long-lived because they do not meet the two criteria necessary for survival: effectiveness and efficiency.

Definition: The Organizational Theory refers to the set of interrelated concepts, definitions that explain the behavior of individuals or groups or subgroups, who interacts with each other to perform the activities intended towards the accomplishment of a common goal.

Classical organization theory

• Taylor’s scientific management approach.
• Weber’s bureaucratic approach.
• Administrative theory.
• Principles of the neoclassical approach.
• The systems approach.
• Socio-technical approach.
• The contingency or situational approach.

Henri Fayol’s management theory is a simple model of how management interacts with personnel. Henri Fayol’s management theory is a simple model of how management interacts with personnel. Fayol’s management theory covers concepts in a broad way, so almost any business can apply his theory of management.

Lesson Summary Barnard developed a theory of organization around the idea that it is a natural, cooperative system. Important aspects of his natural system theory include the Inducement-Contribution Theory, altering the motives of members to obtain cooperation and recognition of the need for legitimate authority.

Barnard has identified three types of functions which an executive performs in a formal organisation. maintenance or organizational communication through formal interactions. the securing of essential services from individuals to achieve organizational purpose. the formulation and definition of organizational purpose.

3. Bureaucracy / Contribution of Max Weber Max weber’s main contribution to management is his theory of authority structure and his description of organizations based on the nature of authority relations within them.

In formal authority, authority stems from the top and is transmitted downwards through the line by the help of delegation of authority. According to this theory authority is based upon the rank or position of the person and this authority may be given by law or by social rules and regulations protected by law.

According to Max Weber, the three types of legitimate authority are traditional, rational-legal, and charismatic.

Formal authority is what is conferred when you occupy a formal Role, for example, when you become Treasurer of a non-profit organization. That role comes with a Title, and a collection of Tasks (“work”) you are formally authorized to do. Police for example are formally authorized to enforce the law.

Formal authority systems refer to the policies, controls, and rules of the organization. These instruct employees on what to do and what not to do in different situations.

Legitimacy, dominance, informality, rationality and accountability are the characteristics of authority.

Formal authority is the legitimate power that an organizational member has simply by occupying an official position or office in the hierarchy—the authority of position or office. Principals, for example, have formal authority merely because of their role.

Formal authority means you have the right to decide what actions others have to perform. It is the authority of a line manager, who can decide what the team should work on and how the work should be performed. Among other things, formal authority includes the following rights: defining the work schedule of people.

Lateral leadership means leading without formal authority, ie knowing how to influence co-workers, higher-ranking managers, or clients. People often have to bring about change and achieve results by having constructive conversations with those whom they need to enthuse.

Here are 5 ways to lead without formal authority:

1. Listen Mindfully. Contrary to popular belief the leader is not always the loudest voice in the room.
2. Prepare to Add Value.
3. Inspire Others.
4. Give Great Feedback.
5. Ask for Help.

Leadership Authority: What Gives Real Leaders the Ability to Influence?

• Respect. Leaders are respected by their employees, who do their best to please their bosses.
• Clarity of message.
• Ability to motivate.
• Ability to inspire.
• Ability to strategize.
• Ability to think of a plan B.
• Reputation.
• Resilience.

The goal of leading without authority is to get others to follow you and act willingly, rather than acting because you’re their boss and tell them to. In a sense, influencing without authority is about selling: you need to sell others on your ideas and why they should be a part of your action plan.