Organization theory is the study of structures, designs, relationships, within an organization with the external environment and behavior of employees within an organization. It also proposes how an organization can cope with rapid changes resulting from the dynamic world.
There are several theoretical contributions which are essential in explaining the organization and its structure. These can be divided into three categories;
Classical organization theory
1. Scientific Management approach
2. Weber 's Bureaucratic approach
3. Administrative theory.
Neoclassical Theory
Modern organization theory
1. Systems approach
2. Socio-technical approach
3. Contingency or Situational approach
These contributions are at times referred to as theoretical
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A balance of these three components is critical for effective functioning of the organization.
The situational approach postulates that organizational systems are affected by the environments in which they are set in; therefore different environments require different organizational approaches and relationships for effective working
Systems approach; Systems theory was pioneered by Ludwig von Bertalanffy in 1951, he compared open system to anatomy that is composed of skeleton, muscles, circulatory system etc. the systems approach portrays an organization as a system composed of a set of inter-related - and inter connected web. Skyttner (1996) as cited by Enoch, C.N. (2013), notes that a system is comprised of elements that are part of an integrated piece that is envisioned to function, thus displays some level of order, pattern and purpose. He then summarizes works from different authors on systems approach as having;
1. Elements that are interrelated and interdependent
2. All inclusive properties that cannot be able to be detected by analysis should be possible to be defined in the