Organizational Theories That Improve Business Operations
This literature review examines several organizational theories and their practical applications for improving business operations. The paper surveys classical theory, symbolic organization theory, open and closed systems theory, contingency theory, and Maslow's hierarchy of needs as frameworks managers can use to enhance efficiency, employee motivation, and decision-making. Drawing on a range of scholarly sources, the review argues that no single theory is universally optimal; rather, managers benefit from understanding and selectively applying multiple theoretical perspectives to address the specific conditions and challenges facing their organizations.
- Introduction to Organizational Theories and Operations: Organizational theories help managers improve business operations
- Classical Theory and Operational Efficiency: Classical theory promotes efficiency, coordination, and predictability
- Symbolic Organization Theory: Symbols shape meaning, motivation, and workplace effectiveness
- Open and Closed Organizational Systems: Balancing open and closed systems optimizes employee autonomy and structure
- Contingency Theory in Management: Contingency theory guides adaptive responses to changing conditions
- Motivation Theory and Employee Productivity: Maslow's hierarchy and intrinsic motivation drive operational improvements
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What makes this paper effective
- The paper systematically surveys multiple distinct theoretical frameworks, giving each a dedicated section rather than blending them together, which makes the argument easy to follow.
- Each theory is connected to a concrete operational benefit — such as reducing inefficiency, improving motivation, or enabling adaptive decision-making — keeping the review applied rather than purely abstract.
- The use of paired citations (e.g., Gebert & Boerner, 1999 used twice; Maslow, 1943 cited four times) demonstrates consistent engagement with primary theoretical sources.
Key academic technique demonstrated
The paper demonstrates a thematic literature review structure in which each paragraph introduces a distinct theoretical lens, explains its core premises through cited scholarship, and then extrapolates practical managerial implications. This "theory → application" pattern is an effective model for literature reviews in business and management courses.
Structure breakdown
The review opens with a broad framing of organizational theory's value, then moves sequentially through five specific theories: classical, symbolic, open/closed systems, contingency, and motivation (Maslow and intrinsic/extrinsic). The final section on motivation is the most detailed, incorporating two separate theoretical perspectives. The paper closes with a standard APA reference list.
Introduction to Organizational Theories and Operations
Organizational theories provide a framework for understanding how businesses operate. By understanding the different types of organizations and the ways they function, managers can make more informed decisions about how to improve operations. For example, theories of bureaucracy can help managers identify inefficiencies in their organizations and implement policies that will improve productivity. In addition, theories of organizational design can help managers create a more effective structure for their business. By understanding and applying these theories, managers can make significant improvements to the way their businesses operate.
Classical Theory and Operational Efficiency
Operations management is the process of planning, organizing, and controlling the resources needed to produce goods and services. Classical theory is a branch of operations management that emphasizes efficiency and predictability. Its key insights can be used to improve operations in a number of ways. For example, classical theory can help managers develop more efficient processes, better utilize resources, and minimize the risk of disruptions. In addition, classical theory can be used to improve communication and coordination among workers. By understanding and applying the insights of classical theory, operations managers can improve the efficiency and effectiveness of their organizations.
Symbolic Organization Theory
Symbolic organization theory is another perspective that can be used to improve operations within a company. This theory suggests that businesses are organized around culturally defined symbols that give meaning to the work being done (Hassard, 2002). By understanding the role of symbols in organizational life, managers can make decisions that will improve employee satisfaction and motivation. In addition, this understanding can help managers create a more efficient and effective workplace (Hatch, 2018). As businesses become increasingly complex, the need for strong leadership that understands the importance of symbolic organization theory will only grow. Those who can effectively use this theory to guide their decision-making will be well positioned to succeed in the ever-changing business world.
References
Araral, E. (2020). Why do cities adopt smart technologies? Contingency theory and evidence from the United States. Cities, 106, 102873.
Boissier, O., Hübner, J. F., & Sichman, J. S. (2006, September). Organization oriented programming: From closed to open organizations. In International Workshop on Engineering Societies in the Agents World (pp. 86–105). Springer, Berlin, Heidelberg.
Gebert, D., & Boerner, S. (1999). The open and the closed corporation as conflicting forms of organization. The Journal of Applied Behavioral Science, 35(3), 341–359.
Gerhart, B., & Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance, and creativity in the workplace: Revisiting long-held beliefs. Annual Review of Organizational Psychology and Organizational Behavior, 2, 489–521.
Hassard, J. (2002). Essai: Organizational time: Modern, symbolic and postmodern reflections. Organization Studies, 23(6), 885–892.
Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives (4th ed.). Oxford University Press.
Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370.
Önday, Ö. (2016). Classical organization theory: From generic management of Socrates to bureaucracy of Weber. International Journal of Business and Management Review, 4(1), 87–105.
Sunder M, V., & Prashar, A. (2020). Empirical examination of critical failure factors of continuous improvement deployments: Stage-wise results and a contingency theory perspective. International Journal of Production Research, 58(16), 4894–4915.
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