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Business Jargons

A Business Encyclopedia

Organizational Theory

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.

In other words, the organizational theory studies the effect of social relationships between the individuals within the organization along with their actions on the organization as a whole. Also, it studies the effects of internal and external business environment such as political, legal, cultural, etc. on the organization.

The term organization refers to the group of individuals who come together to perform a set of tasks with the intent to accomplish the common objectives. The organization is based on the concept of synergy, which means, a group can do more work than an individual working alone.

Thus, in order to study the relationships between the individuals working together and their overall effect on the performance of the organization is well explained through the organizational theories. Some important organizational theories are:

  1. Classical Theory
  2. Scientific Management Theory
  3. Administrative Theory
  4. Bureaucratic Theory
  5. Neo-Classical Theory
  6. Modern Theory

An organizational structure plays a vital role in the success of any enterprise. Thus, the organizational theories help in identifying the suitable structure for an organization, efficient enough to deal with the specific problems.

Related terms:

  1. NeoClassical theory
  2. Classical Theory
  3. Modern Theories of Inflation
  4. Theories of Inflation
  5. Organizational Barriers

Reader Interactions

Comments

  1. Ikino pamela says

    September 5, 2018 at 4:48 pm

    Good insight for learning

    Reply
  2. Rendor Williams says

    April 6, 2019 at 9:50 am

    Oh my God !! The information on this website is so good !
    It is like pouring gold into my memory banks …

    Reply
    • Shedrack says

      April 13, 2021 at 6:36 pm

      Is good keep it up thank you

      Reply
  3. ibrahim says

    May 25, 2019 at 5:04 am

    Thanks

    Reply
  4. Aaron Apronti says

    August 22, 2019 at 4:22 am

    Very good information. Will want more. Thanks

    Reply
  5. junaid says

    September 22, 2019 at 1:00 pm

    Thank you

    Reply
  6. Cecelia says

    October 7, 2019 at 10:27 am

    Thank you for such good information.

    Reply
  7. Lisa says

    November 6, 2019 at 1:31 pm

    This is really educative but is this the same as the Formal Organization Theory?

    Reply
  8. Mossang says

    December 6, 2019 at 8:01 am

    Thank you so much it is very helpful n easy to understand 🙏🙏🙏😘😘😘

    Reply
    • HELLEN AHIRIRWE says

      December 21, 2021 at 12:34 am

      Wow

      Reply
  9. mahdi says

    December 7, 2019 at 8:55 pm

    very good

    Reply
  10. Batola David says

    January 9, 2020 at 3:49 pm

    Very Beneficial

    Reply
  11. Juliah Thibelang says

    October 24, 2020 at 2:44 pm

    Very good information

    Reply
  12. Jemma Api says

    November 7, 2020 at 8:58 am

    thanks for the very good information. God bless

    Reply
  13. Nazia says

    February 14, 2021 at 11:31 am

    Thank you soo much for this information…………..

    Reply
  14. Nakivumbi Dorothy says

    March 23, 2021 at 10:09 am

    Good

    Reply
  15. Precious magit says

    March 28, 2021 at 2:44 am

    Thank you

    Reply
  16. Nasimolo godfrey says

    April 7, 2021 at 12:04 am

    So good

    Reply
  17. Ati Gordon says

    June 9, 2021 at 6:57 pm

    It’s very educative.
    Post more for us to learn more for research.
    Thanks.

    Reply

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