Thursday, 24 December 2015

1) What is modern Theory of Organisation ?
Ans):-

Modernization theory Organisation

Modernization “began when a nation’s rural population started moving from the countryside to cities” (Shah 3).[10] It deals with the cessation of traditional methods in order to pursue more contemporary effective methods of organization. Urbanization is an inevitable characteristic of society because the formation of industries and factories induces profit maximization. It is fair to assume that along with the increase in population, as a result of the subsequent urbanization, is the demand for an intelligent and educated labor force (Shah 3).[11] Following the 1950s, Western culture utilized the effects of mass media coverage to communicate their good fortune attributed to modernization. The coverage promoted “psychic mobility” among the social class and increased the aspirations of many hopefuls in developing economic countries (Shah 4).[11] Under this theory, any country could modernize by using Western civilization as a template.
Although this theory of modernization seemed to pride itself on only the benefits, countries in the Middle East saw this movement in a new light. Middle Eastern countries believed that the media coverage of modernization implied that the more “traditional” societies have not “risen to a higher level of technological development” (Shah 6).[11] Consequently, they believed a movement that benefits those who have the monetary resources to modernize technological development would discriminate against the minorities and poor masses (Shah 6).[11] Thus, they were reluctant to modernize because of the economic gap it would create between the rich and the poor.
The growth of modernization took place beginning in the 1950s. For the ensuing decade, people analyzed the diffusion of technological innovations within Western society and the communication that helped it disperse globally (“Modernization theory”).[12] This first “wave” as it became known had some significant ramifications. First, economic development was enhanced from the spread of new technological techniques. And second, modernization supported a more educated society (as mentioned above), and thus a more qualified labor force (“Modernization Theory”).[12] The second wave took place between the years 1960 and 1970. This period was labeled anti-modernization, because it saw the push of innovations of Western society onto developing countries as an exertion of dominance (“modernization theory”).[12] It refuted the concept of relying heavily on mass media for the betterment of society. The last wave of modernization theory, which took place in the 1990s, depicts impersonality (Perrow 737).[13] As uses of newspapers, TVs, and radios become more prevalent, the need for direct contact, a concept traditional organizations took pride in, diminishes. Thus, organizational interactions become more distant (“Modernization Theory”).[12]
According to Frank Dobbin, the modern worldview is the idea that “modern institutions are transparently purposive and that we are in the midst an evolutionary progression towards more efficient forms (138).”[11] This phrase epitomizes the goal of modern firms, bureaucracies, and organizations to maximize efficiency. The key to achieving this goal is through scientific discoveries and innovations (Dobbin 139).[11] Dobbin discusses the outdated role of culture in organizations. “New Institutionalists” explored the significance of culture in the modern organization (Dobbin 117).[11] However, the rationalist worldview counters the use of cultural values in organizations, stating, “transcendental economic laws exist, that existing organizational structures must be functional under the parameters of those laws, [and] that the environment will eliminate organizations that adopt non-efficient solutions” (Dobbin 138).[11] These laws govern the modern organizations and lead them in the direction that will maximize profits efficiently. Thus, the modernity of organizations is to generate maximum profit, through the uses of mass media, technological innovations, and social innovations in order to effectively allocate resources for the betterment of the global economy.

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