Compare and contrast the rational perspective and the systems perspective on formal organizations citing examples from the Beacon Center to illustrate your points.

Question

What will be an ideal response?

Answer 1

These concerns reflect the rational perspective on organizations, which views the formal organization as a goal-directed, purposefully designed machine. It assumes organizations can be designed with structures and processes that maximize efficiency and effectiveness, concepts that are highly valued in this perspective. The systems perspective on organizations builds on the fundamental principle that the organization is in constant interaction with its multiple environments-social, political, economic, cultural, technological-and must be able to adapt to environmental change. Some systems theorists suggest mutual influence between organizations and their environments; other theorists see the influence as unidirectional, with organizational structure and processes being determined by the environment. A second important principle of the systems perspective is that organizations are composed of interrelated subsystems that must be integrated in order to achieve the organization's goals and meet environmental demands. Finally, in contrast to the rational approach, the systems perspective holds that there are many different ways, rather than one best way, to reach the same ends. Martha tended toward the systems perspective, believing there were multiple ways to reach the organizations' goals, and inviting input from stakeholders at various levels, as well as minimizing the hierarchical structure of her organization. She valued everyone's perspectives and ideas. On the other hand, when Helen took over, she attempted to make the organizational structure more formalized, hierarchical, and bureaucratic. She was very much a leader who operated from the rational perspective.