Understanding and Managing Organizations

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What is organizational behavior?

Organizational behavior can be defined as the study plus the application of knowledge about how individuals, groups, people act in many organizations they work for. It also involves the study of the whole organization, the various strategies which are used by the organization, how these organizations adapt, and the various structures that guide this organization towards its success. Most of the organizations are seen as complex, goal-oriented, and dynamic and hence the need to understand these organizational structures and the various strategies which are used by this organization different from the other organizations which lead to its success.

It is the study of these organizations which leads to the benefit of identifying the various common themes for the purpose of solving so many organizational problems, maximizing the organizational efficiency, increasing its productivity, and lastly meeting the needs of its stakeholders. It is the role of the company to follow the organizational behavior to ensure that most of its goals have been achieved. It is under the organizational structure whereby the organization can differentiate itself from the other companies by use of the different organizational structures. So, the evolution of organizational behaviors is seen as comprising of three key periods that is the classical organization, the modern organization, and the post-modern organization. So through the paper, am going to try and analyze the organizational behavior with the use of three companies that is the KFC, the TOYOTA, and the ROLL-Royce company, and try to see how these companies try to demonstrate the above organizational behavior. (DeSanctis & Fulk, 2000)

Classical organization

Classical organization involves three forms of leadership whereby there is bureaucracy, power, and control. So you will find that under the bureaucratic administration the exercise of power in this case is based on the basis of one’s knowledge. But for sociologists, tend to argue that the power, in this case, is exemplified within the organizations by the use of control. Power in this case can be defined as the imposition of one’s power on his will regardless of whether there are any people resisting this type of power. Weber is one of the contributors to the classical organization whereby in this case he classified organizations according to the nature of that particular legitimacy.

One is the charismatic authority whereby power, in this case, was based on the outstanding qualities and abilities of the leader, the second one is the traditional authority whereby power was given in response to the respect for one’s culture and the last one is the rational-legal authority which is seen to apply in most of the societies today and it is based on a set and a code of rules of the organization. Under the classical organization, you find that the rational-legal authority is the most predominant form of power which is exercised in most organizations today hence replacing the old system of power. This form of power is attained through bureaucracy. Here you find that the managers within the organization should rule as per the set rules and regulations which have been established by this organization. Here, according to Weber, there is a legal code and it is through this particular set code of conduct that determines the behavior of the organization. (DeSanctis & Fulk 2000)

The three companies selected have passed through this evolution but for my case, I will take the example of the Toyota Company which is one of the leading automotive vehicles in the world. It is Japan’s number one carmaker that makes hybrid-powered vehicles which is the new technology that has come up today. It has been in a position to realize its competitive advantage through its management of power. This is because there are so many automotive industries in the world some of which include Honda, which is giving stiff competition to the Toyota industry. But you find that the company has used the classical organization to have an organizational behavior which has led the company to be the leading car industry in the world. It has a legal code of conduct whereby it has a set of rules and regulations which help to determine the relationship and the interaction of the employees and the employer and the form of power to be used by the company. (DeSanctis & Fulk 2000)

The Toyota way has the fourteen management principles from the world’s greatest manufacturer which is known as the Toyota Production System (TPS). It is in the TPS whereby it provides the fourteen principles which are used by the Toyota Company in its production and management of its activities. Under the Toyota TPS, these principles are represented into four broad categories which include the following, the being philosophy, the proceedings to process, people/partners, and lastly is the pinnacle which is problem-solving. For example, the 9th principle of the Toyota company which says that standardized tasks are the foundations for continuous improvement plus employee empowerment shows some form of bureaucracy which was stated by Weber as the best form of organizational behavior in any organization.

This TPS system has a lot of bureaucracy even though its implementation, in this case, shows a continuous improvement from the people who are said to be affected by this form of leadership at the Toyota Company. Here, Laker says that this form of leadership at the Toyota Company is very much different from the other form of bureaucratic leadership found in other organizations say in the higher institutes of education say the universities because of the continuous growth of the company. So this particular person contracts these bureaucratic structures from the form of bureaucracy which is used by other organizations hence leading the organization to become less effective, rigid, and more inflexible hence do not allow the organization to grow but end up collapsing due to the bad management strategies which are used by the company. So in Toyota, the bureaucracy that it uses as defined by Weber is the standardization form of bureaucracy that has tested and also proven methods that are said to be highly geared to reducing wastes. (DeSanctis & Fulk 2000)

Principle 13 says that such bureaucracy is only adapted after coming up with a consensus with the Toyota organization to use such form of bureaucracy in the management of its activities. This is one of the best forms of organization in that there is a specialization of activities. Here you find that each office has its own sphere of competence whereby in each department, there is its own leadership whereby activities which are related to that department have their own leader to solve such activities. He saw this as one of the most competencies of running the organization with specialized functions and the division of labor as it applies at the Toyota company whereby there are defined rules and roles for each employee working in that particular organization. It has also a clearly defined hierarchy of offices whereby under each department, it has its own manager to handle matters concerning that particular department.

This is very much beneficial since you will find that it will avoid any inconveniences of having to queue in only office in case one has a problem. So before a particular problem is solved, then you find that it has to go through a variety of offices before that highest person comes across it. Under this particular bureaucracy which is used by the Toyota company, you find that there is a free selection of appointed officials whereby such officials are selected on the basis of their qualifications hence meaning that it is a good form of managing organizations whereby promotions are based on one’s qualifications but not based on one’s ethnic group, sex of any form of discrimination. There is also a career structure plus a system of promo0tion for its employees hence meaning that under the Toyota form of bureaucracy, there is a career official whereby there is a set career structure on the way its employees can be promoted. Toyota in this case uses the standardization bureaucracy whereby it involves a process of agreeing upon certain technical standards whereby some of these standards are either compulsory or even mandatory. These standards are seen to lead to efficiency in the running of the organization hence leading to the realization of its competitive advantage. (DeSanctis & Fulk 2000)

Modern organization

The modern organizations can be explained through the modernization theory which in this case may be taken to mean the transformation of social life and the activities which are done in the organization. The modernization theory in this case tries to identify the social variables which are seen to contribute to the social progress and development of most of the organizations hence seeking to explain in detail the social evolutions of such organizations. Most of the organization, in this case, has adopted the modernization theory to manage most of its activities. It is in the modernization theory whereby it stresses change and the many responses to such changes through the adaptation of the new technologies.

Modernization theory is based on basic principles which in this case can be derived from the Age of enlightenment whereby, in this case, it is assumed that people could themselves develop and also lead to changes in the way they can conduct their many organizational activities. So you find that due to the issue of globalization, most of the organizations have fit so well in the modern organizations through the adoption of the new technologies. All the three selected companies have demonstrated this evolution stage but I will select Toyota Company to explain such phenomena whereby it has used the new technology in most of its activities. For example, Toyota’s automotive industry is now producing hybrid cars which are seen to conserve the environment in so many ways. They are seen to use fewer fuels when compared to the other vehicles hence meaning that they have developed from the old way of producing vehicles to a modern way of manufacturing such vehicles as a result of the rise in the new technology. So the modern organizations can be reflected in such cases whereby we have undergone a period of so many changes from the traditional way of doing business to the modern way of doing such business. (Likert, 2000)

The globalization process has come up with so many changes in the way such businesses are conducted hence leading to the growth of so many organizations that use the new technology. Another case to explain the modern organization is the KFC (Kentucky Fried Chicken) which is a fast-food company that gives the world the first taste of its food. It is one of the largest chicken fast food empower in the world since it sells classic chicken plus other snacks to so many people all over the world. This is one of the companies which have grown from a small company into a large company. It started in the year 1939 whereby during these years, many people had not known the company since most of the people lived on traditional foods but due to the rise of new technology and the globalization process, KFC has grown so much hence making the company be the largest chicken fast food empire in the world. KFC serves most of the finger-licking good chicken which is admired by so many people not just in North America but also in other countries. It uses the new technology to produce and also to market its fast foods.

For example, it uses the internet when marketing its chicken plus other snacks. It is out of the changes of the new technology that many people have been in a position to get access to such a good restaurant which sales such a chicken, home-style side dishes plus hot and fresh biscuits. The company is also at the same time committed to making the company even bigger with so many branches to market and also to advertise its many products. Changes are seen in the company. For example last year, Yum! And its franchise spent more than $600 million while trying to advertise its products to its potential consumers. Also, you find that the national marketing news is usually communicated regularly throughout the year. So in this case you will see how KFC has demonstrated the modern organization effectively with the many changes which are evident in the organization as a result of the rise in the new technology and the globalization process. As a result of the economic development, you tend to find that the mass media has led so much to the growth of KFC which promotes the global diffusion of so many technical and social innovations that are said to be quite essential to the modernization process of this company. It is through the development of the media group that communication of products have been made easy and effective hence many organization have changed from the traditional modes of advertising to the new modes of advertising hence leading to the growth of these companies. (Ruggles & Holtshouse, 1999)

Postmodern organization

Post-modern organizations, in this case, can be defined as comprising of a networked set of diverse, self-controlled, and self-managed teams with so many centers of the organizational coordination of activities that are said to fold and at the same time unfold as according to the requirements of the task. In such organizations, you find that the workers working in such organizations are said to be fully organized and highly empowered and participating fully in the job, the teams, in this case, are also said to be organized in a flat design plus the information in such an organization is fluid and also more continuous improvement is emphasized throughout the running of the company.

In such organizations, you also find that the authority is only delegated to the leaders by teams that form up the organization hence meaning that the form of bureaucracy does not happen in such organizations. The three companies that are the Toyota Company, KFC, and Roll-Royce have clearly demonstrated this hence leading to the increase in their profits. This is the highest evolution stage which most organizations can achieve and it’s out of the globalization process with the rise of the new technologies today. A good example to explain this is the ROLL-ROYCE motor company whereby it has demonstrated this form of organizational behavior so much. You find that at ROLL-ROYCE, the leaders are usually delegated by the teams who form up the company plus team incentives which are given to the employees so that they can work more effectively towards the growth of the company. Such team incentives which are given may include certain incentives like house allowances, transport allowance hence making the workers work effectively towards the growth of the company. (Clegg, Hardy, & Nord, 1997)

You also find that the women are equally paid just like the men hence meaning that there is no form of discrimination working in this particular company. This is because you find that in most of the organizations, people especially women are usually discriminated so much, and in the case of promotions; you will find that they are left behind despite their many qualifications. But in ROLL-ROYCE has demonstrated the post-modern organization whereby there is no discrimination of any nature which might affect the performance of the company. Planning for the company is based on long-term profits whereby the company in this case when setting its strategic management; it plans for its long-term profits which are said to be achieved in a certain period of time say one year.

Its production is also more flexible more than the modern organization in that its production activities tend to be more flexible as a result of the rise in the new technology which in this case leads to the growth of the company. Under the organization of the activities, you also find that efficiency, in this case, is seen to decline with the specialization formalization, reutilization, fragmentation, and the division of labor which is found at the classical organization. So you will find that with the rise in the new technology, most of the post-modern organizations in this case will have more efficiencies which are known to decline with the issue of specialization and the division of labor which can be seen at the classical organizations. This is the highest stage of the development of these organizations yet knows and it’s evident in most of the organizations that is the ROLL_ROYCE, The Toyota, and the KFC. It is due to the realization of this stage that these three companies have been in a position to realize their competitive advantage hence leading to the recording of more profits in return. (Clegg, Hardy, & Nord, 1997)


The issue of understanding and also managing the organization is very much important. This can be answered through analyzing the evolution stages which are undertaken by most of the organizations before they attain the highest stage and this is the postmodernization stage. These stages are very much vital for any organization since it’s through the passing of such stages that they are in the process of developing hence leading to the growth of the companies.


DeSanctis, G., & Fulk (Eds.) (2000): shaping organizational form. Sage Publications: Thousand Oaks, CA.

Ruggles, R., & Holtshouse, D. (1999): The knowledge advantage. Capstone US, Dover, NH.

Clegg, S., Hardy, C., & Nord, W. (Eds.) (1997): Handbook of organization studies. Thousand Oaks, CA: Sage.

Argyris, C. (2000): Classical organizations. New York. HarperCollins.

Likert, R. (2000): Modern and postmodern organizations. New York. McGraw-Hill.

Weber, S. (1999): Classical organizations. New York.

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