1. Organizational Theory in Education
William Allan Kritsonis, PhD
Potential Questions
Question 1: Different theories have been used to describe how school and
school systems are organized and managed. These organizational theories
include bureaucratic, scientific management, human relations, and the open
systems approach. Compare and contrast two of these theories in the
following areas: organizational structure, basic philosophic perspective of
employees, duties and authority of administrators, and effective leadership
styles. Justify why one approach might be more effective for an educational
entity than the other.
Question 2: Education is a state rather than a federal responsibility. Briefly
compare and contrast the responsibilities and educational activities that are
associated with state and local level educational entities. Describe how
three values, equality, efficiency, and liberty have impacted the
establishment and implementation of educational policies at all levels
(federal, state, and local).
Organizational Theory in Education

2. Three theories have influenced school organization and management:
(1) classical (bureaucratic & scientific management), (2) human relation, and
(3) open systems.
Classical Theory of Organization
Bureaucratic Organizational Model - Max Weber
This formal model includes (1) a hierarchical arrangement with
separation of authority, (2) task specialization among employees (division of
labor), (3) hiring of professional personnel based on technical knowledge,
(4) separation of personal & organizational property and, (5) implicit rules
and regulations that govern official decisions and actions. The intent is to
maximize rational decision-making and facilitate increased efficiency. It is
based on rational-legal authority rather than power and persuasion. Rational
legal authority is a belief that laws can be enacted and changed by formally
correct procedures. This organizational model has drawn the following
criticisms: (1) hierarchical authority can perpetuate rigidity and adherence
to rules, (2) the impersonal focus can result in low morale and alienation, (3)
division of labor can stifle initiative and, (4) informal relationships and
individual needs are ignored.
Scientific Management - Frederick W. Taylor

3. This perspective focuses on increasing efficiency and maximizing human
productivity by identifying the "best" way to do a job. Scientific analysis
and time and motion studies were used to identify and help eliminate
muscular and physiological activities that lead to worker fatigue. In an
effort to optimize work performance, pay was linked to output. This theory
has been criticized because it embodies a mechanistic view of workers as
extensions of machines.
Human Relations Approach
The focus in this organizational theory is on the social and affective
needs of employees and emphasizes the importance of feelings, attitudes and
social climate of organizations. Although the basic organizational structure
may resemble a bureaucratic model, informal interactions that exist outside
bureaucratic norms or formal dimensions of an organization are identified.
Employees whose social and psychological needs have been fulfilled are
motivated to work more productively. The impact of human relations on
employee productivity has been demonstrated in two studies. The results are
known as the Hawthorne Effect. The first experiment investigated the effect
of increased light on productivity. The results showed that increased
productivity was due to subjects' responses to attention and novelty of the
experiment and not to an increase or decrease in light. The second

4. experiment (bank-wiring room), investigated the relationship between
increased financial incentives and productivity. Results showed that workers
establish informal standards that define a "satisfactory" day's work.
Production greater or less than standard was unacceptable to the group.
These two experiments showed that (1) group norms are equal to or greater
than managerial or administrative norms in importance in determining a
productivity level, (2) noneconomic rewards can increase productivity, and
(3) group satisfaction and commitment are enhanced through participatory
decision making.
The Hawthorne studies also showed that leadership style has an effect on
group performance. A "democratic" style was found to be more effective for
group performance than either a "laissez-faire" or "authoritarian" style.
Leaders who give equal attention to initiating structure (task performance)
and consideration (friendship, trust, respect, warmth, and concern) tend to be
more effective as measured by worker satisfaction and performance. Within
groups, there exists both formal and informal leaders. Formal appointed
leaders are concerned with task performance while informal leaders emerge
for the group and attend to the group's social and psychological needs.
Systems Approach

5. Systems can be viewed from three different perspectives: biological
(living organisms), mechanical (automobiles), and social (organizations).
Within each of these perspectives, there are two basic system types: closed
and open. Closed systems, like the bureaucratic and human relations models,
have impenetrable boundaries and derive few inputs from environment.
Although thought to be self-sufficient, these systems can experience entropy,
a movement to disorder, lack of resource transformation, and eventually
death. In contrast, open systems have permeable boundaries exchanging
resources with the environment. Homeostasis exists when the system is
stable and there is a balance or equilibrium between environmental resources
and the system. Disequilibrium results when the system is unable to use
resources as they are received from the environment or when its subsystems
are out of balance. One criticism of the systems approach is that it fails to
adequately account for change that results from interactions between people.
Open Systems Approach
The open systems approach to organizational theory emerged in the
1960s. Organizations were viewed as open systems that interact with the
environments in which they exist. The relationship of organizational parts
and the link between the organization and its larger environment was
stressed. The input-throughput-output model was used to describe this

6. approach. Organizations maintain themselves by processing inputs from
their environment and converting them into outputs.
Schools as a Selective Linkage System
The term, selective linkage system, is used to describe the organizational
structure of contemporary schools. In some respects, they resemble a closed
system and reflect many of the components of Weber's Hierarchical
Organizational Structure. They utilize a (1) hierarchical structure, (2) a
division of labor based on technical competence and specialization, and (3)
written rules and regulations (policies). On the other hand, they are open
systems with both tight and loose controls. Contemporary schools interact
socially and politically with community in which they exist through the
PTA, school advisory councils and a myriad of special interest groups.
Interaction with the community is important in determining school goals and
generating approval and support for programs.
Although the organizational structure may show a hierarchical format,
there are loose controls between authority levels. The superintendent has
authority over staff but must operate within the parameters of board policy
and contractual arrangements. Higher authority levels, such as principals and

7. district level administrators, do not exercise complete control over those at
lower levels. Teachers are still in control within their classrooms, and site-
based management has given more authority to lower organizational levels.
School organizations still command tight control over several areas.
These include requirements for teachers, promotion and graduation policies,
curriculum, and student placement.
Informal Dimensions of Organizational Structure
Groups formed by teachers have been shown to be a powerful force in
school organizations. Administrators who identify informal group leaders
and establish close working relationships with them are substantially
advantaged in accomplishing organizational goals. Group norms have been
shown to be an important determinant of group behavior. Informal groups
of teachers tend to reform after the summer break with little change and are
usually dominated by older and more experienced teachers.
Leadership and Types of Authority
Leaders attempt to influence others through personal and positional
powers such as authority. There are several types of authority that leaders
employ: traditional, charismatic, and rational-legal. In the purest form,
traditional authority is aligned with patriarchal authority. Charismatic
authority is based on personal devotion to the leader. It is thought to be an

8. unstable type of authority because it is linked to one specific person.
Rational-legal authority is based on the supremacy of the law and the
position that formally established social norms should direct a person's
actions in the rational pursuit of specified goals. This type of authority is
closely linked to Weber's bureaucracy model.
Types of Educational Organizations
Educational organizations can be classified into three types:
nonprofessional, professional, and semiprofessional organizations.
Bureaucrats (administrators) and professionals (teachers) assume different
roles in these organizations. In nonprofessional organization, the goal is to
make a profit. Administrative activities are coordinated so that profits can
be maximized and final authority resides in line officers (administrators)
who constitute the administrative chain of command. In these organizations,
professionals (teachers) are more likely to occupy specialized or staff
advisory positions outside the line of authority. The goal of professional
organizations, such as those associated with universities, research
organizations, and hospitals, is to produce, apply, preserve, or communicate
knowledge. Generally, 50% or more of the staff are professionals who have
primary control over the major goal activities with administrators providing
support. Final authority resides with the professionals. School and social

9. work agencies are classified as semiprofessional organizations. They are
similar to professional organizations but differ in the areas of professional
employee status and function. Less time is spent on training, and there is a
focus on communication of knowledge.
In educational organizations conflicts may arise between bureaucrats
(administrators) and professionals (teachers) in the area of decision making.
Classic bureaucrats (administrators) make decisions in the interest of the
organization, while idealized professionals (teachers) want decisions made
in the best interests of the students or norms of the profession.
Public School Systems
The 10th Amendment gave states control of activities that are not
specifically assigned to the federal government. This resulted in the states
being responsible for education. Except for Hawaii, all U.S. public
educational systems are state legislated and supported but locally operated.
Local school districts are classified as quasi-corporations: a political division
of the state to facilitate the administration of government.
This century has seen an increase in the power of local districts.
There has been a movement toward consolidation of school districts, hiring
of professional school managers, increased power of the superintendent, and
an interest in scientific management. There continues to be an increasing

10. chasm between mainstream partisan political activity and school
governance. School boards have secured the right as a separate taxing
authority.
The rise in local power has contributed to a decrease in the authority
of the State Board of Education. The general areas of responsibility for state
departments include finance (administration of federal and state monies),
teacher certification, curriculum (textbooks and standards), testing, data
collection and distribution, administration of Federal program, facilities and
transportation, and nonpublic schools.
Local school district adopt policies and practices to govern the operation
of the school system under their control. The policies and practices that are
adopted are a result of a dynamic equilibrium between three values -
equality, efficiency, and liberty.
Equality means the equal access to educational services for all. Several
landmark cases have greatly influenced the organization and functioning of
educational systems in the United States. The most influential case was the
1954 Supreme Court Case, Brown vs. Board of Education, which disallowed
racially segregated schools. The "equal protection clause" of the 14th
Amendment provided equal access to educational opportunities for all
handicapped students. Federal funding is provided through the Education

11. for all Handicapped Children Act (1975). Bilingual students were
guaranteed effective instruction and equal access to education services as a
result of a landmark case; Lau vs. Nichols.
Equality also means equal distribution of financial resources. This
was addressed through the enactment of several programs and the passage of
several federal acts. The Elementary & Secondary Education Act (ESEA),
President Johnson's War on Poverty (1960's), and Compensatory Education
which focused on low income families were programs that addressed
financial resource allocation to elementary and secondary schools. The
needs of post secondary students were addressed through several financial
aid programs: (1) Serviceman's Readjustment Act (based on years of
service), (2) Guaranteed Student Loan Program (GSLP) which subsidized
lending organizations), and (3) Basic Education Opportunity Grants (BEOG)
which were based on financial need.
Unequal tax bases and disparate expenditures result in an unequal
distribution of resources among school districts. A variety of state level
finance reforms during the 1970’s and 1980’s have attempted to equalize
these discrepancies. A landmark case, Rodriguez v. San Antonio, found that
unequal systems are not in violation of the U.S. constitution.

12. For employees, equality means equal access to decision making.
Programs such as collective bargaining have increased employee
participation in decision making. The 1980's saw an increase in teacher
unionization (NEA, AFT).
The second value, efficiency, is concerned with the conserve of
resources so that "conserved" monies can be used for other endeavors such
as expanding school choice. By increasing efficiency, output is maximized
and options are expanded. During the 1970's state spending limits were
implemented. In a landmark case, Serrano v. Priest, the California
legislature imposed a spending ceiling on school districts.
To increase efficiency and contain or reduce costs, school district
adopted scientific management principles and patterned schools after
businesses. A variety of management strategies (technocracy) became
popular as a way to increase student performance while lowering costs and
increasing accountability. These included President Johnson's Program
Performance Budgeting System (PPBS), Zero Based Budgeting (ZBB),
Program Evaluation & Review Techniques (PERT), Management by
Objectives (MBO), and Competency Based Teacher Education (CBTE).
Comprehensive testing programs were implemented with the purpose of
using public scrutiny of test results to make teachers work harder.

13. Developed in 1964, the National Assessment of Education Progress (NAEP)
testing program compares student achievement between states.
The third value, liberty, refers to the freedom to choose among
alternatives. Reforms focused on helping public schools increase diversity,
be more responsive to their clients, and expand private offerings. A
parent’s right to select a private or a public school for their child was
guaranteed by a 1925 U.S. Supreme Court Case; Pierce v. Society of Sisters.
Tuition tax credits for both public and private school payments were found
to be constitutional in a 1983 Supreme Court Case; Mueller vs. Allen. The
1965 Elementary and Secondary Education Act made federal funds available
for nonpublic schools.
Liberty also involves increasing citizen participation and control of
education. This is achieved through the development of alternative schools,
administrative decentralization, school site management, and the formation
of Parent Advisory Councils which are required when receiving federal
programs and money such as ESEA, Title 1, and ESAA.
Structure of Organizations and Leadership
Because organizations are composed of groups and groups have
leaders, the topics of group dynamics and leadership are intertwined with

14. organizational theory. Blanchard defines leaderships as the "process of
influencing the activities of an individual or a group in efforts toward goal
achievement in a given situation.
Situational Leadership
Depending upon the situation, an effective leader must be able to select
and implement the style that will be most effective. This is known as
situational leadership and involves diagnosing which style to use, adapting
the style to meet the demands of the situation and communicating with those
involved. Situational leadership styles can be divided into four techniques:
S1 (telling), S2 (selling), S3 (participation), and S4 (delegating). S1 (telling)
and S4 (delegating) are effective at crisis interventions. S1 (telling) and S3
(participation) tend to see members of the organization as either "good
people" or "bad people". S2 (selling) and S3 (participation) work well with
average groups.
Situational leaders are flexible and can adapt to the needs and readiness
of the group. For employee groups at the R1 or low level of readiness, the
S1 or telling style is preferred. For R2 (low to moderate readiness) groups,
selling (S2) should be used. For R3 (moderate to high readiness) groups, a
participatory style (S3) of leaderships works the best. For groups at a high
level of readiness (R4), a delegating style (S4) should be implemented.

15. Transformational Leadership
Organizations are not static, they go through change. Effective
leadership is particularly difficult when organizations are going through
transformational changes. Transformation is caused by external rather than
internal forces and involves substantial and discontinuous change to the
shape, structure, and nature of the organization. It is caused by external,
rather than internal forces. It is a deep, pervasive change that requires
significantly different actions by the members. Studies of successful and
unsuccessful organizational transformations have led to the identification of
the particular leadership style that can effectively manage transformational
change. This type of leadership, transformational, is also referred to as
visionary, strategic or charismatic leadership. These leaders have (1)
personal commitment to the transformation, (2) firmly and indisputably
communicate the impossibility of maintaining the status quo, (3)
communicate a clear and enthusiastic vision of what the organization could
become, (4) identify and secure the support of key players and power
holders, (5) acknowledge and effectively deal with resistance, (6) design and
put into action an organization that can implement the vision, and (7)
regularly communicate progress, setbacks, and achievements to all
stakeholders.

16. The leader must assess the organization's readiness for change.
Blanchard identifies appropriate transformational leadership strategies for
each level of organizational readiness. In an OR-1 organization that is
fixated, fragmented, and resistant, the leader should use an enforcing
strategy (S1) such as coercive power. An OR-2 organization is inept but co-
operative and concerned. The leader should use referent and reward power
along with enabling strategies (S2). An OR-3 organization is perceptive but
divided and ambivalent. Enlisting strategies (S3) and referent and reward
power should in used. In an OR-4 organization that is versatile, integrated,
and committed, an endorsing strategy (S4) and information power should be
used.
Definition of Terms
Authority - legitimate power. Based on perception about the obligations and
responsibilities associated with particular positions in an organization.
Bureaucracy - administration of a "government" chiefly through bureaus and
departments staffed with nonelected officials.
Equality - equal access to educational services and opportunities
Hierarchical Authority Structure - each higher office has control and
supervision of a lower office. Structure assumes the shape of a pyramid.

17. Human Relations - attention to the social and psychological needs of
workers.
Leadership - the process of influencing the activities of an individual or a
group in efforts toward goal achievement in a given situation.
Leadership style - behavior pattern that a person exhibits when attempting to
influence the activities of others.
Liberty - a public value. Freedom to choose from among alternatives
Organizational Theory - fundamental conceptualization of organizational
structure and operational arrangements of schools i.e., classical, human
relations, and open systems.
Rational-legal authority - assumes existence of a formally established body
of social norms designated to organize conduct for rational pursuit of
specified goals.
Scientific management - utilizing time and motion studies to enhance worker
productivity (Frederick Taylor)
Situational Leadership- selecting and implementing the most effective
leadership style based on specific characteristics of the situation, group, and
problem.
System - a group of interacting elements forming a complex whole.

18. Technocracy - theoretical system of government and management based on
principles devised and administered by scientists and professional
technicians.
Transformation - a vital organizational change caused by factors external to
the organization that involves substantial and discontinuous change to the
organization's shape, structure, and nature.
Related Web Sites
Equality and Education: School Choice:
http//www.equaleducation.com/School_Choice/
Hawthorne Studies
http//www.analytictech.com/mb021/taylor.htm/Hawthorne.html
Leadership
http//www.analytictech.com/mb021/taylor.htm/leadersh.htm
McGregor: Principles of Management:
http//sundial.net/˜russe/RussRP.htm
Open Systems Theory:
http//www.kwandong.ac.kr/˜choich/open_system.html
Organizational Theory: Center for Organizational Theory
http//garnet.berkeley.edu/˜iir/cot/cot.html

19. Organizational Theory and Behavior
http//www.utoledo.edu/˜DDavis/prinorg.htm
Situational Leadership:
http//www.triangle.org/leadership/sitlead.html
Situational Leadership: Overview (28 slides)
http//sun.vmi.edu/hall/as300/as303/SituationalLeadership/sld001.htm
Taylor's Scientific Management
http//www.analytictech.com/mb021/taylor.htm
Technocracy:
http//encarta.msn.com/index/conciseindex/56/056DC000.htm?
z=1&pg=2&br=1
Transformational Leadership: ERIC Digest, Number 72
http//www.ed.gov/databases/ERIC_Digests/ed347636.html
Transformational Leadership: A Prescription for Contemporary
Organizations
http//www.cnu.edu/hrracj/bobpaper.html
Transformational Leadership: Ethics, Character, and Authentic
Transformational Leadership
http//cls.binghamton.edu/BassSteid.html
Weber and Bureaucracy

20. http//www.analytictech.com/mb021/taylor.htm
Weber, Max
http//www.utoledo.edu/˜ddavis/weber.htm