Principles of Hotel Management

N
ON
C
ONCEPT
Modern organisation theory has its evolution from the General
Systems Theory whose inventor and chief architect was
Bertalanffy. General system theory presents an integration of
different levels of system. It provides a macro view from which
we may look at all types of systems.
The modern organisation theory is of recent origin having
developed in sixties, and flourished in seventies. The theory
presents the answers of several questions remained unheeded
to by the earlier theories. The modern theory has an analytical
base and has sufficiently relied on empirical research. The
theory is a fundamental one, though it presents a new paradigm.
It is not simply an extension of the old theories like the classical
or the neo-classical theories. Its premises are based upon a
conception of organisations as open, organic and probabilistic
system. It gives answers to many complex questions ignored
by the classical or the neo-classical theorists as pointed out by
Scott and Michell:
(i) What are the various parts of the system?
(ii) What is the nature of their interdependency?

---

Basics of Management
29
(iii) What are the processes which link the various parts of
the system and facilitate their adjustment to each other?
(iv) What are the goals of the system?
We shall now discuss how these questions as answered by
the modern theorists:
Significant Parts : As every system has several parts, so
the organisation being treated as a system, must also have
several parts. The parts of organisation system may be classified.
Individual is an important part of an organisation and provides
energy to matter and information—the organisational inputs.
Individuals in an organisation come together with varied
backgrounds, attitudes, motives and sentiments, they interact
and influence each other and things in their environment and
are also influenced by them.
Every system is formal because it lays down certain
principles, rules, regulations, procedures, and norms of conduct
for its proper functioning. Such rules, etc. may be oral or written.
There are also hierarchical levels through which communication
flows downward and upward. Organisational charts and manuals
also constitutes important parts of formal system.
In a formal system, people come together and interact with
each other which causes development of certain relations and
sentiments— positive, negative or indifferent. These relations
and developments steadily result in spontaneous development
of informal groups, groups so formed satisfy many of the social
needs that remained uncared for by the formal organisation.
Every organisation has hierarchical levels. It is like a pyramid
consisting of layers and every layer has functional segmentation.
The number of segments get reduced with the increasing level
of the layer in the organisation and at the top only one layer
remains that ultimately envelops the entire organisation. Every
level and every individual at that level is assigned a role which
is played by everybody in relation to those having role

---

30
Principles of Hotel Management
relationships. Accordingly, an individual gets certain privileges
and prerogatives over others. The technical equipment,
technology employed design of machines, arrangement of jobs,
etc. constitute the physical environment of the work situation.
It provides, implies or embraces the physical conditions under
which a person is to perform the work and it affects skills,
motivations and perceptions of people ultimately leading to a