The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down… - Douglas McGregor

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The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge. This transformation was signalled by McGregor, but we must go further.

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About Douglas McGregor

Douglas Murray McGregor (1906 – 1 October 1964) was an American organizational theorist and management professor at the MIT Sloan School of Management and president of Antioch College from 1948 to 1954. His 1960 book The Human Side of Enterprise had a profound influence on education practices.

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Alternative Names: Douglas Murray McGregor
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Additional quotes by Douglas McGregor

Knowledge accumulated during recent decades challenges and contradicts assumptions which are still axiomatic in conventional organizational theory. Unfortunately, those classical principles of organization — derived from inappropriate models, unrelated to the political, social, economic, and technological milieu, and based on erroneous assumptions about behavior — continue to influence our thinking about the management of the human resources of industry. Management's attempts to solve the problems arising from the inadequacy of these assumptions have often involved the search for new formulas, new techniques, new procedures. These generally yield disappointing results because they are adjustments to symptoms rather than causes. The real need is for new theory, changed assumptions, more understanding of the nature of human behavior in organizational settings.

Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. — comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior.

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