A Critical Review of two Article Relating to Aspects of Organisational Design (Essay Sample)

ORGANIZATIONAL DESIGN: ARTICLE ANALYSIS
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Date of Submission
Orlitzky, M., Schmidt, F. L., and Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), pp.403-441.
Introduction
Orlitzky, Schmidt and Rynes (2003) attempted to show whether there is any significant relationship between CSP (corporate social) and CFP (corporate financial performance) in industries as well as in study contexts. This section reviews Orlitzky et al.’s article including the findings of the paper, and evaluates the work in relation to the on-going debate regarding organizational design.
Summary
Orlitzky et al.’s article is a presentation of their meta-analytic appraisal of primary quantitative researches regarding the connection of CSP and CFP. The authors of this article used data accumulated for more than three decades. Their findings support the legitimacy of progressive self-interest social responsibility matters. The data did not provide a backing for the contingency theory in the social responsibility arena.
Methodology
Orlitzky et al.’s presentation involves a meta-analysis of 52 researches that are relevant in reaching theoretical conclusion regarding the association between CSP as well as CFP. The articles reviewed are primary qualitative researches of the CSP – CFP association.
Meta-analysis is a reliably useful method when researches want to reach conclusive and valuable results in areas of study where separate researches have not yielded consistent or convincing results. The aggregation of statistical data across separate researches as well as adjusting for errors emanating from sampling and measurement makes the meta-analysis method to yield greater precision and more dependable conclusions when compared to other kinds of study reviews.
The downside of meta-analysis is that even though it enhances precision of study, it isn’t devoid of bias per see. The validity of meta analytic techniques largely hinges on the quality of methodologies applied in the separate researches included in the meta-analysis.
Findings
Orlitzky et al.’s study shows that there can be a consistent positive association between CSP and CFP. However, the universally positive association shows a discrepancy from moderately positive correlation to exceedingly positive correlation due to contingencies like reputation effects, CSP disclosures as well as marketplace measures. The researchers concluded that the correlation between lagged CFP and CSP is never negative. In addition, the causation appears that CFP and CSP impact on each other mutually via a virtuous cycle. Companies that are successful financially use more funds as they have enough money fro the course. However, CSP assists in making them more successful.
Also, Orlitzky et al.’s meta-analysis rebuffs the notion that CSP is essentially unpredictable with wealth growth of shareholders. Rather, organizational effectiveness can be a wide-ranging concept covering social as well as financial performance. It is as well noteworthy that shareholders are largely regarded as legitimate stakeholders. Also, the findings of the meta-analysis conducted approve the ideas of libertarians, such as the idea of government guidelines in the realm of CSP can be unnecessary. When CSP and CFP statistical association was negative, bottom-line deliberations could comprise obstacles to endings that the public desire, which would necessitate government involvement so as to serve the public interest.
Regarding CSP, however, government regulation is seemingly weak because organizations, as well as their shareholders, profit from the judicious analysis and assessment by managers. As such, these actions are almost always getting adopted voluntarily, basing on the cost-benefit analysis of the organization's investments. In comparison, a command and control regulation for social responsibility is likely to put forward unyielding parameters that are not appropriate for a certain organization's market as well as non-market environments.
Evaluation
The findings of Orlitzky et al. have implications on organizational design. First, market forces usually do not castigate organizations that have high CSP and, thus, managers are capable of being socially responsible. When a manager believes that CSP is a precursor of CFP, the manager can opt to vigorously follow CSP as doing so is thought to be rewarding. Managers ought to know how to use corporate social performance as a lever for reputation, as well as being observant to third party perceptions, including the media, the various public pressure groups, and market analysts. While social audits are generally moderately beneficial, an organization with high CSP can particularly profit from getting public commendations by governmental agencies.
With the findings of a positive association between CSP & CFP becoming known far and wide, more managers are pursuing CSP as a way of achieving high CFP. Thus, the most successful companies are the ones that can market plans together with non-market plans. The positive association between CSP and CFP importantly impacts on organizational design, which is, especially, meant to offer a foundation on which a company should be structured so as to attain and maintain maximum efficiency as well as effectiveness without resulting to added expenses or effort.
Walton, E. J. (2005). The persistence of bureaucracy: A meta-analysis of Weber’s model of bureaucratic control. Organization Studies, 26(4), pp.569-600.
Introduction
Bureaucracy is a continuing part of the contemporary organization theory. In this article, Walton (2005) purposed to present meta-analytic test results of the bureaucratic control model against the synthesis of experimental outcomes regarding the strength of associations between variables of formal constructions. The bureaucratic control model usually postulates positive associations between horizontal and vertical differentiation, formalization, decentralization, task specialization, as well as standardization.
Summary
Walton’s article draws on nearly fourty years of empirical investigation in evaluating the overall legitimacy of the bureaucratic control model as envisioned by Max Weber. The results of the Walton’s study show significant presence of bureaucracy in present-day organizations. The paper concludes that bureaucracy is a continuing relevance in organizational structures.
Methodology
Walton used a meta-analytical system to estimate the overall associations among the main facets of bureaucratic control. Like in Orlitzky et al. 2003’s meta-analysis of CFP and CSP, Walton 2005’s meta-analysis has statistically aggregated results of different individual researches and corrected for statistical artefacts like measurement error as well as sampling error. The psychometric meta-analysis in these studies enables for greater precision compared to other forms of study reviews.
Meta-analysis is advantageous because it increases power...