Concept
The following outline is provided as an overview of and topical guide to organizational theory: Organizational theory – the interdisciplinary study of social organizations. Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of individuals. The theories of organizations include bureaucracy, rationalization (scientific management), and the division of labor. Each theory provides distinct advantages and disadvantages when applied. The classical perspective emerges from the Industrial Revolution in the private sector and the need for improved public administration in the public sector.