Project organization structure is used to complete a project or task. The project manager has people from several functional departments such as production, finance, marketing and so on. Specialists are drawn to perform their respective roles in the total project. The project organization structure is derived not from some principles but from the job requirements. Project organization structure brings together people of different expertise for the completion of the project. As soon as the project is completed, the experts are returned to their original departments in the head office. For example, in a bridge construction project, the engineers, financial manager, human resources people and other related people are brought to the sit of the project where project organization, the structure and process, is developed. The people are organized and allocated specialized jobs by the Project manager who will be the top person managing the Continue reading
Management Principles
Span of Management Types
Span of management directly affects the number of levels in the organization. Span of management is of two types; Wider span of management and Narrow span of management. Wider span of management leads to flat organization whereas narrow span of management result in tall organization structure. The principle of span of management does not by itself resolve the conflict between the advantages to tall organization and that of a flat one. Narrow spans lead to many levels in the organization and thus required a larger number of managers. This, in turn, leads to larger expenses in the form of executive remuneration. Expenses are further increased on account of additional clerical and office staff needed as a result of there being large number of managers. The process of control also gets complicated when there are narrow spans and too many levels in the organization structure. Another serious problem in having Continue reading
Committee Organizational Structure
A committee organization is an association of people set up to arrive at solutions to common problems. The line people are given opportunities to discuss their problems in the committee. The committee organizational structure is not like line or functional organization, but is similar to staff organization. Its decisions are implemented, whereas staff decisions are not necessarily implemented. It is a formal part of the organizational structure wherein the members are specifically mentioned. For example, the Finance Committee will include all the functional managers, viz. Marketing Manager, Production Manager, Personnel Managers, etc. as members, and the Managing Director as the Chairman. It will decide the financial requirements of each and every department. The decisions taken by the committee are followed by the line people, as the committees are representatives of various functional departments. Committee organizational structure provides integrated ideas of various related people of the company. Participative management in Continue reading
Henri Fayol’s Principles of Management
Henri Fayol (1841-1925) who is known as the Father of Modern Management, was a French industrialist who developed a framework for studying management. He wrote “General and Industrial Management”. His five functions of managers were plan, organize, command, coordinate, and control. Classification of Business Activities According to Fayol, all activities could be classified into Technical (manufacturing or production) Commercial (buying, selling and exchange) Financial (search for and optimum use of capital) Security (protection of property and persons) Accounting (including statistics) and Managerial Henri Fayol’s Principles of Management His fourteen principles of management included division of work, authority and responsibility, discipline, unity of command, unity of direction, and subordination of individual interests to general interests, remuneration of personnel, centralization, scalar chain, order, equity, and stability of tenure of personnel, initiative, and esprit de corps (union is strength). 1. Division of Work The work of every person in the organization should be Continue reading
8 Important Leadership Styles in Management
Leadership Styles in Management A leader is a person who influences a group of people towards the achievement of a goal while leadership is the art of motivating a group of people to act towards achieving a common goal. Different leadership styles will result in different impact to organization. The leader has to choose the most effective approach of leadership style depending on situation because leadership style is crucial for a team success. By understanding these leadership styles and their impact, everyone can become a more flexible and better leader. 1. Transactional Leadership Transactional leadership is a term used to classify a group of leadership theories that inquire the interactions between leaders and followers. This style of leadership starts with the premise that team members agree to obey their leader totally when they take a job on. The “transaction” is usually that the organization pays the team members, in return Continue reading
Mechanistic Organizational Structure – Definition and Features
The structure of any organization has a clear impact on both employee behavior and its performance. On the other hand, an organizational structure provides an overview about the hierarchy of levels, roles and responsibilities, authorities, communication channels, etc. It is of utmost importance to understand the definition of the organizational structure since it affects both employee behavior and organizational performance. Organizational structure is understood as a method consisting of responsibilities and power allocated amongst members and how work procedures are carried out among them. It also includes the layers of hierarchy, centralization of authority, and horizontal integration. However, an organizational structure is a multi-dimensional construct which illustrates the division of work (roles or responsibilities including specification), departmentalization, centralization, complexity, communication or coordination mechanisms including standardization, formalization and flexibility. An important type of organizational structure can be identified as mechanistic organizational structure. Mechanistic organizational structure is hierarchical and bureaucratic by nature. Continue reading