Organizational culture can be simply identified as the own unique personality that the respective organization practices. The group of people who works for the organization shares a system of Assumptions, Beliefs, and Values which governs them both individually and with the organizational needs. The cultural web model developed by Johnson and Scholes in 1993 is an important one, in which six dimensions of the organization culture are defined. The corporate culture consists of six major components, as structure, power structure, symbols, stories, rituals and control systems. They provide clear guidelines for the employees, about how things are performed within the organizational context; providing influences for the better change management. Cultural elements can be organized in the company to achieve productivity is described accordingly. Structure – Mainly refers to the structure of the company, in terms of the management layers and supervisory control. Modern organizations is thereby advised in adjusting to more flat type organization, Continue reading
Management Theories
Management Control in Services Organizations
The type of control which would be suitable for a particular firm depends upon the nature and complexities of its operations. A suitable control system has to be designed to suit the specific requirements of a particular firm. Service organizations are those organizations that provide intangible services. Service organizations include hotels, restaurants, and other lodging and eating establishments; barbershops, beauty parlors and other personal service; repair services; motion picture, television and other amusement and recreation services; legal services; and accounting, engineering, research/development, architecture and other professional service organizations. Characteristics of Service Organizations 1. Absence of Inventory: Services cannot be stored. If the services available today are not sold today, the revenue from these services is lost forever. In addition the resources available for sale in many service organizations are essentially fixed in the short run. A key variable in most service organizations therefore is the extent to which current capacity Continue reading
Organisation Structure – Meaning and Types
An organisation structure is a set of planned relationships between groups of related functions and between physical factors and personnel required for the performance of the functions. The organisation structure is generally shown on the organisation chart. It shows authority and responsibility between various positions in the enterprises by showing who reports to whom. Organisation structure lays down the pattern of communication and coordination in the enterprises. Though organisation structure is very important, it is not an end in itself. According to Peter F. Drucker, “Organisation is not an end itself, but a means to end of business performances and business results. Organisation structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organisation structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence.” Process of Organizing Organisation Continue reading
Understanding the Significance of Hawthorne Studies to Management
The Hawthorne experiments were conducted at Western Electric’s Hawthorne plant in Illinois, running from 1924 through 1932. These experiments were intended to examine how people would react to certain conditions such as light, heat, and humidity. These variables were altered and produced both expected and unexpected results. Further trials embarked as Professor George Elton Mayo brought an academic research team into the factory, which were among the most extensive social science studies ever conducted. These investigations have been heavily criticized for merely serving the interest of management. However, these accusations can be argued. The Hawthorne investigations did not only have enormous influence on the ‘human factors’ to management but also on the development of industrial psychology and sociology. Some maintain their opinion that the human relations approach is misinterpreted, leading to major failures. The Hawthorne studies were initially undertaken to investigate the relationship between physical work conditions and employers productivity. Continue reading
Modern Theories of Organization
Modern organizational behavior has become complex. It synthesizes the classical and neoclassical theories of organization, while incorporating technological development. Modern theories of organization are classified into quantitative theory, system theory and contingency theory. 1. Quantitative Theory The quantitative theory includes operation research and quantification of the problem. It analyses the problems from quantifiable angles and provides solutions to complex problems only with the help of statistical and mathematical models such as linear and non-linear programming, game theory, decision tree, simulation and probability. Computers are used to solve management problems whereas mathematical models were previously used for the purpose. A large number of problems are solved with the use of simulation equations and computers. The development of equations requires specialized skills and advance knowledge of mathematics, statistics, economics and behavioral sciences. Models are tested while the context of the real world and use of operation research. Continue reading
Compare and Contrast Maslow’s Theory of Needs with Vroom’s Expectancy Theory
Motivation is an intangible human asset which acts as a driver that pushes humans to be willing to perform certain actions. In just about everything we do there is something that moves us to perform the action which involves some motivation allowing us to perform tasks or actions which produces some type of personal benefit as a result. The general theory would be that, the greater the personal gain in performing the task for the individual, the more motivated they are to try at the task to achieve the best outcome. Motivation is usually stimulated by a want where there is a gain to be had as a result of performing a certain task. A person is a wanting being – he always wants, and he wants more. Therefore if there is nothing that an individual wants, there would be no need for them to perform a certain task as Continue reading