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
Management Theories
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
Scientific Management Theory – Directions and Characteristics
Scientific management is a process of improving the labor organization based on scientific achievements and excellence. It is important to mention that an American engineer Frederick Winslow Taylor was the first scientific engineer, who used and formalized scientific management and highlighted its four principles. Scientific management is the labor organization based on modern scientific achievements and best practices, which were systematically introduced into the workplace. Scientific management allows combining technology and people in the labor process. In addition to the above-mentioned information, scientific management can be characterized as an approach within classical management theory that emphasizes the scientific study of work methods in order to improve worker efficiency. Scientific management’s implementation saves time and is an important growth factor productivity of living labor. The importance and value of scientific management is that it allows you to save hard work as a result of better use of the production’s material Continue reading
Compare and Contrast Maslow’s Hierarchy of Needs with Herzberg’s Two-Factor Theory of Motivation
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 Continue reading