The concept of organization is born when two or more people work together in order to achieve a common goal. Purpose of an organisation is to create responsibilities and positions by which an organisation can carry out the work. Organisation may be formed in different sizes. All people working in the same organisation have their own functions, attitudes and techniques to apply for achieving their common goal. In order to manage and control the resources, an organisation needs to be structured. Organization structure is formal system that makes the organisation to run smoothly and helps to focus the common goals and objectives. It gives a clear idea about the chain of command that need to be prioritized when a problem arise. It also defines what people are responsible in the organisation for different reasons. A solid structure provides the framework to deliver on business strategy. The structure of an organisation Continue reading
Management Theories
Organization Structure and Management Control
Four different types of organization structures have been identified for managing the tasks of the organization. These are (i) a centralized functional structure, (ii) a decentralized divisional structure, (ii) a hybrid (matrix) structure, and (iv) network/coupling structure. An important aspect in the design of management control systems is that it should be linked with responsibility centers. Because of this intimate linkage between the control system and the organization structure, it becomes important to know about key control considerations in the choice of an organization structure. Important parameters on the basis of which choice of the structure can be decided are (i) efficiency and effectiveness, (ii) economies of scale, (iii) problems of coordination, (iv) assignment of profit responsibility, (v) conflict and cooperation. Since efficiency is related to level of activity, as the level of activity increases efficiency also increases. Size permits the division of labor and specialization within Continue reading
Organization Structure – Definition, Determinants, Importance and Types
An organization 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 organization 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. Organization structure lays down the pattern of communication and coordination in the enterprises. Though organization 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. Organization structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organization structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence.” Organizing Function of Management Continue reading
Systems Approach to Management
Systems approach to management developed after 1950. Many pioneers during as E.L Trist, AK Ria, F.E. Kast, and R.A Johnsm have made significant contributions to this approach. This systems approach looks upon the management as a ‘System’ of as an organized whole make up of sub-systems integrated into a unity or orderly totality. The attention should be given so overall effectiveness of the system rather than effectiveness of any sub-system if isolation. It took where management process school left off in attempting to unify management theory. It emphasizes the inter-relatedness and inter-dependence of all activities within an organisation. It is based on system analysis. It attempts to identify the nature of relationships of various parts of the system. A system is a set of inter-connected elements or component parts to achieve certain goals. An organisation is viewed by the modern authors as an open system. An organisation as a system Continue reading
Deal and Kennedy’s Organizational Culture Model
As a lead up to the discussion on corporate culture in people’s management, it is important to consider Deal and Kennedy’s contribution. Deal and Kennedy suggests that ‘People are a company’s greatest resource, and the way to manage them is not directly by computer reports, but by the subtle cues of a culture’ Deal and Kennedy (2000) examined organisational culture from a different perspective, concluding that there are six interrelated elements which define organisational culture. These are: The history of the organisation, because shared past experiences shape current beliefs and values and the traditions which organisation is built on. For example, firms often draw on their heritage and use this as part of their branding strategy, as well as asserting a belief in traditional values. The values and beliefs of the organisation are critical as these focus on the shared beliefs of employees and the organisation as a whole, including the written and underwritten Continue reading
Compare and Contrast Herzberg’s Two Factor Theory with Vroom’s Expectancy Theory of Motivation
Herzberg’s Theory of motivation suggests that there are two factors that affect human behavior and motivation at work; these are called hygiene and motivating factors. Hygiene factors are those that de-motivate staff if they are not in place, whereas motivators are those that are used to motivate staff. The five main attributes that Herzberg suggested were motivators are, recognition, achievement, responsibility, advancement and the nature of work itself. Hygiene factors include, supervision, salary, the work environment, company policies and relationships with colleagues. Vroom’s theory of motivation suggests that there is a link between effort and reward. His theory is based on an employee’s perception of their job, underlined against valence, instrumentality and expectancy. There are two types of theories concerning motivation of employees. There are content theories which assume that people have the same needs and process theories which suggest people are motivated by different things. Herzberg’s two factor theory Continue reading