Organizational structure refers to a way in which an organization or a company arranges its employees and duties. It establishes hierarchy and line of authority. An organization should adopt a structure that is in agreement with its objectives and goals. Matrix organizational structure employs a multi-dimensional approach. It combines one or two of the other organizational structures. For example, it may combine bureaucratic organizational structure with functional organizational structure. This creates a dual reporting system in which people work together as a team while retaining a recognizable reporting system. Matrix structure creates teams of workers in an organization based on both the product and department or function. This enables the organization to maximize on the strengths of each employee while making up for their weaknesses. The teams work independently towards achieving a common goal. If a company produces two products for example, the practice is to departmentalize the production process of Continue reading
Principles of Management
Difference Between Administration and Management
The use of two terms Management and Administration has been a controversial issue in the management literature. Some writers do not see any difference between the two terms, while others maintain that administration and management are two different functions. According to those who held management and administration distinct, management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. Dalton E. McFarland states: “in government agencies administration is preferred over management, although in recent years the term management has become widely used in government agencies.” But some authors are of the opinion that management is a wider term including administration. This controversy of difference between administration and management is discussed as under in three heads: Administration is concerned with the determination of policies and management with the implementation of policies. Thus, administration is a higher level function. Management is a generic term and 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
Steps in Management by Objectives (MBO) Process
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book ‘The Practice of Management’. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: “It’s just another tool. It is not the great cure for management inefficiency.” The main features of MBO are: Management by Objectives is a philosophy or a system, and not merely technique. It emphasizes participative goal setting. It clearly defines each individual responsibility in terms Continue reading
Elton Mayo’s Hawthorne Experiment and It’s Contributions to Management
The term “Hawthorne” is a term used within several behavioral management theories and is originally derived from the western electric company’s large factory complex named Hawthorne works. Starting in 1905 and operating until 1983, Hawthorne works had 45,000 employees and it produced a wide variety of consumer products, including telephone equipment, refrigerators and electric fans. As a result, Hawthorne works is well-known for its enormous output of telephone equipment and most importantly for its industrial experiments and studies carried out. Hawthorne Experiment by Elton Mayo In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard Business School were invited to join in the studies at the Hawthorne Works of Western Electric Company, Chicago. The experiment lasted up to 1932. The Hawthorne Experiment brought out that the productivity of the employees is not the function of only physical conditions of work and money wages paid Continue reading
Management Principles: Principle of Bureaucracy
According to the name bureaucracy theory was evolved by the German sociologist Max Weber (1864-1920). The principle of bureaucracy is based upon hierarchy of authority and web of rules and relations. It visualizes a machine model of organisation characterized by impersonal control over human beings. Characteristics of Principle of Bureaucracy A well-defined hierarchy of authority with clear lines of authority and control and responsibility concentrated at the top of the hierarchy. A high degree of specialization. A division of work based on functional departmentalization. A system of rules covering the rights and duties of employees. A definite system of procedures for dealing with the work situation and “rationally” coordinating activities. A centralized system of written documents (“the files”) for collecting and summarizing the activities of the organisation. Impersonality of relationships between employees. Recruitment of managers on the basis of ability and technical knowledge. The bureaucracy, or “bureaucratic model,” was one Continue reading