Module 7: Organizational Management P1

A historical theory of management that focuses on tasks, structure, and authority

This is essential for efficiency, and specialization is the most efficient way to use human effort

is the right way to give orders and obtain obedience

is the natural result of authority.

The judicious use of sanctions and penalties is the best way to obtain obedience to rules and work agreements.

This specifies that each person should be accountable to only one superior.

This specifies that all units should be moving toward the same objectives through coordinated and focused effort.

The interests of the organization should take priority over the interests of individuals.

Pay and compensation should be fair for both employee and organization

Subordinates’ involvement through decentralization should be balanced with managers’ final authority through centralization

In a scalar chain, authority and responsibility flow in a direct line vertically from the highest level of the organization to the lowest.

People and materials must be in the appropriate places at the proper time for
maximum efficiency

All employees should be treated equally to ensure fairness

Employee turnover should be minimized to maintain organizational efficiency.

Workers should be encouraged to develop and carry out plans for improvements.

Managers should promote a team spirit of unity and harmony among employees.

A historical theory of management that views the organization as a social system (social groups within the formal organization) and recognizes the existence of the informal organization

The human relations theory involves employee participation in management planning and decision making to increase _____ and ______

The organization is dyanamic. The whole is more than the sum of its parts. Involves synergism and wholism

An approach to management based on the belief that activities should be
adjusted to fit the situation. It includes individual motivation, leadership behavior & organizational structure should fit situations & environment

The number of subordinates that can be effectively supervised by one manager. A basis for departmentalization.

Grouping jobs based on some logical arrangement (by function, by product, by
equipment, etc.). Basis for specialization

Assigning workers to specific duties where they are trained or highly skilled

Vesting of authority & responsibility to competent subordinates (ex. Crew leader, captain waiter). Based on command responsibility

Knowing whom to direct and whom to report to. Avoid conflict and establishes a definite chain of command.

workers performing similar or related functions should be grouped together

What are the three types of organizations?

each individual is responsible to the person above him in the organizational chart

staff personnel are added to assist the lines in bigger organizations

limited authority over a specified segment is delegated to another person

- predictable markets, customers, business
cycles
- simple
- markets with boundaries
- mass production (one size fits all)
- customer – idiot, victim

- unpredictable markets, customers, business cycles
- complex
- globalization & regulation
- mass customization (one size fits one)
- customer is king

- routine
- single skill
- structured
- precedent always done

- varied
- multiple skill
- no “one” way
- creativity/ imagination

- duty
- external control
- “do”
- rely on facts
- unquestioning
- narrow self-interest

- fun
- internal control
- “be”
- rely on facts & intuition
- self-exploration
- enlarged self-interest