UNIT-3-Organization-and- Management.pptx

Masteral

1. theories on organization and management UNIT 3

2. classical theories on organization and management TOPIC 1

3. Classical Theories - organizations establish clear labor divisions that plainly outline an employee’s expectations and duties. 1. Scientific Management 2. Administrative Policies 3. Bureaucracy

4. Scientific Management - the proponent is Frederick W. Taylor who believed that business inefficiency stemmed from worker autonomy (workers decide on their own working methods and management which causes company to be less productive). - Taylor promoted the idea that a specific power structure should be imposed and the mode of operation should be changed.

5. Scientific Management - using empirical research and the scientific method, Taylor believed that the most efficient methods to accomplish specific tasks should be examined. - the goal is to assign jobs based on employee competency and skill set to extract the best out of every worker. - employees perform their assigned roles, and managers strategize, train and suspense workers.

6. Administrative Management - the proponent is a French industrialist, Henri Fayol. - the goal is to improve organizational productivity via methods can utilize to make internal processes work synchronically. - Fayol believed that managerial practices were one of the main keys of driving organization efficiency. - to elevate the performance of managers not focusing on the efficiency of individual workers.

7. Bureaucratic Management - was influenced by the ideas of Max Weber, a German Sociologist. - work responsibilities are clearly defined in this model and all employees aretreated equally. - there is a clear hierarchy to the management system under this theory, with a clear division of labor and defined lines of communication. - individual’s achievements and qualifications are the only things that help to determine their potential for advancement within the company.

8. Bureaucratic Management - this is opposed to a person being promoted due to factors other than their qualifications or because they are personally connected with someone influential. - uniformity, efficiency and well-defined distribution of power are essential parts of ideal bureaucracy. - work relationships are strongly discouraged and the environment is ideally impersonal and professional. - employees should only be chosen based on their competencies and technical skills and no additional factors should be utilized to make a hiring decision.

9. Advantages of Classical Management Theory 1. Decision-Making by a Single Leader - autocratic leadership approach (leaders choose how employees will be organized and directed). 2. Increased productivity via incentives - employees will work harder and be more productive when motivated by monetary rewards(offering bonuses or salary increase based on an employee’s productivity. 3. Clear division of labor - help reduce confusion and time loss regarding who is responsible for what duties (responsibilities are clearly communicted). 4. Easy to understand organization hierarchy - each individual’s expectations, responsibilities and objectives are made clear to reduce confusion.

10. Disadvantages of Classical Management Theory 1. More employee pressure - if managers aren’t careful to set reachable goals can be discouraging to employees 2. Less focus on human relations and employee job satisfaction - this theory doesn’t see the importance of forming social connections can cause low morale, decreased productivity and high turnover. 3. Stifles creativity and Innovation- employees can feel that there is no opportunity to share creative or innovative ideas.

11. Modern theories on organization and management TOPIC 2

12. Modern Theories 1. Quantitative Theory 2. Contingency Theory 3. Systems Theory

13. Quantitative Theory - number-based theory that relies on calculating the risks, benefits, and drawbacks of any action before it is taken. - applies statistics, computer simulations, information models o the management of a company.

14. Contingency Theory - every situation requires a different leadership style and therefore no one theory can work for an entire office. - based on theory that management effectivesness is contingent or dependent upon the interplay between the application of management behaviors and specific situations, - the way you manage should change depending on the circumstances.

15. Systems Theory - arts that any organization is a single, unified system of interrelated parts of subsystems. - considers an organization as a network of systems - each part of the overall system is dependent on the others and cannot function optimally without them. Example: Computer - made up of many smaller systems that have to work in coordination with one another like the processor, motherboard and power supply.

16. Culture Theory - companies with strong organizational cultures tend to have smoother on boarding experiences. - repeatable systems are in place to ensure that new employees have access to the resources they need to adapt and integrate with the culture of the organization. - the organizational culture (values, beliefs, attitudes, systems and rules that influence employees behavior within an organization) reflects how employees,customers and stakeholders experience the organization and its brand.

17. Advantages of Modern Theories of Organization and Management 1. Increases Productivity - educate leaders on maximizing the value of human resources. 2. Strenghtensdecision-making activities 3. Increases Employee Engagement 4. Increases adaptability

18. Disadvantages of Modern Theories of Organization and Management 1. Constant changes to environment/culture of the organization 2. Dificult to accurately choose the most suitable contingency approach. 3. No clear procedures or guidelines to follow

19. Task What is/are the theory/theories on organization and management that exist in your organization ? Explain your answer and cite situations to prove that the theory exists. Note : This is an individual task.