The classical organization theories concentrated on discipline and the economic well-being of people. They ignored their morale and desires. Neoclassical organization theories while accepting the merits of classical theories have given more importance to human relations and behavioral sciences. The neoclassical theories of organization modified, added and extended the classical theories by realizing the fact that management exists in a social system wherein human factors have cognizant roles to perform. Employees can play crucial roles in the decision-making process. Approaches of Neoclassical Theories of Organization Human Relations and Behavioral Science have become two important approaches of neoclassical theories. 1. Human Relations Theory The human relations theory was developed by Elton Mayo and his associates from 1924 to 1932 at the Hawthrone plant of Western Electric Company. They experimented in four phases: Illumination experiment, relay assembly test, interviewing programs and the bank wiring observations room experiments. Illumination experiments revealed that Continue reading
Principles of Management
The Control Function of Management
Control means, “Some sort of systematic effort to compare current performance to a predetermined plan of objective, presumably in order to take any remedial action required”. This is a very general definition of the term. However, as a management function, it has been defined as “the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s goals”. Controlling is tool for achieving organizational goals and activities. Control is management’s planning, implementation, evaluation, and correction of performance to ensure that the organization meets its objectives in the short, medium and long terms. According to Henry Fayol, ‘Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order Continue reading
Value Analysis – Definition, Mechanism and Process
Value Analysis (VA) was established by Lawrence D. Miles of General Electric in America. The basic fundamental of value analysis can be implemented in any product to optimize its value. In more details, value analysis is actually a process of systematic review that is applied to existing product designs in order to compare the function of the product required by a customer to meet their requirements at the lowest cost by eliminating unnecessary costs that consistent with the specified performance and reliability needed. First of all, value analysis (and value engineering) is a formal and organized process of analysis and evaluation which required management activities including planning, control and coordination. These analysis concerns the function of a product such as utility, guarantee, or safety performance to meet the demands needed or required by a customer. Thus, to meet this functional requirement the review process must include an understanding of the Continue reading
Employee Selection Process
There is no hard and fast rule regarding the steps involved in the process of selection. The number of selection steps depends upon many factors like the size of the organization, level of job, nature of job, philosophy of management, availability of time, number of applicants, etc. Some organizations follow a long chain of steps, eliminating unsuitable candidates at every step, finally left with the candidates who are to be employed on the other hand, some organizations select their employees just in one go through ‘Walk-in-interviews’. Large organizations, usually consider the following steps in the employee selection process: 1. Application Blank An application blank is a columnar Performa which constrains information like address, physical characteristics, educational qualifications, experience, necessary personal information, references, etc. On the basis of information collected from the application blank, should be simple and should not contain unnecessary questions. 2. Preliminary Interview This interview is a brief Continue reading
Perception in Organizations
Perception in Organizational Behavior Perception is an important mediating cognitive process. Through this complex process, people make interpretations of the stimulus or situation they are faced with. Both selectivity and organization go into perceptual, interpretations. Externally, selectivity is affected by intensity, size, contrast, repetition, motion and novelty and familiarity. Internally, perceptual selectivity is influenced by the individual’s motivation, learning and personality. After the selective process filters the stimulus situation, the incoming information is organized into a meaningful whole. Individual differences and uniqueness are largely the result of the cognitive processes. Although there are a number of cognitive processes, it is generally recognized that the perceptual process is a very important one. It is a process that takes place between the situation and the behavior and is most relevant to the study of organizational behavior. For example, the observation that a department head and a subordinate may react quite differently to Continue reading
Major Schools of Management Thought
Business in today’s world has become an extremely competitive force changing continuously at a rapid rate. Working in the 21st century requires dealing with a dynamic environment with people that have diverse needs. Every business organisation needs to be managed, and hence there is a need for managers. Even years back there was a diverse need for management of organisations. There have been people who have tried to study management so as to make the most efficient and effective use of their resources. There have been scientific methods, and similarly there have been methods based on people’s behavior. Organisations nowadays use these methods in their business management. Harold Koontz and Heinz Weihrich refer to management as the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Management has been referred to as an art and a science, some people even call Continue reading