Principles of Management

Organisation Structure – Meaning and Types

An organisation 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 organisation 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. Organisation structure lays down the pattern of communication and coordination in the enterprises.

Though organisation 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.

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Decentralization of Authority

By decentralization of authority we mean dispersal of decision-making authority at various levels in the organization. In a centralized set-up, decision-making authority is concentrated at the top-level of the management, whereas in the decentralized set-up, many important decisions are made at the lower level also. The most significant feature of decentralization of authority is that most of the decisions made at the lower level do not need approval of the seniors. This means greater freedom is given in decision-making to lower level managers and supervisors in the organization.

Factors Determining the Degree of Decentralization
  1. Importance and significance of the decision: One of the important factors determining the degree of decentralization of authority is costliness of the decision.
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Span of Management Types

Span of management directly affects the number of levels in the organization. Span of management is of two types; Wider span of management and Narrow span of management.   Wider span of management leads to flat organization whereas narrow span of management result in tall organization structure. The principle of span of management does not by itself resolve the conflict between the advantages to tall organization and that of a flat one.

Narrow spans lead to many levels in the organization and thus required a larger number of managers. This, in turn, leads to larger expenses in the form of executive remuneration.… Read the rest

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Span of Management

An organization is characterized by the presence of a number of levels and departments. But more the levels are created, more will be the administrative cost due to additional staff required and more will be the difficulties to be encountered in communication and controlling. If this is so, why create departments and levels? Answer to this question is provided by the principle of span of management. This is basically the problem of deciding the number of subordinates to report directly to each manager. The principle states that there is a limit to the number of subordinates that each manager can effectively supervise.… Read the rest

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Principles of Organization Structure

Traditional organisation theorists developed certain principles of organization structure. These principles are intended for universal application to all enterprises. The most important of these principles of  organization structure  can be listed under the following heads:

1. Division of  Labor  or Specialization

The classicists viewed specialization as the basis of efficiency. A group of individuals can secure better results by having division of work. F.W. taylor applied by breaking down jobs into single repetitive tasks performed on specialized tools. At higher levels, however, grouping jobs into manageable units and their co-ordination can pose serious problems.

The principle of specializations has been challenged by the behaviorists and others.… Read the rest

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Motivation – Definition, Process, Types, Features and Importance

Definitions of  Motivation

The word Motivation derives from the   Latin word “Movere”. The Latin word “Movere” means “To move”, “To drive” or “To drive forward” etc.  Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity. Motivation is a psychological term which means it cannot be forced on employees. It comes automatically from inside the employees as it is the willingness to do the work.

Joe Kelly  defined Motivation as “Motivation is a process where by needs instigate behavior directed towards the goals that can satisfy those needs.”

According to W. G. Scot, “Motivation means a process of stimulating people to action to accomplish the desired goals.”

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