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. Fatigue, monotony and boredom are the inevitable outcomes of division of labor. While specializations cause great function interdependency among operatives, it also depersonalizes their activities so that individuals find little meaning in the work. Moreover, functional interdependency among work activities causes strains and tensions. Continue reading
Principles of Management
Geographical Organizational Structure
Geographical organizational structure involves grouping of the activities according to regional or geographical locations. The territorial divisions become a complete administrative unit to cater to the need of the localities. The Regional Manager will practically be the chief controller of his region. He is given full powers of managing his own region or zone. His office functions as a head office for all practical purposes. The functions pertaining to finance, marketing, personnel and production development of low-level employees are completely vested in the zonal office which has separate departments of these functions to guide and control the respective activities of the zone. The zonal office may have several divisional offices for executive functions. The area population and size of business in a zone will decide the number of divisional offices, their functional activities, and amount of authority and responsibility to be vested in the divisional managers. Continue reading
Professionalization of Management
There has been a growing trend towards professionalization of management. Professionalization imparts a certain social responsibility and dignity to management. A professional cannot be controlled or directed by the client. He has professional knowledge and judgment which he uses to make his decision. Thus, professionalization makes business more efficient, dynamic and socially responsible. The growth of management education has contributed to professionalization in the business field. The company form of business organization which has split ownership from management and the gaining popularity of the company form of business organization have increased the need for professional managers. Is Management a Profession? To answer this question, first of all we should understand what a profession is. Many authorities on the subject have attempted to define a profession. According to Abraham Flexner, A profession is; A body of specialized knowledge and recognized educational process of acquiring it. A standard of qualifications governing admission Continue reading
Concept of Power in Management
Power in Management Power is easy to feel but difficult to define. It is the potential ability of a person or group to influence another person or group. It is the ability to get things done the way one wants them to be done.Both formal and informal groups and individuals may have power; it does not need an official position or the backing of an institution to have power. Influence can take many forms. One person has influenced another if the second person’s opinions, behavior or perspectives have changed as a result of their interaction. Power is a factor at all levels of most organizations. It can be a factor in almost any organizational decision. Power and Authority Sometimes power and authority is used synonymously because of their objective of influencing the behavior of others. However, there is difference between the two. Power does not have any legal sanctity while Continue reading
Relationship Between Organizational Behavior and Management Control System
Organizational Behavior and Management Control There is a close relationship between organizational behavior and management control system. A management control system seek to evaluate and regulate the performance of responsibility centers. The manager in charge of a responsible center is rewarded for good performance. At the same time when the performance of a responsibility center is dismal, the manager in charge is punished. Thus, a management control system acts as a double-edged sword. That is why manager are afraid of a control system and, may resist it. In order to make a control system successful, it is necessary to understand the factors that motivate, managers to achieve the results. Behavioral sciences have given several concepts that are relevant to management control. Some of these concepts at described below. 1. Perception. Whether a management control system is accepted and implemented successfully does not depend on the system. It depends largely on Continue reading
Principles of Management Control
Management Control Principles The basic principles of management control can be grouped into three categories reflecting their purpose and nature, structure and process. These principles of management control are given below. Principle of Assurance of Objective. The basic purpose of management control is the attainment of objectives does this by detecting failures, in plans. Potential or actual, deviations from plans should be detected enough to permit effective corrective action. Principle of Efficiency of Controls. A management control system should detect and highlight the causes of deviations from plans with minimum possible costs and unwanted consequences. The principle of efficiency is particularly important in control because techniques tend to become costly and burdensome. A manager may become so engrossed in control that he spends more than it is to detect a deviation. Controls which seriously interfere with authority of subordinates or morale of those who execute plans, is inefficient. Principle of Continue reading