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. Organisation structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organisation structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence.” Process of Organizing Organisation Continue reading
Principles of Management
Understanding the Significance of Hawthorne Studies to Management
The Hawthorne experiments were conducted at Western Electric’s Hawthorne plant in Illinois, running from 1924 through 1932. These experiments were intended to examine how people would react to certain conditions such as light, heat, and humidity. These variables were altered and produced both expected and unexpected results. Further trials embarked as Professor George Elton Mayo brought an academic research team into the factory, which were among the most extensive social science studies ever conducted. These investigations have been heavily criticized for merely serving the interest of management. However, these accusations can be argued. The Hawthorne investigations did not only have enormous influence on the ‘human factors’ to management but also on the development of industrial psychology and sociology. Some maintain their opinion that the human relations approach is misinterpreted, leading to major failures. The Hawthorne studies were initially undertaken to investigate the relationship between physical work conditions and employers productivity. Continue reading
Forms of Business Organisations
A business organization can be formed with certain properties and specific characteristics. Since business organization is an association of persons, the manner of forming and the objectives of the association decide the form of organization. Individuals form an organization because they are unable to achieve their goals individually. An organization provides opportunities to exploit the existing potential of men and materials. It explores the future possibilities of exploiting human and physical resources. Individuals interested in getting benefits out of the present and potential resources form an association, better known as an organization, to attain the group goals. The dynamics of individuals and the organization are used to gain maximum benefits. They work in a particular manner to obtain the objectives. They can form formal or informal organizations. Formal Organizations A formal organization develops in a well-defined system and has specific properties. It bears definite measures of authority, responsibility, obligation Continue reading
Major Leadership Theories in Management
Leadership is an integral part of management and plays a vital role in managerial operations. Leadership provides direction, guidance, and confidence to the employees and helps in the attainment of goals in much easier way. In business and industrial organizations, managers play the role of leader and acquire leadership of subordinates, their efforts towards the achievement of organizational goals and activate the individuals of an organization to make them work. Leadership influences behavior of the individuals. It has an ability to attract others and potential to make them follow the instructions. Individuals can be induced to contribute their optimum towards the attainment of organizational goals through effective leadership. Leadership acquires dominance and the followers accept the directives and control of a leader. Leadership provides direction and vision for future to an organization. A number of theories and approaches to study leadership have been developed. There are broadly three leadership theories Continue reading
Most Important Functions of Management
Some would define management as an art, while others would define it as a science. Whether management is an art or a science isn’t what is most important. Management is a process that is used to accomplish organizational goals; that is, a process that is used to achieve what an organization wants to achieve. An organization could be a business, a school, a city, a group of volunteers, or any governmental entity. Managers are the people to whom this management task is assigned, and it is generally thought that they achieve the desired goals through the key functions of management. Some would include leading as a managing function, but for the purposes of this discussion, leading is included as a part of directing. The elements of management process are known as functions of management. However various authors have classified these differently. Henry Fayol classified the major functions of management into Continue reading
Modern Theories of Organization
Modern organizational behavior has become complex. It synthesizes the classical and neoclassical theories of organization, while incorporating technological development. Modern theories of organization are classified into quantitative theory, system theory and contingency theory. 1. Quantitative Theory The quantitative theory includes operation research and quantification of the problem. It analyses the problems from quantifiable angles and provides solutions to complex problems only with the help of statistical and mathematical models such as linear and non-linear programming, game theory, decision tree, simulation and probability. Computers are used to solve management problems whereas mathematical models were previously used for the purpose. A large number of problems are solved with the use of simulation equations and computers. The development of equations requires specialized skills and advance knowledge of mathematics, statistics, economics and behavioral sciences. Models are tested while the context of the real world and use of operation research. Continue reading