UNDERSTANDING BUSINESS ORGANISATIONS WITH REFERENCE TO MANAGEMENT THEORY.

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. UNDERSTANDING BUSINESS ORGANISATIONS WITH REFERENCE TO MANAGEMENT THEORY.

a) Classical-Scientific

How best to manage & organize work more efficiently to improve productivity.

Taylor’s 4 principles of scientific management




1- Examine each part of task.

- Select suitable workers & train them.

- Cooperate with workers to guarantee they use scientific

methods.

4- Divide work & responsibility.

Functions of management



1. PLANNING - setting goals, working out best way to achieve them.

a) Strategic Planning long-term planning.

b) Tactical Planning Short-term planning. (1 or years)

c) Operational Planning Day-to-day planning.

. ORGANISING - next stage of management.

Determines

• what is to be done

• who does it

• how

Involves translating plans into reality to achieve goals.

. CONTROLLING - measuring actual performance in a business and comparing measurements to what was planned.

CHAIN OF COMMAND line of authority from top of business to bottom. Order of who reports to whom.

SPAN OF CONTROL number of subordinates who report to a manager. Determines number of levels in a business & how long the chain of command will be.

WORK SPECIALISATION tasks in a business are divided into separate jobs.

AUTOCRATIC LEADERSHIP STYLE managers have a high degree of direction & permit little or no participation in decision making by subordinates.

b) Behavioral Theory.

Management as leading Leading is having vision of where the business should be heading too, & being able to direct & motivate human resources in an organization.

Management as motivating Motivation is the individual, internal process that energizes, directs & sustains individual behavior.

Work practices need to be put in place to motivate the workers.

Flat organizational Structure Wider span of control.

Decreases chain of command-

(Number of levels in management)

Gives greater responsibility to individuals in organization.

Teams Teamwork involves people who interact & coordinate their work toward a common goal.

Participative or Democratic leadership style One who consults with employees, takes their opinions & considers them when making decisions.

c) Political Management Theory.

Organizational politics- often the unwritten rules of work life.

Involve pursuit of self-interest through informal methods of gaining power or advantage.

Uses of power & influence power is the ability gather together resources to get something done.

Legitimate power- given because of the status or the position of the person within the firm.

Expert power- emerges as a result of a person’s skills and expertise.

Referent power- comes from peoples individual characteristics.

Inspires & influences others. .

Reward power- relates to rewards or compensation a manager distributes for doing a good job.

Coercive power- controls individuals by actions or words of the manager in organization.

Contingency Management Theories.

Borrow bits & pieces from range of management practices & blend to best suit their organizations requirements.

Systems Management Theories.

Viewed as an integrated process- all the individual parts contribute to the whole.

SYSTEM set of interrelated parts that operate as a whole to achieve common goal.

Four main components of organization

1. INPUTS- human, financial.

. TRANSFORMATIONAL PROCESSES- converts inputs into finished product.

. OUTPUTS- products, profit.

4. FEEDBACK- info bout organizations performance to stated goals.

Strategic Alliances

Two or more businesses join forces to achieve a particular goal. Benefits both companies.

Networks

Set of links between different organizations & their people.

Content, form or structure view.

STRENGTHS & WEAKNESSES!

Classical-Scientific theory-

Strength results in increased productivity.

Weakness neglects human & social needs of employees.

Behavioral theorists-

Strength forces managers to reassess simple machine model.

Weakness positive result may not always be immediate.

Political theory-

Strength explains power basis.

Weakness sources of real power-difficult to locate & analyze.



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