Showing posts with label
Management Process and Organizational Behaviour.
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Showing posts with label
Management Process and Organizational Behaviour.
Show all posts
Management is a recent discipline and it draws from the disciplines of Economics, Psychology, Sociology, Anthropology, etc. However, as we have seen earlier, management has evolved as an independent discipline.
- Scientific management theory : The focus of this thought is increase in productivity and efficiency through applying scientific methods on the shop floor or workplace. It tries to identify one best way of doing a job; however, emphasizes on worker’s cooperation, management-labor relations and developing workers and motivating. However, the focus is on shop floor efficiency through scientific methods and even motivation is proposed to be executed through piece rate system or paying based on the number of pieces of work produced.
- Operational management theory : This thought was led by Henri Fayol. The thought identified six groups of activities in an organisation, i.e., technical, commercial, financial, security, accounting, and managerial. He recognized the need for teaching management and identified 14 principles in 1916 which enabled the management to grow as a discipline and is therefore often called the ‘father of modern management’.
- Behavioral science theory : The thought was originated by Vilfredo Pareto in 1896, and he researched on organisation and management relationship. Later, Hugo Munsterberg applied psychology to increase industrial production in 1912 and around the same time, Walter Dill Scott applied psychology to advertising, marketing, and personnel in 1910 and 1911. But it was Elton Mayo and F.J Roethlisberger who made an impact on the behavioral science theory through their Hawthorne experiments in Western Electric Company in 1933. These experiments proved that good working relationship with the supervisor and colleagues and the idea of challenge in the job accounted for higher productivity. Challenge is created through setting high goals which cannot be normally achieved but which can be achieved with a little additional effort. These experiments brought to fore the importance of behavioral science in management. Extending the idea sometime in 1946 and 1947, Max Weber propounded the theory of bureaucracy.
- Systems theory : Though the systems theory can be traced to biology, where we have cardiovascular system, nervous system, etc which are fairly independent yet interdependent, it was Chester Barnard who extended this into management area through his writing ‘Functions of the Executive’ in 1938. In systems theory, we perceive that organisations have a number of fairly independent systems such as purchase system, operations system, marketing system, financial system, etc. The working of these are independent, but it has to be integrated by the manager. This theory, perhaps, brings the idea of integration as a key component of management.
During the prehistoric days of man living on hunting, life was rather simple but then too, men hunted and women tended for food. They chose a leader who could lead them into hunting, and they chose someone to make their hunting equipment sharp and precise. They stored food for the lean days and sought new places to find food.
At a very rudimentary level, this was planning, specialization, and division of labor, all of which are part of management. As man progressed, his activities became more complex and multi functional teams came into being. His management techniques, perhaps, became more complex too, but its fundamental remained the same.
According to Harold Koontz, “Management is an art of getting things done through and with people in formally organised groups. It is an art of creating an environment in which people can perform as individuals and can co-operate towards the attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do, when to do, and see that it is done in the best and cheapest way”.
Importance of Management
- It helps in achieving group goals
- Optimum utilization of resources
- Reduces costs
- Establishes sound organisation
- Establishes equilibrium
- Essentials for prosperity of society
What is an organization ?
An organization is a social system of people who are structured and managed to meet some goals. Organizations are ongoing and the structure determines the relationship between the functions and positions. Structure also subdivides roles,responsibilities, and authority to carry out the tasks. Organizations are open systems which are affected by the environment outside its boundary.
- Social System
- Business is something that society creates to fulfill its needs. In an organization people come from diverse backgrounds of religion, education, gender etc. Therefore it is a social system
- Goals
- All organizations or businesses have goals. This is generally expressed through a vision and mission statement.
- Ongoing
- Businesses are designed to be forever, but some may die.
- Relationship
- In any organization there are workplace relations among roles like employee, supervisor, manager, CEO etc. Various levels of reporting, communication exists.
- Structure and Management
- In an organization there may be various groups of people who are responsible for specific tasks. By creating a structure and grouping similar tasks, efficiency is achieved.
- Open System
- Any business is affected by external factors, some impede business while some provide opportunities.
A process is a set of logically sequenced actions. Organizations achieve their goals by creating products and services in a logical sequence. This sequence is made up of
- Vision & Mission
- A formal statement of what a business wants to be. Vision is the state one wants to be whereas mission is the way of doing it or getting there.
- How to make a Vision ?
- Core Values
- Core Purposes
- Big Hairy Audacious Goal
- Vivid Description
- Strategy
- Corporate Strategy
- In a large organization, there may be several businesses governed by a central headquarters. Each of this business can be run independently but headquarters or the governing body has plans on how each business should operate.
- Business Strategy
- Every business has a plan or business strategy for doing business.
- Functional Strategy
- Each department or system within an organization may have its own agenda or strategy aligned with business strategy.
- Structure
- Simple
- Hierarchy
- Flat
- Adhocracy
- Matrix
- Teams
- Systems
- A unit where similar functions are grouped, a logical order is created with an organized flow of information and resources. A system is mostly independent entity in an organization.
- Process
- Is a set of logically sequenced actions that produce some final output
- Jobs
- A job is set of similar activities. A group of jobs form the process.
- Tasks
- This is the most basic unit of work in an organization
