MANAGEMENT PRINCIPLES & VALUES:MANAGEMENT PRINCIPLES & VALUES:----------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------

Concept of ManagementConcept of Management

by:- by:- Ajay Ajay

Kumar.Kumar. ROLL. ROLL.

NO. 002.NO. 002. MBA- 1 MBA- 1

YEAR.YEAR. F.M.S,F.M.S,

(B.H.U).(B.H.U).

Concept of management: Nature Concept of management: Nature

Management is a process of Management is a process of designing and maintaining designing and maintaining

environment in which environment in which individuals working together individuals working together

in group, efficiently in group, efficiently accomplish selected goals. accomplish selected goals.

This basic definition need to This basic definition need to be expanded:be expanded:

Concept of management: Concept of management: PurposePurpose

1.1. As managers, people carry the As managers, people carry the managerial function of managerial function of planning, organizing, staffing, planning, organizing, staffing, leading and controlling.leading and controlling.

2. Management applies to any 2. Management applies to any kind of organization. kind of organization.

3. it implies to managers at all 3. it implies to managers at all organizational levels.organizational levels.

4. aim of all managers is the 4. aim of all managers is the same: to create the surplus.same: to create the surplus.

5. managing is concerned with 5. managing is concerned with productivity; this implies productivity; this implies effectiveness and efficiency.effectiveness and efficiency.

All manage organizations which All manage organizations which can be defined as a group of can be defined as a group of people working together to people working together to

create a surplus. In business create a surplus. In business organization, this surplus is organization, this surplus is

profit. In nonprofit organization, profit. In nonprofit organization, such as charitable organization, such as charitable organization,

it may be satisfaction of it may be satisfaction of needs. needs.

Management is science or Management is science or art:-art:-

One of the enduring questions in the One of the enduring questions in the field of management is whether it is an field of management is whether it is an art or a science.art or a science.

Webster's College Dictionary defines Webster's College Dictionary defines an art as an art as "skill in conducting any "skill in conducting any human activity"human activity" and science as and science as “any “any skill or technique that reflects a skill or technique that reflects a precise application of facts or a precise application of facts or a principle”.principle”.

Reflected in the differences in Reflected in the differences in these definitions is the use of these definitions is the use of precision in science, in that precision in science, in that there is a particular, there is a particular, prescribed way in which a prescribed way in which a manager should act.manager should act.

Thus, management as a science Thus, management as a science would indicate that in practice, would indicate that in practice, managers use a specific body of managers use a specific body of information and facts to guide their information and facts to guide their behaviors, but that management as behaviors, but that management as an art requires no specific body of an art requires no specific body of knowledge, only skill. knowledge, only skill.

Conversely, those who believe Conversely, those who believe management is an art are management is an art are likely to believe that there is likely to believe that there is no specific way to teach or no specific way to teach or understand management, and understand management, and that it is a skill borne of that it is a skill borne of personality and ability.personality and ability.

Those who believe in management Those who believe in management as an art are likely to believe that as an art are likely to believe that certain people are more certain people are more predisposed to be effective predisposed to be effective managers than are others, and that managers than are others, and that some people cannot be taught to be some people cannot be taught to be effective managers.effective managers.

..

That is, even with an That is, even with an understanding of understanding of management research and an management research and an education in management, education in management, some people will not be some people will not be capablecapable of being effective of being effective practicing managers. practicing managers.

FOUNDATIONS OF THE FOUNDATIONS OF THE MANAGEMENTMANAGEMENT

AS A SCIENCE PERSPECTIVEAS A SCIENCE PERSPECTIVE:-:-

Practicing managers who Practicing managers who believe in management as a believe in management as a science are likely to believe that science are likely to believe that there are ideal managerial there are ideal managerial practices for certain situations.practices for certain situations.

That is, when faced with a That is, when faced with a managerial dilemma, the manager managerial dilemma, the manager who believes in the scientific who believes in the scientific foundation of his or her craft will foundation of his or her craft will expect that there is a rational and expect that there is a rational and objective way to determine the objective way to determine the correct course of action.correct course of action.

•This manager is likely to follow This manager is likely to follow general principles and theories and general principles and theories and also by creating and testing also by creating and testing hypotheseshypotheses

For instance, if a manager has a For instance, if a manager has a problem with an employee's poor problem with an employee's poor work performance, the manager will work performance, the manager will look to specific means of performance look to specific means of performance improvement, expecting that certain improvement, expecting that certain principles will work in most principles will work in most situations.situations.

Many early management Many early management researchers subscribed to researchers subscribed to the vision of managers as the vision of managers as scientists.scientists.

The scientific management The scientific management movement was the primary movement was the primary driver of this perspective.driver of this perspective.

Scientific management, pioneered by Scientific management, pioneered by Frederick W. Taylor, Frank and Frederick W. Taylor, Frank and Lillian Gilbreth, and others, Lillian Gilbreth, and others, attempted to discover "the one best attempted to discover "the one best way" to perform jobs.way" to perform jobs.

They used scientific processes to They used scientific processes to evaluate and organize work so that evaluate and organize work so that it became more efficient and it became more efficient and effective.effective.

Scientific management's Scientific management's emphasis on both reducing emphasis on both reducing inefficiencies and on inefficiencies and on understanding the understanding the psychology of workers psychology of workers changed manager and changed manager and employee attitudes towards employee attitudes towards the practice of management. the practice of management.

Frederick W. Taylor's Frederick W. Taylor's Principles of Scientific Principles of Scientific

ManagementManagement :- :-

1. Managers must study the way that 1. Managers must study the way that workers perform their tasks and workers perform their tasks and understand the job knowledge (formal understand the job knowledge (formal and informal) that workers have, then and informal) that workers have, then find ways to improve how tasks are find ways to improve how tasks are performed.performed.

2. Managers must codify new methods of 2. Managers must codify new methods of performing tasks into written work rules performing tasks into written work rules and standard operating procedures. and standard operating procedures.

3. Managers should hire workers who 3. Managers should hire workers who have skills and abilities needed for the have skills and abilities needed for the tasks to be completed, and should train tasks to be completed, and should train them to perform the tasks according to them to perform the tasks according to the established procedures. the established procedures.

4. Managers must establish a level of 4. Managers must establish a level of performance for the task that is performance for the task that is acceptable and fair and should link tit acceptable and fair and should link tit to a pay system that reward workers to a pay system that reward workers who perform above the acceptable who perform above the acceptable level.level.

FOUNDATIONS OF THE FOUNDATIONS OF THE MANAGEMENTMANAGEMENT

AS AN ART PERSPECTIVE:-AS AN ART PERSPECTIVE:-

Practicing managers who believe in Practicing managers who believe in management as an art are unlikely to believe management as an art are unlikely to believe that scientific principles and theories will be that scientific principles and theories will be able to implemented in actual managerial able to implemented in actual managerial situations. Instead, these managers are likely situations. Instead, these managers are likely to rely on the social and political to rely on the social and political environment surrounding the managerial environment surrounding the managerial issue, using their own knowledge of a issue, using their own knowledge of a situation, rather than generic rules, to situation, rather than generic rules, to determine a course of action.determine a course of action.

For example, as a contrast to the For example, as a contrast to the example given previously, a manager example given previously, a manager who has a problem with an employee's who has a problem with an employee's poor work performance is likely to rely poor work performance is likely to rely on his or her own experiences and on his or her own experiences and judgment when addressing this issue. judgment when addressing this issue. Rather than having a standard response Rather than having a standard response to such a problem, this manager is to such a problem, this manager is likely to consider a broad range of likely to consider a broad range of social and political factors, and is likely social and political factors, and is likely to take different actions depending on to take different actions depending on the context of the problem.the context of the problem.

Henry Mintzberg is probably the Henry Mintzberg is probably the most well-known and prominent most well-known and prominent advocate of the school of thought advocate of the school of thought that management is an art. that management is an art.

Mintzberg is an academic Mintzberg is an academic researcher whose work capturing researcher whose work capturing the actual daily tasks of real the actual daily tasks of real managers was ground breaking managers was ground breaking research for its time.research for its time.

Mintzberg, through his observation of Mintzberg, through his observation of actual managers in their daily work, actual managers in their daily work, determined that managers did not sit determined that managers did not sit at their desks, thinking, evaluating, at their desks, thinking, evaluating, and deciding all day long, working for and deciding all day long, working for long, uninterrupted time periods. long, uninterrupted time periods.

Rather, Mintzberg determined that Rather, Mintzberg determined that mangers engaged in very fragmented mangers engaged in very fragmented work, with constant interruptions and work, with constant interruptions and rare opportunities to quietly consider rare opportunities to quietly consider managerial issues.managerial issues.

Thus, Mintzberg revolutionized thinking Thus, Mintzberg revolutionized thinking about managers at the time that his about managers at the time that his work was published, challenging the work was published, challenging the prior notion that managers behaved prior notion that managers behaved rationa and methodically.rationa and methodically.

This was in line with the perspective of This was in line with the perspective of

management as an art, because it management as an art, because it indicated that managers did not indicated that managers did not necessarily have routine behaviors necessarily have routine behaviors throughout their days, but instead used throughout their days, but instead used their own social and political skills to their own social and political skills to solve problems that arose throughout solve problems that arose throughout the course of work.the course of work.

Another scholar that promoted the Another scholar that promoted the notion of management as an art was notion of management as an art was David E. Lilienthal, who in 1967 had his David E. Lilienthal, who in 1967 had his series of lectures titled Management: A series of lectures titled Management: A Humanist Art published.Humanist Art published.

In this set of published lectures, In this set of published lectures,

Lilienthal argues that management Lilienthal argues that management requires more than a mastery of requires more than a mastery of techniques and skills; instead, it also techniques and skills; instead, it also requires that managers understand requires that managers understand individuals and their motivations and individuals and their motivations and help them achieve their goals.help them achieve their goals.

Lilienthal believed that combining Lilienthal believed that combining managementmanagement and leadership into and leadership into practice, by not only getting work done practice, by not only getting work done but understanding the meaning behind but understanding the meaning behind the work, as effective managerial the work, as effective managerial behavior.behavior.

Thus, he promoted the idea of the Thus, he promoted the idea of the manager as a motivator and facilitator of manager as a motivator and facilitator of others. This manager as an artist was others. This manager as an artist was likely to respond differently to each likely to respond differently to each employee and situation, rather than use employee and situation, rather than use a prescribed set of responses dictated by a prescribed set of responses dictated by set of known guidelines.set of known guidelines.

Another proponent of the Another proponent of the management as art school of thought management as art school of thought is Peter Drucker, famed management is Peter Drucker, famed management scholar who is best known for scholar who is best known for developing ideas related to total developing ideas related to total quality management.quality management.

Drucker argues that the discipline Drucker argues that the discipline (i.e., the science) of management (i.e., the science) of management attempts to create a paradigm for attempts to create a paradigm for managers, in which facts are managers, in which facts are established, and exceptions to these established, and exceptions to these facts are ignored as anomalies.facts are ignored as anomalies.

He is critical of the assumptions He is critical of the assumptions that make up the management that make up the management paradigm, because these paradigm, because these assumptions change over time as assumptions change over time as society and the business society and the business environment change. environment change.

Thus, management is more of an Thus, management is more of an art, because scientific "facts" do not art, because scientific "facts" do not remain stable over time.remain stable over time.

Management vs Management vs administration:-administration:-

• Strategic management process:Strategic management process:

Goal setting

Strategy formulation

administration

Strategic control

Strategic planning

Strategy implementation

Management:- Management:- the process of the process of planning, decision making, planning, decision making, organizing, leading, and organizing, leading, and controlling an organization’s controlling an organization’s human, financial, physical and human, financial, physical and information resources in an information resources in an efficient and effective manner.efficient and effective manner.

•Administration:-Administration:-Administration can be Administration can be defined as the universal defined as the universal process of organizing people process of organizing people and resources efficiently so and resources efficiently so as to direct activities toward as to direct activities toward common goals and objectivescommon goals and objectives

• Sponsor roles:Sponsor roles:

Managerial function:Managerial function:

Administrative function:Administrative function:

Leadership function: Leadership function:

Technical function:Technical function:

Management Skills:-Management Skills:-

In order to perform the functions of In order to perform the functions of management and to assume multiple management and to assume multiple roles, managers must be roles, managers must be skilledskilled. .

Robert Katz identified three Robert Katz identified three managerial skills that are essential to managerial skills that are essential to successful management: successful management: technical technical skills,skills, human skills,human skills, and and conceptual skillsconceptual skills..

Technical skillTechnical skill involves process or involves process or technique knowledge and proficiency. technique knowledge and proficiency. Managers use the processes, Managers use the processes, techniques and tools of a specific area. techniques and tools of a specific area.

•Human skillHuman skill involves the involves the ability to interact effectively ability to interact effectively with people. Managers with people. Managers interact and cooperate with interact and cooperate with employees. employees.

Conceptual skillConceptual skill involves the involves the formulation of ideas. Managers formulation of ideas. Managers understand abstract understand abstract relationships, develop ideas, relationships, develop ideas, and solve problems creatively. and solve problems creatively. Thus, technical skill deals with Thus, technical skill deals with things, human skill concerns things, human skill concerns people, and conceptual skill has people, and conceptual skill has to do with ideas. to do with ideas.

•manager's level in the organization manager's level in the organization determines the relative importance determines the relative importance of possessing technical, human, and of possessing technical, human, and conceptual skills.conceptual skills.

• Top level managers need Top level managers need conceptual skills in order to view the conceptual skills in order to view the organization as a whole.organization as a whole.

• Conceptual skills are used in Conceptual skills are used in planning and dealing with ideas and planning and dealing with ideas and abstractions.abstractions.

•Supervisors need technical Supervisors need technical skills to manage their area of skills to manage their area of specialty.specialty.

• All levels of management All levels of management need human skills in order to need human skills in order to interact and communicate interact and communicate with other people with other people successfully.successfully.

• Skills distribution:-Skills distribution:- SKILLS:L

E V

E L

S:

TOP MANAGEMENT

MIDLE MANAGENENT

SUPERVISION

CONCEPTUAL

HUMAN

TECHNICAL

SKILLS DISTRIBUTION AT VARIOUS MANAGEMENT LEVELS:-

As the pace of change accelerates As the pace of change accelerates and diverse technologies converge, and diverse technologies converge, new global industries are being new global industries are being created (for example, created (for example, telecommunications).telecommunications).

Technological change alters the Technological change alters the fundamental structure of firms and fundamental structure of firms and calls for new organizational calls for new organizational approaches and management skills.approaches and management skills.

Organization and its Organization and its pervasiveness:-pervasiveness:-

•Organizations are social units Organizations are social units deliberately constructed and deliberately constructed and reconstructed to seek specific goals. reconstructed to seek specific goals. Corporations, armies, schools, Corporations, armies, schools, hospitals, churches, and prisons are hospitals, churches, and prisons are included; tribes, classes, ethnic included; tribes, classes, ethnic groups, friendship groups and groups, friendship groups and families are excluded. Organizations families are excluded. Organizations are characterized by:are characterized by:

–1 Divisions of labor, power, 1 Divisions of labor, power, and communication and communication responsibilities, divisions, responsibilities, divisions, which are not random or which are not random or traditionally patterned, but traditionally patterned, but deliberately planned to deliberately planned to enhance the realization of enhance the realization of specific goals. specific goals.

–2) The presence of one or more 2) The presence of one or more power centers which control power centers which control the concerted efforts of the the concerted efforts of the organization and direct them organization and direct them toward its goals; these power toward its goals; these power centers also must review centers also must review continuously the organization’s continuously the organization’s performance and re – pattern performance and re – pattern its structure, where necessary, its structure, where necessary, to increase it efficiency.to increase it efficiency.

–3) Substitution of personnel 3) Substitution of personnel i.e., unsatisfactory persons i.e., unsatisfactory persons can be removed and others can be removed and others assigned their tasks. The assigned their tasks. The organization can also organization can also recombine its personnel recombine its personnel through transfer and through transfer and promotion.)promotion.)

•The book follows the definition of The book follows the definition of organizations as social units that organizations as social units that pursue specific goals, which they pursue specific goals, which they are structured to serve, under are structured to serve, under some social circumstances. some social circumstances. Therefore, the book has three foci: Therefore, the book has three foci: organizational goals;organizational goals; organizational structure;organizational structure; and and organizations and their social organizations and their social environmentenvironment..

THE NATURE OF THE NATURE OF ORGANISATIONAL GOALSORGANISATIONAL GOALS :- :-

•An organizational goal is the An organizational goal is the desired state of affairs, which the desired state of affairs, which the organization attempts to realize. organization attempts to realize. The organization may or may not The organization may or may not be able to bring about this desired be able to bring about this desired image of the future. But if the goal image of the future. But if the goal is reached, it ceases to be a is reached, it ceases to be a guiding image for the organization guiding image for the organization and is assimilated to the and is assimilated to the organization or its environment.organization or its environment.

•The real goals of the organization The real goals of the organization are those future states toward which are those future states toward which a majority of the organization’s a majority of the organization’s means and the major organizational means and the major organizational commitments of the participants are commitments of the participants are directed, and which, in cases of directed, and which, in cases of conflict with goals, which are stated conflict with goals, which are stated but command few resources, have but command few resources, have clear priority.clear priority.

How goals are set:How goals are set: there are many there are many factors that enter into the struggle to factors that enter into the struggle to determine an organization’s goals. determine an organization’s goals. Organizational departments or Organizational departments or divisions often play a prominent role divisions often play a prominent role in the process. Personalities are in the process. Personalities are another important determinant. another important determinant. When a strong leader has established When a strong leader has established himself in the key position of himself in the key position of president or executive – director, it is president or executive – director, it is very difficult to unseat him. very difficult to unseat him.

•The danger of ‘over – The danger of ‘over – measurement”:measurement”: Organizations are Organizations are constructed to be the most efficient constructed to be the most efficient and effective social units. The actual and effective social units. The actual effectiveness of a specific organization effectiveness of a specific organization is determined by the degree to which is determined by the degree to which it realizes its goals. The efficiency of it realizes its goals. The efficiency of an organization is determined by the an organization is determined by the amount or resources used to produce amount or resources used to produce a unit of output. Measuring a unit of output. Measuring effectiveness and efficiency raises effectiveness and efficiency raises several thorny problems.several thorny problems.

•When an organization has a goal, When an organization has a goal, which is limited and concrete, it is which is limited and concrete, it is comparatively easy to measure comparatively easy to measure effectiveness. But when we come to effectiveness. But when we come to organizations whose output is not organizations whose output is not material, statements about material, statements about effectiveness are extremely difficult effectiveness are extremely difficult to validate. The same problem to validate. The same problem attends measuring efficiency and attends measuring efficiency and such related concepts as output, such related concepts as output, productivity and costs.productivity and costs.

•The distortion of goals that The distortion of goals that arises from over – arises from over – measurement of some aspects measurement of some aspects of the organizations output to of the organizations output to the detriment of others is a the detriment of others is a larger category of distortion larger category of distortion that arise in the relations of that arise in the relations of organizations to their goals.organizations to their goals.

•Distortions due to over Distortions due to over measurement are comparatively measurement are comparatively mild, since the main goals of the mild, since the main goals of the organization remain intact, organization remain intact, though certain aspects of these though certain aspects of these goals become over – emphasized goals become over – emphasized at the expense of other sometimes at the expense of other sometimes more important ones. Goals – more important ones. Goals – displacement is much more displacement is much more detrimental.detrimental.

GOAL MODELS AND SYSTEM GOAL MODELS AND SYSTEM MODELS:-MODELS:-

•The goal model approach defies The goal model approach defies success as a complete or at least a success as a complete or at least a substantial realization of the substantial realization of the organizational goal. It is not the only organizational goal. It is not the only means of evaluating success. Rather means of evaluating success. Rather than comparing existing than comparing existing organizations to ideals of what they organizations to ideals of what they might be, we may assess their might be, we may assess their performances relative to one another.performances relative to one another.

Using a system model we are able Using a system model we are able to see a basic distortion in the to see a basic distortion in the analysis of organizations that is analysis of organizations that is not visible or explicable from the not visible or explicable from the perspective of goal – model perspective of goal – model evaluation.evaluation.

The latter approach expects The latter approach expects organizational effectiveness to organizational effectiveness to increase with the assignment of increase with the assignment of more means to the organizations more means to the organizations goals.goals.

therefore any theory of organizations in therefore any theory of organizations in general must be highly abstract.general must be highly abstract.

The system model is not free from The system model is not free from drawbacks; it is more exacting and drawbacks; it is more exacting and expensive when used for research. expensive when used for research. The goal model requires that the The goal model requires that the researcher determine the goals the researcher determine the goals the organization is pursuing – and no organization is pursuing – and no more. A well – developed more. A well – developed organizational theory will include organizational theory will include statements on the functional statements on the functional requirements various organizational requirements various organizational types must meet.types must meet.

–An awareness of the needs of the An awareness of the needs of the organization to operate successfully organization to operate successfully will guide the researcher who is will guide the researcher who is constructing a system model for constructing a system model for study of a specific organization. At study of a specific organization. At present, organizational theory is present, organizational theory is generally constructed on a high generally constructed on a high level of abstraction, dealing mainly level of abstraction, dealing mainly with general propositions, which with general propositions, which apply equally well but also equally apply equally well but also equally badly to all organizations.badly to all organizations.

The differences among The differences among various organizational types various organizational types are considerable Instead of are considerable Instead of focusing on goals of the focusing on goals of the delivery service delivery service organizations, three indices organizations, three indices were constructed each were constructed each measuring one basic element measuring one basic element of the system.of the system.

•These were; These were; • 1) Station productivity.1) Station productivity.

2) Intra organizational strain 2) Intra organizational strain as indicated by the incidence as indicated by the incidence of tension and conflict among of tension and conflict among organizational subgroups.organizational subgroups.

3) Organizational flexibility.3) Organizational flexibility.

The classical goals theory:The classical goals theory:

•The Classical administration theory, The Classical administration theory, presented in works by Gulick ad Urwick, presented in works by Gulick ad Urwick, made the division of labor its central made the division of labor its central tenet. The Classical approach rests firmly tenet. The Classical approach rests firmly on the assumption that the more a on the assumption that the more a particular job can be broken down into particular job can be broken down into its simplest component parts, the more its simplest component parts, the more specialized consequently the more skilled specialized consequently the more skilled a worker can become in carrying out his a worker can become in carrying out his part of the job.part of the job.

•The division of labor has to be The division of labor has to be balanced by a unity of control. balanced by a unity of control.

•The tasks have to be broken up into The tasks have to be broken up into components by a central authority in components by a central authority in line with a central plan of action; the line with a central plan of action; the efforts of each work unit need to be efforts of each work unit need to be supervised; and the various job efforts supervised; and the various job efforts leading to the final product have to be leading to the final product have to be coordinated. This leads to a pyramid of coordinated. This leads to a pyramid of control leading up to one top control leading up to one top executive. In this way, the whole executive. In this way, the whole organizations can be controlled from organizations can be controlled from one center of authority.one center of authority.

There are one to four basic There are one to four basic principles which propose for principles which propose for specialized work in the specialized work in the organization and which will organization and which will lead to optimal division of lead to optimal division of labor and authority:- labor and authority:-

–1) The first principle stated that 1) The first principle stated that specialization should be by specialization should be by purpose of the task. Workers who purpose of the task. Workers who serve similar goals and sub- goals serve similar goals and sub- goals in the organization should be in the organization should be attached to the same attached to the same organizational division. There organizational division. There would be as many divisions in the would be as many divisions in the organization as there are goals or organization as there are goals or sub goals.sub goals.

–2) The second principle of 2) The second principle of specialization suggests that all specialization suggests that all work based on a particular work based on a particular process should be grouped process should be grouped together, since it must share a together, since it must share a special fund of knowledge and special fund of knowledge and requires the use of similar requires the use of similar skills or procedures. skills or procedures.

–3) The third principle states 3) The third principle states that specialization according to that specialization according to type of client is another basis type of client is another basis for division of labor. for division of labor.

–4) The fourth principle says 4) The fourth principle says that jobs performed in the that jobs performed in the same geographicalsame geographical

DECISION – MAKING THEORYDECISION – MAKING THEORY : :

• The theory of decision – making is a non- The theory of decision – making is a non- organizational theory that deals with organizational theory that deals with decisions made by individuals. Decision – decisions made by individuals. Decision – making itself is divided in a way that makes making itself is divided in a way that makes the higher- in- rank set the wider policy the higher- in- rank set the wider policy lines while the lower echelon lines while the lower echelon administrators break the policy down into administrators break the policy down into more detailed decisions. In this way, the more detailed decisions. In this way, the whole organization can be viewed as an whole organization can be viewed as an efficient tool, with general policy – making efficient tool, with general policy – making concentrated at the top, policy specification concentrated at the top, policy specification carried out by the middle ranks, and actual carried out by the middle ranks, and actual work performance carried out by the lower work performance carried out by the lower ranks.ranks.

– ORGANISATION STRUCTUREORGANISATION STRUCTURE : :

•The structuralist approach is a The structuralist approach is a synthesis of Classical school synthesis of Classical school (formal) and the Human relations (formal) and the Human relations (informal). The structuralist sees (informal). The structuralist sees the organization as a large, the organization as a large, complex social unit in which many complex social unit in which many social groups interact. While these social groups interact. While these groups share some interests, they groups share some interests, they have other incompatible interests. have other incompatible interests.

•Two groups within the Two groups within the organization whose interests organization whose interests frequently come into conflict are frequently come into conflict are management and the workers. management and the workers. The structuralists attempt to find The structuralists attempt to find some clues to the source of some clues to the source of dissatisfaction of the workers:dissatisfaction of the workers:

1) It is observed that the 1) It is observed that the modern factory hand is modern factory hand is alienated from his work since alienated from his work since he owns neither the means of he owns neither the means of production nor the product of production nor the product of his labor.his labor.

2) The worker has little 2) The worker has little conception of the whole work conception of the whole work process or of his contribution process or of his contribution to it; his work is meaningless. to it; his work is meaningless.

•3) He has little control over 3) He has little control over the time at which his work the time at which his work starts and stops or over the starts and stops or over the pace at which it is carried out.pace at which it is carried out.

• THE BUREAUCRATIC STRUCTURE THE BUREAUCRATIC STRUCTURE ::

•The features of the bureaucratic The features of the bureaucratic structure are as follows:- structure are as follows:-

•1) It is a continuous organization 1) It is a continuous organization of officials bound by rules, which of officials bound by rules, which facilitate standardization and facilitate standardization and equality in the treatment of equality in the treatment of many cases. many cases.

•2) It provides a specific sphere of 2) It provides a specific sphere of competence which involves:-competence which involves:-

• a) a sphere of obligations to a) a sphere of obligations to perform functions which have perform functions which have been marked off as part of a been marked off as part of a systematic division of labor, systematic division of labor,

•b) The provision of incumbent b) The provision of incumbent with the necessary authority to with the necessary authority to carry out these functions, and carry out these functions, and

•c) The necessary means of c) The necessary means of compulsion should be clearly compulsion should be clearly defined defined

•3) The organization of offices follows 3) The organization of offices follows the principle of hierarchy; each the principle of hierarchy; each lower office is under the control and lower office is under the control and supervision of a higher one. supervision of a higher one.

•4) The rules which regulate the 4) The rules which regulate the conduct of an office may be conduct of an office may be technical rules or norms technical rules or norms

•5) It is a matter of principle that 5) It is a matter of principle that the members of the the members of the administrative staff should be administrative staff should be completely separated from completely separated from ownership of the means of ownership of the means of production or administration.production or administration.

•The rules which regulate the The rules which regulate the conduct of an office may be conduct of an office may be technical rules or norms technical rules or norms

•6) In order to enhance the 6) In order to enhance the organizational freedom, the organizational freedom, the resources of the organization resources of the organization have to be freed of any outside have to be freed of any outside control and the incumbent cannot control and the incumbent cannot monopolize the positions. monopolize the positions.

•7) Administrative acts, decisions, 7) Administrative acts, decisions, and rules are formulated and and rules are formulated and recorded in writing.recorded in writing.

• ORGANISATIONAL CONTROL AND ORGANISATIONAL CONTROL AND LEADERSHIP :LEADERSHIP :

•Classification of means of control: The Classification of means of control: The means of control applied by an means of control applied by an organization can be classified into organization can be classified into three analytical categories three analytical categories

•a) Physical control: the use of gun, a a) Physical control: the use of gun, a whip or a lock, the threat to use whip or a lock, the threat to use physical sanctions is all examples of physical sanctions is all examples of physical control. Control based on physical control. Control based on application of physical means is application of physical means is ascribed as ascribed as coercive power. coercive power.

•b) Material control: Material reward b) Material control: Material reward consists of goods and services. The consists of goods and services. The granting of money, which allows granting of money, which allows one to acquire goods and services, one to acquire goods and services, is classified as material because the is classified as material because the effect on the recipient is similar to effect on the recipient is similar to that of material means. The use of that of material means. The use of material means for control purposes material means for control purposes constitutes constitutes utilitarian power. utilitarian power.

•c) Symbolic control: these c) Symbolic control: these include normative symbols, include normative symbols, those of prestige and esteem and those of prestige and esteem and social symbols those of love and social symbols those of love and acceptance. The use of symbols acceptance. The use of symbols for control purposes is referred for control purposes is referred to as to as normative, normative – normative, normative – socialsocial, or , or social – powersocial – power..

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