Organization & Management Concept & Functions
Organization & Management Concept & Functions
Two or more people who work together in a structured way to achieve a specific goal or set of goals Goal: The purpose that an organization strives to achieve; or organizations often have more than one goal; goals are fundamental elements of organizations.
Management:
The process of planning, organizing, leading and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals.
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Management Functions:
1) 2) 3) 4) Planning Organizing Leading Controlling
Planning:
The process of establishing goals and a suitable course of action for achieving those goals. Planning implies that managers think through their goals and actions in advance and their actions are base on some method, plan or logic rather than on a hunch. Plans give the organization its objectives and set up the best procedures for reaching them. In addition, plans are the guides by which 1) the organization obtains and commits the resources required to reach its objectives 2) members of the organization carry on activities consistent with the chosen objectives and procedures 3) progress toward the objectives is monitored and measured so that corrective action can be taken if progress is unsatisfactory. The first step in planning is the selection of goals for the organization, (second) Goals are then established for each of the organizations subunits its divisions, departments and so on. Once these are determined, (third) programs are established for achieving goals in a systematic manner. In selecting objectives and developing programs the top manager considers their feasibility and acceptability to the organizations managers and employees.
Organizing:
The process of engaging two or more people in working together in a structured way to achieve a specific goal or set of goals. Organizing is the process of arranging and allocating work, authority, and resources among an organizations members so they can achieve the organizations goals. Different goals require different structures. An organization that aims to develop computer software, for example, needs a different structure than does a manufacture of blue jeans. Producing a standardized product like blue jeans requires efficient assemblyline techniques, whereas producing software requires organizing teams of professionals such as systems analysts and programmers. Although these professionals must interact effectively, they cannot be organized like assembly-line workers. Thus managers must match an organizations structure to its goals and resources, a process called Organizational Design.
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Leading:
The process of directing and influencing the task-related activities of group members or an entire organization. Leading involves directing, influencing and motivating employees to perform essential taks. Relationships and time are central to leading activities. Managers lead in an attempt to persuade others to join them in pursuit of the future that emerges from the planning and organizing steps. By establishing the proper atmosphere, managers help their employees do their best.
Controlling:
The process of ensuring that actual activities conform to planned activities. Finally, the manager must be sure the actions of the organizations members do in fact move the organization toward its stated goals. This is the Controlling functions of management, and it involves these main elements: 1) Establishing standards of performance 2) Measuring current performance 3) Comparing this performance to the established standards 4) Taking corrective action if deviations are detected. Through the controlling function, the manager keeps the organization on track. Principles of Management: (Given by Henry Fayol) 1) Division of Labor: The most people specialize, the more efficiently they can per form their work. This principle is epitomized by the modern assembly line. 2) Authority: Managers must give orders so that they an get things done. While their formal authority gives them the right to command, managers will not always compel obedience unless they have personal authority (such as relevant expertise) as well. 3) Discipline: Member in an organization need to respect the rules and agreements that govern the organization . To fayol, discipline results from good leadership at all levels of the organization, fair agreements (such as provisions for rewarding superior performance), and judiciously enforced penalties for infractions. 4) Unity of Command: Each employee must receive instructions from only one person. Fayol believed that when an employee reported to more than one manager, conflicts in instructions and confusion of authority world result. 5) Unity of Direction: Those operations within the organization that have the same objective should be directed by only one manager using one plan. For example, the personnel department in a company should not have two directors, each with a different hiring policy. 6) Subordination of individual interest to the Common Good: In any undertaking, the interests of employee should not take precedence over the interests of the organization as a whole. 7) Remuneration: Compensation for work done should be fair to both employees and employers.
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8) Centralization: Decreasing the role of subordinates in decision making is centralization; increasing their role is decentralization. Fayol believed that managers should retain final responsibility, but should at the same time give their subordinates enough authority to do their jobs properly. The problem is to find the proper degree of centralization in each case. 9) The Hierarchy: The line of authority in an organization often represented today by the neat boxes and lines of the organization chart runs in order of rank from top management to the lowest level of the enterprise. 10) Order: Materials and people should be in the right place at the right time. People, in particular, should be in the jobs or positions they are most suited to. 11) Equity: Managers should be both friendly and fair to their subordinates. 12) Stability of staff: A high employee turnover rate undermines the efficient functioning of an organization. 13) Initiative : Subordinates should be given the freedom to conceive and carry out their plans, even though some mistakes may result. 14) Esprit de Corps : Promoting team spirit will give the organization a sense of unity. To Fayol, even small factors should help to develop the spirit . He suggested, for example, the use of verbal communication instead of formal, written communication whenever possible.
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perform at faster and faster levels. The emphasis on productivity-and, by extension, profitability-led some managers to exploit both workers and customers. As a result, more workers joined unions and thus reinforced a pattern of suspicion and mistrust that labormanagement relations for decades.
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Systems Theory/Approach:
View of the organization as a unified, directed system of interrelated parts Rather than dealing separately with the various segments of an organization, the systems approach to management views the organization as a unified, purposeful system composed of interrelated parts. This approach gives managers a way of looking at the organization as a whole and as a part of the larger, external environment. Systems theory tells us that the activity of any segment of an organization affects, in varying degrees, the activity of every other segment. Production managers in a manufacturing plant, for example, prefer long uninterrupted production runs of standardized products in order to maintain maximum efficiency and low costs. Marketing managers, on the other hand, who want to offer customers quick delivery of a wide range of products, would like a flexible manufacturing, schedule that can fill special orders on short notice. Systems oriented production mangers make scheduling decisions only after they have identified the impact of these decisions on other departments and on the entire organization. The point of the systems approach is that managers cannot function wholly within the confines of the traditional organization chart. They must mesh their department with the whole enterprise. To do that, they have to communicate not only with other employees and departments, but frequently with representatives of other organizations as well. Clearly, systems managers grasp the importance of webs of business relationships to their efforts.
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The all of above words in simple meaning can be given as: Synergy: The situation in which the whole is greater than its parts. In organizational terms, synergy means that departments that interact cooperatively are more productive than they would be if they operated in isolation
Contingency Theory/Approach:
The view that the management technique that best contributes to the attainment of organizational goals might vary in different types of situations or circumstances; also called the situational approach. The contingency approach (Sometimes called the situational approach) was developed by managers, consultants and researchers who tried to apply the concepts of the major schools to real-life situations. When methods highly effective in one situation failed to work in other situations, they sought and explanation. Why, for example, did an organizational development program work brilliantly in one situation and fail miserably in another? Advocates of the contingency approach had a logical answer to all such questions: Results differ because situations differ; a technique that works in one case will not necessarily work in all cases. According to the contingency approach, the mangers task is to identify which technique will, in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of management goals.
Decision Making:
The process of identifying and selecting a course of action to solve a specific problem (or take advantage of an opportunity) Types of decisions: 1) Programmed decisions Solutions to routine problems determined by rule, procedure, or habit Programmed decisions are made in accordance with written or unwritten policies, procedures, or rules that simplify decision making in recurring situations by limiting or excluding alternatives. For example, managers rarely have to worry about the salary
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range for a newly hired employee because organizations generally have a salary scale for all positions. Routine procedures exist for dealing with routine problems. Programmed decisions are used for dealing with recurring problems, Whether complex or uncomplicated. If a problem recurs, and if its component elements can be defined, predicted and analyzed, then it may be a candidate for programmed decision making. For example, decisions about how much inventory of a given product to maintain can involve a great deal of fact-finding and forecasting, but careful analysis of the elements in the problem may yield a series of routine, programmed decisions. For Nike, buying television advertising time is a programmed decision. To some extent, programmed decisions limit our freedom because the individual has less latitude in deciding what to do. However, programmed decisions are actually intended to be liberating. The policies, rules or procedures by which we make programmed decisions save time, allowing us to devote attention to other, more important activities. For example, deciding how to handle customer complaints on an individual basis would be time-consuming and costly, but a policy stating exchanges will be permitted on all purchases within 14 days simplifies matters considerably. The customer service representative is then freed to deal with thornier issues. 2) Non programmed decisions Specific solutions created through an unstructured process to deal with nonroutine problems. Nonprogrammed decisions deal with unusual or exceptional problems. If a problem has not come up often enough to be covered by a policy or is so important that it deserves special treatment, it must be handled as a nonprogrammed decision. Problem such as how to allocate an organizations resources, what to do about a failing product line, how community relations should be improved- in fact most of the significant problems a manager will face-usually require nonprogrammed decisions. How to design and market newer, more advanced basketball shoes is an example of a nonprogrammed decision at Nike. As one moves up the organization hierarchy, the ability to make nonprogrammed decisions becomes more important. For this reason, most management development programs try to improve managers abilities to make non programmed decisions, usually by teaching them to analyze problems systematically and to make logical decisions.
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Stage 1: Investigate the situation Define the problem: Problem is actually a real one or not. Managers may concern employee resignations but this is not a problem. If the individuals resigning are relatively low performers & more qualified replacements can be rapidly find. So in this define actual problem Diagnose the causes: Find the reasons due to which the problem occurs. Identify the decision objectives: To decide what would constitute an effective solution.
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Stage 2: Develop Alternatives To create alternatives managers turn to individual or group brainstorming. Brainstorming: Decision making and problem solving technique in which individuals or group members try to improve creativity by spontaneously proposing alternatives without concern for reality or tradition. Stage 3: Evaluate the alternatives and select the best one available
Stage 4: Implement and monitor the decision Plan implementation Implement Plan Monitor implementation and take necessary adjustments
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