Unit 4 - OrgMan

​Nature of Organizations:

1. It involves delegation and assigning of tasks.

2. It involves allocation of resources.

3. It defines relationships between people and their departments.

4. Koontz & O'Donnell: "It involves grouping of activities necessary to accomplish goals and plans"

​Small to medium size businesses divide their company into departments.

​​Functional (heirarchical)

​Large companies divide their business into products, services or subsidiaries.

​​Divisional

​A temporary structure created for the specific project or event.

​​Project Based

​It is when subordinates need to report to two or more managers which sometimes is a cause of confusion.

​​Matrix

​Used by start-ups to give employees autonomy to have high speed implementation.

​​Flat Structure (horizontal)

Classical - Henry Fayol

1. Scientific Mgt - getting the best people and equipment to improve production tasks

2. Bureaucratic Theory - division of labor and specialization

3. Administrative Theory - finds a rational way to organize; to improve your processes and results based on data, scenarios and plans.

​Theories and Application of Organization

Emphasizes on individual or group behavior and human relations; it is participatory management. It tries to create a cohesive environment and empowers/builds up the employees career.

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​Neo-Classical

(Elton Mayo)

Tries to anticipate and manage conflicts; adapts to changes because there is no one best way to manage an organization.

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​Contingency

(Fred Fiedler)

How one part of the organization affects multiple other parts. Ex: purchasing a lesser quality raw material gave problems in production and had negative customer reviews.

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​Modern Systems Theory

​is entrusting someone to do the task.

Elements:

1. Authority - the power and the right to make decisions and give orders.

2. Responsibility - is the duty/obligation to complete the task.

3. Accountability - being answerable for the end result.

Is a network of social and personal relationships.

​Informal

Has well defined jobs and structures.

​Formal