Posts Tagged Business Management

ORGANIZATION STRUCTURE AND CHART-1

Both the organization chart and job description are simplified abstractions of the actual situation. In reality there are many more positions and relationships than indicated in the organization chart. It might happen that industrial cleaning might not clean all required things. The degree of authority a superior has over his subordinate is also not indicated in the chart, nor is the relationship between two managers at an equal level reflected in the organization chart.

 

Despite all these limitations, the organization chart is an extremely useful tool in understanding and designing the structure. The structure of an organization, unlike that of a physical mechanical or biological system, is not visible. Therefore, it can only be understood by a representative model and by observing its behaviour.

 

The elements of an organization structure are: 

1.      the network of formal relationships and duties, i.e. the organization chart plus the job descriptions,

2.      the manner in which various tasks and activities are assigned to different people and departments (differentiation),

3.      the manner in which the separate activities and tasks are coordinated (integration),

4.      the power, status, and hierarchical relationships within the organization (authority system),

5.      the planned and formalize policies, procedures and controls that guide the activities and relationships (administrative system), and

6.      the flow of information and communication network.

 

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ORGANIZATION STRUCTURE AND DESIGN

Organizing is the formal grouping of activities and resources for facilitating attainment of specific organizational objectives. It is possible to achieve objectives without formally organizing, but there is likely to be great wastage of resources and time. Organizing ensures that objectives are achieved in the shortest possible time, in an orderly manner, with maximum utilization of the given resources. For a company who are selling blinds, vertical blinds, roman shades online, utilization of each leads given to them is most important part of organization.

 

In the context of a firm, its people, machines, building, factories, money, and credit available for use are the resources at its disposal. All these resources are limited. Your roles as a manager is to organize all these resources, so that there is no confusion, conflict, duplication or wastage in achieving your organization’s objectives and authority for utilizing the resources assigned to him, and the higher authority to whom he has to periodically report his progress. In this unit, we will take up all these issues for discussion, dwelling at some length on the various types of organization structure that you can choose from to suit your company’s specific objectives.

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Administrative Theory

Administrative theory is another stream of thought in the classical mould. While the concept of bureaucracy was developed by sociologist in a detached, scholarly way administrative theory has been developed since 1900 by practical managers. Though both the schools of thought developed independently, they have many things in common.

 

Both tend to be prescriptive about organizations and normally emphasise the need for order and orderly procedures, and point to hierarchy, specialization, structure. Order and certainty among others as essential features of organization.

 

Among the several proponents of the Administrative theory, the earliest and significant contribution came from Henri F Fayol, a French industrialist, in  1916. The 14 principles that capture the essence of the administrative theory could be summarized as follows:

 

  1. Division of work
  2. Authority and responsibility
  3. Discipline
  4. Unity of command
  5. Unity of direction
  6. Subordination of individual interest to general interest
  7. Remuneration of personnel
  8. Centralization
  9. Scalar chain
  10. Order
  11. Equity
  12. Stability of tenure of personnel
  13. Initiative
  14. Espirit de corps

We will talk on each theory in next post.

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Dysfunctional Aspects -1

We are talking Dysfunctional Aspects. We talked Rigidity and Impersonality in our previous talk. Today we are going to talk about Displacement of Objectives and Compartmentalization of Activities.

 

Displacement of Objectives

Rules originally devised to achieve organizational goals at each level become an end in themselves independent of organizational goals. Thompson calls such bureaucratic behavior as a process of “inversion of ends and means”. When individuals holding office at lower levels pursue personal objectives or objectives of sub units, the overall objectives of the organization may be neglected. When objectives get so displaced it is often difficult for managers at higher levels or even for the other constituents of the organizations such as consumers and stock holders to seek redress.

 

Compartmentalization of Activities

Specialization and division of labor are encouraged in bureaucracies to improve organization effectiveness. But the resulting categorization breeds the notion of watertight compartmentalization of jobs, restricting people from performing tasks that they are capable of performing. For example, a pipe fitter can install a pump, but is prohibited from making the electrical connection. It would also encourage a tendency to preserving existing jobs even when they become redundant. The sequential flow of work may usually have an element of idle time at almost every level. The bickering over respective jurisdictions based on specialization and categorization may also often induce dysfunctional conflict in the place of coordination and cooperation among various submits of an organizations.

 

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The Classical Viewpoint

Just past weekend I went to an online store which sells blinds, shades, and window treatments. As my cousin bought a house and he wanted to get some ideas on the blinds. While I was shopping on guaranteedblinds.com i start to think will this ever be outdated will it go out of fashion or out of shades. Then I thought this is a classical product which dates back many centuries. Yes designs have changed but concept remains same. The same way the concept of Classical viewpoint of organizational design and structure

 

The Classical Viewpoint

 

In the late 18th century three streams of concepts i.e. bureaucracy, administrative theory and scientific management began to be developed. These concepts have come to be popularly known as classical concepts or classical theories of organizations. The structure of an organizations received emphasis under this school of thought. According to the classical view, “An organization is the structure of the relationships, power, objectives, roles, activities, communications and other factors that exist when persons work together.”

 

The streams of concepts in the “classical” mould are based on the same assumptions, but are developed rather independently. Bureaucracy as a concept, first developed by Max Weber, presents a descriptive, detached, scholarly point of view. Administrative theories not only described macro aspects of organizations but also focused on principles and practice for better performance. Scientific management thought focused mainly on micro aspects like individual worker, foreman, work process, etc. The classical theories on the whole, with scientific management stream consider the three streams of classical theories briefly: i.e. Bureaucracy, Administrative theory and Scientific Management.

 

 

 

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Understanding Organizations -3

Anthropological concepts concerning cultural factors are as pertinent as biological theories of evolutions and psychological theories of human behavior. While Arts and Sciences (e.g. humanities and physics and biological sciences) and social sciences (e.g. economics, history and politics) are relevant to understanding, from a behavioral point of view, the trio of anthropology, sociology and psychology have much to offer. As an academic discipline, anthropology, with its widest scope provides the basic behavioral science discipline. Amongst many of the subfields of specialization in anthropology it is cultural anthropology whose main focus is on the study of origins and history of man’s cultures, their evolution and development, and the structure and functioning of human cultures in every place and time that deals with the reciprocal relationship between culture and behavior. Best example of evolution in marketing is online marketing services from discount clicks.

                                 

Sociology deals with the study of society, institutions, the organizations, the group and norms and roles. Modern psychology is concerned with the study of individual human behavior with the objectives of understanding, prediction and control of human behavior. The purpose here is not to discuss the contributions from each of the discipline but to gain insights into the vast expanse of the field of study. What is important; however, is not mere accumulation of knowledge from diverse fields, but the integrations of concepts and techniques developed in many fields. Online marketing services are accumulation of knowledge and integrations of concepts and techniques like seo work.

 

Though formal study of organizations began only in recent decades, ‘organizations’- human organizations –are as old as human civilization itself. Claude S. George explained elements of organizations that were discernible over the past several thousand years. However, interest in formal study and understanding of organizations for purposes of management first found expression over the last 100 years or so. Before Industrial Revolution, when the handicraft and domestic system of production was dominant, the operations of an enterprise used to be under the direct control of the owner. But the developments in the wake of Industrial Revolutions gave birth to scienticism in the nineteenth century.  

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