Hrmd conceptual definition


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Hrmd conceptual definition

  1. 1. Conceptual Definitions: Administration, Organization, Management, Formal Structure, Organizational Chart, line and Staff Positions, etc. Prepared by: Jo B. Bitonio
  2. 2. Administration ADMINISTRATION - coordination and control of human and natural resources to achieve desired end set of functions to meet the organization's goals. The idea of a set of standard administrative functions carries back to Luther H. Gulick , who in 1937 established the acronym POSDCoRB " which stood for planning, organizing, staffing, directing, coordinating, reporting, and budgeting.
  3. 3. ORGANIZATION BY DWIGHT WALDO – is the structure of authoritative and habitual interrelationship in an administrative system. It is static and seek for pattern Organization Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things along with other subsystems achieve the overall goals of the organization. Often, these systems and processes are defined by plans, policies and procedures.
  4. 4. theory <ul><li>1 a supposition or system of ideas explaining something, esp. one based on general principles independent of the particular things to be explained (opp. HYPOTHESIS) ( atomic theory; theory of evolution ). </li></ul><ul><li>2 a speculative (esp. fanciful) view ( one of my pet theories ). </li></ul><ul><li>3 the sphere of abstract knowledge or speculative thought ( this is all very well in theory, but how will it work in practice? ). </li></ul><ul><li>4 the exposition of the principles of a science etc. ( the theory of music ). </li></ul><ul><li>5 Math . a collection of propositions to illustrate the principles of a subject ( probability theory; theory of equations ) </li></ul><ul><li>Oxford Encyclopedic English Dictionary </li></ul>
  5. 5. The Theories of Organization <ul><li>The purpose of theory generally is to provide a more coherent and integrated understanding of our world than we might otherwise hold </li></ul><ul><li>Theory seeks to move beyond a simple observation of facts or blind adherence to certain values to provide more general interpretations </li></ul>Why study formal Theories ?
  6. 6. Theory is a way of making sense of a situation All theories emphasize certain things and de-emphasize others, they are reflective of the broader commitments of a given culture
  7. 7. Theories of Organization <ul><li>Classical theories : scientific management (F. Taylor, Owen, Babbage. Weber, Gulick) </li></ul><ul><li>Neo-classical theories : human relations or human behavior school (Mary Parker Follet, Chester Barnand, Elton Mayo, Abraham Maslow, Frederick Herzberg, Douglas McGregor, Chris Argyris, Robert Blake and Jane Mouton Rensis Likert) </li></ul>
  8. 8. Public Administration (Woodrow Wilson, Frank Goodnow, Luther Gulick, W.F. Willoughby, Leonard White, Paul H. Appleby, Dwight Waldo) Integration or Modern Organization Theory ( Simon, McGregor, Argyris, Maslow, Likert, I. Von Berthallanfy, K. Boulding ) Development Administration (Goswami, Riggs, Weidner, Roman Dubsky, J. Nef, O.P. Dwivedi , George Gant) Theories of Organization
  9. 9. New Public Administration ( Minnowbrook Conference, H. George Frederickson) New Public Management ( Hammer and Champy, Ted Osborne and David Gaebler, W. F. Deming, UNDP, ADB, WB) Theories of Organization
  10. 10. <ul><li>Formal - means the intentional structure of roles in a formally organized enterprise </li></ul><ul><li>Informal - any joint personal activity without conscious joint purpose; a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another </li></ul>The Formal and Informal Group
  12. 12. Formal vs. Informal Structure <ul><li>Informal structures develop because: </li></ul><ul><li>people find new ways of doing things which they find easier and save them time </li></ul><ul><li>patterns of interaction are shaped by friendship groups and other relationships </li></ul><ul><li>people forget what the formal structures are </li></ul><ul><li>it is easier to work with informal structures. </li></ul>Coffee-regulars group News paper group Computer-wizard Group Spiceboys
  13. 13. <ul><li>Sometimes the informal structure may conflict with the formal one. Where this is the case the organization may become less efficient at meeting its stated objectives. However, in some cases the informal structure may prove to be more efficient at meeting organizational objectives because the formal structure was badly set out. </li></ul>
  14. 14. Managers need to learn to work with both formal and informal structures. A flexible manager will realize that elements of the informal structure can be formalized i.e. by adapting the formal structure to incorporate improvements which result from the day-to-day working of the informal structure
  15. 15. Traditional Structures of Business Organizations <ul><li>Numerous driving forces are causing dramatic changes in how organizations design themselves to conduct business effectively. These new designs are used organization widely or for various teams in the organization. The new designs are self-organizing, self-directing or self-managing in nature. </li></ul>
  16. 16. Line and Staff organization <ul><li>has the characteristics of line and functional structures </li></ul><ul><li>It is apparent from the scalar principle that line authority is the relationship which a superior exercises direct supervisions over a subordinate – an authority relationship in direct line or steps </li></ul><ul><li>The nature of the staff relationship is advisory. The function of people in a pure staff capacity is to investigate, research, give advise to line managers </li></ul>
  17. 17. Supervisors Employees Line and Staff Type of Organization __________ line authority - - - - - - - - - functional authority President Engineering Sales Prod Manager Controller Personnel Purchasing Supervisor Supervisor Supervisor Supervisor Employees Employees Employees Employees Employees Supervisor
  18. 18. <ul><li>Most business organizations start out with a functional structure, or a small variation of this structure. This is the basic &quot;building block&quot; for other structures. In this structure, there is a central office which oversees various departments or major functions, e.g., human resources, finances, sales, marketing, engineering, etc. </li></ul>Functional structure
  19. 19. A Functional Organization President Finance Personnel Assist to Pres. Marketing Engineering Production
  20. 20. <ul><li>This structure is useful because it focuses highly skilled people from across the organization to work on a complex product or service. It can be difficult, though, because each person essentially reports to two supervisors: the supervisor of the functional area (e.g., engineering) and the product manager, as well. </li></ul>Project Organization
  21. 21. Director of Engineering Product A Manager Product B Manager Product C Manager Product D Manager Design Mech Engr. Hydraulic Engr. Mettalurgical Engr. Elec. Engr. Project Organization in Engineering
  22. 22. Director of Engineering Matrix Organization in Engineering Chief Design Chief Mechanical . Chief Electrical Proj A Mgr. Proj B Mgr . Proj C Mgr. Proj D Mgr. Chief Hydraulic Chief Metallurgical
  23. 23. : <ul><li>its oriented towards end results </li></ul><ul><li>Professional identification is maintained </li></ul><ul><li>Pinpoint product-profit responsibility </li></ul><ul><li>Disadvantages : </li></ul><ul><li>Conflict in organizational authority exists </li></ul><ul><li>Possibility of disunity of command </li></ul><ul><li>Requires manager to be effective in human relations </li></ul>Advantages
  24. 24. <ul><li>Geographic (Grid) Organization – this designs attempts to assign responsibilities by grouping functional specialists (e.g. production, marketing and finance together) while retaining geographical responsibilities under a collateral group of departments and attempting to provide functional specialization in a third set of departments. </li></ul>
  25. 25. President Central Reg Eastern Reg Western Reg Personnel Personnel Purchasing Marketing Finance Accounting Sales Southern Reg Eastern Reg Engn Production Geographic Organization
  26. 26. <ul><li>Places responsibility at a lower level </li></ul><ul><li>Places emphasis on local markets and problems </li></ul><ul><li>Improves coordination in a region </li></ul><ul><li>Takes advantage of economies of local operations </li></ul><ul><li>Furnishes measurable grounds for general managers </li></ul><ul><li>Requires more persons with general manager abilities </li></ul><ul><li>Tends to make maintenance of economical central services difficult and may require services such as personnel or purchasing at the regional level </li></ul><ul><li>Increases problem of top management control </li></ul>Disadvantages Advantages
  27. 27. Committee organization Board of Directors Audit & Inv. Com Conciliation & Mediation Com Credit Com Ethics & Accountability Com Election Com
  28. 28. <ul><li>Advantages </li></ul><ul><li>Gaining group deliberation & judgment </li></ul><ul><li>Fear of too much authority in a singe person </li></ul><ul><li>Representation of interested group </li></ul><ul><li>Coordination of plans & policies </li></ul><ul><li>Transmission and sharing of information </li></ul><ul><li>Consolidation of authority </li></ul><ul><li>Motivation thru participation </li></ul><ul><li>Avoidance of action </li></ul><ul><li>Disadvantages </li></ul><ul><li>High cost in time and money </li></ul><ul><li>Compromise at the least common denominator </li></ul><ul><li>Indecision </li></ul><ul><li>Tendency to be self-destructive </li></ul><ul><li>Splitting of responsibility </li></ul><ul><li>Tyranny of the minority </li></ul>
  29. 29. Tall Organization with Narrow Spans
  30. 30. <ul><li>Advantages </li></ul><ul><li>Close supervision </li></ul><ul><li>Close control </li></ul><ul><li>Fast communication between subordinates and superiors </li></ul><ul><li>Disadvantages </li></ul><ul><li>Superiors tend to get too involved in subordinates’ work </li></ul><ul><li>Many levels of management </li></ul><ul><li>High cost due to many levels </li></ul><ul><li>Excessive distance between top to lowest level </li></ul>
  31. 31. Flat Organization with Wide Span
  32. 32. <ul><li>Superiors are forced to delegate </li></ul><ul><li>Clear policies must be made </li></ul><ul><li>Subordinates must be carefully selected </li></ul>Advantages Disadvantages: <ul><li>Tendency of overloaded superiors to become decision bottlenecks </li></ul><ul><li>Danger of superior’s loss of control </li></ul><ul><li>Requires exceptional quality </li></ul>
  33. 33. Factors Determining an Effective Span Communication techniques Hard Easy Amount of personal contact needed Hard Easy Variation by organization level Easy Hard Less More Less More More Less Communication techniques Hard Easy Amount of personal contact needed Hard Easy Variation by organization level Easy Hard Factor Narrow Spans Wide Spans Training of staff Less More Clarity of delegation or authority Less More Clarity of plan More Less Clarity of plan Change So Fast So Slow Communication techniques Hard Easy Amount of personal contact needed Hard Easy Variation by organization level Easy Hard
  34. 34. References: 2006 Managers’ Course, UP Institute for Small Scale Industries Frederick Harbison & Charles Myers, Education, manpower and Economic Growth: Strategies of HRD, McGraw Hill Book Co, 1964 p2