2. Functional
It's characterized by a top-down power
hierarchy, with decision-making authority
pushed up as high as is practically possible.
Many rules exist to keep things running
according to a predictable order. People work
together according to function -- salespeople
work together on sales, for example -- and
employees perform standardized, narrow jobs.
This, coupled with rules and management
control, means employees color within the
lines, becoming proficient and efficient at their
jobs but exhibiting little creativity.
The structure inhibits initiative and produces
followers. The military uses the functional
structure, as do most small businesses.
3. Team
The team structure produces a much freer
workplace. Adapts as needed by using fluid
employee teams that take charge of company
goals and projects.
Authority is decentralized, pushed down to
employees, who respond by exhibiting
initiative, creativity and enthusiasm.
it has fewer managers -- perhaps only the
owner, who oversees all the teams.
Jobs aren’t standardized, and this affects
morale: Satisfaction increases as job
specialization decreases. Of course, decreasing
specialization decreases efficiency, as well.
4. Divisional
When a company has disparate client categories,
product lines or locations, it makes sense to divide
employees into groups dedicated to a single concern.
Doing this naturally decentralizes power, as each
division has power over its particular concern. Indeed,
each division operates as a small business unit, and
managers respond by learning to behave like leaders.
5. Matrix
The divisional structure creates unavoidable
redundancy; each division must have its own
equipment, for instance.
A company may instead combine the functional
and divisional structures in the matrix
structure.
The functional structure is permanent.
Divisional managers then pull employees from
across different functional areas to work in
teams on divisional projects. This matrix gains
some of the team model’s flexibility, retains
some of the functional structure’s efficiency,
while responding to different market concerns.
There’s a built-in potential for conflict, though.
Divisional and functional managers can become
territorial and competitive, and employees may
6. Other Conflicts
Both the divisional and functional structures segregate
employee groups, which can lead to insular behavior.
Employees in different departments may become
indifferent -- even hostile -- to the concerns of other
areas, putting their own well-being first, even ahead of
the company’s. Uncooperative behavior results, and
interdepartmental coordination suffers.
The team structure, meanwhile, lives and dies on the
ability of team members to rise to challenges.
They must be trained to flourish, not only in their own
respective fields of functional expertise, but in areas
such as communication, problem solving and diversity.
7. CONT’
Most people easily recognize the vertical
management structure.
The setup is the most traditional,
characteristically employing a power hierarchy.
A head honcho leads all, directing less powerful
authority figures below, who, in turn, have a
say-so over the least powerful authority figures
of the enterprise.
In our schooldays we experienced this as the
principal, assistant principal and teachers ruled
over us children in the classroom.
As adults, those operating small businesses
8. Structure
On an organizational chart, a fully realized
vertical management structure looks like a
pyramid.
The shape is achieved by positioning employees
at the bottom of the chart with their managers
above them.
These first-line supervisors manage day-to-day
operations. Moving up the chart, a smaller
number of middle managers oversee first-line
management -- the middle managers ensure
company goals are met. Only a few top
executives supervise middle managers.
9. vertical structure
The mechanistic vertical structure allows companies to
produce dependable, standardized products and services.
Specialized jobs lead to efficiency, which lends itself to
mass production.
A growing company may then enjoy economies of scale. On
the other hand, bureaucracy, rigidity, mechanization --
these hamper a small business competing in a market that
demands quick response times.
Innovation also suffers within vertical management
structures, since employees must stick to assigned tasks.
Small businesses needing creativity and agility might
choose instead an organic structure such as the team
structure, which has little management hierarchy, using
employee teams to manage projects and goals.
11. Definition:
The bureaucratic management theory,
introduced by Max Weber stated that;
to manage an organization efficiently,
it is essential to have a clear line of
authority along with proper rules,
procedures and regulations for
controlling each business operation.
Bureaucracy refers to the possessing
of control over a group of people or
activities through knowledge, power or
authority
12. This theory focuses on the following two primary
criteria:
developing a hierarchical system in the organization;
defining clear procedures, methods, rules, and
regulations to carry out business operations and
transactions.
13. THEORY
Weber believed that there could be only three kinds of
power in the organization:
Traditional: In traditional authority, the workers
(considered as servants) are dependent upon the leader
(lord) working as their servants and following the
stated rules and regulations blindly.
Charismatic: Under charismatic power, due to the
extraordinary personality of the managers, the workers
are deeply motivated to perform their best on the task
allotted to them. However, this charisma may fade
away with the manager’s lay off, resignation or demise.
Legal-Rational: In legal-rational power, the workers
either need to abide by the legal rules or the naturally
applicable laws. In short, all the employee need to
15. Authority Hierarchy
Weber proposed that there should be a systematic
hierarchy in the organization, defining the position
of each employee from top to the lowest level.
In such a system, each employee knows who they
have to report, whose orders they need to follow,
and what is the role of different personnel in the
organization.
Formal Rules and Regulations
There should be a clear set of principles,
procedures, rules and regulations in written form, to
be followed universally by everyone working in the
organization irrespective of their position.
16. CONT’
Division of Labour
The whole work should be assorted into smaller task sets to ascertain that
every set of tasks is assigned to the right person
This not only improves the work efficiency but also ensures proper allocation
of job responsibilities.
Career Orientation
management should motivate employees to build a long-term career in the
organization by providing job security and performance-based incentives to
them
Impersonality
In an organization, the impersonal relations develop among the employees,
which may lead to favouritism or nepotism. Weber said that the application of
rules and managerial decisions should be impartial and independent of such
relations.
Moreover, these decisions must be based on rational and practical grounds
rather than emotional or impersonal influence
17. Formal Selection Process
Weber believed that the workers
should be recruited through their
technical skills and expertise instead
of ‘first come first selected’ basis.
Even the promotion should be based
on performance and merit. This not
only leads to better productivity but
also adds to employee’s growth and
satisfaction.
