5. CLASSICAL organization theory
Division of work is essential for efficiency
Coordination is primary responsibility of management
Formal structure
Span of control
Scalar principle
Delegation
Unity of command
Functional principle based on specialization of work
Support and advisory activities
• Criticized –mechanistic and not interacting with the
groups
6. Human relation theory
Evolved to compensate some deficiencies of the
classical theory
This theory introduces the behavioural science as in
integral part
Organization as a social system & informal
organization
Worker - groups within a framework of formal
organization
• Employee participation in management planning and
decision making – morale and productivity
7. Modern or system approach
According to Kast and Rosenzweig, “system is an organized unitary whole composed of two
or more independent parts, component or subsystems and delineated by identifiable
boundaries from its environmental suprasystem”
Simply defined as
• Sub system of broader environment
• Goal oriented
• A technical subsystem
• A structural subsystem
• A psychological subsystem
• A managerial subsystem
9. Beach defines an organization as
“ a system ,having an established structure and
conscious planning, in which people work and deal with one
another in a coordinated manner for the accomplishment of
recognized goals”
Formal organization: Informal organization:
Planned structure spontaneously formed
10. Describe in
some detail the
work or activity
in terms of the
employee
Determine and
specify the
relationship of the
workers to each
other and to
management
Determine and
define
objectives
Analyze and
classify work to
be done
Steps for developing organization structure
12. LINE
• In this type of
organizational
structure, the
authority is well
defined and it
flows vertically
from the top to the
hierarchy level to
the managerial
level and
subordinates at
the bottom and
continues further
to the workers till
the end.
LINE
AND
STAFF
• Line and staff
organization is an
improved version
of the line
organization. In
line and staff
organization, the
functional
specialists are
added in line. The
staff is for
assisting the line
members in
achieving the
target effectively.
FUNCTIONAL
• Functional
organization
structure is the
type of
organization
where the task of
managing and
directing the
employees is
arranged as per
the function they
specialize.
14. WHAT IS management ?
Allen tells us that:
Definitions and interpretations vary widely. Some see management as a complex of personal
and administrative skills. Others view it as a technique of leadership. Still others define it as a
means of coordination or cooperation. These are part of the picture but they are inadequate to our
needs. For our purpose, we must be able to identify management as a body of systematized
knowledge, based on general principles which are verifiable in business practice.
Strong answers by saying:
The manager plans, organizes, motivates, directs and controls. These are the broad aspects of his
work. He adds foresight, order, purpose, integration of effort and effectiveness to the contribution
of others . That is the best use of the word “manage”. That is the work of the manager.
15. Principles of management
Division of work
Authority and responsibility
Discipline
Unitary command
Unitary direction
Individual goals subordinate to
establishment goals
16. Principles of management
Payment or remuneration
Hierarchy
Orderliness
Loyalty and devotion
Work stability
Initiative
Unity
Control