slide describe about management and organization and approaches to management, principles of management and organization and organizational climate

1. Unit -1- Management
and Organization
Organizational Management-701
Y. Roopa
Department of veterninary and
animal husbandry extension
education

2. • French word ‘Manage’ means ‘House keeping’.
• Process of utilization of resources in an effective and
efficient manner in today’s dynamic environment.
• Management can be considered as a proper utilization of
people and other resources in an organization to
accomplish desired objectives.
• Management is universal in the modern world.

3.  In past management developed only in industrial and business
sectors. But now it involves public sectors, information
societies and even entrepreneurial organizations.
 Management in extension is more important as extension is
becoming more and more specialized and the scale of
operation is ever increasing.
 Management is the process of designing and maintaining an
environment in which individuals working together in groups
efficiently accomplish selected aims.

4. DEFINITION
Art of getting things done through other people
Parker Follet
The process by which people, technology, job tasks and other
resources are combined and coordinated so as to effectively achieve
organizational objectives.”
Waldron et al., (1997)
The use of people and other resources to accomplish objectives
Louis E Boone & David L Kurtz

5. Process of planning, organizing, leading, and controlling the efforts of
organizational members and of using all other organizational
resources to achieve organizational goals.
Michel H. Mescom
As a process by which cooperative group direct action towards
common goal
Joseph Massie
Management as the art of knowing what you want to do in the best
and cheapest way.
Frederick Taylor

6. Concept Of Management
Harbinson and Myers (1961) offered a three fold concept for the viewpoint
of management, such as:
 As viewed by the economist: management is one of the factors of
production i.e., land, labour and capital or an economic resource.
 By specialist, organization and administration: management is a system
of authority.
 By sociologist: management is a social class and social system.

7. Ever since people began forming groups to accomplish aims
they could not achieve as individuals, managing has been
essential to enter the coordination of individual efforts.
Management is the process of designing and maintaining an
environment in which individuals working together in groups
efficiently accomplish selected aims.
There are some necessary skills required for managers of
extension organizations.

8. Management Is Both Art And Science
 Science is a collection of systemic knowledge, collection of truths
and inferences after continuous study and experiments. It has
fundamental principles discovered.
 Art uses the known rules and principles and uses the skill,
expertise, wisdom, experience to achieve the desired result.
 Management has got two faces like coin: one is art and other is
science. Management has got scientific principles which constitute
the elements of science and also skills and talent which are
attributes of Art.

9. Management Process
A series of operations done by a manager over a period
of time is called management process.
Management is the process of achieving organizational
goals and objectives effectively and efficiently by using
management functions i.e.,

10. Process- represents on going functions or primary
activities engaged in by managers
Efficiency- getting the most output form the less amount
of inputs ( doing tings right)
Effectiveness- completing activities so that organizational
goals are attained. (doing the right things)

12. Approaches of management
When we say “approach” it literally mean the way we approach
management and managerial activities at work. So it is the
active way or method of seeing and dealing with managing at
the workplace.

13. Management
approaches
Pre
classical
approach
Classical
approach
1) Bureaucratic
approach
2) Administrative
approach
3) Scientific
approach
Neo classical
approach
1) Hawthorne experiment
2) Socio-Tech system
approach
3) Co-operative approach
4) Group behavior
approach
5) Inter-personal
behavior approach
6) Human relation
approach
7) Social system
approach
8) Organizational
approach
Modern
approach
1) Quantitative or
mathematical
approach
2) Systemic approach
3) Contingency
approach
4) Decision theory
approach
5) Re-engineering
approach
Emerging
approach
1) Total quality
management
approach
2) McKinsey’s 7-S
approach
other
1) Empirical or
case approach
2) Operational
approach

14. I. Pre classical approach
Pre Classical Theorist developed specific techniques to solve
some identified problems and integrated management with
their respective areas of specialization.
Even though most of the discussions on evolution of
management thoughts start with the classical approach, but
we have to acknowledged briefly the contributions of some
of their contributors of the pre-classical management
thought to enable a better appreciation of the process of
development of management thoughts.

15. CONTRIBUTORS :
Robert Owen – He is considered as a pioneer in the field of human resource management
process and advocated the necessity of concern for the welfare of workers
Charles Babbage – Inventor and management scientist. Built the practical mechanical
calculator, which is considered as the basis of modern computer.
Andrew Ure – Emphasized the necessity of management education.
Henry Robinson Towne – Emphasized the significance of business skills.
By and large, they integrated management with their respective areas of
specialization. It was Andrew Ure, Charles Duplin, and Henry Robinson Towne
who laid the foundations of the management theories that ultimately shaped the
management thoughts as we see today.

16. II. Classical approach
It is about applying the original studies and researches done
on management. It first became an official field of study
during times of war, developed in order to improve
productivity, efficiency, and output.

17. • Moreover, the goal of Classical Management is cutting costs and achieving
results in more efficient ways.
• The classical approach does not concern employee satisfaction or anything
from the perspective of employees.
• It is too mechanistic.
• Employees look for more in a job now. They expect to enjoy their job and to
have a reason to do what they do.
• Even though it is the base of all management, it does not address those needs
and is all about achieving the organization’s goals.
• Several approaches can be integrated in management, and this is the case
with the classical approach. It is still in use in almost every company, and
organization but in a more complex way as some of the other approaches are
integrated with it.

18. The classical approach to management can be divided into mainly three distinct
areas.
They are:
a) Lower level management analysis or scientific management
b) Comprehensive analysis of management or administrative management
c) Bureaucratic management

19.  It is “a formal system of organization that is based
on clearly defined hierarchical levels and roles in
order to maintain efficiency and effectiveness”
 This theory was developed by Max Weber and is
widely used in the management of both public and private sector
organizations.
 According to the bureaucratic management approach, organizations are
usually divided into hierarchies.
1. Bureaucratic Management

20.  Lays emphasis on authority structures & description of organization.
 Based on practicing and experience of managers, principles are developed.
 Formal education and training is emphasized for developing managements skills.
 Emphasis on economic efficiency and formal structure.
These divisions help in creating “strong lines of authority and control within
the organization.
Bureaucratic management depends upon administration devices.
According to Weber the bureaucratic management approach is based on four
principles -Hierarchical positions, rules of system, division of labor for
specialization, and impersonal relationship.

21. MERITS
 Offers convenient framework for education & training.
 Helpful for drawing common principles out of past experiences.
 Focuses attention on what managers actually do.
 Provides scientific basis for management practice.
 Highlights the universal nature of management.
SHORTCOMINGS
 Strict adherence to rules & regulations of the organization .
 It undermines the role of human factor.
 It is viewed as a closed system having no interaction with the environment.
 Relying too much on past experiences is bad.

22.  Scientific management concentrates on the “one best way to perform a
task; that is, it investigates how a task situation can be structured to get
the highest production from workers.
 The process of finding “one best way” has become known as scientific
management.
 Although the techniques of scientific management could conceivably be
applied to management at all levels, the research, research applications
and illustrations relate mostly to lower-level managers.
 Therefore theory is also referred to lower level management analysis.
2. Scientific Management Theory

23.  Concerned with knowing exactly what we want men to
do and see that they do it in the best and the cheapest way
possible.
 Frederick W Taylor (1856-1915) is commonly called the
father of scientific management because of the
significance of his contribution.

24. He argued that the four principles of management would result in prosperity for
both workers and managers. The principles are
1. Develop a science for each element of an individual‟s work to replace the old
rule of thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work is done in
accordance with the principles of the science that has been developed.
4. Divide work and responsibility almost equally between management and
workers.
Elements and tools of scientific management: Job analysis, Scientific
Recruitment and training

25. MERITS:
 Tools and physical activities in a job can be better balanced and
organized.
 Comprehends how important scientific selection of workers is and
also understands that a person cannot do a job properly without
capability and training.
 It encourages mangers to seek the “one best way” of doing a job.

26.  Whereas scientific managers emphasize job design, the
second area of classical approach are concerned with
the entire range of managerial performance.
 Administrative management focuses on organizational
efficiency.
 The most notable contributor was Henri Fayol (1841-1925).
His book General and Industrial management presents a
management philosophy that still guides many modern managers.
3. Administrative Management

27.  Because of his writings on elements and general principles
of management, Henri Fayol is usually regarded as the
pioneer of administrative theory .
 Henry Fayol “ Father of Administrative Management
Theory” explained management in terms of 5 functions
namely, Planning, Organizing, Commanding, Co-ordinating
and controlling.
 Here are the principles of management developed by Fayol
i.e.,
 Division of work, authority, discipline, unity of command
,unity of direction, subordination of individual interest to
general interests, remuneration, centralization, scalar chain,
order, equity, stability of tenure of personnel, initiative, and
esprit de corps.

28.  Classical approach made a significant contribution to the development of
management theories.
 Scientific management focused on employees within organizations and
on ways to improve their productivity.
 Administrative theory focused on the total organization and on way to
make it more efficient.
 Bureaucratic management focused on eliminating managerial
inconsistencies that means it emphasized the position rather than person
and organization continues even when individual leave.
 It also identified the application of scientific method to the problems of
management and highlighted the need for mutual cooperation between
employers and employees.

29.  It grew out of the limitations of the classical theory. Under
classical approach, attention was focused on jobs and
machines.
 After some time workers resisted this approach as it did not
provide the social and psychological satisfaction.
 Therefore, attention shifted towards the human side of
management.
 George Elton Mayo (1890-1949) is considered to be the
founder to the neoclassical theory.
 He was the leader of the team which conducted the famous
Hawthorne Experiments at the Western Electric Company
(USA) during 1927-1932.
III. Neoclassical approach of management

30. The Hawthorne studies were a series of experiments that
provided new insights into individual and group behavior.
The studies focused on behavior in the workplace. The
Hawthorne studies and subsequent experiments lead scientists
to the conclusion that the human element is very important in
the workplace.
1. Hawthorne Experiments

31.  Social & technical systems interact.
 This interaction is important for organizational effectiveness.
Positive effect on social system, personal attitudes & group
behavior.
 Organisation is governed by social laws as well as
psychological forces.
 Technical aspects of organization modified by the social
aspects.
 Focus on production, office operations, and other areas with
close relationships between technical system and people
•Contributors –Trist, Bamforth, Emery etc.
.
2. Socio -Technical Systems Approach

32. Uses
 Organizational effectiveness depends on looking at people and
their interactions and also at the technical environment in
which they operate.
 Change in technology.
 Change in social interactions at work place.
Limitations
 Lack of total managerial view. Emphasis only on lower-level
office work and ignores much of other managerial knowledge
 Concentrate on factory or other production system
 No new contribution
 People aware about the role of technology of social system at
the work place

33. Concerned with both interpersonal and group behavioural aspects leading to
a system of co-operation.
Concept includes any cooperative group with a clear objective.
DE-MERITS
Overlooks many managerial concepts, principles, and techniques being a
broad field in the study of management.
3. Co-operative approach

34. • Behavioral theorists view organization from individual’s point of view.
• It emphasizes individual attitudes and behaviors and
group processes, and recognized the significance of
behavioral processes in the workplace.
DE-MERITS
Often not integrated with management concepts,
principles, theory and techniques. Need for closer integration with organisation
structure design, staffing, planning and controlling
4. Group Behavior Approach

35. • Focus on interpersonal behaviour, human relations, leadership, and
motivation.
• Based on individual psychology.
DE-MERITS
Ignores planning, organizing, and controlling.
Psychological training is not enough to become
an effective manager.
5. Interpersonal Behavior Approach

36. 6. Human Behaviour Approach
 Helps managers deal more effectively with the “people side” or “human
side” of the organization. Understand human relations.
 Employees not only have economic needs but also psychological and social
needs. Employees prefer self-control and self-direction.
 Employee oriented democratic participative style of management is more
effective than mechanic task-oriented style.
 Motivation, leadership, participative management & group dynamics are
core of this approach.

37. Limitations
• Treating management as equivalent to human behaviour.
• Productivity is ignored.
• Incomplete Package.

38.  Several psychologists and sociologists began the study of group dynamics and
developed the field of organizational behavior.
 It involves the study of attitudes, behavior and performance of individuals
and groups in organizational settings.
 It is extended and improved version of human relations movement.
 It is multidimensional and interdisciplinary in application of knowledge drawn
from behavioral sciences to the management problems. Therefore, it is also
called behavioral science approach.
7.Organizational Behavior

39. • Understanding the behavior of groups & individuals.
• This approach says management is a social system composed of people who
work in cooperation.
• Relationships exist between the external and internal environment of
organisation.
• There should be harmony between the goals of organisation and goals of the
group.
• Co-operation amongst the group is necessary.
Contributors–Pareto, Chester Barnard
8. Social System Approach

40. Merits:
• Organisational decisions should not be based on desires of one group alone
but should reflect the interests of all the parties.
Demerits
• Broader than management and its practices.
• Overlooks many management concepts, techniques and principles.

41. Neoclassical theory has made significant contribution to an understanding of
human behavior at work and in organization.
This approach has given new ideas and techniques for better understanding of
human behavior.
Neoclassical approach is not free from limitations. First, it lacks the precision of
classical theory because human behavior is unpredictable. Secondly, its conclusions
lack scientific validity and its findings are tentative. Lastly its application in practice
is very difficult because it requires fundamental changes in the thinking and attitude
of both management and workers.
This approach changed the view that employees are tools and furthered the belief
that employees are valuable resources. It also laid the foundation for later
development in management theory.

42. IV: Modern Approach
 This approach is about using math and statistics and other quantitative
methods to make better managerial decisions.
 Aims at higher degree of precision and perfection by using mathematical and
statistical tools.
 Offers a systematic and scientific analysis and solution to problems.
 Consistent use of logical reasoning to solve problems helps in reducing
personal bias and intuition of managers.
 Involves knowledge and skill of statistics, engineering, electronics,
accounting etc.
1. Quantative /Mathematical Approach

43. Stages of quantitative approach:
 Dividing a problem into small simple components.
 Gathering required information on each component.
 Analysis of data so collected.
 Finding out the solutions to the problem in hand.
Merits
 It provides exactness of management principle.
 It helps the decision maker to make better decisions through
informed and reasoned judgments.
Demerits
 Technique in decision making.

44. • Systems approach means looking at the organization as a whole system.
Employees, clients, customers, partners, managers, and every stakeholder
as a part of this system, and without any one part, the system would fail.
• Systems approach gives a single expansive and detail framework to
diagnose the problem and decide which tool or combination of tools will
accomplish the task best.
2. Systemic Approach

45. An organization as a system is composed of four elements:
 Inputs- material or human resources
 Transformation processes- technological and managerial processes.
 Outputs-Products or services
 Feedback-reactions from the environment

46. There are 2 main kinds of systems; an open system and a closed
system.
An organization that interacts little with its external environment
(outside environment ) and therefore receives little feedback from
it is called a closed system.
An open system, in contrast , interacts continually with its
environment. Therefore, it is well informed about changes within
its surroundings and its position relative to these changes.

47.  This approach is based on the concept that there is ‘no one best way’ in
management.
 For every situation there is a set of circumstances, which determine how a
situation is to be dealt with.
 This approach is sometimes also called the ‘Situational Approach.
 It states that every situation is unique and not one situation is the same as
another; and each situation should be dealt with differently.
 This approach is probably the most commonly used due to the very
dynamic environment we face in the business world.
3.Contingency Approach

48. Management is decision making.
Members of Organisation -decision makers and problem solvers.
• Specify objectives and criteria for making decisions
• Developing alternatives
• Analyzing and comparing alternatives
• Select the best alternatives
• Implement the chosen alternatives
• Monitor the results to ensure
• Desired results are achieved.
Contributors –Simon and Cyert
4. Decision Theory Approach

49. MERITS
• Suitable tools for decision making.
• Covers entire range of human activities.
DE-MERITS
• Does not take total view of management- decision making
on only one aspect of management
• Rational decision making is a challenge.

50.  Focuses on creating “big change” and reacting effectively .
 Radical redesign of business processes is to achieve : improvements in cost,
quality, service, and speed.
 To improve efficiency, eliminate waste in every possible way.
 Look at how jobs are designed, raises critical questions about how much
work and work processes can be optimally configured.
 Goal of reengineering: Bring about a tight fit between market opportunities
and corporate abilities leading to creation of new jobs.
5. Re-engineering Approach

51. V. EMERGING APPROACH
 A management method relying on the co-operation of all members of an
organization.
 Management method that centers on quality and on the long term
success of the organization through the satisfaction of the customers , as
well as the benefit of all its members and society.
1. Total quality management approach

52. 2. McKinsey’s 7 S Approach
Each of these elements are vital to success, yet each needs its own time and
attention to function properly.
•The model is most often used as an organizational
analysis tool to assess and monitor changes in the
internal situation of an organization.
•It is based on the theory that, for an organization to
perform well, these seven elements need to be aligned
and mutually reinforcing.
•The model can be used to help identify what needs to
be realigned to improve performance, or to maintain
performance during other types of change.

53. Study of managerial experiences and cases. Study of Success & failure cases
helps in practicising managers . Theoretical research combined with practical
experiences.
•Contributors: Earnest Dale and Mooney
Merits :
• Learning through experience of others
Demerits:
• Situations of past are not the same as present.
Empirical Approach

54.  Management is a process.
 This school concentrates on the role and functions of
managers and distills the principles to be followed by
them.
 Uses –Flexible & practical but not universal.
Operational Approach

55.  The best management practice comes from
applying a bit of all the approaches, especially
wherever needed.
 However, there has never been a time with a more
dynamic business environment than today’s and
where people cared so much for their quality of
life and job satisfaction.
 Thus, although all the approaches are still very
useful, the Contingency and Behavioral approach
is probably the most prominent these days.

56. Functions Of Management
Planning
Organizing
Staffing
Directing
Coordination
Reporting
Budgeting
POSDCORB

57. Planning
 It is the management function that involves:
Setting goals
Formulating mission
Making plans
Achieving goals

58. Planning process
Mission: is organization purpose or fundamental reason for existence.
Goal: End result that an organization wishes to achieve.
Plan: is the means devised for attempting to reach a goal
Setting goals and developing plans will lead to goal
attainment ultimately organizational efficiency and
effectiveness

59. Organizing
• An organization is a group of people working together to achieve a
common goal.
• Defined as to organize a business is to provide it with everything useful
for its functioning such as raw materials, tools, capital and personnel.

60. Staffing
• Men-biggest asset of an organization
• right men-on right jobs
It involves:
 Manpower planning
 Recruitment, selection & placement
 Training & development
 Remuneration
 Performance appraisal
 Promotions & transfer

61. Directing
People managing the organization have to be guided, motivated and
supervised by managers to get the results.
Functions involved:
• Communication
• Motivation
• Leadership
• supervision

62. • Supervision
Implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers
• Motivation
Means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
• Leadership
Process by which manager guides and influences the work of subordinates in
desired direction
• Communication
Process of passing information, experience, opinion, etc. from one person to
another. It is a bridge of understanding

63. Controlling
Controlling is the management function aimed at regulating
organizational activities so that actual performance meets
the expected objectives and standards of company.

64. Reporting
• Involves regularly updating the superior about the progress or the work
related activities
• The information dissemination can be through records or inspection
• Target roles include project managers, business analysts and system
architects.

65. Budgeting
• Process of creating a plan to spend money
• Creating this spending plan determines in advance whether there is enough
money to do the things needed to be done
• Budgeting is simply balancing expenses with income
• Involves all the activities that are under Auditing, Accounting, Fiscal
Planning and Control.

66. Principles of Management
1. Division of work:
• Means job specialization
• Work should be divided into small elements
and assigned to its specialist
• It promotes efficiency due to developed
specializations for a particular job
2. Authority & responsibility:
• Both should go together
• Right & power to give orders should be
balanced with the responsibilities

67. 3. Discipline:
• In terms of obedience, application, and respect to superiors ( respect
rules and regulations of organization) .
• It required good superiors at all levels
4. Unity of command :
• Orders from only one boss
• If violated, authority is undermined, discipline is in danger, order
disturbed and stability threatened

68. 5. Unity of direction:
• One head & one plan for each group of activity
• It creates dedication to the purpose and loyalty
6. Subordination of individual interest to
general interest:
• Interest of business enterprise ought to come
before the interest of individual worker

69. 7. Remuneration:
• Fair & adequate remuneration
• Offered maximum satisfaction
8. Scalar chain:
• The line of authority from chief executive at top to the first line
supervisor at bottom must be clearly defined

70. 9. Order:
• Applied for men and material
• Organization ought to be based on an orderly and rationally through
out plan
10. Equity:
• Equal kindness and justice with subordinates
• Creates loyalty and devotion among the employees

71. 11. Stability:
• Linked with long tenure of personnel in organization
• Efficiency is promoted by a stable
work force
12. Initiative:
• Ability to think fresh and in advance would act as
a powerful motivator of human behaviour

72. 13. Esprite de corps – Union is strength:
• Whole organization should work as a team
• Every team member should work for accomplishing goals

73. Top
management
President, CEO,
Executive vice presidents
Middle management
Plan managers, division
manager, department managers
First line / lower level management
Foreman, Supervisor, office managers
Non-managerial Employees

74.  Management is thus a continuous effort aimed at shaping an organization
and contributing to its overall growth.
 The functions of managers include planning, organizing, staffing, leading
and controlling.
 These functions are essential to any kind o organization.
 It applies to managers at all hierarchical levels.
 The aim of managers is to improve productivity, effectiveness and
efficiency

75. Definition of organization
Organization is to determine the activities to accomplish a job and arrange
the distribution of activities among the people
L. Urwick
Process of defining and grouping the activities of the enterprise and
establishing the authority relationships among them.
Theo Haimann
Process of identifying and grouping the work to be performed, defining
and delegating responsibilities and authority and establishing relationships
for the purpose of enabling people to work most effectively together in
accomplishing objectives
Louis Allen

76. Process/Steps in Organization
1. Determining activities to be performed
2. Assignment of responsibilities
3. Delegation of Authority
4. Selecting right man for right job
5. Providing right environment
6. Measurement and evaluation

77. Elements of Organization process
1. Departmentalization :
Grouping of various activities on the basis of their similarity into separate units
2. Delegation :
Process of entrusting a part of the work by superior to his sub ordinates.
Useful for handling many tasks at a time
3. Decentralization :
Opposite of centralization and refers to dispersal of decision making authority.

78. Principles of Organization
1. Principle of coordination :
• Diverse activities performed by different persons
should be synchronised
• They should be united in such a way to facilitate
accomplishment of objectives
2. Principle of unity of command :
• Employee should receive orders and instructions
from one superior only
• Avoids confusion and conflict in organization

79. 3. Principle of scalar pattern/ Chain of command :
• Unbroken line of authority from top level to
the bottom of organization
• The line of authority is a route through which
all communications are passed from top to
lowest ranks
• Chain should be clearly defined for smooth
functioning
4. Principles of definitions :
• The duties, authority and responsibility of every individual must be
clearly and precisely defined
• Relation between job and individuals should be defined.
• Avoid overlapping of work and confusion

80. 5. Principle of Exception :
• Matters with exceptional nature are referred
to higher levels of management
• Matters which can not be handled effectively
at lower level
• It makes delegation of authority really
effective
6. Principle of objectives :
• Objectives should be clearly defined and understood
• Objectives should be for organization as a whole but
separately mentioned for each department and member.

81. 7. Principles of Authority and responsibility :
• Two sides of same coin
• Authority without responsibility
leads to misuse
• Responsibility without authority leads
to frustration and ineffective performance
8. Principle of specialization :
• Individual should be given a single activity to perform
• Task/function should be appropriate to his
qualification, skill and aptitude

82. 9. Principles of balance :
• Each department should get proper
weightage according to their contribution
• Over and under emphasis should be avoided
10. Principle of simplicity :
• Structure of organization should be simple
• Easy to understand assignments and
authority relationships

83. 11. Principles of span of control :
• No. of subordinates, a supervisor can
supervise effectively
• Facilitates effective control and better
performance
• Determines no. of levels in organization
12. Principle of flexibility :
• Structure of organization should be adjustable as per
requirements

84. 13. Principles of contuinity :
• Organizing is a continuous process
• Regular review and revision to keep it up-to-date and
workable
• Ensure continuous growth and expansion
14. Principle of efficiency :
• It is judged by its capacity to achieve predermined objectives
• It should satisfy the personnel and contribute to social welfare
also

85. Hierarchy of Organization
• Hierarchy is a way to structure an organization using different levels of
authority or chain of command, between superior and subordinate levels of the
organization. Higher levels control lower levels of the hierarchy.
• A hierarchical organization is an organizational structure where every entity
in the organization, except one, is subordinate to a single other entity. This
arrangement is a form of a hierarchy.

86. Systematic process of dividing responsibility for operations to sub
ordinates
Process of grouping activities and employees in various departments
Refers basically to horizontal differentiationn in the organization
Departmentation

87. Coordination
Specialization
Significance of activities
Control
Factors to be considered for Departmentation
Local conditions
Human considerations
Economy

88. Authority and responsibility
Authority is the power to give orders and get it obeyed or in other words it is the
power to take decisions.
Responsibility means state of being accountable or answerable for any
obligation, trust, debt or something or in other words it means obligation to
complete a job assigned on time and in best way.
Authority and responsibility are closely related and this principle states that these
two must go hand in hand. It means that proper authority should be delegated to
meet the responsibilities.

89. A match should be there between these two because of two main reasons:--
• Firstly, if a person is given some responsibility without sufficient authority he
can’t perform better, and also could not accomplish the desired goal.
• Secondly, if there is excess authority being delegated to an individual without
matching responsibility then the delegated authority will be misused in one way
or the other.
This is an important and useful principle of management because if adequate
authority is not delegated to the employees they cannot discharge their duties
with efficiency and this in turn will hamper the achievement of the
organizational goal. Sometimes the relation between management and
employees is also badly effected by non delegation of proper authority.

90. Individual behaviour in organization
• Individual behaviours are shaped by many factors
like age, gender, marital status, biographical
characteristics etc.
• This also refers to the combination of responses to
internal and external stimuli

91. Determinants / components of Individual
behaviour in organization
• Needs
• Motives
• Goals
• Values
• Beliefs
• Attitudes
• Perception
• Personality
• motivation

92. Organizational Climate
• Organizational culture is concerned with the nature of beliefs and
expectations about organizational life, while climate is an indicator of
whether those beliefs and expectations are being fulfilled.
• Organizational climate is a relatively enduring quality of the internal
environment that is experienced by its members, influences their
behaviour, and can be described in terms of the values of a particular
set of characteristics

93. Dimensions Of Organisational Climate
According to Litwin and Stringer (1968), the nine dimensions of
organizational climate are as follows:
(1) Structure
(2) Responsibility
(3) Reward
(4) Risk
(5) Warmth
(6) Support
(7) Standards
(9) Identity

94. (1) Structure
The aim of this dimension is to gauge how employees perceive the organisation
(2) Responsibility
This dimension is concerned with how employees feel about being able to make their
own decisions without having to constantly “check in” with a boss. This involves
knowing what one’s role entails and making sure the work gets done.
(3) Reward
This dimension focuses on how employees perceive being rewarded for the work they
do. The emphasis is on positive reinforcement and the perception of fairness regarding
payment and promotion policies.

95. (4) Risk
This dimension seeks to describe the risk or challenge associated with a particular
job as well as the organisation’s general approach to taking risks or its inclination
to adopt a more stable view.
5) Warmth
The focus of this dimension is on the group’s or organisation’s general feeling of
friendliness.
(6) Support
The aim of this dimension is to gauge how employees perceive their manager’s
and colleagues’ willingness to help and provide support.

96. (7) Standards.
This dimension refers to the emphasis that is placed on achieving set goals and
meeting the standard and doing outstanding work.
(8) Conflict.
This represents the extent to which managers and employees wish to openly
discuss issues or concerns rather than ignoring them as well as wanting to
explore varying views.
(9) Identity.
This dimension measures the extent to which employees feel valued in the group
and feel part of the organisation.

97.  One of the best-known general measures of organizational climate is the
Organizational Climate Questionnaire (OCQ) by Litwin and Stringer
(1968).
 It comprises 50 items that assess nine dimensions of climate.
 Organisational climate is measured by means of the average perceptions of
organisational members, referring to a collective description of the same
environment
Measures Of Organizational Climate

98. Decision making
Selection based on some criteria from two/more possible alternatives
George R Terry
Defined as a the selection based on some criteria one alternative from
two/more possible alternatives.
To decide means ‘to cut off’ or ‘to come to conclusion’
R.S. Daver

99. Characteristics of Decision making
Based on rational thinking
Involves evaluation of various alternatives
Process of selecting best
Involves certain commitment
Aims to achieve organizational goals

100. Steps for Decision making
Recognizing problem
Analyzing problem
Generating alternatives
Evaluating alternatives
Choosing the best alternative
Implementing and verifying decisions