Organization and management(Frontier of Public Administration)
1. Organization:
Two or more people who work together in a structured way to achieve a specific goal or set of
goals
Goal:
The purpose that an organization strives to achieve; or organizations often have
more than one goal; goals are fundamental elements of organizations.
Management:
The process of planning, organizing, leading and controlling the work of
organization members and of using all available organizational resources to reach stated
organizational goals.
Why Organization and Management is Important?
1) Living in the present
First, organiza t io ns contribute to the present standards of living of people
worldwide. We rely on organizations daily for food, shelter, clothing, medicalcare,
communications, amusement and employment. The Red Cross, for example,is an organization
that is particularly focused on the present as it offers assistanceto specific groups of people
in times of need.
2) B ui l di ng t he f ut ure
Second, organizations build toward a desirable future and help individuals do thesame. New
products and practices are developed as a result of the creative power that can emerge when
people work together in organizations. Organizations havean impact – positive or negative – on
the future status of our natural environment,on the prevention and treatment of disease, and on
war around the globe.
3) R e me mbe ring the pas t
Third, organizat io ns help connect people to their pasts. O rganizat io ns can
bethought of as patterns of human relationships. Every day that we work with othersadd to the
history of the organization and to our own history. We often defineourselves in term
of the organizations we have been a part of – whether schools,teams, political groups or
businesses. In addition, organizations maintain recordsand value their own history, keeping
traditions alive in our minds. Often it isthrough the records and history of organizations
that we know about the past.
IsManagement aProcess:
Management is the process of Planning, Organizing, leading and controlling the efforts
of organization members and of using all other organizational resources to achieve
statedorganizational goals.A process is a systematic way of doing things. We refer to
management as a process toemphasize that all managers, regardless of their
particular aptitudes or skills, engage incertain interrelated activities in order to achieve
their desired goals
2. Management By Objectives(MBO)
Management by Objectives (MBO) is a personnel management technique where managers and
employees work together to set, record and monitor goals for a specific period of time.
Organizational goals and planning flow top-down through the organization and are translated into
personal goals for organizational members. The technique was first championed by management
expert Peter Drucker and became commonly used in the 1960s.
Key Concepts
The core concept of MBO is planning, which means that an organization and its members are not
merely reacting to events and problems but are instead being proactive. MBO requires that
employees set measurable personal goals based upon the organizational goals. For example, a goal
for a civil engineer may be to complete the infrastructure of a housing division within the next twelve
months. The personal goal aligns with the organizational goal of completing the subdivision.
MBO is a supervised and managed activity so that all of the individual goals can be coordinated to
work towards the overall organizational goal. You can think of an individual personal goal as one
piece of a puzzle that must fit together with all of the other pieces to form the complete puzzle: the
organizational goal. Goals are set down in writing annually and are continually monitored by
managers to check progress. Rewards are based upon goal achievement.
Advantages
MBO has some distinct advantages. It provides a means to identify and plan for the achievement of
goals. If you don't know what your goals are, you will not be able to achieve them. Planning permits
proactive behavior and a disciplined approach to goal achievement. It also allows you to prepare for
contingencies and roadblocks that may hinder the plan. Goals are measurable so that they can be
assessed and adjusted easily. Organizations can also gain more efficiency, save resources, and
increase organizational morale if goals are properly set, managed, and achieved.
Disadvantages
However, MBO is not without disadvantages. Application of MBO takes concerted effort. You cannot
rely upon a thoughtless, mechanical approach, and you should note that some tasks are so simple
that setting goals makes little sense and becomes more of a silly, annual ritual. For example, if your
job is snapping two pieces of a product together on an assembly line, setting individual goals for
your work isn't really necessary.
Rodney Brim, a CEO and critic of the MBO technique, has identified four other weaknesses. There is
often a focus on mere goal setting rather than developing a plan that can be implemented. The
organization often fails to take into account environmental factors that hinder goal achievement,
such as lack of resources or management support. Organizations may also fail to monitor for
changes, which may require modification of goals or even make them irrelevant. Finally, there is the
issue of plain human neglect - failing to follow through on the goal.
3. Management by Exception
Management by exception is a way of separating tasks between staff and management. Watch this
video to learn how tasks are separated and the advantages and disadvantages of managing a
business this way, then test your knowledge with a quiz.
What is Management by Exception?
Management by exception (MBE) is a practice where only significant deviations from a budget or
plan are brought to the attention of management. The idea behind it is that management's attention
will be focused only on those areas in need of action. When they are notified of variance, managers
can hone in on that specific issue and let staff handle everything else. If nothing is brought up, then
management can assume everything is going according to plan.
This model is similar to the vital signs monitoring systems in hospital critical care units. When one of
the patient's vital signs goes outside the range programmed into the machine, an alarm sounds and
staff runs to the rescue. If the machine is quiet, it's assumed that the patient is stable, and they will
receive only regular staff attention.
How is MBE Implemented?
If a company is going to implement MBE, they need to first set up a basic framework that will identify
items that vary from plan to plan. These are the critical things that must be in place to make MBE
work:
1. An appropriate budget to measure performance against. This budget must be designed well
so that the business will meet its strategic objectives if everyone conforms to the plan.
2. A matrix of exception amounts and who will be notified. The degree of variance allowed in
different categories in the budget needs to be defined in advance, along with the appropriate
levels of management who will respond to the variance in question. In some cases, different
levels of variance will be brought to.
4. What is Crisis ?
A sudden and unexpected event leading to major unrest amongst the individuals at the workplace
is called as organization crisis. In other words, crisis is defined as any emergency situation which
disturbs the employees as well as leads to instability in the organization. Crisis affects an individual,
group, organization or society on the whole.
Characteristics of Crisis
Crisis is a sequence of sudden disturbing events harming the organization.
Crisis generally arises on a short notice.
Crisis triggers a feeling of fear and threat amongst the individuals.
Why Crisis ?
Crisis can arise in an organization due to any of the following reasons:
Technological failure and Breakdown of machines lead to crisis. Problems in internet, corruption
in the software, errors in passwords all result in crisis.
Crisis arises when employees do not agree to each other and fight amongst themselves. Crisis
arises as a result of boycott, strikes for indefinite periods, disputes and so on.
Violence, thefts and terrorism at the workplace result in organization crisis.
Neglecting minor issues in the beginning can lead to major crisis and a situation of uncertainty at
the work place. The management must have complete control on its employees and should not
adopt a casual attitude at work.
Illegal behaviors such as accepting bribes, frauds, data or information tampering all lead to
organization crisis.
Crisis arises when organization fails to pay its creditors and declares itself a bankrupt
organization.
Crisis Management
The art of dealing with sudden and unexpected events which disturbs the employees,
organization as well asexternal clients refers to Crisis Management.
The process of handling unexpected and sudden changes in organization culture is called as crisis
management.
Need for Crisis Management
Crisis Management prepares the individuals to face unexpected developments and adverse
conditions in the organization with courage and determination.
Employees adjust well to the sudden changes in the organization.
Employees can understand and analyze the causes of crisis and cope with it in the best possible
way.
Crisis Management helps the managers to devise strategies to come out of uncertain conditions
and also decide on the future course of action.
Crisis Management helps the managers to feel the early signs of crisis, warn the employees
against the aftermaths and take necessary precautions for the same.
5. Essential Features of Crisis Management
Crisis Management includes activities and processes which help the managers as well as
employees to analyze and understand events which might lead to crisis and uncertainty in the
organization.
Crisis Management enables the managers and employees to respond effectively to changes in
the organization culture.
It consists of effective coordination amongst the departments to overcome emergency situations.
Employees at the time of crisis must communicate effectively with each other and try their level
best to overcome tough times. Points to keep in mind during crisis
Don’t panic or spread rumours around. Be patient.
At the time of crisis the management should be in regular touch with the employees, external
clients, stake holders as well as media.
Avoid being too rigid. One should adapt well to changes and new situations.