KATES DORLYN GRAJALES
MPA Student
◾
MANAGEMENT – the function that
coordinates the efforts of people to
accomplish goals and objectives by using
available resources efficiently and effectively
◾
ORGANIZATION – an organized body of
people with a particular purpose, especially a
business, society, association, etc.
◾
THEORIES – a set of interrelated
propositions that organizes and explains a
set of observed phenomenon



Classical Organization Theory
Neoclassical Organization Theory
Modern Structural Organization Theory
Organizations exist to accomplish production–
related and economic goals.
◾ There is one best way to organize for
production, and that way can be found through
systematic, scientific inquiry.
◾ Production is maximized through specialization
and division of labor.
◾ People and organizations act in accordance
with rational economic principles.
◾
◾
SCIENTIFIC MANAGEMENT APPROACH – based
on an idea of systematization where attempts were
made to enhance the efficiency of procedure to best
effect via scientific analyses and experiments.
◾
ADMINISTRATIVE THEORY – based on several
principles of management which is planning,
organizing, training, commanding and coordinating
function
◾
WEBER’S BUREAUCRATIC APPROACH –
considers the organization as a part of broader society
STRENGTHS
WEAKNESSES
◾ This theory has a narrow
◾ This closed-system, rational
focus on improving
theory is perhaps too
production related economic
narrowly focused on
goals (strength and
production and reduces the
weakness).
human component to simply
◾ Helped create division of
fleshy machines.
labor, time and movement
◾ This theory helped invent the
studies, and organized
industrial revolution, which
planning models (such as
led to deterioration of
POSDCORB).
◾ Attempted to address, and
individual craftsmanship; it
further, organizational
promotes capital intensive
functions when few resources
economies.
existed.
◾
The theory emphasizes individual or group behavior and
human relations in determining productivity
PRINCIPLES OF NEOCLASSICAL APPROACH
▪ Individual
▪ Work Group
▪ Participative Management
STRENGTHS
WEAKNESSES
◾ It found “holes” in classical
◾ “The neoclassicalists did not
organization theory,
develop a body of theory that
attempted to revise it, and
could adequately replace the
spurred almost all other
classical school”. It modified
schools of thought that
it.
followed.
◾ “It attempted to blend
◾ De-emphasized simplistic
assumptions of classical
theory with concepts that
mechanistic organizational
were subsequently used by
theories.
◾ Helped the future
later organization theorists
from all perspectives”
incorporation of professions
into organization theory, such ◾ It was an “anti-school” – it
couldn’t stand on its own.
as sociology.
◾
It is based on the concept that the organization is an
adaptive system which has to adjust changes in its
environment.
◾
Characteristics of modern approaches to the
organization:
• Systems viewpoint
• Dynamic process of interaction
• Multileveled and multidimensional
• Multi motivated
• Probabilistic
SYSTEMS APPROACH – considers the organization as a
system composed of a set of interrelated and thus
mutually dependent sub-system.
SOCIO-TECHNICAL APPROACH – considers the
organization as composed of social system,
technical system and its environment.
CONTINGENGY / SITUATIONAL APPROACH –
recognizes that organizational systems are interrelated with their environment and different
environments required different organizational
relationships for effective working.
STRENGTHS
◾
◾
◾
◾
Still very focused (in
comparison to classical
theory) on goals and
achievement.
Expanded the perspective of
bureaucracy (mechanistic vs.
organic).
Acknowledges the existence
of both formal and informal
elements.
Still a very rational model, but
not as closed of a system as
classical.
WEAKNESSES
◾
◾
◾
◾
Still a very rational theory.
Does not completely address
the potential of external
influences.
Relies on control rather than
empowerment.
Still considers structure the
main tool for making
improvements.
Human Resource Theory
◾ Organizational Economics Theory
◾ Power & Politics Organizational Theory
◾ Theories of Organizational Culture and
Change
◾ Theories of Organization & Environments
◾
•
•
•
•
Levels of management
Functions of managers
Managerial skills
Management styles
◾
Management involves the utilization of human
and other resources (such as machinery) in a
manner that best achieves the firm’s plans and
objectives.
◾
According to a recent survey by Shareholder
Surveys, shareholders rank good management
and long-term vision as the two most important
characteristics of a firm.
◾
Top (high-level) management
– managers in positions such as president, CEO,
CFO and vice-president who make decisions
regarding the firm’s long-run objectives.
◾
Middle management
– managers who are often responsible for the
firm’s short-term decisions.
◾
Supervisory (first-line) management
– managers who are usually highly involved with
the employees who engage in the day-to-day
production process.
◾
Top Management
– Set new plan to expand production & increase
sales.
– Communicate those plans to all managers.
◾
Middle & Top Managers
– Determine how many new employees to hire.
– Determine how to charge lower prices to
increase sales.
– Determine how to increase advertising to
increase sales.
– Determine how to obtain funds to finance the
expansion.
◾
Supervisory Managers
– Provide job assignments to the new employees
who are hired.
– Set time schedules for new employees who are
hired.
◾
Planning
◾
Organizing
◾
◾
– the preparation of a firm for future business
conditions
– the organization of employees and other
resources in a manner that is consistent with the
firm’s goal.
Leading
– the process of providing employees with
instructions on how they should complete their
tasks.
Controlling
– the monitoring and evaluation of tasks.
Top Managers:
make the strategic (long-term) plan
Communicate the plan to
middle management and ask
middle management to
implement the plan.
Middle Managers:
Organize the employees and other
resources to produce
Top Management: Assess the expenses
and sales from producing products every
month. Determine whether the new
strategic plan is successful.
Middle Management: Determine
whether the production is efficient
(based on monitoring the plant’s output
and expenses each month)
Communicate the organization
to supervisors and ask them to
implement the production
process.
Supervisors:
Explain each employee’s tasks & how to
perform the tasks
Supervisors: Monitor employees to
ensure their new assignments properly
◾
Conceptual skills (analytic skills)
– the ability to understand the relationships
among the various tasks of a firm.
◾
Interpersonal skills (communication
skills)
– the skills necessary to communicate with
customers and employees.
◾
Technical skills
◾
Decision-making skills
– skills used to perform specific day-to-day tasks
– skills for using information to determine how the
firm’s resources should be allocated.



Democratic Style
Autocratic Style
Laissez-faire
DEMOCRATIC (PARTICIPATIVE)
– the manager allows the employees to take part in
decision-making: therefore everything is agreed by the
majority. (empowerment)



this style can be particularly useful when complex
decisions need to be made that require a range of
specialist skills;
from the overall business' point of view, job satisfaction
and quality of work will improve.
the decision-making process is severely slowed down, and
the need of a consensus may avoid taking the 'best'
decision for the business.
AUTOCRATIC
– an autocratic or authoritarian manager makes all the
decisions, keeping the information and decision making
among the senior management.



the direction of the business will remain constant, and the
decisions will be quick and similar, this in turn can project
an image of a confident, well managed business.
subordinates may become dependent upon the leaders
and supervision may be needed
this style can decrease motivation and increase staff
turnover
LAISSEZ-FAIRE (FREE-REIN)
– the leader delegates much authority to employees; the
leader's role is peripheral and staff manage their own
areas of the business.



the style brings out the best in highly professional and
creative groups of employees.
the leader therefore evades the duties of management and
uncoordinated delegation occurs
this leads to a lack of staff focus and sense of direction,
which in turn leads to much dissatisfaction, and a poor
company image
◾
Management controls or directs people/resources
in a group according to principles or values that
have already been established.
◾
Leadership is setting a new direction or vision for
a group that they follow, ie: a leader is the
spearhead for that new direction;
Thank You
FOLKS ! ! !