What is an Organization?

An Organization is
a consciously coordinated social entity with a relatively identifiable boundary. a cooperative system. is a mechanism of establishing patterns of authority and positions of responsibilities.

Structure

Process

Company

Authority

Specialization

Cooperation

Organizations..
possess a definite structure focus is on goals through processes

more or less permanent

own cultural patterns & culture bound draw lines of authority & responsibility

Advantages
Facilitates administration Facilitates growth and diversification Optimum utilization of resources Efficiency of goods and services

Division of Work
Specialization of the activities Speed of achievement

Efficiency
Fit for everybody The flip side

Departmentalization
Purpose Process Person Place

Span of Control
The nature of work The abilities of the subordinates The capabilities of the leader The culture of the organization

Manager is a Coordinator
Rules Hierarchy

Committees
Liaison executive Goals

Unity of Command

The Roles of a Manager

Interpersonal (Groups)
Figurehead Leader Liaison

Informational (Self)
Monitor Disseminator Spokesman

Decisional (Organization)
Entrepreneur Disturbance handler Resource allocator Negotiator

Industrial Revolution

Background of Scientific Management

100 ways of doing things Management V/s Worker Soldiering: Why? Tradition of Rule of thumb

The Taylor System

Fair Days Work Differential Piecework Separation of Planning and Doing Functional Foremanship

Mental Revolution

Essence of Scientific Management

Science, not rule of thumb. Harmony, not discord. Cooperation, not individualism. Maximum output, in place of restricted output

The development of each man to his greatest efficiency and prosperity.

Does it equal Modern day Management Philosophy?

Science, not rule of thumb. Planning and setting objectives Harmony, not discord. Organizing

Cooperation, not individualism. Motivating and Communicating

Maximum output, in place of restricted output. Work measurement The development of each man to his greatest efficiency and prosperity. Developing people

Management Theory: Henri Fayol

Financial Accounting Commercial Technical Security Managerial

Managerial Activities/Qualities
Planning Organizing Command

Physical Mental Moral General education Special knowledge Experience

Coordination
Control

14 principles of Fayol
Division of work Authority & responsibility Discipline Unity of command Unity of direction Subordination of individual interests to general interests Remuneration Scalar chain Equity Centralization Order Stability of tenure Initiative Espirit de corps

Relevance of Taylor & Fayol

Analysis Systematize Measurement Planning Developing Productivity
Management function
Managerial functions Management principles

Human Relations

Hawthorne Plant of Western Electric Company

Engaged in manufacturing equipment for the telephone industry High standards, concern for welfare of employees regarding wages and hours No worker strike in over 20 years High employee morale

Hawthorne Experiments (1924-33)

Illumination Experiments Relay Assembly Test Room Experiments Human Attitudes and Sentiments Bank Wiring Experiment

Hawthorne Effect

Application
One day the mail which was usually delivered before noon was delivered after 2:30 pm. He asked the postman about this change. The postman explained that he was aware that his work was being observed by his supervisor and he did not wish to have him determine that he could complete his route by noon, and could result in an extension of his route. Therefore he had deliberately slowed down.

Chester Barnard
Cooperation is the basic premise Formal/Informal Organizations & Impact
Cooperation Common purpose Communication

Acceptance of Authority The functions of the executive

Organization Communication Minimum essential services Formulation of purpose and objectives

Simon on Decision-making
Rational Decision Making is an Ideal Dependent on Premises

Stages of Decision Making

Techniques of Decision Making Influencing Factors

What is a System? Life is a system

A set or assemblage of things connected, or interdependent, so as to form a complex unity. Oxford English Dictionary A set or arrangement of things so related or connected as to form unity or organic whole. Webster English Dictionary An ordered and comprehensive assemblage of facts, principles, doctrines or the like, in a particular field of knowledge or thoughts. Random House English Dictionary

M O

F
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HR

M
O

F
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HR

M O

HR

Food Brands Fabric Care Home Care Brands Personal Care Brands Water Hair Care Nutrition Health, hygiene and beauty Baby Care

Key concepts of systems theory

System is not a sum of parts, but a totality System can be either closed or open Every system has porous boundary A system needs to ingest to survive All systems are sub systems Systems grow or shrink

Systems Theory & the Manager

Organization is social/physical/biological system Managerial functions are interlocked Understand critical variables in interaction Forces to view a problem holistically

Enables them to anticipate the problems

Impact of External System

Economic

Socio-Cultural Organization

Political

Technological

Environment

Pilots

Government

Competitors

Unions

Any Questions