14 Priciples of Organizations Flashcards
Efficiency - Definition
Efficiency is the utilization of resources
An organization is efficient if it uses the right means to achieve its desired goals
= AMOUNT of resources used to achieve the organizations goals
Effectiveness
Achievement of goals
An organization is effective if it strives for and achieves appropriate goals (to do the right things)
= the DEGREE to which an organization achieves its goals
Efficiency and Effectiveness in short:
Low resource use and high goals achievement
= business goals can be BOTH!
What is a Stakeholder?
Any group within or outside the organization that has a stake in the organizations performance
e.g. customers, governm., investors
What is a Stakeholder Approach?
Trying to balance the needs of groups in and outside of the organization that has a stake in the organizations performance
Name the 6 Structural Dimensions
- Formalization
-few or many written rules - Specialization
- seperate tasks or overlapping tasks/roles - Centralization
-decisions made at top or operational level - Professionalism
-high or low professional training - Personnel Ratios
-e.g. administrative staff, direct or indirect ratio, span of control - Hierarchy of Authority
-tall or flat hierarchy
F S C HPP
What are the Five Contextual Dimensions?
- Environment - (un)stable
- Goals and Strategy - well-defined goals or not
- Organizational Technology - which product or service
- Size - small or large
- Culture - clear values and norms or ambiguous
G E S O C
Name Different Stakeholders
MUSEGO Triple C
Customers
Creditors
Community
Management
Union
Employees
Government
Owners/ Stockholders
Suppliers
What do Customers as Stakeholders want?
high quality products or services
What do Employees as Stakeholders want?
satisfaction in form of pay and supervision, safety
have direct stake in that they earn income
What do creditors as Stakeholders want?
financial returns, bc they invest in business and expect a certain rate of return on that invested capital
What do Suppliers as Stakeholders want?
they want satisfactory transactions and revenue from purchases
they sell goods and or services to business
What do Communities as Stakeholders want?
they want contribution to community affairs, health and safety and economic development
impacted by job creation
What do Governments as Stakeholders Want?
they want fair competition, obedience to law
taxes
benefit from Gross Domestic Product the company contributes to - GDP
What do Owners as Stakeholders want?
Financial return
What does the Union as Stakeholder want?
worker pay
benefits
can influence the restructuring process
Union - anyone representing the workers
Key aspects - Stakeholders
Who has a Stake in your Organization?
Who Can/ Must be prioritized?
Need to Balance out different needs - Stakeholder Apoproach
Administrative Principles
Theory: How to get organized - the larger the business. the less effective it becomes
Unity of command - workers get instructions from one supervisor
Unity of direction - similar activities should be grouped under one management
BUT no sociao context
Hawthorne Studies
What about the people?
humans are no machinery - when satisfied, production increases
improved working conditions
certain degree of self control
BUT no specific guidelines
Contingency Approach
Dont forget the context!
Not only people, but context matters as well
Structural and contextual fit leads to higher chance of efficiency
BUT no specific guidelines
Scientific Mananagement
Frederick Taylor
Efficiency is Everything
division of labor and spezialisation for increase in productivity
every step in small pieces
BUT no loyalty
only external motivation, no fullfillment
monotony
alienation from work
no cross-functional potentials
! streamlining of manual labor
Takeaway From Theories
no singe universal Theory that says whats good
many! not just one
different perspectives are the key for understanding and finding an individual right solution
Contingency Approach - Image
Formal Organizational Structure - Only indirect influence on Organizatons Efficiency
but direct influence on behaviourof organization memebers and situation of organization
If situation and behaviour fit, they have good influence on efficiency
relalistic view on management BUT a situation is infkuenced by many many factors - diificult to analyse
Key aspects of the Hawthorne Studies
a business is a social system
workforce not onky depended on objective conditions, but also on relations, social situations
