Principles of Good Organization, Types, and Theories Flashcards
Division of labor lays the foundation for departmentation. By dividing tasks, it becomes easier to group similar tasks together into departments based on function (e.g., marketing, finance, production), product (e.g., car engines, car interiors), or customer (e.g., corporate sales, retail sales)
Principle of Departmentation or division
of labor
Unity of command states that an employee should report to and receive instructions from only one direct supervisor. This supervisor is responsible for assigning tasks, providing guidance, and evaluating the employee’s performance.
Principle of Unity Command
Delegation involves assigning tasks, along with the necessary authority (power to make decisions) and responsibility (accountability for outcomes) to subordinates.
Principle of Delegation of Authority and
Responsibility
This principle emphasizes assigning similar or identical tasks to employees with comparable skills and experience. It essentially promotes specialization and streamlines work processes.
Principle of homogenous assignments
Lines of authority are clearly drawn and each individual is responsible to the person ranking above him. Authority and responsibility pass from the top ranking members down to the lowest in rank. This is similar to the military set-up, where the supervisor has direct control over the people he supervises and has responsibility for them.
Line Authority
Many diversified responsibilities demanded of the person at the top. Staff specialists are added to assist the lines in an advisory capacity and Line & Staff advises and supports the line.
Staff personnel are specialists in specific areas, like human resources, legal, finance, or strategic planning. They don’t have direct control over the activities of line staff (those with production or operational roles).
Their role is to advise, assist, and influence line managers by offering expert knowledge and recommendations.
Staff Authority
This is other known as committee type, where in a group of persons act as a body to formulate decisions. When an individual delegates limited authority over a specified segment of activities to another person, may be vested in a vice president.
It grants limited decision-making power to staff specialists in a specific area of expertise. This allows them to directly influence the activities of personnel in other departments, even though they don’t have direct line authority over them.
Functional Authority
Father of Scientific Management, Pioneered the Classical Theory
Frederick Taylor
3 Basic Tenets of Classical Theory
a. There is one best way to do each job
b. There is one best way to put an organization
c. The organization should be arranged in a rational and impersonal manner
Authority and responsibility flow in direct line vertically from the highest level of organization to the lowest
Scalar Chain
Managers should promote team spirit of unity and harmony among employees
Esprit de corps
“Focus on People”
This theory view the organization as a social system and recognizes the existence of the informational organization. Meanwhile, employee satisfaction in management planning and decision making yields positive effects in terms of morale and productivity.
It emphasizes the importance of social and psychological factors in the workplace, shifting the focus from workers as simply machines to human beings with unique needs, motivations, and social dynamics.
Human Relations Theory
In this theory, management assumes employees are inherently lazy and will avoid work if they can. Workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can.
Theory X
In this theory management assumes employees may be ambitious, self motivated, and anxious to accept greater responsibility, and exercise self-control, self-direction, autonomy and empowerment. It is believed that employees enjoy their mental and physical work duties. It is also believed that if given the chance employees have the desire to be creative and forward thinking in the workplace. There is a chance for greater productivity by giving employees the freedom to perform at the best of their abilities without being bogged down by rules.
Theory Y
If employees feel their basic needs for safety and security are met (e.g., job security, safe working environment), they might be more motivated to seek social connection with colleagues (love/belonging) or recognition for their work (esteem).
McGregor and Maslow’s Hierarchy
