MANAGEMENT THEORIES THROUGH THE YEAR - rules are clearly defined and strictly enforced.

- required to ensure uniformity.

SCIENTIFIC MANAGEMENT
5. IMPERSONALITY (IMPERSONALITY AND
- by Frederick Winslow Taylor
PERSONAL INDIFFERENCE)
- Known as “Taylorism”
- Emphasizes professional relationship among
- analyzes work flows to improve economic
employees
efficiency, especially labor productivity.
- preventing nepotism or involvement from
- uses scientific methods to assess work
outsiders or politics.
processes.
6. CAREER ORIENTATION
Frederick Winslow Taylor - Employees are selected based on their
- a mechanical engineer primarily interested in expertise
the type of work done in factories and - they may become experts in their own field and
mechanical shops. significantly improve their performance
- popular in the 1880s and 1890s in U.S.
ADMINISTRATIVE MANAGEMENT
manufacturing industries.
Henry Fayol
- believed a worker should get “a fair day’s pay
- father of Administrative Management Theory,
for a fair day’s work”—no more, no less.
often called Process Theory or Structural Theory.
Principles of Scientific Management
14 Administrative Principle (DARIUS USES CODE)
1. Science not Rule of Thumb
1. Division of work. Specialization increases
2. Harmony, Not Discord
output by making employees more efficient.
3. Cooperation, Not Individualism
2. Authority. Managers must be able to give
4. Development of workers to their greatest
orders, and authority gives them this right.
efficiency and prosperity
3. Discipline. Employees must obey and respect
BUREAUCRACY the rules that govern the organization.
- characterized by many rules, standardized 4. Unity of command. Every employee should
processes, and meticulous division of labor. receive orders from only one superior.
Max Weber 5. Unity of direction. The organization should
- German Sociologist have a single plan of action to guide managers
- developed a theory of authority structures and and workers.
relations 6. Subordination of individual interests to
THE 6 CHARACTERISTICS A BUREAUCRACY the general interest. The interests of any one
SHOULD HAVE: employee or group of employees should not take
1. TASK SPECIALIZATION precedence over the interests of the organization
(SPECIALIZATION AND DIVISION OF LABOR) as a whole.
- promotes the timely completion of work at the 7. Remuneration. Workers must be paid a fair
highest level of skill because Jobs are distributed wage for their services.
and shared among employees depending on 8. Centralization. This term refers to the
their specialization. degree to which subordinates are involved in
decision making.
2. HIERARCHICAL LAYERS OF AUTHORITY - Centralization
(AUTHORITY HIERARCHY) - Decentralization
- a system in which different positions are 9. Scalar chain. The line of authority from top
related in order of precedence and in which the management to the lowest ranks is the scalar
highest rank on the ladder has the greatest chain.
power. 10. Order. People and materials should be in the
3.FORMAL SELECTION right place at the right time.
- employees should be chosen based on their 11. Equity. Managers should be kind and fair to
technical skills and competencies, which are their subordinates.
acquired through education, experience or 12. Stability of tenure of personnel.
training Management should provide orderly personnel
4. FORMAL RULES AND REGULATIONS planning and ensure that replacements are
- Employees should always know exactly what is available to fill vacancies.
expected of them.
13. Initiative. Employees allowed to originate - found out that classical organizational theories
and carry out plans will exert high levels of are inapplicable to several administrative
effort. situations facing managers.
14. Esprit de corps. Promoting team spirit will - He made significant contributions to
build harmony and unity within the organization. neoclassical management theory, particularly
through his work on decision-making processes
Five Managerial Function
and the concept of bounded rationality
1. Planning
- forecasting future conditions, TWO MOVEMENTS IN THE NEOCLASSICAL
- setting objectives, and developing means to THEORY OF MANAGEMENT
attain objectives.
1. Human Relations Movement
2. Organizing
- social and psychological elements play a vital
- structuring activities and organizing individuals
role in influencing worker productivity and
within the firm.
satisfaction. The movement demonstrates that
3. Commanding
effective leaders are employee-centric,
- Direct supervision of employees, and
democratic, and participative.
- Motivating their efforts toward a common
objective. 2. Behavioral Movement
- a more mature version of human relation
4. Coordinating theory.
- identifying, arranging, and scheduling all - proposes ideas about how managers should
activities carried out by subordinates. behave to motivate employees.
5. Controlling - encourage employees to perform at the highest
- Concerns the constant supervision of activities level and achieve organizational goals.
to identify accomplishment or goals and Elements of the Neoclassical Theory Of
objective Management
A. The Individual
NEO- CLASSICAL THEORY B. Work Groups
- referred to as the "behavioral theory of C. Participative Management
organization" or the "human relations"
- the core concept centers on recognizing the MODERN MANAGEMENT THEORY
importance of addressing both the psychological - created in direct response to the Classical
and social aspects of individual workers and their Management Theory that states employees are
workgroups. only motivated by money.
- places greater emphasis on the influence of • combines mathematical analysis with an
social and emotional factors within the understanding of human emotions and
workplace. motivation
Elton Mayo Shortcomings of the modern management
- known as the founder of the Human Relations approach include:
Movement • prioritization of information that can be
- connected to the Hawthorne Studies. At the difficult, expensive, and time-consuming to
Hawthorne Western Electric plant, research on collect
human behavior was conducted as part of the • gap between theoretical flexibility and practical
Hawthorne Studies. This research served as the agility
foundation for Mayo's philosophy of • tendency of some strains to be descriptive
management. rather than prescriptive
Chester Barnard
- published his famous book ‘The Functions of QUANTITATTIVE THEORY
the Executive in 1938. The book provided a base - This is a simple number- based theory that.
for the formation and development of various This approach applies statistics, computer
management theories. simulations, information models, and other
quantitative techniques to the management of a
Herbert Simon company.
SYSTEMS THEORY
Ludwig Von Bertalanffy - the prime managerial function
- Systems theory proposes that each business is - pervasive
like a single living organism. Distinct - efficient
elements play different roles but ultimately work
Importance of Planning
together to support the business’s health.
- provides direction
Synergy and interconnectedness between
- Reduce risk of uncertainty
departments are key with this theory.
- reduces overlapping and wasteful activities
CONTINGENT THEORY - promotes innovative ideas
- Every situation requires a different leadership - facilitates decision making
style, and therefore no one theory can work for - establishes standards for controlling
an entire office. Fiedler believed there are three
Foundation of Planning
main variables for determining what
leadership strategy to employ — organization
size, technology being used, and the overall Why Should Managers Plan?
style of leadership in the company. 1. To offset uncertainty and change
2. To focus organizational activity on a set of
Benefits of the Modern Management objectives.
Theory: 3. To provide a coordinate, systematic road map
• Increases Productivity for future activities
• Strengthens Decision-Making abilities 4. To provide economic efficiency
• Increases employee engagement 5. To facilitate control by establishing a standard
• Gives managers an objective view of things for later activity
• Increases adaptability Two (2) forces
1. Internal environment
- as organizations become larger and more
complex, the task of managing becomes
increasingly complex.
- Planning maps out future activities in relation to
other activities in the organization.
2. External environment
- becomes increasingly complex and turbulent,
the amount of uncertainty faced by a manager
The Basic Management Function and Process increases.
PLANNING - Planning enables organizations to approach
Nature and Importance of Planning their environment systematically.
What is Planning in Management? Steps in Planning Process
- process by which managers establish goals
and specify how these goals are to be attained. Step 1: Developing an Awareness of the
- It is an intellectual activity Present State
- Planning should be an ongoing process and - an organization’s current status, pinpoints its
continually monitored commitments, recognizes its strengths and
weaknesses, and sets forth a vision of the future.
Two (2) basic components
1. Outcome or goal statements Step 2: Establishing Outcome Statements
- the end state - “where the organization is headed, or is going
- the targets and outcomes managers hope to to end up.”
attain. GOAL VS DOMAIN PLANNING
2. Action statements Goal planning
- the means - specific goals and then create action
- organizations move forward to attain their statements.
goals. - identify a goal and then develops a course of
action to realize her goal
Nature of Planning
- contributes to the attainment of objectives Domain/ directional planning
- a course of action that moves an organization - planning rarely stops with the adoption of
toward one identified domain a genera plan
- have a number of acceptable and specific - Managers often need to develop one or more
goals. supportive or derivative plans to bolster and
- prevail at upper levels in an organization, explain their basic plan. Suppose
Situations to engage in domain planning
(1) when there is a recognized need for Planning, Implementation, and Controlling
flexibility,
(2) when people cannot agree on goals,
(3) when an organization’s external environment Thus, planning and controlling activities are
is unstable and highly uncertain, and closely interrelated (planning ➨ controlling ➨
(4) when an organization is starting up or is in a planning . . .). Planning feeds controlling by
transitional period. establishing the standards against which
behavior will be evaluated during the controlling
Hybrid Planning process. Monitoring organizational behavior (the
- coupling of domain and goal planning occurs, control activity) provides managers with input
creating a third approach that helps them prepare for the upcoming
Domain --> Goal planning period—it adds meaning to the
- knowledge accumulates, preferences for a awareness step of the planning process.
particular goal emerge, and action statements
are created. The Deming Cycle
Consequences of Goal, Domain and Hybrid
Planning
- Setting goals not only affects performance
directly but also encourages managers to plan
more extensively
- Vague goals like domain planning find it difficult
to draw detailed action plans and are therefore
less likely to perform effectively
- research suggest that goal planning results in
higher levels of performance than domain
planning alone
Step 3: Premising
- managers establish the premises, or
assumptions, on which they will build their action
statements.
-the quality and success of any plans depends in
the quality of its underlying assumption
- assumptions about future events must be (1) Plan—create the plan using the model
brought to the surface monitored and updated discussed earlier.
- managers collect information by scanning (2) Do—implement the plan.
Step 4: Determining a Course of Action (3) Check—monitor the results of the planned
(Action Statements) course of action; organizational learning about
- managers decide how to move from their the effectiveness of the plan occurs at this stage.
current position toward their goal (or toward (4) Act—act on what was learned, modify the
their domain). plan, and return to the first stage in the cycle,
- action statement that details what needs to be and the cycle begins again as the organization
done, when, how, and by whom. strives for continuous learning and improvement.
-choosing a course of action involves Types of Plans
determining alternatives by drawing on research, - Organizations have numerous activities
experiment and experiences therefore both planning an controlling
Step 5: Formulating Supportive Plans perspective is required
Hierarchical Plans (Scope Planning)
Time-Frame Plans
- the technical core plans day-to-day operations.
Short-, medium-, and long-range plans—differ in
1. Strategic plans (institutional)
the distance into the future projected:
- define the organization’s long-term vision
- Short-range—several hours to a year
- articulate the organization’s mission and
- Medium-range—one to five years
value statements
- Long-range—more than five years
- define what business the organization is in
or hopes to be in Organizational Scope Plans (Specificity)
- articulate how the organization will Business/divisional-level plans
integrate itself into its general and task - focus on one of the organization’s businesses
environments. (or divisions) and its competitive position.
Unit/functional-level plans
2. Administrative plans
- focus on the day-to-day operations of lower-
- specify the allocation of organizational
level organization units; marketing, human
resources to internal units of the
resources, accounting, and operations plans
organization
(production).
- address the integration of the institutional
Tactical plans
level of the organization (for example, vision
- division-level or unit-level plans designed to
formulation) with the technical core (vision
help an organization accomplish its strategic
implementation)
plans.
- address the integration of the diverse units
- supporting plan
of the organization.
Contingency Plans (WHAT IF planning)
3. Operating plans (technical core)
- Plans created to deal with events that might
- cover the day-to-day operations of the
come to confront the organization (e.g., natural
organization.
disasters, terrorist threats)
Frequency-of use plans - alternative courses of action that are to be
1. Standing Plans implemented if events disrupt a planned course
 Policies of action.
- general statements of understanding or intent
PROBLEM-SOLVING AND DECISION MAKING
- guide decision-making, permitting the exercise
Problem-solving Skills
of some discretion
- to identify the problem and see to it that we
- guide behavior (for example, no employee shall
choose the best solution after breaking down the
accept favors and/or entertainment from an
situation into fragments and coming up with
outside organization that are substantial enough
potential solution after careful evaluation
in value to cause undue influence over one’s
decisions on behalf of the organization). Decision Making
 Rules - the action or process of thinking through
- guides to action that do not permit discretion in possible option and selecting one
interpretation - a good decision empowers the organization to
- specify what is permissible and what is not thrive and survive
permissible. - the essence of management but it is more
 Procedures significant to managers
- like rules, they guide action Two Types of Decisions
- specify a series of steps that must be taken in 1. Programmed Decision
the performance of a particular task. - decisions that are based on criteria and are
2. Single-Use Plans well-understood
 Programs 2. Nonprogrammed Decision
- a complex set of policies, rules, and procedures - are newly made decisions by the company, so
necessary to carry out a course of action. they lack guidelines to reach an effective
 Projects decision swiftly
- specific action plans often created to complete Top manager - strategic conceptual skills
various aspects of a program. Middle manager - human skills
 Budgets Supervisor manager - technical skills
- plans expressed in numerical terms.
8 STEPS IN THE DECISION MAKING - a concept proposed by Herbert A Simon in
PROCESS 1955
1. Identifying a Problem - Managers make decisions rationally but only at
- every decision begins with a problem. It stems their maximum capacity to process
from a mismatch between the existing and information
desire condition of a managers - Focuses more in the concept of satisfice
2. Identifying Decision Criteria --> Accept solutions that are “good enough”
- Managers narrow down general problems - When managers do not find the necessity to
through a decision criteria. This is done to fixate conform to the perfect rationality, they opt to
their focus and disregard outlying factors decide based in the phenomenon of escalation
3. Allocating Weights to the Criteria of commitment
- Each criterion is reevaluated to seek which - An increased commitment to a previous
must be prioritized and must be given of utmost decision despite evidence it may have been
importance wrong
4. Developing Alternatives
3. The Role of Intuition
- The manager should enlist various alternatives
- the concept of intuitive decision making based
to conform or fit the given criteria
on experience, feelings, and accumulated
5. Analyzing Alternatives
judgement
- The identified alternatives will undergo
- Dependence on their gut feeling from their past
evaluation using the criteria. In this stage, we
experience
will not only consider the decision criteria but
also the corresponding weight of each 5 INTUITION
alternative 1. Cognitive-Based decision
6. Selecting an Alternative - decisions based on skills, knowledge, and
- The selection of an alternative in this phase is training
based on the alternative that garnered the 2. Affect-initiated decisions
highest score - Managers make decisions based on feelings or
7. Implementing the alternative emotions
- the chosen alternative must be conveys or 3. Values or ethics based decisions
communicated with those affected by the - Managers make decisions based on ethical
decision values or culture (what is right or wrong)
8. Evaluating decision Effectiveness 4. Experience-based decisions
- It entails the appraisal of the outcome or result - Managers make decisions based on their past
of implementation experiences
5. Subconscious mental processing
DECISION MAKING is the essence of
- Managers use data from subconscious mind to
MANAGEMENT
help them make decisions
4. The Role of Evidence-Based Management
- The systematic use of the best available
4 Ways Managers Make Decisions evidence to improve management practice
1. Rationality
- Managers should be objective and logical 4 essential Elements
- It necessitates objectivity and logical thinking 1. Decision makers expertise and judgment
- Make decisions with a clear and specific goal in 2. External evidence that has been evaluated by
mind and consider all the possible alternatives the decision making
and consequences of that particular decision 3. Opinions, preferences and values of
Deemed unrealistic stakeholders
- requires a significant amount of time to 4. Relevant organizational (internal) factors such
produce a decision, whereas in reality, most as context, circumstances and organizational
decisions must be made as quickly as possible members
2. Bounded Rationality Source of information Ways of Processing
- more realistic approach to describing how Information
managers make decision
External Data Sources Linear
Internal Data Sources Non-Linear
Linear Thinking Style - Certainty
- Use factual, external data to process - Risk
information through rational, logical and - Uncertainty
analytical thinking
TYPES OF PROBLEMS AND DECISIONS
Non-Linear Thinking Style - Well structured - programmed
- use feelings and intuition or internal sources of - Unstructured - non programmed
information, processing these with personal
TYPES OF DECISION AND DECISION MAKING
insights
STRUCTURED PROBLEMS AND
Decision Making Biases and Errors PROGRAMMED DECISION
1. Overconfidence Structured Problems
- unrealistic view of themselves - these are straightforward and familiar problems
2. Immediate Gratification that can easily defined.
- want immediate rewards - have clear goals and readily available
3. Anchoring Effect information.
- fixate on first impressions - typically handled by lower-level managers
4. Selective Perception using programmed decisions
- pick information they pay attention to
Programmed Decision
5. Confirmation
- repetitive and can be solved using established
- reaffirms past decisions
procedures, rules and policies.
6. Framing
- select certain aspects only Three Types of Programmed Decision
7. Availability Procedure
- select certain aspects only - series of sequencial steps that a manager
8. Representation follows to respond to a structured problems
- assessment of the likelihood of an event based - provides a clear and specific course of action to
in resemblance with other events be taken
9. Randomness Rules
- create meaning out of random events - an explicit statement that tells a manager what
10. Sunk Cost can be done or cannot be done in a specific
- fixate on past assessing choices than on future situation
11. Self-serving - provides specific guidelines and ensures
- take quick credit yet black failure on others consistency in decision-making
12. Hindsight Policies
- believes they could have predicted the - a guideline for making a decision.
outcome once it has happened already -establishes general parameters for decision-
maker
SUMMARY
- contain ambiguous terms that require
DECISION-MAKING APPROACH interpretation, complex and diverse
- Rationality UNSTRUCTURED PROBLEMS AND
- Bounded rationality NONPROGRAMMED DECISION
- Intuition Unstructured Problem
- new or unusual problems for which information
DECISION-MAKING ERRORS AND BIASES
is ambiguous or incomplete.
DECISION - require higher-level managers to use Non-
- choosing best alternative programmed decisions
- maximizing
Non-programmed decisions
- satisficing
- unique and nonrecurring decisions that require
- implementing
custom-made solutions
- evaluating
- require judgement, creativity, and the ability to
DECISION MAKER’S STYLE think outside the box
- Linear thinking style
DECISION MAKING CONDITIONS
- Nonlinear thinking style
Certainty
DECISION-MAKING CONDITIONS
- an ideal situation where the manager has - Opportunities
accurate information about the outcomes of - Threats
every alternative 2.2 Internal Analysis
- most managerial decisions do not have this - Strengths
level of certainty - Weaknesses
Risk 3.Formulate Strategies
- a more common situation where the manager 4. Implement Strategies
can estimate the likelihood or certain outcomes. 5. Evaluate Results
Historical data or secondary information helps - The process encompasses strategy planning,
assign probabilities of different alternatives implementation and evaluation
Uncertainty
1. Identify the organization’s current
- occurs when the manager lacks certainty and
mission, goals and strategies
reasonable profitability estimates.
- Every organization needs a mission - a
- relies on limited available information and the
statement of its purpose
psychological orientation of the decision maker.
- Defining the mission forces managers to
Optimistic manager identify what it’s in business to do
- maximize the maximum possible payoff - Mission can be too limiting
(maximax choice)
2.1 External Analysis
Pessimistic manager
- what the competition is doing. Pending
- maximize the minimum possible payoff
legislation might affect organization or what
- managers who want to minimize regret may
labor supply is like in locations where it operates
opt for a minimax choice
- examine the economic, demographic,
political/legal, sociocultural, technological and
STRATEGIC MANAGEMENT
global components to see the trends and
- is what managers do to develop the
changes
organization’s strategies.
Opportunities
- involve the basic management function:
- positive trends in the external environment
planning, organizing, leading and
Threats
controlling
- negative trends in the external environment
WHAT ARE AN ORGANIZATION’S
2.2 Internal Analysis
STRATEGIES?
- provide important information about an
- the plans for how the organization will do
organization’s specific resources and
whatever it’s in business to do
capabilities
- How it will compete successfully, and how it will
- An organization’s resources are its assets-
attract and satisfy its customers in order to
financial, physical, human and intangible - that it
achieve its goals
uses to develop, manufacture, and deliver
BUSINESS MODEL products to its customers.
- how a company is going to make money - capabilities in doing the work activities needed
- it focuses on two things: in its business
1. Whether customers will value what the Strengths
company is providing - Activities the organization does well or any
2. Whether the company can make any money unique resources that it has
doing that Weaknesses
- it can make a difference in how well an - Activities the organization doesn’t do well or
organization performs resources it needs but doesn’t possess
- has to do with the fact that managers in
organizations of all types and size face 3.Formulate Strategies
continually changing situation Corporate Strategy
- organization are complex and diverse. - one that determines what businesses a
company is in or wants to be in and what it
STRATEGIC MANAGEMNET PROCESS
wants to do with those businesses.
1. Identify the organization’s current
mission, goals and strategies
2.1. External Analysis
- based on the mission and goals of the
This involves the following managing
organization and the roles that each business
- Technology Strategy
unit if the organization will play
- Technology Forecasting
- Three main types of corporate strategies
- Technology Roadmap
- growth
- Technology Project Portfolio
- stability
- Technology Portfolio
- renewal
THE 5Cs
Competitive Strategy
1. Creating a wide net
- how an organization will compete in its
2. Creating Newness
business/es
3. Creating culture
- for a small organization in only one line
4. Communicating Knowledge
business or a large organization that has not
5. Changing with Courage
diversified into different products or markets, its
competitive strategy describe how it will 6 Areas that Affect the Society and
compete in its primary or main market Business
- For organization in multiple business, however, 1. Management of Human Resources
each business will have its own competitive 2. Growth of Service Industry
strategy that defines its competitive advantages, 3. Use of IPR as a Strategic Use
the product or service it will offer, the customer 4. Cooperative Model Expansion
it wants to reach and the like 5. Internationalization
6. Issues around environmental concerns
Functional Strategy
- used by an organization’s various functional To balance the Conflicting Demands of
departments to support the competitive strategy Being Agile in Dynamic Environment
1. Design Systems and Processes
4.Implementing Strategies
2. Implementing Training and Development to
- performance will suffer if the strategies are not
Address Changes
implemented properly
3. Identify Communication Needs
5.Evaluation Results 4. Use Good Change Management Process
- How effective have the strategies been at
3 METHODS OF CREATING NEW
helping the organization reach its goals
TECHNOLOGIES AND INNOVATIONS
- What adjustments are necessary
1. Buying and Partnership
2. Developing Newness within the Firm
PLANNING PROCESS IN THE AGE OF
3. Entrepreneurially Exploiting Space in the
MODERN TECHNOLOGIES
Environment
Management of Technology and Innovation
Sources of Technology Innovation
(MTI)
External
Structure
Advantages
- emergence of innovative organizational
- speed for the focal firm, the time needed to
structures and new ways of performing work
blend an acquire technology or innovation is
Remotely
usually much shorter than the time required to
- more people being able to work remotely
make a discovery and bring it to the market or
Influence
implement it within the firm
- Innovation brought on the invention of the
- less costly
products influence the technology we use
Disadvantages
Technology vs Innovation - the need to blend different firms or bring
Technology “others” into the activities of the firm
- Process within organization that helps converts EX. May have cultural conflicts to acceptance of
inputs to outputs as well as the supporting newness
evaluation and control mechanisms
Internal
Innovation
- Most common type is research and
- Important subset of Technology Activities
development
include the “newness” in the development and
used of products or processes within an industry
- involves seeking and developing of new 1. Human Treatment of Employees
technologies, products and or process through 2. Optimum Use of Resources
creative efforts within the firm 3. Helps to Attain Organizational Goal
- benefits include ownership of the 4. Facilitates Growth and Diversification
technology/innovation that provide legal 5. Perform Social Control Function
protection
PROCESS OF ORGANIZING
Types of External Processes STEP 1: Identification and Division of Work
- mergers/acquisitions - The process of organizing begins with the
- joint venture determination of the entire amount of effort
- Franchise agreement necessary to accomplish the organizational
- licensing agreement objective
- formal and informal contracts STEP 2: Departmentalization
- the process of assembling big independent
units or departments that perform comparable
and related tasks
STEP 3: Assignment of Duty
- take into account the person's knowledge,
qualifications, experience, and capability.
STEP 4: Establishing Reporting Relationship
- important to clearly describe the relationship
between two or more people when they are
working together toward a common objective.
IMPORTANCE
1. Benefits of Specialization
- the practice of designating a particular person
or group as being in charge of an organizational
component that he/she is good in
2. Clarity in a Working Relationship
- The authority and responsibilities of personnel
within various departments are also made clear
through organization
3. Optimum Utilization of Resources
- The job's prior clarity regarding what the
employees are expected to do to prevents
confusion and encourages people to give their
best effort.
4. Adaption to Change
- supports an organization's ability to thrive
despite people arriving and leaving. Adapting to
changing working practices, technological
advancements, etc., is also helpful
ORGANIZING
5. Effective Administration
- the process of planning and organizing
- lightens the pressure on top management and
activities to meet corporate objectives.
duplication of effort it aids in efficient
Designing the organizational structure is a
administration.
crucial process that managers go through
6. Development of Personnel
- The management function of organizing entails
- managerial person is trained to have extensive
creating an organizational structure and
knowledge in a variety of operations through
assigning human resources to guarantee the
delegation of authority during the organizing
achievement of goals. The framework for
process. By giving future tasks to employees, a
coordinating efforts is the organizational
management might lessen their workload
structure
7. Expansion and Growth
PURPOSES
- enables the firm to diverge from established - The basis by which jobs are grouped together
norms and take on a new challenge, creating a - a way of dividing an organization into separate
conducive environment for expansion and parts (departments), each with its functions and
diversification responsibilities but all geared towards achieving
the organization's overall goals
ORGANIZATIONAL DESIGN ELEMENTS
1. Work Specialization FIVE COMMON FORMS OF TEAM BUILDING
- Individual employees “specialize” in doing part DEPARTMENTALIZATION
of an activity rather than the entire activity in - FUNCTIONAL DEPARTMENTALIZATION
order to increase work output and quality - GEOGRAPHICAL DEPARTMENTALIZATION
- makes efficient use of the diversity of skills that - PRODUCT DEPARTMENTALIZATION PROCESS
workers have. - DEPARTMENTALIZATION
2. Departmentalization - CUSTOMER DEPARTMENTALIZATION

FUNCTIONAL DEPARTMENTALIZATION

GEOGRAPHICAL DEPARTMENTALIZATION

PRODUCT DEPARTMENTALIZATION
PROCESS DEPARTMENTALIZATION

CUSTOMER DEPARTMENTALIZATION

- One popular departmentalization trend is the Line Authority - entitles a manager to direct
increasing use of customer departmentalization the work of an employee
- the use of teams, especially as work tasks have
Staff Authority - Positions with some authority
become more complex and diverse skills are
that have been created to support, assist, and
needed to accomplish those tasks e.g cross-
advise those holding line authority
functional team
3. Chain of Command
- the line of authority extending from upper
organizational levels to lower levels, which
clarifies who reports to whom
Authority
- refers to the rights inherent in a managerial
position to tell people what to do and to expect
them to do it
 - the more that lower-level employees provide
input or actually make decisions, the more
decentralization there is. be

Responsibility
- The obligation or expectation to perform any
assigned duties.

Unity of Command Principle

- The management principle that each person
should report to only one manager
4. Span of Control
- “How many employees can a manager
efficiently and effectively manage?
- determines the number of levels and managers
in an organization—an important consideration
in how efficient an organization will be
Tall Structure
- A management structure characterized by an
overall narrow span of management and a
relatively large number of hierarchical levels

6. Formalization
- refers to how standardized an organization’s
Flat Structure jobs are and the extent to which employee
- A management structure characterized by an behavior is guided by rules and procedures
overall broad span of control and relatively few
ORGANIZATIONAL STRUCTURES AND LINE-
hierarchical levels.
STAFF RELATIONSHIP
ORGANIZATIONAL STRUCTURE
- the formal arrangement of jobs within an
organization.
- a system that outlines how certain activities are
directed in order to achieve the goals of an
5. Centralization and Decentralization
organization
- the degree to which decision making takes
place at upper levels of organization
ORGANIZATIONAL FORMS
MECHANISTIC
- Adheres to the chain-of-command 3. Divisional Structure
- ensured the existence of a formal hierarchy of - design made up of separate, semi-autonomous
authority, with each person controlled and units or divisions
supervised by one superior Advantage: Results-oriented Disadvantages:
Duplication of activities, increases cost, and
reduces efficiency
Examples: Walmart
B. FLEXIBLE ORGANIZATIONAL
STRUCTURES - ORGANIC IN NATURE
1. Team Structures
- creates small teams that focus on delivering
one product or service.
Examples: Apple and Google

ORGANIC 2. Matrix and Project Structures

- Has a loose structure Matrix structure
- allows the organization to change rapidly as - assigns specialists from different functional
required rather than having standardized jobs departments to work on one or more projects
and regulations. Examples: Health care organizations,
construction projects
Project structure
- employees continuously work on projects
Example: Designing firms
3. The Boundary less Organization
- not defined by, or limited to, the horizontal,
vertical, or external boundaries imposed by a
predefined structure

Examples:
TYPES OF ORGANIZATIONAL STRUCTURES Virtual Organization
A. TRADITIONAL STRUCTURES - - consists of a small core of full-time employees
MECHANISTIC IN NATURE and outside specialists temporarily hired
1. Simple structure
- design with little departmentalization, wide Task force (ad hoc committee)
spans of control, centralized authority, and little - A temporary committee or team formed to
formalization tackle a specific short-term problem affecting
Advantages: Fast, flexible, cost-friendly several departments
maintenance, and clear accountability. Open innovation
Disadvantages: Not appropriate as the - Opening up the search for new ideas beyond
organization grows, reliance on a point person is the organization’s boundaries and allowing
risk innovations to easily transfer inward and
Example: small businesses and start-up outward
4. Telecommuting
2. Functional Structure
- employees work at home and are linked to the
- design that groups together similar or related
workplace by computer Examples:virtual
occupational specialties
assistants
Advantages: Cost-saving and employees are
grouped with others who have similar tasks. 5. Compressed Workweeks, Flextime, and Job
Disadvantages: Lose sight of what the overall Sharing
best for the organization; specialists have little - work longer hours per day but fewer days per
understanding of what the other departments week
are doing. - flextime (or flexible work hours): A scheduling
Example: Amazon system
- job sharing: the practice of having two ormore - Staffing is relevant in all types of organizations
people split a full-time job and is peoplecentered
- From top to bottom of the organization, all
6. The Contingent Workforce
categories of workers are affected
- Temporary, freelance, or contract workers
whose employment is contingent on demand for 2. RESPONSIBILITY OF THE MANAGER
their services - Every manager has a responsibility to carry out
staffing tasks such as personnel selection,
LINE-STAFF RELATIONSHIP
training, performance reviews, and counseling
Line Organization
- a structure that is composed only of the line 3. HUMAN SKILLS
executives - Human resource development and training are
concerns of the staffing function
Line-Staff Organization
- Every manager should employ their
- a structure that is composed of both the line
interpersonal skills when guiding and instructing
executives and the staff executives
their staff
Line functions 4. CONTINUOUS FUNCTION
- those that have a direct impact on the - The staffing function must be continuously
accomplishment of the objectives of the carried out
enterprise. - Personnel must be recruited, chosen, and
- Includes production and sales trained in a new organization
departments,sometimes marketing - Every manager in a functioning organization is
involved in various personnel tasks
Staff functions
- those that help the line people work most PURPOSES
effectively in accomplishing the objectives 1. EFFICIENT PERFORMANCE OF OTHER
- Includes human resources, public relations, and FUNCTIONS
legal departments 2. EFFECTIVE USE OF TECHNOLOGY AND
OTHER RESOURCES
The clearer the line of authority from the
3. OPTIMUM UTILIZATION OF HUMAN
ultimate management position to every
RESOURCES
subordinate position is, the clearer the
4. DEVELOPMENT OF HUMAN CAPITAL
responsibility for decision-making and the more
5. THE MOTIVATION OF HUMAN RESOURCES
effective communication within an organization
6. BUILDING HIGHER MORAL
will be. (Muntasir, 2023)
STAFFING PROCESS
STAFFING: NATURE AND PURPOSES, THE
1. Manpower Planning
STAFFING PROCESS
2. Recruitment
STAFFING 3. Selection
- One of the important functions of management 4. Placement
- It involves recruiting various people to fill the 5. Training
vacant positions of the right personnel at the 6. Development
right job, at the right time. 7. Promotion
- According to their ability, talent, aptitude, and 8. Transfer
specializations it will help the organization to 9. Appraisal
achieve the pre-set goals in the proper way by 10. Determination of Remuneration
the 100% contribution of manpower
WORKING AS A TEAM/ TEAM MANAGEMENT
TYPES OF STAFFING Group
1. CONTRACT EMPLOYMENT OR SHORT- - two or more interacting and interdependent
TERM STAFFING individuals who come together to achieve
2. CONTRACT TO HIRE STAFFING specific goals
3. DIRECT PLACEMENT HIRING
Formal Groups
NATURE OF STAFFING (PEREHUCO) - defined by the organization's structure and
1. PEOPLE-CENTERED have designated work assignments and specific
tasks directed at accomplishing organizational 5. Group Tasks
goals - the work assignments and specific tasks
directed at accomplishing organizational goals
Informal groups
- can be simple or complex, routine or non
- are social groups
routine, and can require different levels of
STAGES OF GROUP DEVELOPMENT creativity, innovation, efficiency, and speed.
- influence a group's effectiveness, and effective
Stage 1: FORMING
communication, collaborative decision-making,
- people join the group and then define the
and conflict resolution can improve group
group’s purpose, structure, and leadership
performance and satisfaction
Stage 2; STORMING
- characterized by intragroup conflict
Stage 3; NORMING
- characterized by close relationships and
cohesiveness performing stage
Stage 4: PERFORMING
- group is fully functional and works on group
task
Stage 5: ADJOURNING
- group members are concerned with wrapping WORK TEAMS
up activities rather than task performance - groups whose members work intensely on a
specific, common goal using their positive
MAJOR COMPONENTS DETERMINING GROUP
synergy, individual and mutual accountability,
PERFORMANCE AND SATISFACTION:
and complementary skills.
1. External Conditions Imposed on the
Group
- the organization’s strategy
- authority relationships
- formal rules and regulations
- availability of resources
- employee selection criteria
- the performance management system and
culture
- the general physical layout of the group’s work
space
2. Group Member Resources
- refer to the knowledge, abilities, skills, and
personality traits that each individual brings to a
group.
- determine what members can do and how
effectively they will perform in a group
3. Group Structure
- group size
- composition
- roles
- processes
- can affect work group performance and
satisfaction.
4. Group Processes
- communication
- decision making
- conflict management
- influence group performance and satisfaction
positively or negatively
 - use of effective communication with others to
disarm conflict, and ability to develop the
emotional maturity of team members.

Leadership as a Process
- a complex and dynamic process that involves
an exchange relationship built over time
LEADING
between a leader, followers, and the group of
What is leadership?
followers to achieve a mutually desired goal.
- the process of directing, controlling,
motivating, and inspiring staff towards the Key Components To This “Working
realization of stated organizational goals. Relationship”
- a social (interpersonal) influence relationship 1. LEADER
between two or more persons who depend on - individuals who take charge or guide the
each other to attain certain mutual goals in a activities of others.
group situation. 2. FOLLOWERS
- assesses the situation and identifies the needs
Leader
that the leader must fulfill.
- someone who can influence others and who
3. CONTEXT
has managerial authority.
- the situation that surrounds the leader and the
A leader: followers.
(a) leads people as a ruler 4. PROCESS
(b) inspires people as a motivator - involves a complex, interactive, and dynamic
(c) facilitates or guides them relationship between the leader and their
Huber’s Four Skill Sets Needed By a Good Leader followers.
(2014)
1. SELF AWARENESS 5. CONSEQUENCES
- ability to read one’s own emotional state, be - results of any project that unfolds as several
aware of one’s mood and how it can affect staff’s outcomes of the leadership process between the
relationships. leader, followers, and situation.
2. SELF-MANAGEMENT The Leader-Member Exchange (LMX)
- ability to take corrective action so as not to Theory
transfer negative moods to staff relationships. - focuses on the consequences associated with it
3. SOCIAL AWARENESS - views leadership as a two-way relationship
- an initiative skill of empathy and between the leader and the follower
expressiveness in being sensitive and aware of
The quality of the relationship is reflected by the
the emotions and moods of others.
degree of
4. RELATIONSHIP MANAGEMENT
- mutual
- trust
- loyalty
- Support - Mutual degree of power might exist in any
- Respect power relationship
- Obligation
5. Power is contextual
The quality relationships between a leader and - The power to influence or control individual or
each of his followers produce two groups among group is dependent of the context of the
the followers: relationship
- In-group
- Out-group
Key elements of leadership
1. INFLUENCE Sources of Power by French and Raven
- Occurs when a person or a group affects what Framework (1960)
another person or group does and/or thinks 1. Position
2. POWER - Vested in an individual or group by virtue of
- The capacity of a person or a group to their role or position in an organization.
influence other people or groups Ex. Task - entitles them to do certain things: give
Allocation instruction to some people’ authorize
expenditure, Organize work,etc.
POWER VS INFLUENCE - Supported by a company’s regulations, rules
- Power has been defined as the capacity to get and resources
others to act based on the positional authority
exercised over others 2. Control Resources
- influence is the ability to modify how a person - organizations depend for their continued
develops, behaves, or thinks based on existence on an adequate supply of
relationships and persuasion resources,e.g., Money, personnel, materials,
3. AUTHORITY technology, clients and customers
- formally given to an individual or group 3. Social Connection
because of the position or rule they occupy - “It’s not what you know but who you know”
within an organization - Recognizes interpersonal connections as a
- A subset of power source of power
LEADERSHIP: - Networking
- The capacity to influence people to act of their 4. Expertise
own free will in a particular way Technical knowledge
- A subset of power - the product or service that the organization is
- Power might be coercive and related to trying to deliver
direction Process knowledge
- “The leader knows the way and others will - how to get things done with and through
follow” others:
CHARACTERISTICS OF POWER 5. Information
1. Power depends on relationships - essential for planning and decision making
- The potential to influence another person or
- occupying key positions in organizational
group depends on the relationship between
information networks are called Gatekeepers,
them subject to the trust and respect
because they can control the flow of information
2. Power derive from difference
6. Personal Characteristics
- Different status or different access to valuable
- often called charisma, comes from colleagues’
resources
respect, loyalty and trust.
3. Power is based on beliefs
- ability to influence other people will depend INFLUENCE STRATEGIES
more on their beliefs about resources, sanctions 1. Position Strategies
and so on you have, how you use them, than How authority is exercised in your organization
what you actually have will depend in part on the
4. Power is never just one side 1) organizational culture
2) on what forms of authority are seen as THEORIES OF LEADERSHIP
acceptable,
CONTINGENCY THEORIES
3) And on particular managers’ preferred
- leadership styles and situations to attempt to
management styles.
answer the if-then contingencies
To use rules and procedures to influence another
THE FIEDLER MODEL
person’ behavior effectively, you must have
- Developed by Fred Fiedler
1. The perceived right to make or apply the rules
- effective group performance depended on
and procedures
properly matching the leader’s style and the
2. The means to enforce them if necessary, such
amount of control and influence in the situation
as the power to impose sanctions or costs on
anyone who does not comply. The keys were to:
- Define the leadership style and the situation
2. Push Strategies
- Identify the appropriate combination of style
- Coercive attempts to influence other people by
and situation
imposing, or threatening t o impose, costs on
them if they do not do what is required TWO LEADERSHIP STYLES
- seen as bullying and in some circumstances Task Oriented
might attract legal sanction - interested in getting the work done
Relationship Oriented
3. Pull Strategies
- interested in good personal relations with their
- preoffed reward being valued
members
- used with care
- Manager are seldom free to allocate rewards LPQ QUESTIONNAIRE
purely as they see fit SITUATIONAL FACTORS
- has a set of procedure for fair reward and Leadermember Relations
benefit system - the degree of confidence, trust, and respect
4. Persuasion Strategies employees have for their leader
- through appeals to reason through argument Task Structure
- mix expertise and personal characteristics - the degree to which job assignments are
formalized and structured
5. Preparatory Strategies
Position Power
- prepare the ground for future attempts at
- the degree of influence a leader has over
influence
activities related to their employees
- Networking is one important strategy. Building
THE FIEDLER MODEL
a positive relationship with relevant colleagues
6. Preventive Strategies
- preventing certain action e.g., stopping
question being raised, holding back information,
suppressing dissent
- Preparatory and preventive strategies may be
either open or covert
- Covert strategies are not open to public
inspection, raising the question of whether or not
they are acceptable forms of influence
- can lead to a breakdown of openness and trust
if they are deemed unacceptable
USING POWER RESPONSIBLY
- useful to think of your psychological contract
with the person’s you are trying to influence IMPROVE LEADER EFFECTIVENESS
- contain assumptions about issues such as: 1. Bring a new leader whose style fits the
1. The nature of your authority and influence situation better
2. Your style of management 2. Change the situation to fit the leader’s style
3. Reward and punishment
4. Your contribution HERSEY & BLANCHARD’S SITUATIONAL
LEADERSHIP THEORY
- Developed by Paul Hersey and Ken Blanchard
- A contingency theory that focuses on follower’s
readiness
Readiness
- the extent to which people have the ability and
willingness to accomplish a specific task.

PATH-GOAL MODEL
- Developed by Robert House
- The leader’s job is to assist followers in
attaining their goals and to provide direction or
support needed to ensure that their goals are
compatible with the goals of the group or
organization.
- “To guide their path, to reach their goals”

LEADERSHIP BEHAVIORS
Directive
- Lets subordinates know what’s expected of
them, schedules work to be done, and gives
specific guidance on how to accomplish tasks.
Supportive
- Shows concern for the needs of followers and is
friendly.
Participative
- Consults with group members and uses their
suggestions before making a decision.
Achievement-oriented
- Sets challenging goals and expects followers to
perform at their highest level
CONTINGENCY FACTORS
Environmental
- Outside the control of the follower
Subordinate
- Personal characteristics of the follower
 - A leader who lets the group make decisions
and complete the work whatever way it sees fit
Ohio State
DIMENSIONS
1. Considerations
- Being considerate of followers’ ideas and
feelings
2. Initiating Structure
- The extent to which a leader defines his or her
role and the roles of group members in attaining
goals
HIGH-HIGH LEADER
- (high in consideration and high in initiating
structure) achieved high subordinate
performance and satisfaction, but not in all
situations
BEHAVIORAL THEORIES University of Michigan
- behaviors that differentiate effective leaders 1. Employee Oriented
from ineffective leaders. - Emphasized interpersonal relationships and
taking care of employees’ need
2. Production Oriented
Seven Traits Associated with Leadership - Emphasized technical or task aspects of the job
(Kirkpatrick and Locke, 1991): - Employee burnout
1. Drive - Strained relationships
- Leaders exhibit a high effort level 9,9 Style
2. Desire to lead - performed best with a 9,9 style (highcomcern
- Leaders have a strong desire to influence and for production and high concern for people.)
lead others - The Blake and Mouton Managerial Grid model
3. Honesty and integrity "Concern for Production", "Concern for People"
- Leaders build trusting relationships with
followers by being truthful or non-deceitful
4. Self-confidence
- Followers look to leaders for an absence of self-
doubt
5. Intelligence
-
6. Job-relevant knowledge
- Leaders need to be intelligent enough to
gather, synthesize, and interpret large amounts
of information.
7. Extraversion
- Leaders are energetic, lively people
University of Iowa
1. Autocratic Style
- A leader who dictates work methods, makes
unilateral decisions, and limits employee
participation
2. Democratic Style
- A leader who involves employees in decision
making, delegates authority, and uses feedback
as an opportunity for coaching employees
3. Laissez-Faire Style