Organizational Theories & Management Styles

MANAGEMENT STYLES/ ORGANIZATIONAL

THEORIES

KATES DORLYN GRAJALESMPA Student

DEFINITION OF TERMS 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

What is the importance of management styles and organizational theories in communication?

ORGANIZATIONAL THEORIES

Classical Organization Theory Neoclassical Organization Theory Modern Structural Organization Theory

Classical 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

Classical Organization TheorySTRENGTHS

This theory has a narrow focus on improving production related economic goals (strength and weakness).

Helped create division of labor, time and movement studies, and organized planning models (such as POSDCORB).

Attempted to address, and further, organizational functions when few resources existed.

WEAKNESSES This closed-system, rational

theory is perhaps too narrowly focused on production and reduces the human component to simply fleshy machines.

This theory helped invent the industrial revolution, which led to deterioration of individual craftsmanship; it promotes capital intensive economies.

Neoclassical Organization Theory


The theory emphasizes individual or group behavior and human relations in determining productivity

PRINCIPLES OF NEOCLASSICAL APPROACH

▪ Individual▪ Work Group▪ Participative Management

The Economic of Incentives


STRENGTHS It found “holes” in classical

organization theory, attempted to revise it, and spurred almost all other schools of thought that followed.

De-emphasized simplistic mechanistic organizational theories.

Helped the future incorporation of professions into organization theory, such as sociology.

WEAKNESSES “The neoclassicalists did not

develop a body of theory that could adequately replace the classical school”. It modified it.

“It attempted to blend assumptions of classical theory with concepts that were subsequently used by later organization theorists from all perspectives”

It was an “anti-school” – it couldn’t stand on its own.

Modern Structural Organization Theory

Modern Structural Organization Theory 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 inter-related 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.

OTHER ORGANIZATIONAL THEORIES Human Resource Theory Organizational Economics Theory Power & Politics Organizational Theory Theories of Organizational Culture and Ch

ange Theories of Organization & Environments

• Levels of management• Functions of managers• Managerial skills• Management styles

Management

About Management

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.

Levels of Management 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.

Comparison of Responsibilities Among Managers

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.

Comparison of Responsibilities Among Managers

Supervisory Managers – Provide job assignments to the new employees

who are hired. – Set time schedules for new employees who are

hired.

Functions of Managers Planning – the preparation of a firm for future business

conditions Organizing – 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

Middle Managers: Organize the employees and other resources to produce

Supervisors:Explain each employee’s tasks &

how to perform the tasks

Middle Management: Determine whether the

production is efficient (based on monitoring the plant’s output and expenses each

month)

Top Management: Assess the expenses and sales from producing products every

month. Determine whether the new strategic plan is

successful.

Communicate the plan to middle

management and ask middle management

to implement the plan.

Communicate the organization to

supervisors and ask them to implement the

production process.

Supervisors: Monitor employees to ensure their new assignments properly

Managerial Skills 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 – skills used to perform specific day-to-day tasks Decision-making skills – skills for using information to determine how the

firm’s resources should be allocated.

MANAGEMENT STYLES Democratic Style Autocratic Style Laissez-faire

Management Styles

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.

Management Styles

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

Management Styles

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 VS. Leadership

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 ! ! !

Leadership & Management

Organizational Theories & Management Styles