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Frederick Taylor-scientific management in organization -Scientific management method is called for optimizing the way that tasks were

performed and and simplifying the jobs enough so that the workers could be trained to perform their specialized sequence of motions in one of the best way. -the application of scientific method to the management of the workers greatly could improve productivity. Henry Fayol-general management theory
Principles of Management


Division of work. This principle is the same as Adam Smith's 'division of labour'. Specialisation increases output by making employees more efficient.


Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.


Discipline. Employees must obey and respect the rules that govern the organisation. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisation's rules, and the judicious use of penalties for infractions of the rules.

4. 5.

Unity of command. Every employee should receive orders from only one superior. Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan.


Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organisation as a whole.

7. 8.

Remuneration. Workers must be paid a fair wage for their services. Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. Whether decision making is centralised (to management) or decentralised (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralisation for each situation.


Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed.

10. Order. People and materials should be in the right place at the right time. 11. Equity. Managers should be kind and fair to their subordinates. 12. Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de corps. Promoting team spirit will build harmony and unity within the organisation.

Max Weber- Bureaucratic form of organization -As a German academic, Weber was primarily interested in the reasons behind the employees actions and in why people
who work in an organization accept the authority of their superiors and comply with the rules of the organization.

The Key Characteristics of a Bureaucracy

Weber coined this last type of authority with the name of a bureaucracy. The term bureaucracy in terms of an organization and management functions refers to the following six characteristics: Management by rules. A bureaucracy follows a consistent set of rules that control the functions of the organization. Management controls the lower levels of the organization's hierarchy by applying established rules in a consistent and predictable manner. Division of labor. Authority and responsibility are clearly defined and officially sanctioned. Job descriptions are specified with responsibilities and line of authority. All employees have thus clearly defined rules in a system of authority and subordination. Formal hierarchical structure. An organization is organized into a hierarchy of authority and follows a clear chain of command. The hierarchical structure effectively delineates the lines of authority and the subordination of the lower levels to the upper levels of the hierarchical structure. Personnel hired on grounds of technical competence. Appointment to a position within the organization is made on the grounds of technical competence. Work is assigned based on the experience and competence of the individual. Managers are salaried officials. A manager is a salaried official and does own the administered unit. All elements of a bureaucracy are defined with clearly defined roles and responsibilities and are managed by trained and experienced specialists. Written documents. All decisions, rules and actions taken by the organization are formulated and recorded in writing. Written documents ensure that there is continuity of the organizations policies and procedures.

Advantages and Disadvantages of Webers Bureaucracy

Webers bureaucracy is based on logic and rationality which are supported by trained and qualified specialists. The element of a bureaucracy offers a stable and hierarchical model for an organization. Nevertheless, Webers bureaucracy does have its limitations since it is based on the roles and responsibilities of the individuals rather than on the tasks performed by the organization. Its rigidity implies a lack of flexibility to respond to the demands of change in the business environment.

Luther Gulick and Lyndal Urwick

Coining of the Acronym

In his piece "Notes on the Theory of Organization", a memo prepared while he was a member of the Brownlow Committee, Luther Gulick asks rhetorically "What is the work of the chief executive? What does he do?" POSDCORB is the answer, "designed to call attention to the various functional elements of the work of a chief executive because 'administration' and 'management' have lost all specific content." In Gulick's own words, the elements of POSDCORB are as follows:

Planning, that is working out in broad outline the things that need to be done and the methods for doing them to accomplish mthe purpose set for the enterprise;

Organizing, that is the establishment of the formal structure of authority through which work subdivisions are arranged, defined, and co-ordinated for the defined objective;


Staffing, that is the whole personnel function of bringing in and training the staff and maintaining favorable conditions of work; Directing, that is the continuous task of making decisions and embodying them in specific and general orders and instructions and serving as the leader of the enterprise;


Co-Ordinating, that is the all important duty of interrelating the various parts of the work; Reporting, that is keeping those to whom the executive is responsible informed as to what is going on, which thus includes keeping himself and his subordinates informed through records, research, and inspection;

Budgeting, with all that goes with budgeting in the form of planning, accounting and control.

Gulick's "Notes on the Theory of Organization" further defines the principles of POSDCORB by explaining that if an executive's workload becomes too overwhelming, some of the elements of POSDCORB can be organized as subdivisions of the executive, depending on the size and complexity of the enterprise. Under Organizing, Gulick emphasized the division and specialization of labor in a manner that will increase efficiency. Gulick notes that there are three limitations to division of labor. The first occurs when labor is divided to the point where any one task in the division of labor would require less than the full time of a worker, in which case a worker may need to be employed in other tasks to fill up their time. The second limitation to division of labor arises from technology and custom, where certain tasks may only be handled by certain workers either because of a lack of technological means or customs at the time. Gulick gives the example of a single worksite in which only plumbers do the plumbing work and electricians do the electrical work, though this may not take up their full work time. Work in these areas could be re-combined in a manner to increase efficiency, however union considerations could prevent this. The third limitation to division of labor is that it must not pass beyond physical division into organic division, or intricately related activities must not be separated from each other. Gulick gives the example that while it may seem more efficient to have the front end of a cow grazing in pasture at all times and the back half being milked at all times, this would not work due to the intricate connection between the halves that is needed for the whole to function. Gulick notes that organization of specialized workers can be done in four ways which are:

By the purpose the workers are serving, such as furnishing water, providing education, or controlling crime. Gulick lists these in his organizational tables as vertical organizations.

By the process the workers are using, such as engineering, doctoring, lawyering, or statistics. Gulick lists these in his organizational tables as horizontal organizations.

By the clientelle or materiel or the persons or things being dealt with, such as immigrants, veterans, forests, mines, or parks in government; or such as a department store's furniture department, clothing department, hardware department, or shoe department in the private sector.

By the place where the workers do their work.

Gulick is careful to recognize that these modes of organization can often cross, forming a complex and interrelated organizational structure where organizations like schools will include workers and professionals not in the field of education such as doctors or nurses, janitors, secretaries, police departments might include non-police professionals, a shoe department including buyers as well as salespeople, etc. Under Coordination, Gulick notes that two methods can be used to achieve coordination of divided labor. The first is by organization, or placing workers under managers who coordinate their efforrs. The second is by dominance of an idea, where a clear idea of what needs to be done is developed in each worker, and each worker fits their work to the needs of the whole. Gulick notes that these two ideas are not mutually exclusive, and that most enterprises function best when both are utilized. Gulick notes that any manager will have a finite amount of time and energy, and discusses span of control under coordination. Drawing heavily from military organizational theory and the work of V. A. Graicunas, Sir Ian Hamilton, and Henri Fayol, Gulick notes that the number of subordinates that can be handled under any single manager will depend on factors such as organizational stability, the specialization of the subordinates and whether their manager comes from the same field or specialty, and space. Gulick stops short of giving a definite number of subordinates that any one manager can control, but authors such as Sir Ian Hamilton and Lyndall Urwick have settled on numbers between three and six. Span of control was later expanded upon and defended in depth by Lyndall Urwick in his 1956 piece The Manager's Span of Control. Also under coordination, as well as organization, Gulick emphasizes the theory of unity of command, that each worker should only have one direct superior so as to avoid confusion and inefficiency. Still another theory borrowed from military organizational theory, particularly Sir Ian Hamilton and Lyndall Urwick and brought to prominence in non-military management and public administration by Gulick and Urwick is the distinction between operational components of an organization, the do-ers, and coordinating, the coordinating components of an organization who do the knowing, thinking, and planning. In the military, this is divided between "line" and "staff" functions. Gulick gives the private-sector example of a holding company performing limited coordinating, planning, and finance functions, with subsidiary companies carrying out their work with extensive autonomy as it saw fit according to the parent company's overall direction. Mooney and Riley

FOUNDATIONS OF ORGANIZATIONAL THEORY "Management is the science of which organizations are but experiments" (John Constable) Everyone belongs to organizations, but what do we really know about them? Not the social kind, where people simply get together to do whatever comes to

mind, but the enduring kind where people deliberately try to get organized to accomplish something. Clearly there is much that is different about these kinds of organizations (Blau & Scott 1962). We know that such organizations traditionally form along lines of a pyramid shaped hierarchy based on a military model. We also know that in order to be "formal," an organization must have a mission statement, goals, objectives, tasks, as well as a roster of personnel or members. We further know that in order to be "rational," an organization will be able to depict their membership in some kind of chart and there will be principles or rules such as a chain of command, unity of command, span of control, and channels of communication. What we don't know is why and how informal organizations develop inside of formal organizations. An informal organization almost always develops and can either help or hinder mission accomplishment. We also don't know much about how managers are supposed to obtain accountability for the tasks and adherence to the rules. For example, how is authority to be delegated? Can responsibility even be delegated? There is further the problem of size. As organizations become larger, the units within them tend to become more specialized. Specialization can enhance effectiveness and efficiency, but overspecialization can seriously impede the mission. Specialization requires a high degree of coordination, and coordination is critical for any organization, large or small, specialized or not. By design, most organizations have the following components: MISSION | GOALS | OBJECTIVES | BEHAVIOR
The mission is the organization's reason for existence, and it's the component held up to the outside world or external environment which makes the organization relevant to social order or societal progress. Goals are those general purposes or functional divisions of the organization which are specific enough to enable stakeholders (people economically impacted) and clientele (people served) to relate to the organization. Objectives are specific, measurable outcomes related to goals, such as a 30% improvement or reduction in something, and they are usually time-specific, but more importantly are designed to be what employees can relate to. Behavior refers to the ordinary task productivity of employees. Accountability of behavior to objectives is a personnel function, and of behavior to goals an oversight function. Communication channels normally exist between behavior and goals in most organizational designs. Organizations can accomplish

amazing wonders when, by design, they concentrate on a limited number of functions in a systematic way to achieve coherent goals and objectives.