Management Behaviour And Organisational Structure Commerce Essay

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The main objective of the research is to develop an understanding of how the nature of management behaviour has changed in relation to organisational structure and working practices. To deeply understand the primary and most important functions of management, what all management includes? And what all the management gurus have to say about the nature of management's behaviour and how it has changed relatively to the organisational structure and all the work being practised by the managers.

THEORY

Fayolism (1) is one of the first comprehensive statements of a general theory of

management, developed by the French management theorist Henri Fayol

(1841-1925): one of the most influential contributors to modern concepts of management,

Fayol has proposed that there are five primary functions of management:

(1) planning,

(2) organizing,

(3) commanding,

(4) coordinating, and

(5) controlling (Fayol, 1949,1987).

Controlling (2) is described in the sense that a manager must receive feedback on a process in order to make necessary adjustments.

The 6 types of Operations by Fayol for any Organisation can be subdivided into six types of Operations. Each Operation being fulfilled by its corresponding Essential Function: (3)

1. Technical Operations (production, manufacturing, transformation)

2.Commercial Operations (purchases, sales, exchanges)

3.Financial Operations (seek for capital and finance management)

4.Security Operations (protection of goods and people)

5.Accounting Operations (balance, P&L, cost control, statistics, etc)

6. Administrative Operations (Management)

(See below the 5 Elements of Administration)

In 1925 six month before Henri Fayol's death Verney helped Fayol redefine, the then function of administration. The old definition went as follows: The activities involved in businesses can all be classified under one of the following six headings: TECHNICAL, COMMERCIAL, FINANCIAL, SECURITY, ACCOUNTING, ADMINISTRATIVE organization, command, coordination and control. Compared with the new definition: The activities involved in businesses can all be classified under one of the following five headings:

1.TECHNICAL,

2.COMMERCIAL,

3.FINANCIAL,

4.SECURITY,

5.ACCOUNTING

These activities must be planned, organized, directed, coordinated and controlled, in a word: administered. The removal of the distinction between management and administration and the re-definition of administration, it appears that Fayol had finally used these two concepts. Therefore the previous difficulties with this distinction no longer exist.

The 9 Levels

Fayol was representing an organisation like a living body (« corps social », i.e.

"Social body") with main organs structured as follow:

1. Shareholders,

2. Board of Administration,

3. General Direction and its General staff (advisors),

4. Regional/local Directions,

5. Main Engineers,

6. Services Managers,

7. Workshops Managers,

8. Foremen,

9. Workers.

The 5 Elements of Administration popularized by Fayol with the acronym of POCCC: (4)

1. Planning: is to foresee and make plans

2. Organisation (to provide the Function with all is needed for its smooth running:

Supplies, Tools, Funding, Employees)

3. Commandment is to lead the people employed by the organisation

4. Coordination (to harmonise all actions of an Organisation in order to facilitate its

smooth running and success)

5. Control (to verify if everything happens in accordance with defined plans, orders

given, and accepted principles)

The manager in charge of a commandment must:

1.have a deep knowledge of his staff;

2.cull the incapables;

3.well know the conventions binding the organisation and its members;

The Hawthorne Experiments (5) began in 1924 and continued through the early 1930s. A variety of researchers participated in the studies, including Clair Turner, Fritz J. Roethlisberger, and Elton Mayo, whose respective books on the studies are perhaps the best known. One of the major conclusions of the Hawthorne studies was that workers' attitudes are associated with productivity. Another was that the workplace is a social system and informal group influence could exert a powerful effect on individual behaviour. A third was that the style of supervision is an important factor in increasing workers' job satisfaction. The studies also found that organizations should take steps to assist employees in adjusting to organizational life by fostering collaborative systems between labour and management. Such conclusions sparked increasing interest in the human element at work; today, the Hawthorne studies are generally credited as the impetus for the human relations school.

According to the human relations school, the manager should possess skills for diagnosing the causes of human behaviour at work, interpersonal communication, and motivating and leading workers. The focus became satisfying worker needs. If worker needs were satisfied, wisdom held, the workers would in turn be more productive. Thus, the human relations school focuses on issues like communication, leadership, motivation, and group behaviour. The individuals who contributed to the school are too numerous to mention, but some of the best-known contributors include Mary Parker Follett, Chester Barnard, Abraham Maslow, Kurt Lewin, Renais Likert, and Keith Davis. The human relations school of thought still influences management theory and practice, as contemporary management focuses much attention on human resource management, organizational behaviour, and applied psychology in the work place.

The advantages and drawbacks of Classical/Scientific Management are:

Advantages:

1.Reduced costs

2.Less training

3.Lower wages for unskilled work

4.Control

5.Discipline

6.Conformity

Drawbacks:

1. 'Us' and 'them' syndrome

2. Low morale

3. HostilityThe behavioral approach focuses on the psychological and sociological processes (attitude, motivations, group dynamics) that influence employee performance. While the classical approach focuses on the job of workers, the behavioral approach focuses on the workers in these jobs. Workers desisted the formal and impersonal approach of classical writers. Behavioural approach started in 1930. The behavioral school of management thought developed, in part, because of perceived weaknesses in the assumptions of the classical school. The classical school emphasized efficiency, process, and principles. Some felt that this emphasis disregarded important aspects of organizational life, particularly as it related to human behavior. Thus, the behavioral school focused on trying to understand the factors that affect human behavior at work.

The theory of scientific management is the "brainchild" of Frederick Winslow Taylor. In its simplest form the theory is the belief that there is "one best way" to do a job and scientific methods can be used to determine that "one best way".

Taylor developed his theory through observations and experience as a mechanical engineer. As a mechanical engineer Taylor noticed that the environment lacked work standards, bred inefficient workers and jobs were allocated to people without matching the job to the worker's skill and ability. In addition to this the relationship of the workers with the managers included many confrontations.

Scholars who emphasized the human approach to management criticized classical theorists on several grounds. They felt that the management principles propounded by the classical theorists were not universally applicable to today's complex organizations. Moreover, some of Fayol's principles, like that of specialization, were frequently in conflict with the Principle of unity of command.

Weber's concept (6) of bureaucracy is not as popular today as it was when it was first proposed. The principal characteristics of bureaucracy - strict division of labor, adherence to formal rules and regulations, and impersonal application of rules and controls destroy individual creativity and the flexibility to respond to complex changes in the global environment.

As boundaries between cultures and nations are blurred and new communications technology makes it possible to think of the world as a "global village," the scope of international and intercultural relationships is rapidly expanding. The pace of organizational activity picks up dramatically. These trends indicate a heightened level of intensity in organizations and management today.

To emphasize the intensity of modern organizational relationships and the intensity of time pressures that govern these relationships, we call this flurry of new management theory the dynamic engagement approach. "Dynamic engagement" is our term. In times when theories are changing, it is often true that the last thing that happens is that someone assigns a name to the new theory. We use dynamic engagement to convey the mood of current thinking and debate about management and organizations. It is quite likely that twenty years from now, well into your organizational lives, you will look back and call this period of movement by some other name.

Limitations of bureaucratic management and administrative theory is thatScholars who emphasized the human approach to management criticized classical theorists on several grounds. They felt that the management principles propounded by the classical theorists were not universally applicable to today's complex organizations. Moreover, some of Fayol's principles, like that of specialization, were frequently in conflict with the Principle of unity of command. Weber's concept of bureaucracy is not as popular today as it was when it was first proposed. The principal characteristics of bureaucracy - strict division of labor, adherence to formal rules and regulations, and impersonal application of rules and controls destroy individual creativity and the flexibility to respond to complex changes in the global environment.

Classical theorists ignored important aspects of organizational behavior. They did not deal with the problems of leadership, motivation, power or informal relations. They stressed productivity above other aspects of management. They also failed to consider the impact of the external and internal environment upon employee behavior in organization.

CONCLUSION

This research has helped me in understanding the nature of management behaviour in relation to organizational structure and working practices. I have got a fair understanding of management its functions and how it works . The classical school looks for

management. Although there were books and published pieces on what could be termed "management" these were more of a "guide to" or trade publication on best practices. The organization works within itself and only within itself. It emphasizes management separated from labour, and labour specialized down to the smallest specialized tasks to which the most suitable personnel are trained.

The problem, as Taylor saw it, was that workers were inefficient because: (1) Workers tended to ration their work load or work less than they could, because working faster and harder would mean that there would be less or no work to do in the future. (2) Management failed to structure work effectively and to provide appropriate incentives

Taylor's system was widely adopted in the United States and the world until its demise in the 1930's as organized labor pushed for a minimum wage based on hourly pay, as opposed to Taylor's contention that pay ought to be based on performance. Though making people understanding management and behaviour was a big task undertaken by him.

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