ADMINISTRATIVE THEORIES

ADMINISTRATIVE THEORIES

CLASSICAL THEORY OF ORGANIZATION

THE FUTURE OF ORGANIZATIONAL THEORY

The workplace has changed considerably, and the changes are expected to continue. The new look of organizations will include the following:

Companies will shrink in size Structure of organizations will change Team-based work environment

THE ELITE WORKER

New technical worker elite Less 9 to 5 Manager-qualifications will change

PEOPLE, PURPOSE, AND PROCESS PEOPLE Many things in our environment contribute to our

personalities, such as Culture Psychological. Personal. Social.

PURPOSE

Organization’s purpose is to meet needs in:o Manufacturingo Educationo Healtho Retailingo Pharmaceuticalo Profit/Not For Profit

PROCESS

Process within the organization is defined as the way things are done. There are different processes

Communication Decision-making Performance Socialization Technology

Communication Process

Decision Making Process

Setting a goal. Viewing all alternatives of achieving the goal. Evaluating the alternatives’ Outlining possible problem areas in each alternative. Choosing the best alternative. Implementing the alternative chosen. Monitoring and obtaining feedback to see if

everything is going according to plan.

ORGANIZATIONAL STRUCTURESThere are three main organizational structures The informal structure The operational structure The formal structure

ORGANIZATIONAL CULTURE Dress Code Language. Power Structure Femininity or Masculinity Individualism or Collectivism. Religion

PATTERNS OF ORGANIZATION Line Structure Functional Structure Line and Staff Structure

CENTRALIZATION VERSUS DECENTRALIZATION

Benefits of Decentralization Authority is placed closer to the point of decision

making. The system is democratic. Managers can decide o

matters that affect them. It gives managers a sense of accomplishment an

importance. Decentralized organizations are more adaptive of

growth. It facilitates the process of succession by reducing

the “ability-gap” between top management and subordinate managers

The Downside of Decentralization Duplication Inefficiency with large customers Sub-optimization Dysfunctional competition

MANAGEMENT THEORYChapter 3

FUNCTIONS OF MANAGEMENT Planning Processo Determine the objective o Identify alternatives o Examine each possibility o Select a plan

Organizing.This is the process of arranging manpower, materials and machines in such a way as to get the best results.

Directing.Helping subordinates go in the right direction.

Controlling.Managers will ensure that activities within the organization conform to plan.

Coordinating.Managers try to form a coherent unit out of separate units.

MANAGEMENT STYLES

Scientific Management

Division of Labor Standardization Technological development Mass production

Bureaucracy

Jobs are specialized. Tasks are performed according to rules. Individuals are accountable for what they do. Relationships are impersonal, both to customers, and within the

organization. Employment is based on technical qualification. Problems: It is inflexible – Once rules are set, it takes a long while to

change them. Slow decision making process – Bureaucracy is usually

associated with a hierarchical structure which means final decisions have to be made at the top. Sometimes, it is a very long way to the top.

Management by Objectives (M.B.O.) Superiors and subordinates get together to set goals

that will contribute to overall company goals. The group will set attainable objectives for the

subordinates. The group will meet at a later date to assess the

amount of progress made by the subordinates towards achieving those goals

MANAGEMENT PRINCIPLES

Mechanistic Model

Scalar Chain of Command There must be division of labor due to

specialization. Unity of direction Principle of authority and responsibility

Organic Model

Flat Structure Adaptability There are fewer rules and procedures. Authority is decentralized. There is less emphasis on specialization. The organization is informal

Contingency Model

This model combines some of the features of the mechanistic and the organic models. It has smaller autonomous nits within the larger unit. It is adaptive and situational. It uses whatever approach is called for in any given situation.

ETHICS AND EMPLOYEE RIGHTSWITHIN THE ORGANIZATION

Corporate Due Process. Employee Screening Employee causes of action Invasion of privacy Defamation Wrongful discharge Emotional distress

AIDS and Genetic Predisposition Information privacy Genetic monitoring Genetic screening

Sexual Harassment

Corporate Liability: Management’s Responsibility Awareness Programs: Consequences of Sexual harassment

Equal Employment and Affirmative Action The Adverse Impacts of Affirmation Action Are That: Equal Pay Women in Management Other Demographics Obstacles the Female Worker Include Myths: There are some myths about the female

sex. They include: Role Encapsulation: Stereotypes:

Equal Employment and Affirmative Action

MARKETING MANAGEMENTChapter 4

Definitions

Demand – is want backed by purchasing power. When you want something, and you have the money to buy it, you go into the market and demand for it to be sold to you

Products – Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Exchange – This is the act of obtaining a desired object from someone by offering something in return. What is offered may be money or other goods as in barter.

Markets – A set of actual and potential buyers of a product or service.

MARKETING ORIENTATIONS

Product Orientation Production Orientation Sales Orientation Consumer Orientation

CONSUMER BEHAVIOR

There are four major factors that influence the buying behavior of people.

Culture Factors Social Factors Personal Factors Psychological Factors

Cultural Factors

Culture Social class Sub-culture

Social Factors

Reference groups Family Roles and status

Personal Factors

Age and life cycle stage FAMILY LIFE CYCLEo Bacheloro Newly married, young with no childreno Full nest I: Youngest child I under six o Full nest II: Youngest child is six or over o Full nest III: Older couple with dependent childreno Empty nest I: Older couple, no children living with them,o Head of the household is still in the labor

forceo Empty nest II: Older couple, no children living at home, head o Of household is retiredo Solitary survivor in the labor forceo Solitary survivor is retired

Personal Factors contd..

Occupation Economic circumstances Life style Personality and self-concept Achievement Dominance Adaptability

Emotional Stability Affiliation Order Aggressiveness Self-

confidence Autonomy Sociability Deference

Psychological Factors

Motivation Perceptiono Selective stimuli o Selective distortion o Selective retention Learning Beliefs and attitudes

MARKET SEGMENTATION

Purchasing Demographics Psychographics Geography. Purchasing Orientation

o Innovatorso Early adopters o Early majority o Late majorityo Laggers

Characteristics of a Market Segment Measurability Accessibility Actionability Substantiality