Hrmd conceptual definition

Conceptual Definitions: Administration, Organization, Management, Formal Structure, Organizational Chart, line and Staff Positions, etc.

Prepared by: Jo B. Bitonio

ADMINISTRATION - coordination and control of human and natural resources to achieve desired end

set of functions to meet the organization's goals. The idea of a set of standard administrative functions carries back to Luther H. Gulick, who in 1937 established the acronym POSDCoRB " which stood for planning, organizing, staffing, directing, coordinating, reporting, and budgeting.

ORGANIZATION BY DWIGHT WALDO – is the structure of authoritative and habitual interrelationship in an administrative system. It is static and seek for pattern

Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things along with other subsystems achieve the overall goals of the organization. Often, these systems and processes are defined by plans, policies and procedures.

theory1 a supposition or system of ideas explaining something,

esp. one based on general principles independent of the particular things to be explained (opp. HYPOTHESIS) (atomic theory; theory of evolution).

2 a speculative (esp. fanciful) view (one of my pet theories).

3 the sphere of abstract knowledge or speculative thought (this is all very well in theory, but how will it work in practice?).

4 the exposition of the principles of a science etc. (the theory of music).

5 Math. a collection of propositions to illustrate the principles of a subject (probability theory; theory of equations)

Oxford Encyclopedic English Dictionary

The Theories of Organization

• The purpose of theory generally is to provide a more coherent and integrated understanding of our world than we might otherwise hold

• Theory seeks to move beyond a simple observation of facts or blind adherence to certain values to provide more general interpretations

Why study formal Theories?

Theory is a way of making sense of a situation All theories emphasize certain things and de-emphasize others, they are reflective of the broader commitments of a given culture

Theories of Organization

• Classical theories: scientific management (F. Taylor, Owen, Babbage. Weber, Gulick)

• Neo-classical theories: human relations or human behavior school (Mary Parker Follet, Chester Barnand, Elton Mayo, Abraham Maslow, Frederick Herzberg, Douglas McGregor, Chris Argyris, Robert Blake and Jane Mouton Rensis Likert)

Public Administration (Woodrow Wilson, Frank Goodnow, Luther Gulick, W.F. Willoughby, Leonard White, Paul H. Appleby, Dwight Waldo)

Integration or Modern Organization Theory ( Simon, McGregor, Argyris, Maslow, Likert, I. Von Berthallanfy, K. Boulding )

Development Administration (Goswami, Riggs, Weidner, Roman Dubsky, J. Nef, O.P. Dwivedi , George Gant)


New Public Administration ( Minnowbrook Conference, H. George Frederickson)

New Public Management ( Hammer and Champy, Ted Osborne and David Gaebler, W. F. Deming, UNDP, ADB, WB)


• Formal - means the intentional structure of roles in a formally organized enterprise

• Informal - any joint personal activity without conscious joint purpose; a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another

The Formal and Informal Group

BOARD OF ADMINISTRATORS

OED

REGULATION DEPARTMENT POLICY DEVELOPMENT AND SUPPORT SERVICES DEPT.

REGISTRATION DIVISION

SUPERVISION & EXAMINATION

DIVISION

POLICY FORMULATION & STD. SETTING DIV.

ADVOCACY, LIAISON &

TRAINING DIV.

PLANNING AND MONITORING

ADMIN AND HRD

INFORMATION AND

TECHNOLOGY SUPPORT

FINANCE LEGAL

EXTENSION OFFICES

FORMAL STRUCTURE

Coffee-regulars groupNews paper group

Computer-wizard Group

Spiceboys

Formal vs. Informal Structure

• Informal structures develop because: • people find new ways of doing things which they find easier and save them time• patterns of interaction are shaped by friendship groups and other relationships• people forget what the formal structures are• it is easier to work with informal structures.

• Sometimes the informal structure may conflict with the formal one. Where this is the case the organization may become less efficient at meeting its stated objectives. However, in some cases the informal structure may prove to be more efficient at meeting organizational objectives because the formal structure was badly set out.

Managers need to learn to work with both formal and informal structures. A flexible manager will realize that elements of the informal structure can be formalized i.e. by adapting the formal structure to incorporate improvements which result from the day-to-day working of the informal structure

Traditional Structures of Business Organizations

Numerous driving forces are causing dramatic changes in how organizations design themselves to conduct business effectively. These new designs are used organization widely or for various teams in the organization. The new designs are self-organizing, self-directing or self-managing in nature.

Line and Staff organization

• has the characteristics of line and functional structures

• It is apparent from the scalar principle that line authority is the relationship which a superior exercises direct supervisions over a subordinate – an authority relationship in direct line or steps

• The nature of the staff relationship is advisory. The function of people in a pure staff capacity is to investigate, research, give advise to line managers

President

Engineering Sales Prod Manager Controller Personnel Purchasing

Supervisor Supervisor Supervisor Supervisor

Employees EmployeesEmployeesEmployees Employees

Supervisor

Supervisors

Employees

Line and Staff Type of Organization

__________ line authority

- - - - - - - - - functional authority

Most business organizations start out with a functional structure, or a small variation of this structure. This is the basic "building block" for other structures. In this structure, there is a central office which oversees various departments or major functions, e.g., human resources, finances, sales, marketing, engineering, etc.

Functional structure

A Functional Organization

PersonnelAssist to Pres.

Marketing Engineering Production

President

Finance

This structure is useful because it focuses highly skilled people from across the organization to work on a complex product or service. It can be difficult, though, because each person essentially reports to two supervisors: the supervisor of the functional area (e.g., engineering) and the product manager, as well.

Project Organization

Director of Engineering

Product A Manager

Product B Manager

Product C Manager

Product D Manager

Design

Mech Engr.Hydraulic Engr.

Mettalurgical Engr.Elec. Engr.

Project Organization in Engineering

Chief Design Chief

Mechanical.Chief Electrical

Proj A Mgr.

Proj B Mgr.

Proj C Mgr.

Proj D Mgr.

Chief Hydraulic Chief Metallurgical

Director of Engineering

Matrix Organization in Engineering

:

• its oriented towards end results• Professional identification is maintained• Pinpoint product-profit responsibilityDisadvantages:• Conflict in organizational authority exists• Possibility of disunity of command• Requires manager to be effective in

human relations

Advantages

Geographic (Grid) Organization – this designs attempts to assign responsibilities by grouping functional specialists (e.g. production, marketing and finance together) while retaining geographical responsibilities under a collateral group of departments and attempting to provide functional specialization in a third set of departments.

President

Central RegEastern Reg Western Reg

Personnel

Personnel PurchasingMarketing Finance

Accounting Sales

Southern RegEastern Reg

EngnProduction

Geographic Organization

• Places responsibility at a lower level• Places emphasis on local markets and problems• Improves coordination in a region• Takes advantage of economies of local operations• Furnishes measurable grounds for general managers

• Requires more persons with general manager abilities• Tends to make maintenance of economical central

services difficult and may require services such as personnel or purchasing at the regional level

• Increases problem of top management control

Disadvantages

Advantages

Board of Directors

Audit & Inv. ComConciliation & Mediation

ComCredit Com Ethics &

Accountability Com

Election Com

Committee organization

Advantages• Gaining group deliberation & judgment• Fear of too much authority in a singe person• Representation of interested group• Coordination of plans & policies• Transmission and sharing of information• Consolidation of authority• Motivation thru participation• Avoidance of action

Disadvantages• High cost in time and money• Compromise at the least common denominator• Indecision• Tendency to be self-destructive• Splitting of responsibility• Tyranny of the minority

Tall Organization with Narrow Spans

Advantages• Close supervision• Close control• Fast communication between subordinates and

superiors

Disadvantages• Superiors tend to get too involved in subordinates’ work• Many levels of management• High cost due to many levels• Excessive distance between top to lowest level

Flat Organization with Wide Span

• Superiors are forced to delegate• Clear policies must be made• Subordinates must be carefully selected

Advantages

Disadvantages:

• Tendency of overloaded superiors to become decision bottlenecks• Danger of superior’s loss of control• Requires exceptional quality

Communication techniques Hard Easy

Amount of personal contact needed Hard Easy

Variation by organization level Easy Hard

Factors Determining an Effective Span

Less More

Less More

More Less

Communication techniques Hard Easy

Amount of personal contact needed Hard Easy

Variation by organization level Easy Hard

Factor Narrow SpansWide Spans

Training of staff Less More

Clarity of delegation or authority

Less More

Clarity of plan More Less

Clarity of plan Change So Fast So Slow

Communication techniques

Hard Easy

Amount of personal contact needed

Hard Easy

Variation by organization level

Easy Hard

2006 Managers’ Course, UP Institute for Small Scale Industries

Frederick Harbison & Charles Myers, Education, manpower and Economic Growth: Strategies of HRD, McGraw Hill Book Co, 1964 p2