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In 1930s, The Great depression shook the entire business structure. During
this economic crisis, with widespread unemployment with the collapse or
near collapse of major economic institutions, many companies disappeared.
PLANT
MANAGER
Line and Staff Organization. Consists of the addition of staff specialists, In essence
the staff component of a line and staff organization is advisory and supportive in
nature and added to contribute to the efficiency and maintenance of the
organization.
Matrix Organization
An advantage of the matrix organization is its ability to
meet unusual, innovative or complicated projects often
shunned by the typical organizational with its functional
departments. One potential disadvantage is that matrix
organization can cause conflict of authority.
PRESIDENT
PROJECT
PRODUCT ENGINEERING PERSONNEL FINANCE
MANAGER
A GROUP GROUP GROUP GROUP
PROJECT
PRODUCT ENGINEERING PERSONNEL FINANCE
MANAGER
B GROUP GROUP GROUP GROUP
PROJECT
PRODUCT PRODUCT PERSONNEL PERSONNEL
MANAGER
C GROUP GROUP GROUP GROUP
Principles of Organization
1. Consideration of Objectives. This principle scarcely need
starting if we accept the definition of organization as a
facilitating mechanism which enables us to achieve goals.
2. Division of Work or Specialization. The narrowing scope of a
person’s job to one or a few major functions to enable to
specialize on these few and to increase efficiency.
3. Delegation of Authority. Authority is the right to command or
act and expend resources. This is right may come ownership,
legal decree or status in the organization.
Principles of Organization
4. Parity of Responsibilities and Authority. Responsibility or
accountability is the obligation of a subordinate to a superior
to perform assigned activities to the best of activities.
5. Span of Control. Refers to the number of subordinates a
manager can effectively control. This question of span of
control is one wherein there is little agreement among
experts.
6. Unity of Command. This principle states that each member of
an organization should be accountable to, and receive
directions from only one supervisor, or immediate supervisor.
Principles of Organization
7. Short Chain of Command. This principle states that there should be
as few levels of supervision between the highest authority in an
organization and the rank and file as possible.
8. Coordination. This principle states that all individuals activities in an
organization must be synchronized with the respect to their amount
, time and direction to avoid duplication of work that results in
wasted effort and to obtain consolidated action toward a common
goal.
9. Efficiency. This principle in organizing specifies that “the
organization should be planned that the objectives can be attained
with the lowest possible cost, which may mean either money cost
or human cost.
Principles of Organization
10. Separation of Line and Staff Functions. This principles states
that where separation of functions is possible, no individual or
department should be given both line and staff functions.
11. Consideration of Policies, Procedures and Rules. This are all
guides to action which relate to the goal attainment. Policies
are general principles which indicate the intentions of those
who guide the organization and declare the attitude its
executives must adopt toward major issues.
12. Job Groupings. It is developing the organizational structure,
creates operating basic. Basic operations are assigned to
different individuals.
Principles of Organization
13. Flexibility. The organization is a dynamic not a static entity.
The environment in which it exist and the people who makes
it up continue to change. The changes in the environment are
bought about by new developments in technology and the
economy.
14. Communication. Aside reducing the number of levels of
authority to help in the smooth flow of communication.
15. Balance. The organization should be periodically assessed to
ensure that a reasonable balance exists in size of its various
segments.
Chapter 5: Staffing
Staffing Defined:
Staffing refers to the task of filling positions in the organization
with the most qualified people available.
Selection Process
A. Biological Data- showing personal data, educational qualifications
and past experience give some kind of a track record on which
applicant’s competent can be assessed.
B. Tests
1. Intelligence Tests- are designed to measure person’s mental capacity,
to test the mental and ability to see relationship in problematic
problems.
2. Aptitude Tests- are designed to discover interests, existing skills, and
the candidates’ potential for acquiring skills.
3. Personality Tests- are devised to reveal a candidate’s personal
qualities and the way they may affect others.
C. Interview- is really the most crucial part of the selection process and
often carries the most weight. It is also here where the managers can
make the greatest contribution to better staffing.
Approaches to Motivation
1. Work Performance Approach. This approach stresses rewards
based on the individual’s productivity. Job descriptions are
specific, work performance is carefully measured and the wage
is explicitly stated.
2. Environmental Approach. This approach assumes that a
worker will perform best in a comfortable environment. To
motivate , the manager must extend friendliness and personal
considerations to the workers.
3. Needs- Satisfaction Approach. This approach adopts the
standpoint that a satisfied worker is a productive worker and
that management, therefore should aim to identify worker’s
needs and find ways of satisfying them.
Theories of Motivation
1. Classical Theory
Frederick W. Taylor propounded the theory that people will be highly
motivated if their reward is tied directly to performance. His
theory assumes that man consciously chooses the course that is
most profitable financially and that money is the best motivation.
2. Human Relations Theory
The human relations approach to motivation is commonly credited to
the studies of Elton Mayo, the theory evolved from these studies
states that informal groups exists alongside the formal
organization and that those informal groups could exert a greater
pull on the worker’s motivation than combined strength of
money, discipline and job security.
Theories of Motivation
3. Field Theory
Kurt Lewin explained how motivation depends on organizational
environment through his celebrated formula for human
behavior : B=(P,E)26
B stands for human behavior, P a person, and E environment. In
other words, human behavior is a function of a person and
his environment. If we relate this to motivation, it implies
that people can have different motivations at different times
and what motivates an individual depends on the
environment.
Theories of Motivation
4. Hierarchy of Needs Theory
According to Abraham Maslow, Self- Actualization Needs
each of us wanting being;
there is always a need to Esteem Needs
satisfy. He visualized human
needs as taking the form of a Social Needs
hierarchy. He put forth the
idea that once a low- level is Safety and Security
satisfied, it ceases to become Needs
a motivator and only a higher-
Physiological Needs
level need could then fulfil the
same functions.
Maslow’s Hierarchy of Needs
a. Physiological Needs
At the base of the hierarchy are physiological needs: those
needs for sustaining human life itself. They include food,
water, clothing, shelter, sleep and sexual gratification.
b. Safety and Security Needs
These needs are those connected with protection from possible
harm. They do not only include protection from physical
dangers, but also freedom from fear of loss of job, property,
food, clothing or shelter.
Maslow’s Hierarchy of Needs
c. Social Needs
When physiological safety and security needs are basically
satisfied, social needs become the predominant motivators.
People need to belong, to be accepted by the others.
d. Esteem Needs
These needs refer to the individual’s need for self-respect and
good opinion of others.
e. Self- Actualization Needs
When the previous needs have been satisfied, self actualization
needs become active. At this level, the individual attempt to
maximize his full potential.
Theories of Motivation
5. Need Theory
a. Need for Power. People who have a high need for power
express great concern for exercising influence and control
over others.
b. Need for Affiliation. People with a high need for affiliation
seek acceptance by social groups. They are likely to be
concerned with maintaining pleasant relationships and
avoiding rejection by social groups.
c. Need for Achievement. People having a high need for
achievement have a intense desire for success and an
equally intense dread of failure.
Theories of Motivation
5. Need Theory
a. Need for Power. People who have a high need for power
express great concern for exercising influence and control
over others.
b. Need for Affiliation. People with a high need for affiliation
seek acceptance by social groups. They are likely to be
concerned with maintaining pleasant relationships and
avoiding rejection by social groups.
c. Need for Achievement. People having a high need for
achievement have a intense desire for success and an
equally intense dread of failure.
Theories of Motivation
6. Theory X and Theory Y
According to Douglas Mcgregor, there are two types of employees the Theory X
and Theory Y assumptions.
Theory X Workers: Theory Y Workers:
1. Dislikes work and will avoid it 1. Work is natural as play
possible. or rest.
2. Lack of responsibility, has little 2. People are not inherently lazy.
ambition and seeks security
above all.
3. Must be coerced, controlled and 3. Self direction and Self- control
threatened with punishment to
get them to work.
-With these the managerial role is to -With these assumptions the managerial
coerced and control employees. role is to develop the potential in employees.
Chapter 7: Controlling
Controlling Defined:
Controlling may be defined as the managerial activity for
ensuring the achievement of an organization’s objectives.
Approaches to Communicating
1. Developmental Communicating. The manager assumes that
two heads is better than one. He does not think that he is always
right. He encourages the contribution in the form of suggestion
and ideas from people he works with.
2. Controlling Communication. A manager who subscribes to this
approach believes that there are no alternatives to his ideas so
he find no need to consult others. He believes that his own ideas
or solutions are best.
3. Relinquishing Communication. In this approach, the manager
relinquishing his role as manager, makes few contributions of his
own ideas and tries to shift the burden to this employees.
4. Withdrawing Communication. The manager completely
withdraws. He avoids interaction with the people he works with
and is simply interested in maintaining the status.
Personal Factors Affecting the Quality of Communication
1. Self- Concept. A person with a poor opinion or a negative self-
image of himself usually experiences difficulty in communicating
with others. A positive self- image is needed for a healthy
exchange of ideas and feelings.
2. Coping with angry feelings. Communication breakdown is
usually the result of angry exchange. Angry feeling should be
expressed constructively rather destructively.
3. Self- disclosure. People find it difficult to talk honestly about
themselves for fear of being branded too forward or rude, to
communicate, people should learn to talk truthfully about their
ideas and feelings.
Reference:
Lorenzana, Carlos C. , M.A; Management, Theory and Practice
Revised Edition; 2003; REX Bookstore Inc.