Professional Documents
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BUREAUCRACY
Max Weber, a German Scientist is known as Father
Of Bureaucracy.
He studied different types of Business and government
organisations and distinguished 3 basic types of
administration in them.
1. Leader Oriented
2. Traditional Oriented
3. Bureaucratic Oriented
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Traditional Oriented
Administration
Bureaucratic Administration
• Delegation of management responsibilities is based on
a person’s demonstrated ability to hold the position.
• No person can claim a particular position either
because of his loyalty to the leader or because position
has been traditionally held by his members of family.
• People earn positions because they are presumed to be
best capable of filling them.
• Weber considers the last type as ideal type of
administration
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Important Features Of
Bureaucratic Administration
1. There is insistence on following Standard Rules
Weber believed that the authority in an organisation
should be governed by standard rules
OR
Institutional Cult should replace personal cult.
Weber told that this would provide equality in
treatment of subordinates and continuity and
predictability of action.
This would obviate / prevent the need for searching
adhoc solutions to the problems
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1. Illumination Experiments
2. Relay Assembly Test
Room
3. Interviewing Programme
4. Bank Wiring Test Room
Examination of these
experiments with result is
not discussed
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iv Contingency Approach :
This Approach tries to integrate the Various Schools
of Management Thought.
UNIT – 2
PLANNING
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PLANNING
Most Basic Function of Management.
Nature of Planning :
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2) Leads to Success.
4) Facilitates Control.
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Summary
Objectives :
They are the Results to be achieved & are the end
points towards which all the Business Activities like
Organizing, Staffing, Directing & Controlling are
directed.
Characteristics of Objectives :
1) Objectives are Multiple in Number : There are at
least Eight Key Areas in which Objectives of
Performance & Results are to be Set. They are :
Market Standing.
Innovation.
Productivity.
Physical & Financial Resources.
Profitability.
Manager Performance & Development.
Worker Performance & Attitude & Public
Responsibility.
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Take Example of a Cement Manufacturing &
Marketing Company, it may have the following
Objectives :
i.) Specified Capacity Utilization.
ii.) Specified Costs & Return on Investment.
iii.) Specified Quality of Product, say Portland 53
Grade.
iv.) Specified Marketing Services.
v.) Extension & Market Development.
vi.) Serving Remote Areas.
vii.) Maintaining Desired Network of Retail
Outlets.
viii.) Extension of Warehouse Facilities.
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:
The Process of dividing the Organization into
Depts, for Eg : Production, Marketing, Finance etc requires
that the Objectives be defined for that Dept. Each Dept is
given the responsibility of reaching the defined Objective.
The Process of allocating Objectives among
among Various Depts creates problem of Goal conflict. For
Eg : If the Objective of Finance Dept is to reduce the Interest
Burden by reducing External Borrowings, the Objective of
the Production Dept is to achieve the target by calling for
Additional funds due to the Investment on Raw Materials &
Consumables. The Resolution of the problem is a Careful
Balance of the Goal for each Dept or Unit where we
recognize the fact that Goal of neither Unit can be
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6. Requirements of Sound Objectives :
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Contd ….
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Advantages of Objectives :
Here are given the Benefits of having Objectives :
1) This Provides Basis for Planning, for evolving
other types of Plans such as Policies, Budgets &
Procedures.
2) They act as Motivators for Individuals & Depts
of an Organization giving a Sense of Purpose.
3) Haphazard Actions are eliminated as so are the
undesirable consequences associated with it.
4) This facilitates Coordinated Behavior of various
groups which otherwise pulls in different directions.
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2) Objectives :
They are the Ends toward which, the activity is
aimed. These are the results to be achieved. They
represent not only the end point of Planning but the end
toward which the Organizing, Staffing, Directing &
Controlling are aimed. While Organization Objectives
are the Basic Plan of the firm, a Dept may also have its
own Objectives. Finally, this contributes to attainment
of Enterprise Objectives.
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3) Strategies :
This Word Strategy is most often to reflect
Broad Areas of an Enterprise. There are 3 possible
definitions of Strategy as given below :
1.) Definition 1 :
General Programme of action & deployment
of resources to attain comprehensive objectives.
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2) Definition 2 :
The Programme of Objectives of an
Organization & their changes, resources used to attain
these objectives & policies governing the acquisition,
use & disposition of these resources.
3) Definition 3 :
Determination of Basic Long Term Objectives
of an Enterprise & the adoption of Courses of action &
allocation of Resources necessary to achieve these
goals.
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Purpose of Strategy :
This is to determine & communicate thro a
System of Major Objectives & Policies, a Picture of
the kind of enterprise that is envisioned. (That which,
an Organization wishes it to be.)
Strategy does not wish to outline exactly how,
the enterprise is to accomplish it (i.e., It does not
indicate or give MICRO LEVEL Details) but gives
only a GENERAL FRAMEWORK for Guiding,
Thinking & Action.
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Standing Plans
• Policies –
• General guidelines for decision making
• Defines an area within which a decision will be
consistent with and contribute to the objectives
• Sets a boundary for decisions including decisions that
can be made and prohibiting those that cannot.
• Policy is verbal , written or implied , overall guide
setting up boundaries that supply the general limits and
direction in which managerial action is to take place.
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2) Procedures :
They are Plans that establish a required method of
Handling Future Activities.
These are guides to Action, rather than to thinking &
these give the details of the exact manner in which
certain activities must be accomplished.
These are the Chronological sequence of required
actions.
Same steps are followed each time the activity is
performed.
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Advantages of Procedures :
This is a Standard Method of Performing a Task, thus
ensuring High Level of Performance in Organization.
Rules :
Rules are detailed & Recorded Instructions that a
Specific Action must or must not be performed in a
given situation, not allowing any discretion.
These are usually the Simplest type of Plan.
Rules are different from Policies & Procedures.
Rules are unlike Procedures in that these guide
action without specifying a Time Sequence.
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2)Budgets :
A statement of Expected Results expressed in
Numerical Terms is called Budget.