Organization

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ORGANISATION AND

MANAGEMENT.
SUBmitted by : Batch 04
Presented by:
CHALLA JASWANTH 160040133

KUDARAVALLI VIKASH 160040449

T.SUDHA HARIKA 160040849

CHANDANA 160040318

VINEELA 160040320

K.CHARAN 160040426

BASHA 160040820

PAVAN 160040052

SANDEEP 160040266

SAI CHAND 160040336


CONTENT:
• Introduction and difference between management and admin
• Theories
Classical
Neo-classical
Modern
• Case study 1
• Case study 2
• Management view
Classical approach
Behavioural approach
Contemporary view
• Successful organisation(TOYOTA)
• Conclusion
What is Organisation?
• An organisation is an entity comprising multiple people, such as
an institution or an association, that has a collective goal and is
linked to an external environment.
• Structure: 4 types
• Functional structure
• Divisional structure
• Matrix structure
• Projectized organisation structure
Definitions by different authors
• An organisation is a tool used by people to coordinate there
actions to obtain something they desire or value –(G.JONES)
• LOUIS ALLEN: Organisation is an instrument for achieving
organizational goals
What is management?
• It is a process of reaching organisational goals by working with
and through people and other organisational resources.
• Administration: An Universal process of effectively organising
people and resources to direct activities towards common goals
and objectives.
Definitions by different authors
• HAROLD KOONTZ: Management is the art of getting things done
through others and with formally organised groups.
• Henri Fayol: management is to forecast , to plan , to command, to
organize , to co-ordinate and control activities of others.

• WHAT is difference between administration and management??


• Management is directing and controlling functions of
organisation whereas is administration is planning and organising
functions.
• Management is seen is business enterprises and organisation is
seen in schools hospitals and clubs.
Theories:
• Theories are set of assumptions which help us understand reality.
Three types:-
i) Classical theory
ii) Neo-classical theory
iii) Modern theory
Classical theory:
• It is a primitive theory , it is only based on output.
• Classical organisation theory includes scientific management approach
(Frederick taylor), Weber’s bureaucratic approach and administrative
theory.

• The scientific management approach is focusing in the management of


work and workers.{it is not a rule of thumb}.

• Webers theory considers the organisation as a part of border society.


• Administrative theory was propounded by Henry Fayol and is
based on several principals of management.
• FAILURE:
• Classical organisation theory failed because human is not considered as
human, they only need output at any cost , because of this this classical
theory is considered as machine theory.
Neoclassical theory:
• Neoclassical theory emphasizes individual or group behaviour
and human relations in determining productivity.
• It is the extended version of the classical theory . According to
this theory, the organization is the social system, and its
performance does get affected by the human actions.
• Team-work is essential for higher productivity.
• The NeoClassical theory asserts that an individual is diversely
motivated and wants to fulfill certain needs. The communication
is an important yardstick to measure the efficiency of the
information being transmitted from and to different levels of the
organization.
Failures:
• The assumptions on which this theory is based are sometimes not
true.
• No particular organisational structure can be suitable for all the
organisations. Various organisational formats given by neo- classists
are not applicable in all situations.
• Neo-classical theory is only a modification of classical organisation
theory. It suffers from nearly same drawbacks from which classical
theory suffered.
Modern theory:
• Modern organisation theory is of recent origin, having developed
in early 1960’s. This theory has tried to overcome the drawbacks
of earlier theories.
• The Modern Theory is the integration of valuable concepts of the
classical models with the social and behavioral sciences. This
theory posits that an organization is a system that changes with
the change in its environment, both internal and external.
• This theory may be understood in two approaches: systems
approach and contingency approach.
• System approach:
• This approach studies the organisation in its totality. The mutually
dependent variables are properly analysed. Both internal and
external variables are studied in analysing the nature of
organisation.
• Contingency approach:
• Systems approach offers models which may not suit every type of
organisation. Contingency approach suggests an organisational
design which suits a particular unit. A structure will be suitable
only if it is tailor made for an enterprise.
The factors which influence an organisation
• (i) Environment
• (ii) Technology
• (iii) Size of operations
• (iv) People.
• These factors greatly influence a decision for the selection of an
appropriate organisation for an enterprise.
Case study1:Adidas
• ALL DAY IN DREAM ABOUT SPORTS.
• It was founded by Adolf dassler in 1924.
• It didn’t become a fully registered company until 1940,but gained
intunational recognisation in 1936.
• Slogan is “Impossible is nothing”.
• In this competitive era too many companies like NIKE and
REEBOK also want to be globally recognised.
• It has grown with more innovative ideas and focussed on creating
brand awareness and other marketing strategies.
• Strengths:
Invests huge money.
Company management team is strong
Strong control and distribution channel

• Weaknesses:
Products are high in price
Doesn’t have good online service

• If the problems in an organisation occurs in high level then


definitely it will be rated as failure company.
Case study 2: Samsung
• It is a south Korean company founded by Lee Byung-chul.
• On 1st march 1938.
• Chairman lee declared a new management in 1993, since then
Samsung transformed.
• Samsung has adopted an open management in the era of
personal management.
Samsungs present path for successful run
• Marketing and branding strategies have played a crucial role in
the advancement of Samsung.
• It has quality based management.
• They keep on adapting to present day requirements this is the
trick of survival of Samsung in todays competitive world.
Management view:
• Management is getting work done by others.
• It has 3 basic theories :
• 1. classical approaches
• 2.Behavioural approaches.
• 3.Quantitaive approach.
Classical approach
• Frederick Taylor: Scientific Management (1886)
• Frank and Lillian Gilbreth: Time and motion studies (later
1800s)
• Henri Fayol: Fourteen Principles of Management (1880s-
1890s)
• Max Weber : Bureaucracy (1920s)
Frederick W. Taylor

 Developed Scientific Management


 Laid foundation for the study of management

 Key ideas:
 Management as a separate field of study
 Explicit guidelines for scientific study of management functions
 Time studies for setting standards
 Functional specialization of managers’ duties
 Piece-rate Incentive systems
HENRI FAYOL’s
FOURTEEN PRINCIPLES OF MANAGEMENT
• 1. Specialization of labor
• 2. Authority
• 3. Discipline
• 4. Unity of command
• 5. Unity of direction
• 6. Subordination of Individual Interests
• 7. Remuneration
• 8. Centralization
• 9. Scalar Chain
• 10. Order
• 11. Equity
• 12. Personnel Tenure
• 13. Initiative
• 14. Esprit de corps
Behavioural approach (Hawthrone experiment)
• A research is conducted at the Hawthrone plant of western
electric company near Chicago, 1927-1937..
• Initial study: Effects of lightning on worker performance.
• It was conducted to find out the role of human resource in
increasing the production of an organization
• But the Hawthrone effect was instead identified
• The workers values,desires and needs.
• Workers want to have input.
• Workers want to be respected.
CONTEMPORARY APPROACH
• DEFINITION:
• Contemporary approach means new,recent or current approaches in the
field of management.
• Example:
• the way a steel company was running 100 years ago is different from
today.however one steel company today might say they use “ contemporary
management”
• Classification of contemporary approach:
1. System theory:
• 1. closed system
• 2. open system
• 2. Contigency approach
• SYSTEM THEORY:
a set of interrelated and interdependent parts arranged in a
manner that produces a unified whole.

• CLOSED SYSTEM :
system that are not influenced by and do not interact with their
environment.
Example:
A production line is an example of a closed system within a
organisation. Workers on an assembly line are generally only
responsible for only completing their task on the line,depending on
what type of line it is.
Open system:
• System that interacts with their environment.
• Example:
• a corporation needs to gather resources and information from its
environmentsuch as capital,employees and customers inorder to
function and grow
2. contingency approach:
• a management approach which says that organisation are different
,face different situations and require different ways of managing.
• Example:
• If the production line is too good in an organisation and the consumers
are not satisfactory according to it,then the manager of the
organisation should use the contingency approach
• Conclusion:

• Strength:
• The organisation can survive many different situation
• Solve complex and detail problem

• Weaknesses:
• Hard to understand
• Need advance modelling
Final outcome
• What are the things required for a successful organization?
 Aim and Objectives
 Effective Teamwork
 Quality Leadership
Good Decision Making.
• The company was founded by
Kichiiro Toyada in 1937
• Toyota Motor Corporation is a
Japanese multinational
automotive manufacturer .
• Toyota was the world's first
automobile manufacturer to
produce more than 10 million
vehicles per year which it has
done since 2012.
• After World War II, the Japanese auto market was nearing
destruction. On the other hand, American car manufacturers like Ford
and General Motors were crushing it.
• Taiichi Ohno, an engineer at Toyota, convinced his managers to
implement the JUST-IN-TIME approach to manufacturing.
• Ohno’s recommended changes ended up transforming the Japanese
automaker for the better.

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