The Three Organizational Theories

THEORIES:- Management is very important in any organization.Organization can never achieve its objectives without proper management. Management is getting things done with the help of others.In early organizations theories were designed to predict and control the behaviour in organization. Theories are the best way to manage organization.Their are three types of theories:-
1. Classical theory
2. Humanistic theory
3. Contingency theory

CLASSICAL THEORY:-It is the best way to mange the organization.It emerged in early twentieth century.classical organization theory espouses two prospective.
1 Scientific management:- In scientific management their is good Relation between work and workers.
2Adminisrtative:- Addressing issues.In siple words we can say its more concerned about issues.

1.Well organized:- It is well organized theory. Absolute chain of follow proper structure like first proper planning what to do and then organizing, then allocating taskes b/w staff members, giving them proper directon maintain the co-ordination b/w them and end up with making a proper report of job.

2 EMPHASIS ON BURERUCRCY:- It can be any type their is no particular rule for its type it can be hirerachical or it can be liner.In hirerchical it follow a proper hirerchy for example person A is at the top and person B is working under person A. Person C is working under person B. Either it can be liner all persons A,B,C working at same level.
3 TIME MANAGEMENT:- It focus on time and motion studies to learn how to complete a task in the least amount of time. It creates systems to gain maximum efficiency from workers and machines in the factory.
4 DIVISON OF LABOUR:- Divion of work is most important characterstick of classical management theory. Complex taskes are
Broken down into many simple tasks which can be easily performed by workers.

1 EMPLOYES HAVE MINNIMUM POWER:- Their is one way of communication in classical management theory.Decisions are made by top level and forward to downward.No suggestion are taken by bottom side of employees.
2PREDICTED BEHAVIOUR:- In classical management theory behaviour of works is predicted like machines.If the worker work according to perdiction ,set standards ,he/she retains in services otherwise replaced.
3AUTOCRATIC LEAEDERSHIP STYLE:- Autocratic style were follow in early age.It means that manger were the person who made decision and perform all other function of mangemnet alone as directing ,commanding and organinzing. It means workers were strictly controlled.

2 HUMANISTIC THEORY OF MANAGEMENT:- Human plays vital role in all organization. Humanistic theory shows that we need to motivate our employes on time to time to achieve the target with measure period of time. Motivation can be rewards ,it can be increment etc.
STRENGTHs:-1. Employess have maximum power in this theory.
2 Human power is not neglected they are not forced to work like machines.
3Motivation of employes play great role in humanistic theory, it is in the form of increment ,bonus,celebrations on festivals to reduce stress etc.
Weakness:-1 It is considerd inappropriate theory Sometimes people(manger)become emotional with employes. It leads to wastage of time because employes become lazy.
2: Employess are sometime become depended .
3.Employes expection are more as compare to other theories.

CONTIGENCY THEORY:- Contigency theory is a class of behavioral theory ,it claims that their is no best way to organize management. Several contingency theories were developed in early 1960.
Features of contingency theory:-1 The Size its using.
2.The technology it uses.
3.Its operating environment.
Weakness of contingency theory:- 1. Least preferred co- worker scale.
2. It fails to explain adequately what organisations should do when there is a mismatch between the leader and the situation in the workplace.
3. It has been criticised because it has failed to explain fully why people with certain leadership styles are more effective in some situations then others.

1.2 Identify Two Organizational Structures. DESCRIBE and COMPARE both.

Organizations are social arrangements for achieving controlled performance in pursuit of collective goals. Defined as 'a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.' Keith Davis.

Types of Organization:-
1.Functional organization
2.Divisonal organizational
3Matrix organization

Functional organization:-
Functional Organizational merits
Logical reflection of functions
Maintains power-prestige of functions
Occupational specialization
Simplifies training & enables professional development
Tight control

Functional organization Demerits:-
Over specialisation-narrow viewpoints
Reduces coordination between functions
De-emphasis of overall objectives
Slow adaptation to environmental changes
Conflicts over which products have priority

Divisonal Organization:-
This type of structure occurs when the organisation is arranged around the main products or services.
Specialisation by location divides the organisation geographically usually according to location of customers.
Divisonal Organizational Merits:-
Focused on product line & customer needs
Growth & diversity of products
Improves coordination & response to changes in demand pattern
Responsibility of profits at divisional level
Training ground for general managers
Demerits of divisional Organizational:-
Requires more persons with general management capabilities
Maintenance of central economical services difficult
Lesser control by top management
May develop a product focus at expense of wider company interests

In functional structure, the employees are working in departments based on what they are doing.for example we have engineering department,maintance department,finance department etc.This structure enhances the experience of each function. For example all maintance engineer are working in the same department and thus they will exchange knowledge and support each other.This structure saves our money because of the economies of scale. This structure makes the co-ordination between different departments more difficult than other structure.It also does not allow flexibility because of the centralization.
Divisonal structure divides, the employees based on the product/customer segment/geographical location. For example each divison is responsible for certain product and has its own resources such as finance,marketing,maintance etc. Accordingly this structure is a decentralized structure and thus allow for flexibility and quick response to environment change

1.3 Give at least 5 sources of power, influence and authority:-

' Power
- Power may be regarded as the ability to
determine the behavior of others or to decide the
outcome of conflict where there is disagreement.
It is likely to be resolved according to the
relative resources of power available to the
- There are two types of power:
1. Personalized power
2. Socialized power

' Influence
- Influence represents an ability to affect
outcomes and depends on personal
characteristics and expertise. (Tony Bush, 2003)
' Authority
- Authority is legitimate power which is vested in
leaders within formal organizations. (Bolman
and Deal,1991)

' 5 sources of power that leaders should draw on within organizations:
1. Legitimate power:- Legitimate power is an officer believing that the orders being given are true even if they may be coming from a higher power that does not normally give out orders to the police. (Brandi Rivera, 2006)

' 2. Reward power:- Reward power is who employee believes that they are going to get some type of reward for doing their job or by following their supervisor order. (Brandi Rivera, 2006)

' 3. Coercive power:- Coercive power is a supervisor pursued an employee to do their work or they can be fired or demoted. (Brandi Rivera, 2006)

' 4. Expert power:- Expert power comes from experience or education. (Darek Kleczek, 2008)
' If you are known as an expert, people will count with your opinion and are more likely to follow your leadership.

' 5. Referent power:- Referent power based on desires others have to identify favorably with us or with what we symbolize to them.
' Referent power also refers to the person who has attraction and make one person has an attraction to do whatever their order.

Influence in organization leadership :-

1.Rational persuasion:- Trying to convience others by using reason,facts or logics.
2.Inspirational appeals:- Trying to build confidence by appealing to others,emotions,ideas or values.
3Consultation:- Getting others to participate in decision or change.
4Personal appeals:- Refers to friendship and family when makin decision.

3.3 Compare two Different Leadership Styles. Identify and Contrast:-

A leadership style is a leader's style of providing direction, implementing plans, and motivating people.[1] There are many different leadership styles that can be exhibited by leaders in the political, business or other fields.

The authoritarian leadership:- style or autocratic leader keeps strict, close control over followers by keeping close regulation of policy's and procedures given to followers. To keep main emphasis on the distinction of the authoritarian leader and their followers, these types of leaders make sure to only create a distinct professional relationship. Direct super vision is what they believe to be key in maintaining a successful environment and follower ship. In fear of followers being unproductive, authoritarian leaders keep close supervision and feel this is necessary in order for anything to be done.

The democratic leadership style :-consists of the leader sharing the decision-making abilities with group members by promoting the interests of the group members and by practicing social equality.
This style of leadership encompasses discussion, debate and sharing of ideas and encouragement of people to feel good about their involvement. The boundaries of democratic participation tend to be circumscribed by the organization or the group needs and the instrumental value of people's attributes (skills, attitudes, etc.). The democratic style encompasses the notion that everyone, by virtue of their human status, should play a part in the group's decisions. However, the democratic style of leadership still requires guidance and control by a specific leader. The democratic style demands the leader to make decisions on who should be called upon within the group and who is given the right to participate in, make and vote on decisions. Traits of a Good Leader compiled by the Santa Clara University and the Tom Peters Group:

The laissez-faire leadership :- style is where all the rights and power to make decisions is fully given to the worker. This was first described by Lewin, Lippitt, and White in 1938, along with the autocratic leadership and the democratic leadership styles. The laissez-faire style is sometimes described as a "hands off" leadership style because the leader delegates the tasks to their followers while providing little or no direction to the followers.If the leader withdraws too much from their followers it can sometimes result in a lack of productivity, cohesiveness, and satisfaction.
Laissez-faire leaders allow followers to have complete freedom to make decisions concerning the completion of their work. It allows followers a high degree of autonomy and self-rule, while at the same time offering guidance and support when requested. The laissez-faire leader using guided freedom provides the followers with all materials necessary to accomplish their goals, but does not directly participate in decision making unless the followers request their assistance

Delegation means passing the responsabilities to other people.their are three things we need to emphasis while delegation is :-
WHAT to delegate
WHEN to delegate
WHOME to delegate
We can not delegate from upwards to downwards. For example assistant manager can not pass his responsabilities to main manager.proper delegation is most important task because if u would not delegate the proper task the person to whom you degate is not having a clear picture of what to do, can't finish the work in specific period of time. The following pics depicts the process of delegation

PARTICIPATION:- Participation, is a process through which all members of a community or organization are involved in and have influence on decisions related to development activities that will affect them. That implies that development projects will address those community or group needs on which members have chosen to focus, and that all phases of the development process will be characterized by active involvement of community or organization members. the management and decision making processes the group uses requires active involvement and transparency of all members which is evident in a free and open exchange of information. As a result of participation, all members of the group or community understand not only the goals and objectives of the project; they also understand the roles and responsibilities each member has in the implementation of the project.
DECISION MAKING:- Decision making can be regarded as the resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice.The following figure shows the proper process of decision making

Decision making involve the following steps:-
' Objectives must first be established
' Objectives must be classified and placed in order of importance
' Alternative actions must be developed
' The alternative must be evaluated against all the objectives
' The alternative that is able to achieve all the objectives is the tentative decision
' The tentative decision is evaluated for more possible consequences
' The decisive actions are taken, and additional actions are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again.
' There are steps that are generally followed that result in a decision model that can be used to determine an optimal production plan.

2.1The relevance and application of the Motivation Theories to today's workplace.



It is based on scientific theory.In this the results are predicted .For example
A is manger and B is employee.According to this theory manager A is suppose to do something to encourage employee B to get the work done in motivational way.It has following types:-
1.positive reinforcement:-
Giving rewards to employees to to increase productivity.
2.negative reinforcementThis is the process of having a stress of taken away from you.

3.Extinction:-If is based on outputs .For example absent from school means zero results.

4.Punishment:-If employes are not working giving them cut off salary.

Both theories are relevant because we can see from both the theories we can work more if we get recognization or getting rewarded.
In appliance we can say we can easily implement these by giving bonus,time to time increment, etc.

NEED OF HIERARCHY:-According to this theory their are five types of need that is supposed to be fulfil to achieve target within specific period of time.
1.Physiological need:- Breathing,water,food,sex ,sleep etc.
2.Safety:- Security of body, of employements,health etc. friendship, familt etc.
4.Esteem:- self esteem,achievements,targets etc.
5.Self actualization:-Creativity,problem solving etc.
Both theories are relevant because we can see from both the theories we can work more if we get recognization or getting rewarded
In appliance of need of hierarchy theory manger suppose to fulfil all these five needs by providing proper safety, lunch time,human friendly environment etc.

Two managerial approaches to motivation and their contributions.:-
Autocratic leadership is an extreme form of transactional leadership, where a leader exerts high levels of power over his or her employees or team members. People within the team are given few opportunities for making suggestions, even if these would be in the team's or organization's interest.
Bureaucratic:- Bureaucratic leaders "work by the book", ensuring that their staff follow procedures exactly.They are very strong leaders,we can trust them that is good advantage of this.


A process in which one individual influences others toward the attainment of group/organizational goals is called leadership.
Is a process of social influence Cannot exist without a leader and some followers There is voluntary action by the followers Changes the followers' behaviors.


Management and leadership are two overlapping terms which confuse many people. Leadership and management are complementary for each other. Both go hand in hand. But they are not the same things. The difference between them can be expressed in the following way.
Planning, organizing, staffing, directing, controlling and coordinating are the functions of management and mangers who perform these functions has formal authority in the office while inspiration and motivation is the job of leadership and formal authority is not necessary . The following features differenciate their role
1. The managers are administrator while the leaders are innovator.
2. The manager copies the rules and applies them while the leaders formulate rule and regulation.
3. The manager maintains the system and environment while the leader develops the system and environment.
4. The focus of manager is the system and structure of organization while the focus of leader is people.
5. The manager controls the system to achieve targets while the leader creates the trusts to said purpose.
6. The vision of manager is shorter than the vision of the leader.
7. The questions of manager are how and when while these are what and why in case of
8. The manager follows the rule and regulation while the leader formulates rule and regulation.
9. The manager accepts the status quo while the leader challenges it.
10. The manager does things right while the leader does the right thing .
These ten differences clearly differentiate between management and leadership. The
leadership is broader term which influences other people through his leadership skills
to attain goals while manager use authority to get work from subordinates. r leader. A manager may be or may not be a good leader.

Effective leaders bring people together and enable them to work together to achieve a common goal. By establishing a vision, communicating a strategy and motivating individuals to cooperatively solve problems, these leaders ensure organizational success. By aligning their subordinates' development goals to specific, measurable, attainable, realistic and timely strategic objectives, you can establish a functional structure conducive to continuing success. By developing the leadership dimensions of experience, problem solving ability, personality and self-awareness, you can positively impact your organization's structure and ongoing profitability.
By ensuring that subordinates have the expertise, experience and wisdom to complete job tasks, effective leaders ensure organizational readiness. Using their own wisdom, effective leaders attract, interview, hire and train competent resources that enable the organization to conduct complex operations. By offering training and development courses, you ensure that your company always has employees capable of taking on managerial roles when more experienced employees retire or leave for other jobs. Effective succession planning ensures that your organizational structure remains intact and stable. All roles remain filled with competent staff members.
Problem Solving Ability
Effective leaders analyze work flow to establish clear policies and procedures. They examine operational metrics to ensure production levels produce the desired results. If not, they implement programs to solve problems, such as product defects, low customer satisfaction or high costs. By analyzing the work environment to ensure quality using proven management strategies, such as the Six Sigma methodology for process improvement, leaders solve complex problems that cause waste and low profit. By organizing work so that disruptions and delays get minimized, you ensure the success of your company.
As an effective leader, you use your values and beliefs to motivate your workforce. By setting a positive example, successful business professionals establish a clear mission and objectives for their organizations. You inspire others to follow you by your committing to achieving the defined goals.
By being aware of your limitations, you set realistic goals for yourself and your organization. By focusing on the tasks required to build a successful enterprise rather than punish others who don't follow your commands, you stand a greater chance of achieving the loyalty and dedication of subordinates need to handle complex operations. By acting with integrity and honesty, you ensure that employees, customers and business partners want to conduct business with you. Creating an environment of trust and safety enables a stable organizational structure where innovative approaches to solving technical or theoretical problems can thrive.

' Managers have to perform many roles in an organization and how they handle various situations will depend on their styles of management.
' A management style is an overall method of leadership used by a manager.
' Three main styles:
' Autocratic
' Democratic
' Laissez-faire
' Autocratic
' an autocratic or authoritarian manager makes all the decisions, keeping the information and decision making among the senior management.
' the direction of the business will remain constant, and the decisions will be quick and similar, this in turn can project an image of a confident, well managed business.
' subordinates may become dependent upon the leaders and supervision may be needed;
' this style can decrease motivation and increase staff turnover
' Democratic (participative)
' the manager allows the employees to take part in decision-making: therefore everything is agreed by the majority. (empowerment)
' this style can be particularly useful when complex decisions need to be made that require a range of specialist skills;
' from the overall business' point of view, job satisfaction and quality of work will improve.
' the decision-making process is severely slowed down, and the need of a consensus may avoid taking the 'best' decision for the business.
' Laissez-faire (free-rein)
' the leader delegates much authority to employees; the leader's role is peripheral and staff manage their own areas of the business.
' the style brings out the best in highly professional and creative groups of employees.
' the leader therefore evades the duties of management and uncoordinated delegation occurs;
' this leads to a lack of staff focus and sense of direction, which in turn leads to much dissatisfaction, and a poor company image.

2.4 Examination of JOB designe/Description:-
Plan, direct, or coordinate marketing policies and programs, such as determining the demand for products and services offered by a firm and its competitors, and identify potential customers. Develop pricing strategies with the goal of maximizing the firm's profits or share of the market while ensuring the firm's customers are satisfied. Oversee product development or monitor trends that indicate the need for new products and services.
Formulate, direct and coordinate marketing activities and policies to promote products and services, working with advertising and promotion managers.
Identify, develop, or evaluate marketing strategy, based on knowledge of establishment objectives, market characteristics, and cost and markup factors.
Direct the hiring, training, or performance evaluations of marketing or sales staff and oversee their daily activities.
Evaluate the financial aspects of product development, such as budgets, expenditures, research and development appropriations, or return-on-investment and profit-loss projections.
Develop pricing strategies, balancing firm objectives and customer satisfaction.
Compile lists describing product or service offerings.
Initiate market research studies or analyze their findings.
Use sales forecasting or strategic planning to ensure the sale and profitability of products, lines, or services, analyzing business developments and monitoring market trends.
Coordinate or participate in promotional activities or trade shows, working with developers, advertisers, or production managers, to market products or services.
Consult with buying personnel to gain advice regarding the types of products or services expected to be in demand

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