Many practicing managers even today list these

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Unformatted text preview: e so long as superiors are kept informed. 10. Order: both materials and personnel must always be in their proper place; people must be suited to their posts so there must be careful organization of work and selection of personnel. 11. Equity: personnel must be treated with kindness and justice. 12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the time required for the development of expertise. 13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by the requirements of authority and discipline. 14. Esprit de corps: efforts must be made to promote harmony within the organization and prevent dissension and divisiveness. The management function, Fayol stated, consisted of planning, organizing, commanding, co­ coordinating and controlling. Many practicing managers, even today, list these functions as the core of their activities. Fayol was also one of the first people to characterize a commercial organization’s activities into its basic components. He suggested that organizations could be sub­divided into six main areas of activity: 1. Technical 2. Commercial 3. Financial 4. Security 5. Accounting 6. Management. Sikkim Manipal University 23 Organizational Behavior Unit 2 In defining the core principles governing how organizations worked and the contribution of management to that process, Fayol laid down a blueprint that has shaped organization thinking for almost a century. Max Weber developed a theory based on authority relations and was he a pioneer in looking at management and OB from a structural viewpoint. His theory is also known as bureaucratic theory in management. he described an ideal types of organization and called it a bureaucracy. This was a system marked by division of labor, a clearly defined hierarchy, detailed rules and regulations and impersonal relationships. He wanted this ideal types construct to be taken as a basis for creating organizations in real world. The detailed features of W eber’s ideal bureaucratic structure are a follows: 1. Jurisdictional areas are clearly specified, activities are distributed as official duties (unlike traditional form where duties delegated by leader and changed at any time). 2. Organization follows hierarchical principle ­­ subordinates follow orders or superiors, but have right of appeal (in contrast to more diffuse structure in traditional authority). 2. Intention, abstract rules govern decisions and actions. Rules are stable, exhaustive, and can be learned. Decisions are recorded in permanent files (in traditional forms few explicit rules or written records). 3. Means of production or administration belong to office. Personal property separated from office property. 4. Officials are selected on basis of technical qualifications, appointed not elected, and compensated by salary. 5. Employment by the organization is a career. The official is a full­time employee and looks forward to a life­long career. After a trial period they get tenure of position and are protected from arbitrary dismissal. C. The Human...
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This note was uploaded on 03/01/2014 for the course MBA mba taught by Professor Smu during the Fall '10 term at Manipal University.

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