CLEP Principles of Management 1

According to the systems management theory services

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According to the systems management theory, services would be considered to be an output . The Systems management theory defines an input as a resource that an organization puts through a transformation process in an effort to meet its goals. Material resources such as money, raw materials and technology, and human resources, such as workers, would be considered inputs. Open vs Closed systems Open System has a dynamic relationship with its environment, receiving various inputs, transforming them in some way, and producing outputs. An organization is an open system--it receives inputs and produces output. Closed System - does not interact with its environment--it does not receive inputs. (This is in contrast to open system) 23. 24. BUREAUCRACY THEORY A bureaucracy is a mechanistic form of organization--it is centralized, hierarchical, guided by rules and written procedures, with highly specialized jobs. This is the opposite of an organic organization which is pretty much the opposite of a mechanistic one--it is more informal, less hierarchically structured, and has less rigid specialization. 25.
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A bureaucracy is a formal procedure-based structure with a number of channels through which issues must proceed before decisions can be made regarding them. Therefore, a company that employs bureaucratic procedure would be unlikely to be the first one out with a new product line. 26. 27. Max Weber - a famous German sociologist came up with the Bureaucracy Theory, believing that the bureaucracy is the most powerful and efficient form of organization developed. Believed orgs should be managed impersonally, where specific rules were followed: well-defined hierarchy, division of labor and specialization, rules and regulations, impersonal relationships between managers and employees, competence records. Developed the bureaucracy theory, which described an impersonal organization based entirely on rules, written records, and formal procedures. A bureaucracy is a type of organization which is commonly seen in many government departments. Weber defined three types of authority in his bureaucracy theory--traditional , charismatic , and rational-legal authority . Rational-legal authority is the basis of authority--leaders are chosen based on experience and qualifications, and make up a hierarchy of authority. Traditional authority occurs when a leader's authority comes not necessarily from his qualifications, but from the fact that people are used to or supposed to follow him. An example would be a king. Charismatic authority occurs when the leader's authority comes from an ability to charm people, or earn their respect or admiration. Charismatic authority is based largely on the leader's personality. Politicians often display this type of authority. Often leaders of cults who are seen as prophets or gods have great charismatic authority.
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