ORGMAN Flashcards
(177 cards)
1
Q
the process of coordinating and overseeing the work performance of individuals
working together in organizations so that they could efficiently and effectively accomplish their
chosen aims or goals.
A
Management
2
Q
the process of designing and maintaining an environment
for efficiently accomplishing selected items
A
Management
3
Q
involves determining the organization’s goals or performance objectives, defining
strategic actions that must be done to accomplish them, and developing coordination and
integration activities.
A
Planning
4
Q
Planning tools
A
Simple Frequency Count
Flowchart
Gantt Chart
Activity Network Diagram (AND)
Plan-Do-Check-Act (PDCA)
5
Q
It allows prioritization of problems that need to be addressed.
A
Simple Frequency Count
6
Q
As a planning tool, the ________ identifies the issues that receive the greatest number of votes as the
main or priority issues.
A
Simple Frequency Count
7
Q
it is a tool that puts key processes in symbolic patterns that are easy to
understand. The symbols represent relationship sequences between and among
different tasks.
A
Flowchart
8
Q
These are useful for scheduling and planning projects and are considered
visual tools in implementing action plans.
A
Gantt Charts
9
Q
It is a planning tool used to diagram activities in
sequence from start to finish
A
Activity Network Diagram (AND)
10
Q
It is a problem-solving model used to improve
organizational processes.
A
Plan-Do-Check-Act (PDCA)
11
Q
demands assigning tasks, setting aside funds, and bringing harmonious relations
among the individuals and workgroups/teams in the organization.
A
Organizing
12
Q
Organizing methods and structures
A
Downsizing
Rightsizing
Customer Relations Management (CRM)
Reengineering
Total Quality Management (TQM)
Just-In-Time (JIT)
13
Q
It involves planned removal of positions or jobs
A
Downsizing
14
Q
it involves achieving an appropriate size for effective enterprise
performance
A
Rightsizing
15
Q
This involves an enterprise unit tasked to
focus on an interactive relationship with customers
A
Customer Relations Management (CRM)
16
Q
This includes efforts to revolutionize organizational systems and
processes to satisfy customer needs.
A
Reengineering
17
Q
This is an integrative approach to management that
supports the realization of customer satisfaction using various tools and techniques that
result in high-quality goods and services
A
Total Quality Management (TQM)
18
Q
it calls for subassemblies and apparatus to be produced and
delivered to process stages exactly at the time needed.
A
Just-In-Time (JIT)
19
Q
indicates filling in the different job positions in the organization’s structure; the factors
that influence this function include the size of the organization, types of jobs, the number of
individuals to be recruited, and some internal or external pressures.
A
Staffing
20
Q
entails influencing or motivating subordinates to do their best so that they would be
able to help the organization’s endeavor to attain their set goals.
A
Leading
21
Q
Common Leadership Perspectives
A
Charismatic Leadership
Transformational Leadership
22
Q
It is characterized by dominant and self-confident leaders.
A
Charismatic Leadership
23
Q
can stimulate a sense of adventure and enthusiasm in their
followers
A
Charismatic Leader
24
Q
it is characterized by charisma, aptitudes (capabilities of giving their followers individualized attention), and
intellectually stimulating qualities
A
Transformational Leadership
25
involves evaluating and, if necessary, correcting the performance of the individuals
or workgroups/teams to ensure that they are all working toward the previously set goals and
plans of the organization.
Controlling
26
Approaches used in the control function of management
Education and communication
Participation and involvement
Facilitation and support
Manipulation and co-optation
27
These are commonly used in situations where there is a
lack of or inaccurate information.
Education and communication
28
These are commonly used in situations where initiators
face a lack of information for the change and other participants have the power to resist
the same.
Participation and involvement
29
These are commonly used in situations where adjustments
resulting from change must be made
Facilitation and support
30
These are often the quickest and most inexpensive
solution when there is resistance
Manipulation and co-optation
31
Evolution of Management Theories
1. Scientific Management Theory
2. General Administrative Theory
3. Total Quality Management (TQM) Theory
4. Organizational Behavior (OB) Approach
32
This management theory makes use of the step-by-step, scientific methods for finding the single
best way to do a job
Scientific Management Theory
33
is the proponent of scientific theory and is
known as the father of scientific management
Frederick W. Taylor
34
o Develop a science for each element of an individual’s work to replace the old rule of
thumb method.
o Scientifically select and then train, teach, and develop the worker.
o Heartily cooperate with the workers to ensure that all work is done in accordance with the
principles of the science that have been developed.
o Divide the work and responsibility almost equally between management and workers.
Taylor's scientific management principles
35
This theory concentrates on the manager’s functions and what makes up good management
practice or implementation.
General Administrative Theory
36
they are the
personalities most commonly associated with the general administrative theory
Henri Fayol and Max Weber
37
He believed that management is an activity that all organizations must
practice and view it separately from all other organizational activities such as marketing,
finance, research and development, and many others.
Fayol
38
Give at least 7 Henri Fayol's Management Principles
1. Work division or specialization
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to general interest
7. Remuneration or pay
8. Centralization
9. Scalar chain of authority
10. Maintenance of order
11. Equity or fairness
12. Stability or security of tenure of workers
13. Employee initiative
14. Promotion of team spirit or esprit de corp
39
According to ______ bureaucracy is an
organizational form
distinguished by the
following components:
• division of labor
• hierarchical
identification of job
positions
• detailed rules and
regulations
• impersonal
connections with
one another
Weber
40
___ is a management philosophy that focuses on the satisfaction of customers, their needs,
and their expectations
Total Quality Management (TQM) Theory
41
They introduce the TQM idea
W. Edwards Deming and Joseph M. Juran
42
Give at least 5 Deming's 14 Points for Top Management
1. Create constancy of purpose for improvement
of products and services.
2. Adopt the new TQM philosophy.
3. Cease dependence on mass inspection by
doing things right and doing it right the first
time.
4. End the practice of awarding business on the
basis of price tag alone.
5. Constantly improve the system of production
and services.
6. Institute training.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans; focus on correction of
defects in the system.
11. Eliminate numerical quota for the workforce.
12. Remove barriers that rob people of “pride of
workmanship.”
13. Encourage education and self-improvement
for everyone.
14. Take action to accomplish the transformation.
43
4 Fitness of Quality According to Juran
1. Quality of design – through market
research, product, and concept
2. Quality of conformance – through
management, manpower, and
technology
3. Availability – through reliability,
maintainability, and logistic support
4. Full service – through promptness,
competence, and integrity
44
7 Juran's Qualty Planning Roadmap
1. Identify your customers.
2. Determine their needs.
3. Translate them into one’s language.
4. Develop a product that can respond
to needs.
5. Develop processes that can produce
those product features.
6. Prove that the process can produce
the product.
7. Transfer the resulting plans to the
operating forces.
45
involves the study of the conduct, demeanor, or action of people at work.
Research on behavior helps managers carry out their functions—leading, team building, and
resolving conflict, among others
Organizational Behavior (OB) Approach
46
the early supporters of OB approach.
Robert Owen, Mary Parker Follet, Hugo Munsterberg, and
Chester Barnard
47
are the general or strategic managers who focus on long-term
organizational concerns and emphasize the organization’s stability, development, progress, and
overall efficiency and effectiveness
Top-level Managers
48
Chief executive officers (CEOs), chief
operating officers (COOs), presidents, and vice presidents are examples of?
top-level managers
49
Traditionally, ______ set the company’s general direction by designing strategies
and controlling various resources.
top level executives
50
they must also act as organizational
guides who must elaborate on the broader purpose of their organizational existence so that
their subordinates could identify and be committed to its success.
top-level managers
51
the functions and roles of a top-level manager
o Establish high performance standards.
o Institutionalize a set of norms and values to support cooperation and trust.
o Create corporate purpose and ambition
52
are the tactical managers in charge of the organization’s middle levels or
departments.
Middle-level managers
53
They formulate specific objectives and activities based on the strategic or general
goals and objectives developed by top-level managers.
Middle-level managers
54
Their traditional role is to act as gobetween higher and lower levels of the organizations and announce and interpret top
management priorities to human resources in the middle hierarchical level of the company.
Middle-level managers
55
they are more aware of the company’s
problems compared to managers at the higher level because of their closer contacts with
customers, frontline managers, and other subordinates.
middle-level managers
56
functions and
roles of a middle-level manager
o Develop individuals and support their activities.
o Link dispersed knowledge and skills across diverse units.
o Manage the tension between short-term purpose and long-term goals.
57
also known as operational managers and are responsible
for supervising the organization’s day-to-day activities; they are the bridges between
management and non-management employees
Frontline or lower-level managers
58
Traditionally, they are controlled and instructed
by top- and middle-level managers to follow their orders in support of the organization’s major
strategy.
lower-level managers
59
their role has been expanded to some large companies, as they are now
encouraged to be more creative and intuitive in the exercise of their functions so that they could
also contribute to their company’s progress and the development of new projects.
lower-level managers
60
the functions and roles of a lower-level manager
o Create and pursue new growth opportunities for the business.
o Attract and develop resources.
o Manage continuous improvement within the unit.
61
3 required skills of a manager:
Human skills
Conceptual skills
technical skills
62
enable managers at all levels to relate well with people.
Human skills
63
Communicating, leading,
inspiring, and motivating people are important to develop harmony in the organization
human skills
64
enable managers to think of possible solutions to complex problems. T
conceptual skills
65
Through
their ability to visualize abstract situations, they develop a holistic view of their organization and
its relation to the wider external environment surrounding it
Conceptual skills
66
are also important for managers so that they can perform their tasks with
proficiency with the use of their expertise.
Technical skills
67
Lower-level managers find these skills very important
because they manage the non-managements workers who employ varied techniques and tools
to be able to yield good quality products and services for their company.
Technical skills
68
According to Weber,
bureaucracy is an
organizational form
distinguished by the
following components:
• division of labor
• hierarchical
identification of job
positions
• detailed rules and
regulations
• impersonal
connections with
one another
69
Systematic monitoring of the major external forces influencing organizations is necessary to improve
the management of companies.
Environmental forces
70
5 environmental factors
Economic
Sociocultural
Politico-legal
Demographic
Technological
World and ecological
71
include factors/elements such as inflation, rates of interest, changing
options in stock markets, and people’s spending habits.
Economic (situations)
72
may affect
management practices in organizations. For example, companies may postpone expansion
plans if bank loan interest rates are too high.
Economic (situations)
73
include the customers’ changing values and preferences; customs
could also affect management practices in companies
sociocultural (situations)
74
refer to national or local laws, international laws, and rules and
regulations that influence organizational management. For example, labor laws related to
preventing employers from firing their employees without due process require the former
to allow the latter to exercise their right to present their position during disciplinary action
before their employment can be terminated.
Politico-legal (situations)
75
such as gender, age, education level, income, the number of family
members, geographic origin, etc. may also influence some managerial decisions in
organizations.
Demographic (situations)
76
involve the use of varied types of electronic
gadgets and advanced technology such as computers, robotics, microprocessors, and others
that have revolutionized business management; e-commerce, teleconferencing, and
sophisticated information systems have rapidly changed the ways that business is
conducted in the 21st century
Technological (situations)
77
are related to the increasing number of global competitors
and markets, as well as the nature and conditions of the changing natural environment.
Products produced by companies, of course, must cater to the changing needs of people in
the global community, while, at the same time, considering their impact on the natural
environment.
World and ecological (situations)
78
5 Specific business environment
Stakeholders
Suppliers
Pressure groups
investors or owners
employees
79
parties likely to be affected by the activities of the organization, while
customers are those who patronize the organization’s products and services.
Stakeholders
80
are those who ensure the organization’s continuous flow of needed and
reasonably priced inputs or materials required for producing their goods and rendering their
services.
Suppliers
81
are special-interest groups that try to influence the organization’s decisions
or actions.
Pressure groups
82
provide the company with the financial support it needs.
investors or owners
83
The company,
of course, cannot exist without them; thus, they greatly influence organizational
management.
investors or owners
84
are those who work for an employer in exchange for salaries/wages or nonmonetary benefits.
employees
85
execute the company’s strategies and are important for the
maintenance of the company’s stability.
employees
86
PESTEL ANALYSIS
1. Political
2. Economic
3. Social
4. Technological
5. Environmental
6. Legal
87
These factors determine the impact of government and government policy on a
particular organization or a specific industry. It includes trade, fiscal, and taxation policies,
among others.
Political
88
EXAMPLE: McDonald's may capitalize on the opportunity for increased international trade
agreements because it enables easier business expansion to foreign countries. The company
also needs to consider governmental guidelines for diet and health and evolving public health
policies as an opportunity to innovate their products or as a threat if they fail to innovate.
Political
89
These factors determine the impact of the economy and its performance, to an
organization and its profitability. These include interest rates, employment or unemployment
rates, raw material costs, and foreign exchange rates, among others.
Economic
90
EXAMPLE: McDonald's may capitalize on the opportunity for slow but stable growth of
developed countries and the rapid growth of developing countries.
Economic
91
These factors determine the impact of the social environment and emerging trends to
the business profitability of an organization.
social
92
These also help marketers to further understand
the changing preferences of the customers. These include changing family demographics,
education levels, cultural trends, attitude changes, and changes in lifestyles, among others.
Social
93
EXAMPLE: McDonald's may capitalize on the opportunity for rising disposable incomes and
busy lifestyles in urban communities since it will increase their sales growth. On the other
hand, the company needs to consider increasing cultural diversity and healthy lifestyle trends
as both an opportunity and a threat.
social
94
These factors determine the impact of technological innovation and
development on a particular market or industry. These include changes in digital or mobile
technology, automation, research, and development.
technological
95
EXAMPLE: McDonald's may capitalize on the opportunity for increasing business automation
and increasing customer preferences on ordering food using their mobile devices.
technological
96
These factors determine the influence of the surrounding environment and
the impact of ecological aspects to a market or industry. These include climate, recycling
procedures, carbon footprint, waste disposal, and sustainability.
environmental
97
EXAMPLE: McDonald's may capitalize on the opportunity for increasing emphasis on
sustainable business strategies while considering the threat of changes in climate conditions in
some regions where their business operates.
environmental
98
These factors determine the importance of understanding legal laws and procedures on
a given territory where a business operates. These include employment legislation, consumer
law, health, and safety, international as well as trade regulation and restrictions.
legal
99
EXAMPLE: McDonald's needs to review the threat brought by increasing health regulations in
workplaces and schools and rising legal minimum wages imposed by some countries where
their business operates.
legal
100
business predictions is also known as?
business forecasting
101
, is a method of
predicting how variable in the environment will alter the future of business.
business forecasting / business predictions
102
could be used in
making decisions regarding offshoring, branching out locally, and expanding or downsizing the
company.
business predictions / business forecasting
103
the process of measuring or comparing one’s products, services, and practices with those of the
recognized industry leaders to identify areas for improvement
benchmarking
104
gathering information about the company’s operations and those of the other company
to identify gaps; this, in turn, could be used to find out the underlying reasons for the performance
differences.
benchmarking
105
common tool used to assess and evaluate the competitive strength and
position of a business.
Poster's Five forces
106
who developed Porter's Five forces
Michael E. Porter
107
widely used tool to identify the external forces that may affect an
organization both positively and negatively is?
PESTEL Analysis
108
This force analyzes how suppliers can easily influence price increases
Supplier power
109
This is
driven by the following factors: number of suppliers of each essential input; uniqueness of
their product or service; relative size and strength of the supplier; and cost of switching from
one supplier to another
Supplier power
110
EXAMPLE: According to Gregory (2018), the bargaining power of suppliers in the case of
McDonald's is weak based on a large number of suppliers and the high overall supply of raw
materials.
Supplier power
111
This force analyzes how buyers can easily influence price decreases.
Buyer power
112
This is
driven by the number of buyers in the market, the importance of each buyer to the
organization, and cost to the buyer of switching from one supplier to another. For instance, a
few powerful buyers of a business are often able to dictate terms.
buyer power
113
EXAMPLE: According to Gregory (2018), McDonald’s must address the power of their
customers on business performance since consumers have a strong bargaining power based
on low switching costs (relatively small amount of money that consumers would pay if they
would switch to another brand, McDonald’s to Jollibee, for instance), a large number of
providers, and high availability of substitutes.
buyer power
114
Poster's five forces
1. Supplier power
2. Buyer power
3. Competitive rivalry
4. Threat of substitution
5. Threat of new entrants
115
. This force examines the intensity of competition in the market place.
Competitive rivalry
116
This
is driven by the number and capability of competitors in the market. Rivalry competition is
high when there are few businesses equally selling a product or service, when the industry is
growing, and when consumers can easily switch to a competitor's product for a cheaper cost
competitive rivalry
117
EXAMPLE: According to Gregory (2018), McDonald’s faces tough competition because the
fast-food restaurant market is saturated. The strong force of competitive rivalry is influenced
by the high number of firms, high aggressiveness of firms, and low switching costs.
competitive rivalry
118
This force is threatening when buyers can easily find substitute
products with attractive prices or better quality, and when buyers can switch from one
product or service to another with little cost
threat of substitution
119
EXAMPLE: Gregory (2018) stated that the high substitute availability and the low switching
costs make the threat of substitution a strong force in the case of McDonald’s
threat of substitution
120
this force determines how easy or difficult it is to enter a particular
industry
threat of new entrants
121
If an industry is profitable and there are few barriers to enter, rivalry soon
intensifies. When more organizations compete for the same market share, profits start to fall.
Existing organizations need to create high barriers to enter to deter new entrants.
threat of new entrants
122
EXAMPLE: Gregory (2018) stated that the moderate threat of new entrants in the case of
McDonald's is based on the low switching costs (strong force), highly variable capital cost
(moderate force), and high cost of brand development (weak force)
threat of new entrants
123
which is a
framework used to evaluate a company's competitive position must be executed to examine
important stakeholders like suppliers and customers within the firm’s environment.
SWOT matrix
124
components of SWOT matrix
Strengths
Weaknesses
Opportunities
Threats
125
These are the internal areas where an organization excels and the factors which
separate an organization from its competitors.
Strengths
126
These include a strong brand image, a loyal
customer base, a strong balance sheet, and unique technology, among others.
Strengths
127
EXAMPLE: McDonald's has the following strengths: distribution potential, world-class facilities,
strong brand image, and standardized processes (Greenspan, 2017).
Strengths
128
These are the internal areas that hinder an organization from performing at its
optimum level.
weaknesses
129
These are areas where the business needs to make some improvements to
remain competitive.
weaknesses
130
These include a weak brand, higher-than-average turnover, high levels of
debt, an inadequate supply chain, or lack of capital, among others.
weaknesses
131
EXAMPLE: McDonald's has the following weaknesses: limited food options and low process
flexibility due to standardization (Greenspan, 2017)
weaknesses
132
These are favorable external factors that could give an organization a
competitive advantage.
opportunities
133
EXAMPLE: McDonald's has the following opportunities: development of innovative and
healthier menu, partnership with other brands, and expansion on emerging markets
opportunities
134
These are the factors that may pose potential harm to an organization. For
threats
135
EXAMPLE: McDonald's faces the following threats: changing customer preferences in terms of
healthy food consumption, economic downturn, and strong competition.
threats
136
include rising costs for materials, increasing competition, tight labor
supply, and disruption through emerging technologies that may drive products or services
obsolete.
threats
137
5 Phases of Economic Development (in order)
1. Traditional society
2. Pre-conditions for take-off
3. take-off
4. drive to maturity
5. age of mass consumption
138
This is an agricultural economy of mainly subsistence farming, little of
which is traded.
Traditional society
139
The size of the capital stock is limited and of low quality resulting in very
low labor productivity and little surplus output left to sell in domestic and overseas markets.
traditional society
140
The manufacturing industry assumes greater importance, although the number of
industries remains small. Political and social institutions start to develop - external finance
may still be required. Savings and investment grow, perhaps to 15% of GDP. Agriculture
assumes lesser importance in relative terms although the majority of people may remain
employed in the farming sector. There is often a dual economy apparent with rising
productivity and wealth in manufacturing and other industries contrasted with stubbornly
low productivity and real incomes in rural agriculture.
take off
141
Agriculture becomes more mechanized and more output is
traded. Savings and investment grow although they are still a small percentage of national
income or Gross Domestic Product (GDP). Some external funding is required - for example in
the form of overseas aid or perhaps remittance incomes from migrant workers living
overseas.
pre conditions for take off
142
Industry becomes more diverse. Growth should spread to different parts
of the country as the state of technology improves - the nation shifts toward a diverse
economy, with massive growth in many sectors as influenced by the use of innovation that
uplifts the individual income of the citizens.
drive to maturity
143
Output levels grow, enabling increased consumer expenditure.
There is a shift towards tertiary sector activity and the growth is sustained by the expansion
of a middle class of consumers
age of mass consumption
144
4 Forms of Business Organizations
simple business organizations
functional business organizations
divisional business organizations
profit business organizations
145
is designed to achieve their organizations’ mission, vision, goals, and objectives,
providing service to clients without expecting monetary gains or financial benefits for their
endeavors.
non profit organizations
146
where the organization as a whole is made up of small teams that work
together to achieve the organization’s purpose; popular in a collective culture. Collective
culture refers to an organization that emphasizes the needs and goals of the group as a
whole over the needs and desires of each individual (Morin, 2020).
team structures
147
are those which assign experts or specialists belonging to
different functional departments to work together on one (1) or more projects; exhibit dual
reporting relationships in which managers’ report to two (2) superiors – the functional
manager and the divisional manager.
matrix business organizations
148
is a business organizational form with a flexible design, where the
employees work on a project assigned to them within a definite time frame; projects may be
short-term or long-term and members disband when the project is completed.
project business structure
149
is a business organization whose design eliminates
vertical, horizontal, or external boundaries, and is described to be flexible and unstructured;
there are non-barriers to information flow and therefore, completion of work is fast.
boundaryless business organizations
150
Pay is computed according to the number of units produced
Piecework basis –
151
Pay is computed according to the number of work hours rendered
hourly basis
152
Pay is computed according to the number of workdays rendered
daily basis
153
Pay is computed according to the number of workweeks rendered
weekly basis
154
Pay is computed according to the number of work months rendered
monthly basis
155
are most commonly given in the form of pay increases, bonuses, or
increases in benefits such as pension or health care premiums.
monetary rewards
156
is relatively straightforward and consists of
increases in hourly pay, increases in salary, merit pay based on performance, seniority pay
based on time with an organization, and bonuses based on the achievement of individual,
group, or organizational objectives.
direct compensation
157
includes increases to
benefits or the addition of benefits such as a dental plan.
indirect monetary compensation
158
cost the organization but do not directly improve the employee’s
financial position.
non monetary rewards
159
three types of employees
engaged employees
not engaged employees
actively disengaged employees
160
are those people who work with passion and were able to establish a
deep connection with their company. This level of engagement drives innovation that reflects
on the organizational performance of employees within a company.
engaged employees
161
are those who accomplish tasks for the sake of mere compliance but
do not demonstrate an energetic or passionate behavior at work.
not engaged employees
162
are those who are unhappy with their jobs and undermine
what their engaged co-workers accomplish.
actively disengaged employees
163
What does employee relations do to help supervisors and employees?
What does employee relations do to help supervisors and employees?
• Provides counsel and advice to supervisors and employees regarding employment-related
inquiries
• Provides confidential consultation
• Advises employees regarding their employment rights
• Facilitates dialogue on employee/employer issues
164
What are some of the barriers to good employee relations?
What are some of the barriers to good employee relations?
• Anti-social personality; refusal top share more about oneself to co-employees; being a loner
• Lack of trust in others
• Selfish attitude; too many self-serving motives
• Lack of good self-esteem
• Not a team player
• Being conceited
• Cultural/subcultural differences
• Lack of cooperation
• Communication problems; refusal to listen to what others seek to communicate
• Lack of concern for others’ welfare
165
How can we overcome barriers to good employee relations?
How can we overcome barriers to good employee relations?
• Develop a healthy personality to overcome negative attitudes and behavior.
• Find time to socialize with co-workers.
• Develop good communication skills and be open to others’ opinions.
• Minimize cultural/subcultural tension.
166
can be defined as a group of individuals who are interacting with each other
and contributing their efforts towards the attainment of certain goals or objectives
organization
167
may be defined as a cooperative and healthy relationship amongst the groups,
which is built by them through a proper network of a communication system to achieve their
specific or common goals.
organization
168
may be defined as a process made by any business firm to achieve its own goals or
objectives smoothly
organizing
169
It is the process of ensuring a healthy relationship among the departments by a
proper channel of communication so that the employees of every department can give their 100%
contributions in the accomplishment of desired goals.
organizing
170
5 types of organization structures
vertical organization
horizontal organization
functional structure
divisional structure
matrix structure
171
two (2) main classifications of theories regarding organizational design
traditional and modern
172
5 steps in delegation
1. Identify key task
2. Delegate each task appropriately
3. Explain each task to your new members
4. Develop a plan for each task assigned
173
Features of Formal Organization:
• It is created intentionally by the process of organizing.
• Its purpose is the achievement of the organizational goal.
• Each individual is assigned a specific job.
• Every individual is assigned a fixed authority or decision-making power.
• It results in the creation of superior-subordinate relations.
• It creates a scalar chain of communication in the organization.
174
Advantages of Formal Organization
Systematic working
Achievement of orgnanizational objectives
No overlapping of work
Coordination
Creation of chain of command
More emphasis on work
175
Disadvantages of Formal Organization
1. Delay in Action
2. Ignores Social Needs of Employees
3. Emphasis on Work Only
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Features of Informal Organization:
• The informal organizational structure gets created automatically without any intended efforts
of managers.
• The informal organizational structure is formed by the employees to get psychological
satisfaction.
• The informal organizational structure does not follow any fixed path of flow of authority or
communication.
• Source of information cannot be known under the informal structure as any person can
communicate with anyone in the organization.
• The existence of an informal organizational structure depends on the formal organization
structure.
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Advantages of Informal Organization
Fast communication
Fulfills social needs
Correct feedback
Strategic use of informal organization
