BUSINESS ORGANIZATION AND MANAGEMENT
MODULE DETAILS
Module Name – Business Organization and Management (BOM)
Module Code – H55C002M05
Evaluation
CA - 50%
End Semester Examination – 50%
Lecture duration – 18 weeks
Lesson 01 :
Introduction to Business organization &
Management
Organization … ?
An organization - definition
A group of people who work together in a structured way for a
shared purpose (Cambridge Advanced Learners Dictionary)
An organization is a two or more people who work together in a
structured way to achieve a specific goal or set of goals. (Stoner
and Freeman,2009)
An organization
Therefore, a business organization is an individual or group of people
that collaborate to achieve certain commercial objective.
Take a look at the society around you !
What are the several organizations exists around you ?
Any organizations which provides goods and services : Companies,
hospitals, schools, etc.
What is management?
Management can be broadly defined as a process
of planning, organizing, leading and controlling the
limited resources efficiently and effectively to
achieve predetermined goals and objectives in an
ever changing business environment.
Efficiency
Doing things Rights or Getting the most
Output from the least amount of inputs.
Effectiveness
Completing activities so that organizational goals
are attained.
The evolution of significant management
perspectives over time
Classical approach
Behavioral approach
Management Science approach
System approach
Contingency/Situational approach
Japanese approach
Excellence approach
1. Classical approach to management
Scientific Management Theory
Administrative Management Theory
Bureaucratic Management Theory
SCIENTIFIC MANAGEMENT THEORY
The terms “scientific management” is also known as “Taylorism”.
Scientific Management focuses on worker and machine relationships.
This theory focuses on improvement of operational efficiencies through the
systematic and scientific study of work methods, tools, and performance
standards.
Management is considered as a science of working towards higher Productivity
through higher work efficiency.
It believed that there is always a best standardized method of work for which
the workers can be trained scientifically.
Scientific Management Theory - Example of Assembly line production process
ADMINISTRATIVE MANAGEMENT THEORY
Focus on the enterprise as a whole rather than on a single segment of it.
Fayol’s Three Aspects of Management
The Activities of an Organization
Technical activities (Production, Manufacturing)
Commercial activities (Buying and selling)
Financial activities (Search for and best use of capital)
Security activities (Safeguarding property and people)
Accounting activities (Recording financial information)
Managerial activities (Planning, organizing, directing and controlling)
The Functions of Management
Plan, Organize, Command, Co-ordinate, Control
The Principles of Management
Administrative Management theory focuses on the
improvement of productivity of entire organization.
BUREAUCRATIC MANAGEMENT THEORY
Bureaucratic management theory developed by Max Weber, contained
two essential elements, including structuring an organization into a
hierarchy and having clearly defined rules to help govern an
organization and its members.
Bureaucratic management approach developed by Max Weber is not
suitable for business organizations but may be suitable for government
organizations.
FEATURES OF BUREAUCRATIC ORGANIZATION
The high degree of Division of Labor and Specialization.
There is a well-defined chain of command.
It follows the principle of Rationality, Objectively and Consistency.
The relationship among the member of the organization is Formal and Impersonal
relations. And it’s based on positions and not on personalities.
Rules and Regulations are well defined and it indicates the duties and rights of the
employees. These rules apply to everyone from to bottom of the organization and
must be strictly followed.
Selection and Promotion are based on Technical qualifications.
2. Behavioral approach
Criticism of scientific management by Taylor and administrative management
promoted by Fayol gave birth to the behavioral management theories.
(in-sensitiveness to the human side of managerial dealings)
This approach emphasis that employees do not only have economic needs but also
social and psychological needs, which are to be fulfilled for motivating them
According to the Behavioral Management Theories; a business organization as a
psycho-social system with much emphasis on the human side.
Consider on technical skills and human relations skills
3. Management science approach
This view distinguished for its application of mathematics, statistics and
other quantitative techniques to management decisions making and
problem solving.
E.g. Linear programming, Non-linear programming, Queuing theory,
Inventory modeling, Simulation techniques etc.
4. Systems approach
This approach gives managers a holistic view of management as a
interrelated parts to achieve a common purpose
A system is an assemblage of interacting and interdependent
components working together to achieve a common goal.
Therefore, an organization is also a system.
5. Contingency approach
This approach suggests that there is no „one best way‟ of managing all situations.
The contingency approach (sometimes called the situational approach) is based on
the premise that methods or behaviors which work effectively in One situation fail in
another.
In an organization, the management techniques that contributes to the attainment of
organizational goals might vary in different types of situations or circumstances.
Results differ because situations differ
THANK YOU
