Week 2 – Approaches to Organizations Management MGT 30525 - ORGANIZATIONAL BEHAVIOR Dr. K. A. S. P. Kaluarachchi Senior Lecturer Department of Management and Organization Studies Faculty of Management and Finance University of Colombo

Learning Outcomes At the end of this lesson, you will be able to: Know why Management Theory today? Identify and describe main approaches to Organizations and Management Identify and describe common factors to organizations Identify differences in applications Know about the formal organization Know about the informal organization 4/24/2017

Theory of Management The study of management theory is important for the following reasons: View the interrelationships between the development of theory, behavior, and management practice Understand the principles underlying the process of management Understand the nature of management and OB Many of the earlier ideas are of continuing importance to the manager Management tends to incorporate earlier ideas and conclusions Management theories are interpretive and evolve in line with changes in the organizational environment 4/24/2017

Main Approaches to Organization and Management Emphasis on Social factors Integration, No one-best purpose, formal at work, groups, socio-technical way, things structure, Mgt. leadership, systems, upon the hierarchy, informal organization, external situation technical people behavior environment requirements, and common principles Classical Approach Human Relations Approach Systems Approach Contingency Approach 4/24/2017

Common Factors to Organizations All organizations have their own individual character, culture and sense of identity and differ in their attributes, processes and methods of working However, despite the differences, there are at least three common factors in any organization: People Objectives Structure Management 4/24/2017

Common Factors to Organizations…. It is the interaction of people in order to achieve objectives that forms the basis of an organization. Some form of structure is needed by which people’s interactions and efforts are co-ordinated Some process of management is required by which the activities of the organization, and the efforts of its members, are directed and controlled towards its objectives 4/24/2017

Common Factors to Organizations…. Local Authority Hospital School Interactions and efforts of people; to achieve objectives; and coordinated through structure; directed and controlled via management Retailer University Prison Hotel Shipping Line Family Center Government Dept. 4/24/2017

Differences in Applications The structure, management and functioning of the organizations vary because of differences in the nature and type of the organization, their respective goals and objectives, and the behavior of the people who work in them Common basic activities of organizations and management Organization X Organization Y Considerable differences in goals and objectives, procedures and methods of operations, structure, systems and style of management, and members’ behavior 4/24/2017

The Formal Organization The formal organization is defined as: the planned co-ordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility 4/24/2017

The Formal Organization…… An organization is a pattern of roles and a blueprint for their co-ordination The object of co-ordination is activities, not people The formal organization can exist independently of the membership of particular individuals 4/24/2017

The Formal Organization…… The formal organization is: deliberately planned and created concerned with the co-ordination of activities hierarchically structured with stated objectives based on certain principles such as the specification of tasks, and defined relationships of authority and responsibility 4/24/2017

The Organization as a Coalition The formal organization can be seen as a coalition of individuals with a number of sub-coalitions e.g. managers, administrators, workers, elected representatives, appointed officials, volunteers, shareholders, suppliers, trade union officials, leaders of interest groups, customers, clients, patrons, donors, specialists, consultants and representatives of external agencies 4/24/2017

The Informal Organization Whatever the type or nature of an organization or its formal structure, an informal organization will always be present The informal organization arises from the interaction of people working in the organization, their psychological and social needs, and the development of groups with their own relationships and norms of behavior, irrespective of those defined within the formal structure 4/24/2017

The Informal Organization …… The informal organization is flexible and loosely structured Relationships may be left undefined Membership is spontaneous with varying degrees of involvement 4/24/2017

The Informal Organization …… The informal organization, therefore, has an important influence on the morale, motivation, job satisfaction and performance of staff. It can provide members with greater opportunity to use their initiative and creativity in both personal and organizational development 4/24/2017

Questions and Answers ??// Thank you very much! 4/24/2017