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Informal organizations, on the other hand, are less likely to adopt or adhere to a
significant code of written rules or policies. Instead, individuals are more likely to adopt
patterns of behavior that are influenced by a number of social and personal factors.
Changes in the organization are less often the result of authoritative dictate and more
often an outcome of collective agreement by members. Informal organizations tend to
be more flexible and more reactive to outside influences. But some critics contend that
such arrangements may also diminish the ability of top managers to effect rapid change.
Theories of personality:
Trait theory of personality
A major weakness of Sheldon's morphological classification system and other type
theories in general is the element of oversimplification inherent in placing individuals
into a single category, which ignores the fact that every personality represents a unique
combination of qualities. Systems that address personality as a combination of qualities
or dimensions are called trait theories. Well-known trait theorist Gordon Allport (18971967) extensively investigated the ways in which traits combine to form normal
personalities, cataloguing over 18,000 separate traits over a period of 30 years. He
proposed that each person has about seven central traits that dominate his or her
behavior. Allport's attempt to make trait analysis more manageable and useful by
simplifying it was expanded by subsequent researchers, who found ways to group traits
into clusters through a process known as factor analysis. Raymond B. Cattell reduced
Allport's extensive list to 16 fundamental groups of inter-related characteristics, and
Hans Eysenck claimed that personality could be described based on three fundamental
factors: psychoticism (such antisocial traits as cruelty and rejection of social customs),
introversion-extroversion, and emotionality-stability (also called neuroticism). Eysenck
also formulated a quadrant based on intersecting emotional-stable and introvertedextroverted axes.
Scientific Management
Scientific Management, also called Taylorism, is a theory of management that analyzes
and synthesizes workflows. Its main objective is improving economic efficiency,
especially labor productivity. It was one of the earliest attempts to apply science to the
engineering of processes and to management.Its development began in the United
States with Frederick Winslow Taylor in the 1880s and '90s within the manufacturing
industries. Its peak of influence came in the 1910s;by the 1920s, it was still influential
but had entered into competition and syncretism with opposing or complementary ideas.
Although scientific management as a distinct theory or school of thought was obsolete
by the 1930s, most of its themes are still important parts of industrial engineering and
management today. These include analysis; synthesis; logic; rationality; empiricism;
work ethic; efficiency and elimination of waste; standardization of best practices; disdain
for tradition preserved merely for its own sake or to protect the social status of particular
workers with particular skill sets; the transformation of craft production into mass
production; and knowledge transfer between workers and from workers into tools,
processes, and documentation.
The Administrative Approach
Across the Atlantic ocean Jules Henri Fayol (1841-1925), a fellow engineer and
manager of a group of French mines, came to the conclusion that management was an
activity common to all human undertakings (including home, business, government,
schools, etc.) and that all these undertakings needed five basic administrative functions
(planning, organizing, commanding, coordinating and controlling). He argued that
because management was an all-encompassing activity, it should be taught in schools,
colleges and universities.
Fayols approach rejected the old notion that managers are born, not made,
proposing instead that management is a skill which can be acquired if its principles are
understood.
The Bureaucratic Approach
Max Weber (1864-1920) was a German sociologist who approached management by
focusing on organizational structure, dividing organizations into hierarchies with clear
lines of authority and control. This meant that managers were given legal authority
based on their position in the organizational structure, to enforce rules and policy.
Webers bureaucratic system helped large organizations to function in a more stable,
organized and systematic manner. However, by doing away with personality based or
charismatic leadership, individuality and creativity is often sacrificed. Bureaucratic
leaders and workers are required to obey rules and do only what they are told. The
result is that these leaders seldom think outside the box and therefore find it very
difficult to adapt to changing environments and new challenges.
The enterprise ownership has to be vested with the State. It could be in the nature of
Central, State or local government ownership or any instrumentality of the state too can
have the ownership of public enterprise.
2. State Control:
Public Enterprise is controlled by the Government both in its management and
functioning. The Government has the direct responsibility to manage the affairs of the
enterprise through various devices and exercises control over it by means of a number
of agencies and techniques.
3. Public Accountability:
Public Enterprises owe accountability to people as they are funded through public
money. This accountability is realised through legislature and its committees, ministers,
audit institutions and other specialised agencies.
4. Autonomy:
Public Enterprises function with utmost autonomy under given situations. They are free
from day to day interference in their affairs and management.
5. Coverage:
The public enterprise traverses all areas and activities. There is hardly any field of
activity, which is not covered by the operations of public enterprises.
Quantitative approach:
Quantitative analysis involves using scientific or mathematical data to understand a
problem, such as analyzing surveys to predict consumer demand. This contrasts with a
qualitative approach, which uses a more social methodology, like interviewing people.
The quantitative approach focuses on the results from a large number of people,
instead of focusing on individuals. Often a combination of the two approaches is used to
solve a problem, taking advantage of each approach's strengths.
Benefits of Going Quantitative:
If you're looking for general information about the traits and habits of a large group of
people, quantitative research is the way to go. Quantitative methods involve compiling
statistics, opinion surveys and questionnaires, then examining the results to produce
data-driven analysis. With quantitative research, everyone from policy makers to
marketers can determine the most popular choices to make. The quantitative approach
provides hard numbers, which are useful in making business decisions and deciding
between various projects.
Organizational behaviour:
Organizational behavior studies the impact individuals, groups, and structures have on
human behavior within organizations. It is an interdisciplinary field that includes
sociology, psychology, communication, and management. Organizational behavior
complements organizational theory, which focuses on organizational and intraorganizational topics, and complements human-resource studies, which is more
focused on everyday business practices.
Behavior model
Diagram of Schein's organizational behavior model, which underlines the three central
components of an organization's culture.
deterministic view of social action, since each assumes that individuals will maximize
organizational efficiency, independently of their own welfare, and with no thought for the
relationship between the collective goal and their own particular purposes. The Human
Relations Movement in organizational analysis, an otherwise diverse group of writers
and approaches, is united by its opposition to precisely this assumption. Despite such
criticisms, the classical theory of administration has exerted considerable influence on
the fields of business studies and public administration, and it still provides the basic
concepts which many managers use in clarifying their objectives.
When motivation theory is being considered the first theory that is being recalled is
Maslows hierarchy of needs which he has introduced in his 1943 article named as A
Theory of Human Motivation. According to this theory, individual strives to seek a
higher need when lower needs are fulfilled. Once a lower-level need is satisfied, it no
longer serves as a source of motivation. Needs are motivators only when they are
unsatisfied.
In the first level, physiological needs exist which include the most basic needs
In the fourth level, self-esteem needs remain. This is where people looks to be
respected and to have self-respect. Achievement needs, respect of others are in this
level.
In the top-level, self-actualization needs exist. This level of need pertains to
Needs for achievement: The person who have a high need for achievement
seeks achievement and tries to attain challenging goals. There is a strong need for
feedback as to achievement and progress, and a need for a sense of
accomplishment. The person who have a high achievement need likes to take
personal responsibility.
Needs for affiliation: The person who have a high need for affiliation needs
command other people. Most managers have a high need for power.
Although these categories of needs are not exlusive, generally individuals develop a
dominant bias or emphasis towards one of the three needs. Entrepreneurs usually have
high degree of achivement needs.
Incentive Theory
Incentive theory suggests that employee will increase her/his effort to obtain a desired
reward. This is based on the general principle of reinforcement. The desired outcome is
usually money. This theory is coherent with the early economic theories where man is
supposed to be rational and forecasts are based on the principle of economic man.
Leadership theories:
Trait Theory
The idea that great leadership derives from a person's individual characteristics or traits
is known as trait theory. Research identifies six personal traits that strongly relate to
to be built, and the laissez-faire leadership style is effective when subordinates are
trained and experienced individuals who appreciate the freedom it provides.