1. Managing Organization
ABE Graduate Diploma (QCF Level -6)
Prepared & Presented
by
Pyi Kyaw Lynn
B.A (English), Yangon University
M.B.A (Finance), Assumption University of Thailand
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2. CHAPTER [I]
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THE DEVELOPMENT
OF
ORGANIZATIONAL
THEORY
A. Nature of Organizations
B. Classical Theory
C. Human Relations School
D. Contingency Theory
E. System Theory
F. Action Theory
G. Contemporary Theories
TODAY’S AGENDA

3. [A] Nature of Organizations
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Common Features to All Organizations
Providing
Utilities
Rules &
Regulations
Division of
Labor
 Organizations perform tasks by collecting the factors of
production (FOP) or resources & converting them into utilities.
 FOP : Land, e.g., minerals, trees , Labor, human skills & brain,
Capital, e.g., machinery & goods.
 Utilities : goods & services > distribution > retailers &
wholesalers > consumers.
 Formal [written] or outlined structures and objectives .
E.g., large organizations
 Informal [generally accepted policy or ways of doing things].
E.g., family shop.
 Breaking up of activities into selected work tasks,
increasing the efficiency of the firm by specializing in work
& becoming expert. Work roles or set of duties may be
highly specialized or general.

4. Cont’d
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Chain of
Authority
Information
System
Hierarchy of roles or combination of individual
performance to achieve the objectives of the organization.
Hierarchy :a high or low structure of organizational roles.
At the top of chain, senior management make decisions,
orders & instructions are passed down the chain of authority
& until the lowest level are reached to be carried out.
Up-to-date information help to optimize the usage or plan
the operation or efficient use of resources
To control & evaluate the performance of the workforce
,checking whether targets are being met, comparing the
performance with others in a similar industry.
Organizations possess information systems > to be
available up to date information > to assist the efficient
operation of the firm.

5. [B] Classical Theory (Structure & Formal Organization)
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APPROACHES
KEY
THEORISTS PRINCIPLES
Organization
without
PEOPLE
 To pursue a single set of principles or “Holy
Grail” approach of structure of organization
once discovered is the key to the best way for
structuring > all types of organizations.
 There should be a blue print [one
best practice]of structure which
could be applied universally.
 The structure to be hierarchical
with clear level of authority,
having each level its own function.
 Scientific guidance to managers on
how to run an organization.
 Henri Fayol
 Lyndall Urwick
 F. W. Taylor ‘s
 Scientific Management
 Weber’s bureaucratic structure

6. HENRI FAYOL (1841- 1925) Administrative Management
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7. Henry Fayol : Administrative Management
[Principles of Ideals Structures]
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Division of
Labor
Coordinati
on
Span of
Control
Economies
of Scale
 Work is divided : between the levels of authority with each level
having its own duties form top to down.
 between departments & groups having its function to perform.
 Departments to be coordinated so that all the efforts to move in
same directions in achieving the objectives of the organization.
 Setting up maximum numbers of subordinates under a superior.
E.g. 30 or 50 ???
 Similar activities to be grouped to avoid overlap & to get
economies. E.g., mass production, bulk buying
 Organizations to have clear objectives.Objectives

8. Cont’d
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Authority
Responsibil
ity
Specializat
ion
Definition
of Tasks
 Organizations to have a clear line of authority.
 A responsible person to be given the authority to carry out the
task. Superior to be responsible for the actions of subordinates.
 As far as people to specialize in order to be proficient.
 Employees to know exactly what is expected of them.
 Each member to have one clear superior to whom the person is
responsible. The span of control should not be too wide & no
person should not supervise more than five or six subordinates.
Unity of
Command
Unity of
Effort
 Everyone in the organization to be working towards achieving
the goals of the organization.

9. LYNDALL URWICK (Administrative Management)
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10. Lyndall Urwick’s Principles of Management
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 one group, one function” principle to be effective
organization and every department to be focused on own
jobs not to interfere with other activities.
 Management to structure the organization so that all the
parts fit together & work as a functional whole.
 There has to be clear lines of authority in the organization.
 Achieving objectives is the reason for the existence of
organization & failing to achieve the objectives should cease
to exist.
bjectivesO
pecializationS
oordinationC
uthorityA
esponsibilityR
 Superiors to be responsible for the actions of their
subordinates.

11. Cont’d
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 Authority & responsibility to go together.
 A superior to be responsible for only up to six
subordinates.
 The sections & departments to be in balance : no one
department not to dominate the organization.
 Jobs to be described & duties precisely defined.ob DefinitionJ
orrespondenceC
pan of ControlS
alanceB
ontinuityC
 The organization to be set up in such a way that it can
continue to perform its functions.

12. FREDERICK WINSLOW TAYLOR (1856-1915)
Scientific Management
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Attacked the
Traditional
Approach to
Management !!
Developed
Systematic &
Analytical
Approach to
Management !!

13. Application of Scientific Knowledge to Management
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 The best method of doing
jobs !
 The best way to solve every
operating problems !
 Replace of opinion & rule of thumb
with scientific operation !
 Scientifically determine the
accurate time & method of each job !

14. F W Taylor : Scientific Management
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 Managers to be responsible for planning, organizing, supervising the
subordinates. Workers to be free from the problems & to concentrate on tasks
to get the jobs done.
 Managers to treat employees as individuals rather than as teams or trade unions.
 Managers to select & train staff in the most efficient way of performing works.
 Managers to motivate workers with the prospect of higher pay & the chance of
promotion for those who deserve it.. E.g., “ a fair day’s pay for a fair day’s work”.
 Managers to produce a blueprint of the best way to perform a task by studying
successful employees then applying to all employees.
 Managers to create harmony in the work place by showing that success of an
employee is directly linked to the success of the organization.
 Managers to see scientific approach is applied to each operation performed
by an employee to avoid the waste of effort.

15. Criticisms of Scientific Management
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 Management takes over all functions & workers just taking
orders with little control over work situations. No delegation.Little control
 Managers only focused on first-class workers, ignoring older or
handicapped people.
 Little room for negotiation between management & workers.
Unscrupulous manager potentially exploit in payments &
measuring performance. No bargaining about wage rate since
every job was measured, timed and rated scientifically.
Money as
motivator
Group
pressures
First class
workers
Lack of
negotiation
Lack of group
dynamics
 Money as the only motivator and lack of other factors for job
satisfaction, encouraging management a “ carrot & stick”
attitude to workers.
 Workers are treated as individuals & underestimates the effects
of group pressures & unions on production & efficiency.
 It does not take into account the concept of group dynamics.
 The creation of boring, repetitive jobs, tight control over work.

16. Scientific Management Through Time & Motion Studies
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Select & Train
the workers !
Development of the
efficient production
line through Time &
Motion Studies !
Carrot- Stick approach to
the Motivation of workers
to increase output!

17. Max Weber (1864-1920) Bureaucratic Management
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18. BUREAUCRACY
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Main Features
 Specialization : There is clear-cut division of
labor and a high level of specialization, creating
continuity even if the current job holder leaves.
 Hierarchy of authority : Sharp distinction
between management & labor. Clearly defined
levels of authority within management ranks.
E.g. Army and civil service.
 System of rules : Uniformity of decisions &
actions is achieved through formally established
rules & regulations.
 Impersonality : Allocation of privileges exercise
of authority & decisions are in accordance with
the laid-down system of rules. Avoid personal
preferences of employees.

19. BUREAUCRACY
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Criticisms of Bureaucracy
 Over-emphasis on rules & procedures.
 Too dependence upon bureaucratic status,
symbols & rules by officials.
 Initiative may be stifled & lack of flexibility
or adaptation to changing circumstances.
 Position in the organization can lead to
officious or dictatorial behavior.
 Impersonal relations lead to stereotyped
behavior & lack of responsiveness to
individual incidents or problems.

20. Values and Weakness of Classical Theory
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 Strong elements of common
sense easily recognized by
practicing current managers.
The principles didn’t completely
ignore social dimension.
 Mainly focus that structure
affects performance of
organization & the importance of
management education.
The strongest criticism of the
approaches belief in the existence
of a single set of guiding
principles of organization.
 The rigidity of the principles
preclude the flexibility in designing
structure to suit the circumstances.
 Overemphasis on division of labor
& specialization, spans of control, etc
Human beings treated as puppets
to fit into the organizational roles
 Decision-making rests on
management & little consultation
from staff.
 Management has complete control
but staffs need to be responsive to
external forces. E.g., customers,
competitors, etc.
Values of Principles of Organization Weaknesses of Principles of Organizations

21. [C] Human Relations School Behavioral Management
Social factors, Behavior & Informal network
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 Understanding the interaction of people to improve the
organization. (Precursor of Personnel Management)Basic Idea
Main
Concern
 To identify possible organizational practices in line with the reality
of the people behavior.
Forces of Elton Mayo (Harvard Professor)
 Workers motivated by social needs & interaction, self-esteem,
recognition, a sense of belonging & security after achieving money.
 Individual workers belong to groups at the workplace with their
own codes of behavior , leaders, means & practices enforced by
group norms , forming informal network within formal structure.
Motivation
Group
Belonging

22. Elton Mayo (1880-1949)
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23. Elton Mayo & The Hawthorne Studies (1924-32)
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 Relationship between the lighting level in work place & the
productivity by workers. There was not that much difference
between the productivity of workers when the level of
illumination was increased or decreased in the Test Room.
 Individual workers cannot be treated in isolation, but must be seen
as members of a group. Informal groups at work exercise a strong
influence over the behavior of workers.
 The need to belong to a group is more important than monetary
incentives or good physical working conditions.
 If workers feel valued and important, as opposed to external
factors, enthusiasm increase for their job & higher output.
Hawthorne
Effect
Findings
Contributi
ons
 Hawthorne studies demonstrated that the working conditions
had no significant effect on productivity, but it was the social
interactions within the group which affect the motivation of
workers & standard of work performance.

24. Hawthorne Studies at Relay Assembly Test Room
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25. Summary of the Human Relations School
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 Hawthorne studies shows  the formal structure ,values & goals are not the
only determinant of behavior in the work place, informal network of work
groups and interactions (interpersonal relationship ), play important roles for
the lives of workers.
 Informal work groups controls & determines the habits, attitudes &
motivation of the individual worker, provide informal channel of
communication, e.g., grapevine (gossip, rumours) or word of mouth
 Work group norms set standards of performance. E.g., time keeping, output,
quality, attitudes towards clients, dress codes, etc.,
 Group collaboration does not occur by accident; it must be planned and
developed to reach a cohesion within a work plant.
 The concept bring > formal & informal to be inline > applying values & goals >
maintaining empowerment & participation to develop motivation.
 Emphasize the importance of the social needs of individuals, sense of
personal identity, recognize organization as a social organization & the
importance of group, group values & norms.

26. Organizational Iceberg
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27. Joan Woodward
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28. [D] Contingency Theory by Joan Woodward
(Alternative forms of organization structures & management system)
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Main Features
 No one best structure or method can be applied to all
organizations. There is a wide range of possible structures.
Influencing
factors or
contingencies
 The decision to choose appropriate structure depend on the
factors such as types of technology, product or service,
motivation, skills, knowledge, commitment & experience of work
force.
Findings
 No definite pattern can be set with regards to business success.
Size of production affect the structure of the firm.
 Different structures in terms of the level of authority, span of
control, definitions of duties, the extent of communication and
specialization to be developed.
 There is a correlation between the level of control over the
production process and working patters directly linked to the
objectives of the organization.

29. Important Contingencies or Attributes
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 Deciding which
structure produce
the best
performance is
situational
 i.e. contingent
upon certain
contingencies or
attributes (nature
of tasks & nature
of environment
influences ) of the
situation of each
particular
organization
 Type of Technology
 Range of Products
 Suppliers and distributors
 Consumer interest groups
 Customers &competitors
 Government
 Unions

30. Structure & Technology (Three Forms of Organizations by Joan Woodward)
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Unit or Small Batch Production
 The least automation processes where machines are not suitable for
short run production by customer’s specification & prototypes .
 Production is based on order. None routine technology.
 Small batches of items. E.g., aircraft or ship-building, furniture maker,
surgical teams.
Type
 Lose structure with delegation of authority within a standard
pyramidal hierarchy with permissive management attitudes.
Structure
 Skills and knowledge is more important than machines
 Work process is unpredictable, hard to pre-program or automate.
 CEO has low span of control (direct reports).
 Relatively low percentage of managers
 Organic structure & Flat organization (few levels of hierarchy).
Tips

31. Cont’d
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 More automated with production of standard items in large
quantity & assembly line working. Routine Technology.
 Technology not entirely dominant due to occurrence of variations
and uncertainties even in the mass production line. E.g., Cars,
Aluminum cans, toasters.
Type
 Characterized by tighter control with large scale hierarchies .
 Traditional pyramid shape ,elongated at the base where large
numbers of workers at the lowest levels with relatively few middle &
senior managers.
Structure
 Taller hierarchies
 Bottom level is huge (supervisor span of control is 50)
 Relatively greater number of managers ( hierarchy is so tall)
 Mechanistic, bureaucratic structure with large span of control.
Tips
Large Batch & Mass Production

32. Cont’d
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Type
Structure
Tips
 Characterized by oil refineries & chemical manufacturing where
production process is relatively stable & fully automated.
 E.g., bakeries, breweries, dairies, power plants.
 Machines do everything, humans just monitor the machines.
 Tall and thin or inverted pyramid: almost nobody at the bottom
 Organic at the top & mechanistic at lower levels , because machines
do everything & not much paper work, low level supervision, etc.
 Flexible structure with diamond shaped hierarchies where small
number of operatives for service and maintaining the machinery.
 A larger group of middle managers, scientists, accountants.
 Problems arise from the middle where limited opportunities for
advancement & limited individual initiative for the production process.
Process Production

33. Burns & Stalker : Two “Ideal Types” of Organizations
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Mechanistic Structure Organic Structure
 Based on Bureaucracy
 Directive leadership
 Output orientation
 Rigid departmentalization
 Highly specialized functional tasks
 Traditional ways of working
 New ideas are not acceptable
 Strict chain of command
 Narrow span of control
 Centralized decision making
 Vertical communication
 Little teamwork
 Loyalty to organization
 Precise technical methods
 Daily reporting
 Fluid structure
 Horizontal/lateral interaction
 Loyalty to project/group
 Network communication
 Individual decides own methods
 Tasks are adjusted & redefined
frequently
 Members not stick to JD
 Service oriented
 Responsive to customer needs
 More verbal style reporting
 Prestige comes from personal
contribution

34. Lawrence & Lorsch’s Structure & External Environment
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 If environments are changing rapidly ,difficult to predict with
different demands, more department & sections to be set up
forming a greater division of labor & specialization.
 The internal structure of the organization develop or create
different attitudes and ways of doing things based on the nature
of the tasks.
 Potential departmental conflicts .
Research & Development Production
Department
Sales Department
More concerned with new
ideas, product innovation
with long term view.
Operate in a dynamic &
scientific environment ,
suitable with organic
structure
More concerned with short
term problems like quality
control, inventory
management & delivery
dates. Operate in stable &
technical environment ,
suitable with bureaucratic
structure.
In the middle between
R&D and Production. More
concerned with chasing
production and external
market.
Differentiation

35. Cont’d
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Conclusion
 The ways in which the organization as a whole draws together its
parts or subsystems in order to achieve objectives.
 The degree of co-ordination and co-operation between different
departments with interdependent tasks.
 In mechanistic structures, integration to be achieved through
policies, rules & procedures.
 In organic structures, integration to be achieved through
teamwork & mutual corporation
 For rapidly changing environments, both differentiation &
integration need to be at high level.
 For relatively stable environments, less integration is needed
because decision is made at the top level of the organization.
 Too low level of integration may result in departments ‘doing
their own thing’, creating poor decision & inefficient use of
resources.
Integration

36. [E] System Theory : The systems Approach
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 The frame of reference : Composed of regularly interacting or interrelating
groups of activities evolved from “ individually oriented industrial psychology to
system oriented organizational psychology.
 Based on premise that organizations are highly complex social systems.
 Summary : Organizations > inputs > transformation process > outputs. Feedback
loop included to show > outputs have an effect upon the system > by returning as
an input.
Inputs
Organization or
Transformation System
Outputs
FEEDBACK
Basic Elements of A System

37. Organization As An Open System
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 An organization, e.g., a
manufacturing company is a
complex system of interrelated
departments, processes, and
people.
 There is clearly a boundary
between what is “inside” and what
is “outside” of the organization.
 The organization as an open system
exists within an environment and
imports materials, capital and
people from that environment.
 These inputs are used to create
goods and services and then
exported back into the
environment with and added value
outputs.

38. The Nature of Systems
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Sub -
Systems
Boundaries
&
Environment
 Each system has many “sub-systems”, within an organization , every
department can be seen as sub-system.
 A system of interdependent parts constantly inter-relate both
internally and externally.
 E.g., Planning Department (sub-system) interfaces internally with HR,
Sales & Mar.., Production & Procurement and Finance for budgeting.
 E.g., HR Department (sub-system) interfaces externally with labor
market which is outside the organization.
 Closed systems function entirely within their boundaries & totally
unaffected by anything outside. E.g., Nuclear Power Plants
 Open systems more common & flow occur across the boundary &
factors outside the system affect it significantly. E.g., Organizations
 Boundary exist around each system or sub-system .
Objectives
&
Goals
 All systems & sub - systems have a purpose, objectives & goals.
 E.g., Ford Motor Co’s main objective is the production of cars but it’s
sub – systems’ objectives is painting the body parts & mixing paints
into the correct colors.

39. Sub-Systems of the Organization
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Psycho social
sub-system
 People are key element in the firm and important determinants
are goals, values, relationship & behaviors of the members of the
organization.
 Concerned with the division of tasks & grouping into operation
units, coordination & control. creating interdependence between
personnel and technology. E.g., Organization chart
 Organizations employ technology for carrying out its tasks. E.g.,
machines, robotics ,filling systems, communication equipment.
 Attention on mechanisms of coordination & control.
 E.g., quality, customer care & TQM are applied for managerial
objectives.
 Emphasizes on the formal goals & values of the organization itself.
 Production industry, goals & values are expressed by quantifiable
targets > profits, numbers of units produced over time.
Technical
Sub-System
Structural
Sub-System
Goals &
values sub -
system
Managerial
sub - systems

40. System, Sub-system & Boundary
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 System has boundary
to interface with
environment !
 Subsystems are
mutually related to
each other !

41. Levels Within The Organizations
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Technical or
Operational Level
 Concerned with
getting the
actual task done.
e.g., finance
department the
task is the date
entry payment of
creditors.
 [daily operation]
Tactical Level
 Concerned with
coordination & integration
of technical level.
 Emphasized on mediation
& compromise between
the departments to work
well together, ensuring
continuity & consistency
across operations.
 e.g., overall financial or
accounting systems and
policies.
r Strategic Level
 Organization –wide
development in
relation to its
environment
,forecasting internal &
external pressures,
forming policy about
responses.
 Determining future
direction of the
operation using the
overall methods of
achieving development
& commitment.

42. [F] Chris Argirs’s Action Theory
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43. Action Theory : Argyis & Schol’s Three Variables
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 Case Study to illustrate this process.
 A manager may have a governing variable of suppressing conflict of
interest problem and one of being competent.
 In this situation he plan or design action strategies to keep both these
governing variables within acceptable limits. In this case, he intend to
avoid the discussion of the conflict situation and say as little as
possible. This avoidance may (he hopes) suppress the conflict, yet allow
him to appear competent because he at least hasn't said anything wrong.
 This strategy will have various consequences both for him and the others
involved. An intended consequence might be that the other parties will
eventually give up the discussion, thereby successfully suppressing the
conflict. As he has said little, he may feel he has not left himself open to
being seen as incompetent. An unintended consequence might be that
the he thinks the situation has been left unresolved and therefore likely to
recur, and feels dissatisfied.

44. Cont’d
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 Values or feelings which the person is trying to keep within
some acceptable range.
 We tend to have many governing variables. Any action will likely
impact upon a number of these variables.
 Therefore any situation may trigger a trade-off among governing
variables.
Governing
variables
Action
strategies
Consequences
 Moves & plans used by the person to keep their governing
values/variables within the acceptable range.
 These strategies will have consequences which are
both intended -- those the actor believes will result --
and unintended. In addition those consequences can be for the
self, and/or for others.

45. [G] Contemporary Theories
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 Excellence Theory
http://www.businessballs.com/tompetersinsearchofexcellence.htm
 Theory Z
 Organizational Culture
 American & Japanese Corporate Cultural Models

46. [G] Contemporary Theories
Excellence Theory : Peters & Watermen
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Employee
Engagement
 Excellence is related to motivation & achieved only when employees
are engaged with the organization’s objectives.
 Purcell’s finding of conventional management style of command &
control focusing on customers shift towards employees’
expectations which in turn creating commitment & loyalty ,
resulting customer satisfaction.
Bias for
Action
 Action oriented & bias for getting things done by SOPs.
 Bias for action require tolerance for risk taking & mistakes.
 Managers must show readiness to engage in crisis & people not to be
afraid of making mistakes.
 Enemy of excellence : playing safe by a firm leading to inertia.
Autonomy &
Entrepreneu
rship
 Excellent firms foster leaders & innovators.
 If people are held on so tight , creativity destroyed.
 Practical risk-taking to be encouraged. Given the chance,
encourage to try motivating factor even efforts no results.

47. Cont’d
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Close to the
customer
 Excellent firms learn & listen from customers, creating
marketing approach rather than just selling.
 Customer service concept to be committed by all employees.
 Innovative firms get the best ideas > from customers.
Productivity
through
People
 Excellent firms treat > even rank –and –file [ordinary]
employees > as a source of ideas, quality & productivity.
 To break “Them & Us” mindsets generating commitment &
productivity.
 Managers to treat the stuff as valuable assets encouraging to
take risks, listening & learning from both from the
subordinates & the clients/customers.
Hands-On
Value-
Driven
 To have well defined value system & top management to
keep in touch with front lines.
 To value of perfection [zero tolerance for flaws]. E.g., Honda
motor.

48. Cont’d
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Stick to the
Knitting
 [Stay with the business that you know !! ]
 Excellent firm concentrates on what it does best & does not
branch out [diversify] into unfamiliar areas .
 The principle mainly concerned with mergers & acquisitions
industry.
Simple form
Lean staff
 Some of the best companies have minimal HQ or top level staff
with central corporate staffs less than 100.
 Some excellent firms have simple management structures
without too many layers & levels of authority
 No matrix forms of multidisciplinary project teams.
Simultaneous
Loose Tight
Properties
 Decentralized operational units or shop-floor activities but
strong centralized control over core units.
 Organizations need to have not only vision & centralized
objectives & values but also delegation of staffs as son as key
standards are maintained.

49. Characteristics of Culture of Excellence
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 The role of leadership & vision of management is crucial.
 Motivation of staffs are important for the achievement of the
vision.
Leadership
 To focus on quality & value for both the company & the
customer, encouraging creativity & innovation of employees.
 Blame mindset to be eradicated & free from worry of making
mistake & risk taking culture to be encouraged.
Quality &
Value
 Structure to be flexible to cope with external environment.
 Employee to get involved in problem solving & decision making
process.
 To apply benchmarking concept in comparing & contrasting
process with other firms .
Structure

50. Attributes to the Organization’s Culture
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 Goals & mission statement to be clearly communicated by all levels
of the organization.
 The dominant behavior patterns of interactions between the
organization & its stakeholders to be in line with expectations.
 The distribution of authority & decision making concentrated at the
top & spread downward to empowered employees.
 Structure closely related to the authority distribution of the
organization. E.g., organization charts.
 The way in which power & authority is exercised along a continuous
sequence from authoritarian to democratic.
 Responsiveness to the needs & aspirations of staff & stakeholders.
 The degree of enterprise, innovation, competitiveness, flexibility &
drive for excellence of organization.
 Readiness to embrace changes from environment. It may be
proactive (anticipating & planning for change ) or reactive ( coping
with changes when arises )
Behavior
Authority
Structure
Leadership
Values
Entrepreneur
Spirit
Change
Goals

51. American Culture (Tend to be bureaucratic )
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Organization
Culture
Dis
advantages
Advantages
Loyalty
Feature
 Decision making > concentrated at the top & Instructions flowing
down to subordinates (Top-down)
 few people > involve in planning & decision - making .
 Swift decision – making > because of clear cut objectives of the
plans and decisions from the top
 Take times for implementation of plans & decisions > because of
distance to flow down the organization ( needed to explain to lower
levels )
Leadership
 US firms > loyalty first for their professions and culture stresses >
the importance of short term results > create the culture of hard
sell ( high pressure selling ),rewarding individual results & actions
 A sense of job insecurity > rapid labor turnover > creating some
firms reluctant for > heavy investment in long term stuff &
management training.
 US culture > favors > strong & decision leadership from the top >
management not afraid of confrontation & competition.

52. Japanese Culture (Tend to be collectivie )
 Decision– making > flowing up from > the lowest levels with
suggestion and ideas > to top management > then flowing down
again > through consultations with > people concerned.
 Bottom – up decision making > encourages a culture of consensus
> people get a chance to get involved with the decision making
process.
 Long decision making process > objectives become confused
within people > more delay in implementation of the planning.
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Organization
Culture
Dis
advantages
Advantages
Loyalty
Feature
 Stuff > first loyalty to the firm > far more collectivist > as opposed
to rewarding individual results. Japanese pride > in the group or
organization > not in the individual.
 The loyalty of employees to their firms > reciprocated by the job
security for them.
 In many firms > lifetime employment offered > coz confidence in
people > in turn encourages to undertake long term, expensive
training program > creating benefits both staff and firm
Lifetime
employment

53. Ethics, Morals & Codes of Conduct
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DEFINITION
 Ethics is concerned with the study of morality : practices &
activities that are considered to be importantly right or
wrong, together with the rules that govern those activities
& the values to which those activities relate.
 Ethics refers to a code of moral principles & values that
guide human activity by setting standards of what is
acceptable or not.
ARGUMENTS
FOR ETHICAL
BEHAVIOUR
 Promote social responsibility
 Changes in legal/compliance regulations
 Good practice
 Retain & motivate staff
 Commercial implications of unethical behavior
 Stakeholder support

54. Business Ethics
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Behavior
Treatment
Stakeholders
Environment
 Behavior towards customers, suppliers, distributors & competitors :
e.g., selling & marketing, fair competition, information gathering,
inducements & incentives.
 Treatment of employees : e.g., recruitment, rewards, training,
promotion, dismissal, rights & duties of employers & staffs.
 Treatment of other stakeholders : e.g., local communities,
governments, interest groups (NGOs).
 Effect on natural environment : e.g., pollution, recycling,
sustainability.
Conduct
 Conduct in international operation : e.g., use of power, respect of
human rights, respect for local cultural values, offshoring.

55. Approaches to Ethics, CSR & Corporate Governance
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Descriptive
Normative
Analytical
 The approach draws attention to the values & beliefs of people
from different cultures & societies that influence their attitudes
towards the various activities of business in their home countries &
abroad.
 The approach identifies sets of values & beliefs as a basis for
making ethical decisions at the individual, group or senior
management level in an organization.
 The approach attempts to explore the relationship between these
normative values & believes or ideologies such as political or
religious beliefs & culture & social customs.

56. 4/1/2015 56PKL
Thank You !!

57. [Q & A] Be Prepared !!!
 1. Most organizations have different levels of operations. These operations
are generally known as “Technical or Operational Level, Tactical Level &
Corporate or Strategic Level”.
Describe and explain the three main levels of operations. Use examples
from the workplace to support your answer. [15 marks]
 2. The ‘Human Relations School’ approach to management is based upon
understanding the role of the people dimension within an organization.
Critically evaluate this approach to management, using relevant theory to
support your answer. [15 marks]
 3. Bureaucratic management structures are still used by many
organizations.
Outline and critically evaluate this type of structure, using workplace
examples to support your answer. [15 marks]
 4. Explain the main characteristics of a “bureaucracy”. Discuss the extent to
which an organization can operate without any features of a Bureaucracy.
[25 marks]
4/1/2015 57PKL

58.  5. Assess the extent to which the use of scientific management method can
lead to a sustainable improvement in a company’s competitiveness.
[15 marks]
 6. Organizational structures are often classified as being either mechanistic
or organic; the right structure for an organization depends, to some extent,
on the environment in which it operates.
Explain what is meant by the term “mechanistic organizational structure”
[10 marks]
Assess the strengths and weaknesses of mechanistic structure.
[15 marks]
 7. One way to recognize why people behave as they do at work is to view
an organization as an iceberg. What sinks a ship isn’t always what sailors
can see, but what they can’t see”. (Hellriegel, Slocum and Woodman)
Explain the meaning of the term “organizational iceberg”[10 marks]
Refer to the sample Q&A .Discuss the usefulness to managers of viewing
organizations as icebergs., [15 marks]
4/1/2015 58PKL

59.  8. Many companies have recognized that traditional vertical
organizational structures are ineffective in today’s fast-shifting
environment. [2009 – December]
Examine the three main influences on the design of successful
organizations in the 21st century. Justify your choices. [10 marks]
Assess the extent to which organizations that adopt mechanistic structures
are likely to be successful in the 21st century. [15 marks]
 9. Compare and contrast mechanistic with organic structures as
appropriate organizational structures for the 21st century. [25 marks]
 10. Explain the key principles of scientific management. [10 marks]
Using examples to support your answer, critically assess the relevance of
scientific management to today’s organizations. [15 marks]
4/1/2015 59PKL

60.  11.Explain, with reference to appropriate theories, the “Human
Relations Approach to Management. [10 marks]
Contrast the approach to the “contingency Theory” , explaining
the advantages and disadvantages of each approach. Use
relevant concept/theories to support your answer. [15 marks]
 12. Explain the term “The Human Relations Approach to
Management” and discuss its significance in today’s business
world. Refer to relevant theory and give examples from the
workplace to support your answer. [15 marks]
Burns and Stalker identified two types of systems for structuring
organizations- “Mechanistic and Organic”.
Explain and evaluate these two systems, giving examples of how
each could be used by organizations. [15 marks]
4/1/2015 60PKL

61.  13. Action theory provides a way of addressing the different ideas,
interests and motivations of individuals within an organization.
Explain what is meant by “Action Theory” and evaluate its role in
understanding organizations. You should refer to the work of specific
theorists in your answer. [15 marks]
 14. Many organizations are adopting a more flexible working approach,
which has an impact on their organizational structure.
Describe two different organizational structures and discuss the strengths
& weaknesses of each. [15 marks]
 15. Most organizations have different levels of operations. These
operations are generally known as “Technical or Operational Level, Tactical
Level & Corporate or Strategic Level”.
Describe and explain the three main levels of operations. Use examples
from the workplace to support your answer. [15 marks]
4/1/2015 61PKL