By Grace and Winnie

1. The Organization
Theory
Ip Mei Sz, Grace 52222294
Lau Hiu Tung, Winnie 52221377

2. The Proverbs of
Administration
Herbert A. Simon

3. Administration Principles
1. Administrative efficiency is increased by a
specialization of the task among the group.
2. Administrative efficiency is increased by
arranging the members of the group in a
determinate hierarchy of authority.
3. Administrative efficiency is increased by limiting
the span of control ,at any point in the hierarchy
to a small number.
4. Administrative efficiency is increased by
grouping the workers, for purposes of control,
according to (a) purpose, (b) process,(c)
clientele, or (d) place.

4. Notes on the
Theory of
Organization
Luther Gulick

5. Scientific
Management
Frederick W. Taylor

6. Division of Labour
“THIS DIVISION OF LABOUR, from which so many
advantages are derived,
is not originally the effect of any human wisdom,
which foresees and intends that general opulence
to which it gives occasion.
It is the necessary, though very slow and gradual,
consequence of a certain propensity in human
nature, which has in view no such extensive utility;
the propensity to truck, barter, and
exchange one thing for another.” (Adam, 2005,

7. The Division of Work
Reason:
•Differ in nature, capacity and skill, and gain in
dexterity by specialization.
•Same man cannot be at two places at the same time
•The range of knowledge and skills is limited

8. Scientific Management
Scientific management was a theory of management that
analyzed and synthesized workflows. Its main objective
was improving economic efficiency, especially labor
productivity.
The natural differences in productivity between workers,
which were driven by various causes, including differences
in talent, intelligence, or motivations.
Scientific management's application was contingent on a
high level of managerial control over employee work
practices. This necessitated a higher ratio of managerial
workers to laborers than previous management methods.

9. Four Principles of Scientific
Management
When we talking about the division of work, we should know that Scientific
Management is a good method for them to apply.
1. Developing a science for each element of a man's
work, which replaces the old rule-of-thumb method.
Group all of the traditional knowledgethe traditional knowledge which in the past has
been possessed by the workmen and then of classifying and
reducing this knowledge to rules, laws, and formulareducing this knowledge to rules, laws, and formula which are
helpful to the workmen in doing their daily work.
In addition to developing a science in this way, the management
take on three other types of duties which involve new and
heavy burdens for themselves.

10. 2. They scientifically select and then train, teach, and
develop the workman, whereas in the past he chose
his own work and trained himself as best he could.
It is good for the manager to divide the labor in this
scientific way.
According to the workers nature and capacity to
divide the work, it must be more efficiency for the
workers to produce in this scientific way.
Four Principles of Scientific
Management

11. 3. They heartily cooperate with the men so as to
insure all of the work being done in accordance with
the principles of the science which has been
developed.
4. There is an almost equal division of the work and
the responsibility between the management and the
workmen. The management take over all work for
which they are better fitted than the workmen, while
in the past almost all of the work and the greater part
of the responsibility were thrown upon the men.
Four Principles of Scientific
Management

12. Gains in the process
• Better utilization of the varying skills and
aptitudes of the different workman.
• Encourage the development of specialization
• Eliminates the time
• Turn out more products in a day
• Additional economics

13. The Limits of Division
• The stability of human nature
• Practical and arises from the volume of work
involved in man-hour
• Technology and custom at a given time and place
• Subdivision of work must not pass beyond
physical division into organic division

14. Ambiguities and over-
simplification
of Specialization(Division of
work)
• Specialization:
the separation of tasks within a system
• Could not help in making administration
arrangement
Example:
Specialization by place or by function?

15. By Place
Nurse
Examina
tion
Nurse
Examina
tion
Nurse
Examina
tion
Visiting
home of
school
children
Visiting
home of
school
children
Visiting
home of
school
children
Respirat
ory
nursing
Respirat
ory
nursing
Respirat
ory
nursing

16. By Functional

17. Combination of two
approaches

18. The Whole and the Parts
• It is axiomatic that the whole is equal to the
sum of its parts.
• But dividing in any “whole”, one must be
certain every part, including unseen elements
and relationships, etc.
• Example: Man builds a house
• Men build a house

19. Exception
Some kinds of work cannot be subdivided into the
obvious component parts
the central design and operating
relationship will be lost.
Example: The job require your own creative idea.
• Fashion Design
• Painting

20. • In the “division of the work” among the various
skilled specialists, a specialist in planning and co-
ordination must be sought as well.
• It is self-evident that the more work is subdivided,
the larger danger of confusion and
the larger need of overall supervision and
co-ordination.

21. The co-ordinate of work
Twoprinciples of co-ordination
By organization
By the dominance of an idea

22. By Organization
Employer
Supervisor A Supervisor B
(manage product X) (manage product Y )
Workers
•Subdivisions of work by allotting
•Work co-ordinated by orders of superiors to subordinates
•Reaching from the top to the bottom of the entire enterprise

23. By dominance of an idea
The development of intelligent singleness of
purpose in the minds and wills of those who are
working together as a group, so that each worker
can fit his task with skill and enthusiasm.
Example: A Club in CityU
A person who is good at and interested
in accounting, he is willing to be a accountant at
that club. Another one is good at I.T, so he is
willing to be a I.T assistant. Then, they group
together and do what they are good at.
It depends on people’s mind and will.

24. These two principles of co-ordination
•Not mutually exclusive
•No enterprise is really effective without the
extensive utilization of both

25. One Master
A man cannot serve two masters.
•A workman subject to orders from several
superiors will be confusedconfused and irresponsibleirresponsible.
•A workman subject to orders from one superior
will be methodicalmethodical, efficientefficient, and responsibleresponsible.

26. Contradiction between
specialization and unity of
command
• Unity of command
“Administrative efficiency
is supposed to be enhanced by arranging
the members of the organization in a
determinate hierarchy of authority in order
to preserve unity of command.”(Simon,
Decision should be made upon a determinate
hierarchy of authority.

28. • Specialization
“the use of authority permits a greater degree
of expertness to be achieved in decision-making
than would be possible if each operative
employee had himself to make all the decisions
upon which his activity is predicated.”(Simon,
Decision should be made by the related
department ,supervisor or even worker.

29. Argument of Span of Control
• Span of control:
“keeping at a minimum the number of
organizational levels through which a matter
must pass before it is acted upon.”
Reduce the levels of administration

30. Span of control

32. Organization Patterns
• There are two organization patterns.
• It is talking about the thinkingthinking of those who work
in the company.
From the Top Down
Supervisor
Staff
Chief

33. Example of the Top Down Pattern
As a police
•Must follow the instruction from the sergeant
•Must enforce the law
•Must obey the orders
•Only the Chief has authority.

34. Organization Patterns
From the Bottom Up
Supervisor
Staff
Chief

35. Example of the Bottom Up
• In a supermarket as a staff
• Coupon given by the Chief
• Staff can use it for problem-solving
• The staff can solve the problem by
themselves as the chief has giving them
power.
• They can solve the problem by themselves
and do not need to ask the Chief to solve the
problem or ask for solution.

36. Challenge of the
other principles

37. organization by purpose,
process, clientele and place
• Internally inconsistent with each other
“for purpose, process, clientele, and place are
competing bases of organization, and at any
given point of division the advantages of three
must be sacrificed to secure the advantages of
the fourth.”

38. Ambiguities in meanings of the
key items
• Purpose:
“the objective or end for which an activity is
carried on”
• Process:
“as a means for accomplishing a purpose.
Processes, then, are carried on in order to
achieve purposes.”

39. Example
Purpose
Process

40. Difference
• No essential difference
• Only a distinction of degree
• Process:
not close to the final aim
carry out in a lower level of hierarchy
• Purpose:
orienting value or aim
decide in a higher level of hierarchy

41. Clientele and Place
• Part of the purpose
• Example:
HKFTU’s( 工聯會 )purpose:
‘For decades, HKFTU live up to the principles of
“patriotism, solidarity, rights, benefits,
participation”. We are dedicated to fully
participating in labour, social and political affairs,
safeguarding the rights of employees and
providing a verity of welfare services to meet the
needs of members and people of Hong Kong.’