• Formal hierarchical structure. An organization is organized into a hierarchy of authority and follows a clear chain of command. The hierarchical structure effectively delineates the lines of authority and the subordination of the lower levels to the upper levels of the hierarchical structure. • Personnel hired on grounds of technical
Organizational structure refers to the institutional arrangements and mechanisms for mobilizing human, financial, physical and information resources at all levels of the system (Sachdeva, 1990a). It can be arranged by product, function, geographical or product markets. Organizational structure may differ within the same organization depending to the particular requirements. Generally, a MNC will create an organizational structure which is the formal system of task and reporting relationships that motivates and coordinates employees to achieve the organization's goals (Schermerhorn, J.R. 2002a). The best organizational structure for any organization depends on various factors including ability to operate appropriate internal controls, its size in terms of employees, the geographic dispersion of its facilities, the range of its businesses or degree to which it’s diversified across markets (Distelzweig, H. 2006).
Max Weber a German sociologist propounded the theory called principle of bureaucracy – a theory related to authority structure and relations in the 19th century. According to him, bureaucracy is the formal system of organization and administration designed to ensure efficiency and effectiveness. He suggested an ideal model for management as bureaucratic approach. He gave emphasis on division of labor, hierarchy, detailed rules and impersonal relations. Principles of bureaucratic theory 1) Job specialization: - Jobs are divided into simple, routine and fixed category based on competence and functional specialization.
Introduction The resource based view (RBV) of the firm is the dominant theory in strategic Human Resource Management (HRM) due to the significance of a firm’s internal resources and the role that a firm’s strengths and weaknesses play in determining the most effective and efficient way to manage the Human Resource component of an organisation. The RBV contrasts with the traditional structure-conduct-performance model of industrial organisation theory, which focuses on the external environment of the firm in order to explain its behaviour (Johnson, 2006).The emergence of the resource-based view of the firm (Barney and Grant, 1991) has since made common the analysis of an organisation’s internal characteristics, namely its strengths and weaknesses. In addition, the manner in which the RBV of the firm has contributed toward the explanation of the proposed link between HRM strategy design and organisational performance will be discussed and analysed. Background and Definitions In recent years, human resource management (HRM) has been integrated as the process of strategic management, through the development of a new discipline denominated strategic HRM (Wright and McMahan, 1992). Linking HRM to organizational strategy was accentuated with the rise of resource-based view of the firm (Amit and Schoemaker, 1993; Barney, 1995; Grant, 1991; Peteraf, 1993).
Taylorisim focused over a scientific means of managing an organization. It followed two basic ideas, the work study methods and task decomposition. Taylors prime emphasis was over the shop floor management (labour force). He believed managers to be the “monopolistis of
Looking at the history of the civil service Sir Stafford Northcote first served in the Civil Service at the board of trade, he went on to work as a Private Secretary to Gladstone. His biggest impact on the Civil Service though was in 1853 when he and the Treasury Permanent Secretary Charles Trevelyan were commissioned to look up operations and organisation for the entire Civil Service. They made many recommendations many are still used today, like recruitment of civil servants, how they should be appointed on merit, by open competitive examinations; and how they should have a good generalised education, and even how promotions shoul`1d be based on performance. Civil Servants are appointed on merit, on the basis of fair and open competition, dedications and commitment. The core values of civil servants are: integrity, honesty, objectivity and impartiality.
This schedule forms a very unique part of the company’s sales program which deals with the planned response to the demands of the market. A master production schedule is also in management language referred to as the master of all the schedules as this schedule provides the production, planning, purchasing & top management, the most needed information required for planning and control of the whole manufacturing process or the operation. Master production scheduling plays an important role in the balancing of demand with the supply i.e. satisfying customers according to the limits of the factory and the supplier’s base. MPS is used to know the number of the items that are to be produced, the planned inventories of raw materials, finished products and parts etc.
The first party employs these agents as they are more informed about the working dynamics of the industry that they operate in. The Agency theory assumes that there would be self-interest at the individual levels and goal conflicts at the organisational levels between involved parties (Eisenhardt, 1989). Agency theory is particularly useful in several areas of organisational working, such as resolution of goal conflicts, outcome uncertainty and un-programmed and group tasks (Gurbaxani and Kemerer, n.d.). It allows managers a top-down control of the entire scheme of work, and they are able to guide it to completion. However, Eisenhardt (1989) also proposes that in the case of agency theory, while it does have its merits for effective
“Administrative Management is the study of how to create an organizational structure that leads to high efficiency and effectiveness.” (Evolution) The administrative theory focused on the total organization. The Administrative Management theory was mainly pioneered by Henri Fayol and developed at the same time as scientific management. Early influences of administrative management were also Mooney, Reiley, Gulick and Urwick. Fayol was concerned mainly with business management. Fayol recognized the key functions of management as being those of forecasting and planning.
One of the most important themes in Weber’s work is the concept of rationalization. Many of his theoretical studies are devoted to understanding the process of rationalization. This was done by looking at why modern societies took the form that they did. It is important because his stress on this concept is what set him apart from Karl Marx. Marx claimed that material factors were dominant in history, but Weber believed a more common outlook was needed in the understanding of the pattern of history’s development.