Ocm1 2023
Ocm1 2023
(1909-1984)
(1909-1984) (1901 – 2005)
(1901 – 2005) Sustainable Development
Sustainable Development
Harold Koontz
Harold Koontz Peter Ferdinand
Peter Drucker
Ferdinand Drucker
Another fundamental
New means of production
rethinking looking to
There wasn’t much & execution of mass
organizations to create
“management” production increased the
complete and meaningful
need of owners to depend
experiences.
It was owner and anyone on others.
else handling other tasks.
A new era of empathy to
Term in wide-use.
people and the planet
Theories developed
Change of
Management
theories
Scientific Management Administartive Behavioral
Management Management
• Workers have specific but • Collection of principles, • Interaction between
different responsibilities. rules, methods, and management and labor.
• Specialization and division procedures. • Importance of workers’
of worker • Hierarchy and bureaucratic motivation
• Efficiency of production structure • labor participation in work
process • methodology and devising development process.
the system.
ORGANIZATION CULTURE
The answer to the “WHAT IS “ & “WHY IS” Social control system: the
“norms” that must be upheld,
A CONSISTENT behavior & an and sanctions imposed on
OBSERVABLE patter of behavior those who don’t “stay within
the lines.”
”THE STORY” of the people in the
organization and the values that reinforce Immune system: a form of
that narrative. protection that has evolved
from situational pressures.
Pros Cons
Define levels of authority, reporting and Slows down innovation and creativity
responsibility
Increases bureaucracy
Gives clear career paths, specialty and chances
for promotion Creates silos
Pros Cons
Gives employees more responsibility Creates confusion since employees do not have a
clear supervisor to report to
Fosters more open communication
Produces employees with more generalized skills
Improves coordination and speed of and knowledge
implementing new ideas
Difficult to maintain once the company grows
beyond start-up status
Ex.
Though with a variety of organizational structure
(including matrix and divisional),
• famous for its lack of middle management
• placing lower-level employees in direct contact with
their superiors
• encouraging autonomy and communication at all
levels of the organization.
TYPES OF ORGANIZATIONAL STRUCTURE
❑ DIVISIONAL
Pros Cons
Helps large companies stay flexible Leads to duplicate resources
Allows for a quicker response to industry Poor communication between the headquarters
changes or customer needs and its divisions
Promotes independence, autonomy, and a Results in a company competing with itself
customized approach
• With many different business verticals operating in
Ex.
multiple industries, divisional structure allows GE to
implement strategies specific to each vertical’s
business needs and market conditions.
Pros Cons
Allows supervisors to easily choose individuals Presents a conflict between department
by the needs of a project managers and project managers
Gives a more dynamic view of the organization Change more frequently than other
organizational chart types
Encourages employees to use their skills in
various capacities aside from their original roles
Ex.
• Has both functional and product-based divisions.
Pros Cons
Increases productivity, performance, and
Goes against many companies’ natural
transparency
inclination of a purely hierarchical
structure
Breaks down silo mentality Promotes a growth
mindset
Make promotional paths less clear for
employees
Value experience rather than seniority
Ex.
Credits its success with three important
things:
•Teams
•Tools
•Processes
Cons
Become overly complex when dealing with lots of
processes
Pros
An outward flow of information
Encourage communication across the organization. Easy to keep
employees aligned with the company’s objectives Encourage
sharing and collaboration between teams
Cons
Can be difficult to understand by new hires
Lack clarity of reporting, approval and decision-making process
WHAT IS AN ORGANIZATION?
“Organizational culture [is shaped by] the main culture of the society we live in,
with greater emphasis on particular parts of it.” — Elizabeth Skringar.
“It over simplifies the situation in large organizations to assume there is only one
culture… and it’s risky for new leaders to ignore the sub-cultures.” — Rolf Winkler
“An organization [is] a living culture… that can adapt to the reality as fast as
possible.” — Abdi Osman Jama
WHAT IS AN ORGANIZATION?
No organizational structure lasts, and new
structures emerge as needs.
A manager with a wide span of control will not be able to provide as much
one-on-one time.
.
SIZE OF THE ORGANIZATION
A small business would naturally have narrower spans of control.
Sometimes, small businesses are unable to provide much one-on-one
support because there are fewer managers.
WHAT IS AN ORGANIZATION?
LEVEL OF COMPLEXITY
Businesses that are complex and that require significant subject matter
expertise and specialization will naturally require more supervision.