Management des Organisations S3 PDF

# MANAGEMENT DES ORGANISATIONS S3 ## FONDEMENTS DU MANAGEMENT - **I - LES CARACTERISTIQUES FONDAMENTAUX DU MANAGEMENT:** - There is a great diversity of definitions for Management. - Management is defined as the guidance, the direction of a company. - "To manage" means to direct...

# MANAGEMENT DES ORGANISATIONS S3 ## FONDEMENTS DU MANAGEMENT - **I - LES CARACTERISTIQUES FONDAMENTAUX DU MANAGEMENT:** - There is a great diversity of definitions for Management. - Management is defined as the guidance, the direction of a company. - "To manage" means to direct, and therefore to control. - It can also be called governing, administering... - Generally, management is defined as the set of activities to manage a company. - **A- Definition of Management:** - Management is an activity in which the purpose is to lead an organization towards its goals (by making profits, growing, ensuring a public service, ...) through the achievement of set goals. - Management is linked to teamwork (<< being effective from the beginning, working with others, making others work >>) and its importance increases with the size of the organization. - It finds (almost exactly) its origins in the first great construction projects of Egypt and its vocabulary borrows from the first great Western organizations, such as armies (leadership, strategy, tactics,...). - The term "manager" refers to those who have a management responsibility (in France, this notion is not always synonymous with that of a manager, which corresponds to a status, however not necessarily to a function). - Management can be conceptualized from several different perspectives. - **The American Management Association:** "Management is the process of channeling human and material resources into dynamic, organized units, in order to achieve certain goals aimed, on the one hand, at satisfying those for whom this work is carried out and, on the other hand, at inspiring a good morale and a sense of duty among the performers." - **For some:** “management refers to the whole set of disciplines, methods, techniques, which encompass the tasks of leadership, management, administration, organization of companies”. The application of these techniques aims, in this perspective, to achieve the greatest efficiency, by allowing the manager to organize his resources and means as best as possible, or, in other words, "to optimize his results." Management would, in a way, be "the art of being effective". - Others define management as "achieving goals through others," or "the process of achieving goals by others." - **THIETARD:** "It is the action, art, way of conducting an organization, of directing it, of planning its development and controlling it." - There are also authors who use the term "socioeconomic management" (H. SAVALL and V. ZARDET, "Strategic engineering of the reed" April 2005 ed economica). - For these two authors, management is "a subject of scientific study corresponding to the observation and rigorous analysis of behaviors, actions and practices of actors, within and around an organization." - Management is the specific process of planning, organizing, leading and controlling aimed at determining and achieving set goals based on the employment of humans and the implementation of other resources. - **The main principles of management can be summarized as follows:** - **Management has a goal**: Management seeks to achieves something specific in the form of a goal. Success is measured by achieving the goal. Management, in this case, is therefore an effective way of helping to achieve useful tasks. - **Management is the area of ​​action:** The leaders always dedicate their efforts and energy to the success of the action. For this, the manager gets along with the people who work with them. - **Management is an activity**: It is a distinct activity that can be studied. There is specific knowledge related to its field, and the skills needed for its practice can be acquired. - **Management is achieved by, with and through the efforts of other people:** The tasks have to be carried out with the help of other members of the team. - **Management comes from the joint efforts of a group**: It involves the collaboration of all members of the team. - **Management has an impact on human life** Leaders must have a positive influence on their work environment. They should motivate people so that they improve their results and intervene to ensure that the right decisions are made. - **Management can be viewed as a traditional approach in which human, physical and financial resources are coordinated towards achieving organizational objectives.** - **This process** involves planning, organizing, leading, and controlling activities in order to achieve optimal performance in line with a philosophy focused on satisfying the different stakeholders. - We can distinguish between **strategic management and operational management.** Strategic management refers to the management responsibilities of the company. - **B- DISTINCTION BETWEEN LEADERSHIP AND MANAGEMENT.** - **1- Leadership and management.** - **Walter Bennes**: "Leadership is the attempt to influence the behavior of other people or of a group." - **Robbins and Judge**: "Leadership: “The ability to direct and motivate a group of individuals sustainably towards specific goals”. - Leadership is a process through which one person influences others to achieve an objective and directs the organization in a way that makes it more coherent. - One person influences others through their social influence, and not through their power. - Leadership requires others, who are not necessarily subordinates, to achieve something. - **Manager**: It is the task of leading others and being responsible for the results obtained. - **The prime function of management is to create order and coherence through processes like planning, budgeting, organizing, staffing, and problem-solving.** - **The main function of leadership is to generate movements and changes that are constructive or adaptive through processes like setting the direction with a vision, aligning people, motivating them and inspiring them.** - **2- The manager is an organizer** - The manager derives his authority from the hierarchy, which designates him as such. - He draws his main power from his link to the company. - He has a formal team, over which he exercises his authority. - His main role is focused on the task. - He also controls the activity of the team, such as planning. - What makes him different is that he has goals and that he must do everything possible to achieve them. - The manager is important for a company in order to ensure good overall organization. - **3- The leader is a visionary** - The leader derives his authority from the group, which recognizes him as such. - He derives his power mainly from the relationship he develops with the members of the group. - He is, therefore, focused on people. - The team of which he is the centre generally recognizes him as having informal authority. - He is, therefore, in a way, the driving force in the group. - It is he who initiates proposals and actions.. - His role is therefore to propose and influence. - He has a vision and seeks to achieve it. - He is indispensable in a company, he is the one that motivates the teams. # LES DIFFERENTES CONCEPTIONS DU MANAGEMENT: - **1- The manager's profile:** - **A modern manager should have the skills and competencies needed at the different levels.** The skills and competencies needed for each level of management are: - Technical Skills - Action Skills - Social Skills - Conceptual Skills - Entrepreneurial Spirit - **2 - Competence Acquisition:** - Competence is learned and developed in individuals. - People can gain experience quickly in a variety of challenging situations through case studies and methods. - **3 - Leadership Skills:** - Could be defined as the ability to make the best use of the qualities of others. - It is a major strength. - Leadership is not only the ability to command, as some believe. - It is more about the ability to achieve a goal and create action. - It relies upon strong communication skills, the ability to build relationships, and persuasive skills. - The manager must be a good communicator. - This implies listening, understanding, and having the ability to clearly express ideas, and a sense of humor. - **4 - The Contributions of Management:** - **Management involves setting goals and making decisions.** - **Management also encompasses organizing, coordinating, and optimizing resources.** - **The term "management" is used to replace the terms "administration" or "leadership."** - This change in terminology reflects a change in the way organizations are managed. - **Peter Drucker and Henry Mintzberg:** - **Peter Drucker:** - Drucker has written a great deal about management and his work has contributed significantly to our understanding of organizational performance. - Drucker believes that effective management requires two key dimensions: - **Objective Setting**: A manager should have the ability to select appropriate goals for their organization and then work achieve them. - **Resource Maximization:** A manager should be able to make the best use of resources to reach those goals. This means making the right choices between alternative options to achieve the best possible outcome given these constraints. - **The principles of effectiveness and efficiency are key to the evaluation of any organizational structure.** - **Drucker defines five fundamental principles upon which management is founded:** - Setting goals - Organizing work - Motivating - Communicating - Training teams. - **Henry Mintzberg** - Mintzberg emphasizes the unifying role of the manager: “What distinguishes a formal organization from any other gathering of people, a crowd, an informal group, is the presence of a system of authority and administration, embodied by one or more managers in a more or less structured hierarchy and whose task is to unite the efforts of all towards a given goal." - **II- LE PROCESSUS DU MANAGEMENT** - Management can be viewed as the structured process of planning, organizing, leading and controlling resources to achieve specific objectives. - In an influential study by **Henri Fayol**, which dates back to the early 20th century, he asserted that effective managers follow a process of management that involves different essential functions: planning, organizing, leading and controlling. - **This process can be illustrated as follows:** | **Resources** | **Functions of Management** | **Objectives** | | :-------------------------------- | :----------------------------------------- | :-------------- | | Human Resources | Planning | | | Materials | **The Management Process** | | | Machinery | Organizing | | | Methods | Leading, Motivating, Communicating | | | Money | Controlling | | | Market | | Defined by the organization | - **The organization's resources are at the service of the functions** in order to achieve the pre-determined objectives. - **A- Planning** - **Definition of Planning:** Planning involves deciding in advance what will be done, how, when and by whom. - **The purpose of planning is to create a roadmap that bridges the gap between the existing situation and the desired situation.** Planning is essential to achieve outcomes that would not be otherwise possible. Planning serves as the foundation for management. - **The planning function encompasses strategic direction for the entire organization as well as for specific departments and divisions.** - **Planning requires setting goals, identifying objectives, and defining the means to achieve them.** - **The importance of planning:** - It helps to counteract uncertainty and change. Change and uncertainty require planning. - It helps to focus attention on goals. - It helps to achieve economies. - It helps to make controlling easier. - **B- Organizing** - **Definition of Organizing:** Organizing involves creating and maintaining systems. - The organization function involves grouping activities necessary to achieve goals, delegating authority to someone who manages each activity, and coordinating the organization structure vertically and horizontally. - Essentially, organizing involves identifying tasks, outlining responsibilities and assigning tasks at different levels. - **C- Leading** - **Definition of Leading:** It is a function that is mainly based on interpersonal relationship. - Even when planning and organizing functions are carried out effectively, it is essential to guide and direct people to build good relationships and to be able to manage effectively. - **Harmony of objectives**: Personal goals of employees should be aligned with organizational goals. - **Clear and integrated communication:** The purpose of communication is to make sure everyone understands the importance of working as a team. This is essential to achieve the company's goals. - **Motivation Principle**: The more managers are mindful of how they choose to reward people, and how they use rewards in a way that is motivating. This should also take context into account. The design of a reward system is most effective when it is part of an overall management system, and when such rewards are seen as relevant to the situation and the employees needs. - **Leadership Principle**: The tendency of people is to follow those whom they see as providing opportunities to fulfil their personal goals. Managers should have a good understanding of what motivates employees, how various motivations work together, and how they can best implement the right motivations to achieve the desired outcomes. - **D- Controlling** - **Definition of Controlling**: To control is to analyze the activities of the lower levels to ensure that events are consistent with the plans. - **The function of “control” compares the results obtained with the goals and plans.** - If there are negative deviations, the control system (through corrective measures) helps correct them. This promotes the achievement of plans. - ** The plan informs the manager how to use resources to achieve specific goals.** - **The control process consists in the following steps:** - **Setting standards (plans)**: To define the objectives to be achieved, - **Performance measurement:** To measure the gap between actual performance and desired targets; - **Corrective Action:** To refine plans and modify objectives. This may mean redistributing tasks or making other changes necessary to achieve the desired results. - **Table for the functions and activities:** | **Functions** | **Activities** | | :------------ | :---------------------------------------------------------- | | **Planning** | **Forecasting; Setting Goals; Planning; Job Design** | | **Organizing** | **Organization Structure; Delegation; Relationship Building** | | **Leading** | **Decision Making; Communication; Motivation** | | **Controlling** | **Performance Standard Setting; Performance Evaluation; Performance Correction** | # COMPOSANTES DE MANAGEMENT ET ROLES DU MANAGER - **I- The two dimensions of Management** - **A- Strategic Management : ** - Strategic management involves setting the overarching directions and goals of the company for at least three years. - It is typically the responsibility of the CEO or the management team in a smaller company. - Strategic management involves prioritizing key goals (growth, profitability, safety, ...) by taking into account the specific features of the company and its environment. - **The key elements of strategic management are:** - **Firm Analysis:** - **Technological Analysis**: The company's capabilities and potential for innovation should be evaluated. - **Organizational Analysis:** The company's human, financial, and organizational resources, together with its capacity for adaptation, should be assessed. - **Environmental Analysis:** - **Macroeconomic Analysis**: The company's external environment (political, economic, social, technological, legal, and environmental factors) should be analyzed in order to understand its strengths and weaknesses. -** Microeconomic Analysis**: The company's internal environment (clients, competitors, suppliers, partners, and other relationships) should be analyzed. This allows the team to understand the company's strengths and weaknesses. - **The environmental analysis and the assessment of the company's resources help in identifying external strengths and weaknesses, as well as internal strengths and weaknesses**. - **The second part of strategic management involves defining and prioritizing actions to achieve the company's goals.** - **B- Operational Management:** - Operational management is carried out within the strategic framework that has been set by the strategic management team. - Operational decisions are made based on the opportunities and constraints of the company's external environment, the strategic objectives of the company, and how the company can achieve them. - **The implementation of strategic directions involves extensive decision making and action. This is the realm of operational management.** - Operational management is focused on using the available resources effectively and ensuring that the company's various departments work together to achieve those strategic goals. - **The key stakeholders in operational management are the functional managers** (production, human resources, sales, marketing, ...), and the intermediate management team (heads of department, supervisors, ...). - **II- Role of the Manager** - **In his research in the late 1960s, Henry Mintzberg identified ten key roles of the manager which can be grouped into three categories:** - **1- Interpersonal Roles:** - **Symbol**: The manager is a symbol of the organization. He performs ceremonial and legal duties, and is responsible for representing the company in a variety of contexts. - When representing the company, he is fulfilling a symbolic role, as a leader. - **Leader**: As a leader, he must guide the activities of the team and motivate them to contribute to the organization's goals. - **Liaison Officer**: As liaison officer, the manager creates and cultivates internal and external relationships for the benefit of the company. - **2- Informational Roles:** - **Monitor** The manager collects information on the situation within the company and from the outside world. He is responsible for keeping current and building a network of contacts. - **Disseminator**: It is his responsibility to disseminate the information he has acquired from both internal and external sources. This includes communication to subordinates as well as peers. He may also be responsible for communicating information about the company to external parties. - **Spokesperson**: The manager represents the company. He communicates with the members of the board of directors and other external stakeholders. He could also represent the company at conferences. This is essentially about representing the company, the team and its activities. - **3- Decisional roles:** - **Entrepreneur**: The manager looks for new opportunities and launches new projects for the company. This is about planning and organizing. - **Disturbance Handler**: The manager takes on the role of mediator when faced with problems, conflicts, and other issues. He is responsible for making tough decisions and resolving conflicts. - **Resource Allocator**: The manager is responsible for allocating the company's resources appropriately. This could be the budget, employees, equipment, etc. - **Negotiator**: The manager represents the organization in major negotiations. This could be internal negotiations with staff, or external negotiations with suppliers, clients, or government. # LES COMPÉTENCES CLÉS DU MANAGER - **Successful managers must have a set of skills and competencies that enable them to fulfil their roles:** - A competency can be defined as a process that involves the development of abilities, skills and knowledge. It is the process that managers use to respond to the challenges they face in their work. - Developing competencies takes time and effort. - **Competence is the outcome of an action that is undertaken in a work situation.** - It emerges as the result of taking initiative, and taking on leadership roles. - **Taking initiative demands careful thought; it must be done effectively.** - **The degree to which a manager is successful at taking initiative depends on two key things:** - **Personal skills and knowledge:** - **Context:** The context into which the actions fall. # The Three Types of Management Skills - **1- Technical Skills**: This category includes the tools and techniques needed to do the job, or to implement managerial responsibilities. This means that to be successful, the manager must have a deep understanding of the company's products, services or operations, as well as the tools and technology that are needed. The manager's technical skills can lead to efficiency. - **2- Interpersonal Skills**: This category includes leadership skills; the ability to build relationships with team members, and manage a team. Having good interpersonal skills can lead to strong team performance and motivate individuals. - **3- Conceptual Skills**: This category includes the ability to understand the complex world of business and to make good decisions based on the company's internal and external environments. - This requires analytical and problem-solving skills. - **Conceptual skills can help managers to devise strategic plans and to make decisions informed by the overall business context.** # ORGANISATIONS _The theory of organizations seeks to encompass all the factors that contribute to a better understanding of the phenomenon of organization._ ## Why study organizations? - Studying organizations is essential because: - **Organizations are ubiquitous**: Organizations are everywhere, from the moment we are born, to the moment we die. - **There is a practical need for understanding organizations**: Organizations are central to nearly every aspect of our lives. - **I- Theoretical Foundations for the Study of Organizations** - **Two key reasons why organizations are worth studying are:** - **The importance of organizations to our society:** Organizations play a significant role in the development of our societies. - **The necessity of organizations to our professions:** As professionals in a variety of fields, we rely on organizations to achieve our goals. - **A- The Common Use of Organizations:** - We are born in organizations (hospitals or maternity wards) - We grow up in organizations (day care centers, schools, colleges, high schools, universities). - We work in organizations (companies, associations, public administrations.) - We acquire goods and services from organizations (companies). - We use government services (public administrations) - We may end up in organizations at the end of our lives (retirement homes, nursing homes, etc). - And, frequently, we are buried by organisations (funeral homes). - **B- What is an organization?** - **An organization is a term that encompasses systems, rules, procedures, processes, and structures.** - It defines how a system operates. - It involves a variety of things, like how power is distributed, and how communication flows. - The term "organization" can have a variety of meanings. - **There are three basic meanings of the term "organization":** - **The act of organizing:** This refers to the process of organizing - defining a framework for a system; establishing clear rules. It is the act of putting things into a coherent system. - **The organizational framework:** This is the actual structure and culture of the organization that has been created. It includes the structure of authority and responsibilities. - **The organization as social institution:** This means that the organization represents a system that is part of a broader society. - **C- Definitions of Organizations:** - **E.H. Schein:** "The rational coordination of the activities of a given number of individuals, with a view to achieving shared goals through a division of labor and responsibilities. " - **T. Parsons:** "Organizations are social units essentially intended to achieve goals." - **Max Weber** - Weber offers a more idealized view of the organization. - He describes the bureaucracy as a hierarchical organization where formal rules are followed. Authority flows from the power at the top of the hierarchy through a series of formal positions. - Weber makes a case for the importance of bureaucracy in a system. - **D- Characteristics of Organizations:** - Organizations are composed of individuals. - Organizations involve or affect a wide range of stakeholders. - Organizations operate within an environment and a culture that is constantly changing. - Organizations are always evolving. The factors they need to adapt to include economic factors and the evolution of technology. - **E- The Elements of the Organization** - **Mintzberg** - Mintzberg has offered a model of organization that breaks it down into several important parts. - He refers to his model as the "anatomy" of the organization. - **Organizational Structure:** - **The Strategic Apex:** This is the highest level of management - the CEO and senior management team. - **The Middle Line or Hierarchy:** This is the group of leaders located between the strategic apex and the operational core. - **The Operating Core:** This is the group of people that carries out the essential work of the organization. - **The Technostructure:** This is the group of people that acts as a support or service to the operational core. They design processes or structures to ensure that the core operates effectively. - **Support Staff:** This group provides support to the organization. They carry out functions like administrative work, research, and management. - **Mintzberg also emphasizes the importance of coordination, which is essential to the well-functioning of any organization.** - Mintzberg identifies six key mechanisms for coordinating various activities. - **Direct supervision:** This involves a direct hierarchical relationship where a manager or leader sets the direction. - **Mutual Adjustment:** This refers to coordination through informal communication where employees make adjustments based on frequent discussions. This is more common in smaller companies. - **Standardization of Work Processes:** This involves standardizing the work processes that must be done. This is useful for large organizations. - **Standardization of Outputs:** This involves setting standards and expectations for the output of the work - defining clear metrics and goals. This is useful when employees are working independently. - **Standardization of Skills:** This sets clear expectations and competencies. This kind of standardization works well in organizations where the work is highly specialized, such as in hospitals or technology companies. - **Standardization of Norms:** This involves defining and applying agreed norms and values to the work. This is also helpful in managing organizations more effectively. # L'ECOLE CLASSIQUE: ORGANISER FOR PRODUCTIVE EFFICIENCY (1900-1930). - **The founders of the "classical school" of thought included:** - **Henry Fayol** - **Frederick Taylor** - **Max Weber** - **The work of these pioneers has laid the foundation for modern management theory.** - **All three of these men focused on bringing rationality to organizations**, seeking greater efficiency and effectiveness. - **Their work can be divided into three distinct categories:** - **Rationality of Production:** Taylor - **Rationality of Administration:** Fayol - **Rationality of Structure:** Weber - **A) The Contribution of Frederick Taylor** - **Taylor believed that the role of any manager is to define and implement the best methods** for carrying out the work, which is often defined as a scientific approach to management. - **Taylor advocated focusing on how to improve individual performance and productivity.** - **The key principles of Taylorism are:** - **Division of Labour**: Assign a limited number of tasks to specialist employees and create a hierarchy of tasks. - **Horizontal Division of Labour:** Subdivide work into very specific individual tasks. - **Scientific Work Study:** Analyze each job and task to figure out how to do it most efficiently. - **Scientific Selection & Training:** Select employees for jobs based on their skills and train them to maximize effectiveness. - **Scientifically designed work tools:** Make sure that the right tools are used for the job. - **Incentive Pay:** Pay workers based on their output. - **Taylor believed** that managers should set specific goals and provide workers with the necessary tools and support to achieve those goals. - **Taylor's ideas** had a significant impact on modern management, particularly in the manufacturing sector. - **B) The Contribution of Henri Fayol** - **Fayol argued that Taylor's focus on lower levels was too narrow and that his ideas needed to be expanded to include strategic management.** - **Fayol distinguished six functions of management:** - **Technical**: Production, manufacturing, transformation. This encompasses operations. - **Commercial:** Purchasing, sales, and exchange. - **Financial:** Capital procurement and management. - **Security:** Protecting people and property. - **Accounting:** Managing finances, inventory, billing etc. - **Administrative:** Forecasting, organizing, commanding, coordinating, and controlling. - **Fayol's concept of "administrative management" is more comprehensive than Taylor's focus on the shop floor.** - **Fayol emphasizes the key aspects of a manager's job:** - **Foresight:** To make accurate forecasts and plans. - **Organization:** To design an efficient and effective structure, to establish clear lines of authority, to ensure an appropriate chain of command - **Command:** To lead effectively, using the right skills and qualities. - **Coordination:** To ensure that everyone works effectively and that there is harmony across the organization. - **Control:** To monitor progress and ensure that all activities are carried out as planned. - **Fayol identifies fourteen key management principles:** - **Division of labour**: Specialization leads to greater efficiency. - **Authority** : Match authority with responsibility. - **Discipline**: Establish clear rules and ensure that they are followed. - **Unity of Command:** Give each employee clear instructions from one manager. - **Unity of Direction:** All those working on a single project must be aligned to achieve the same goal. - **Subordination of individual interests to the general interest:** The company's goals matter most. - **Remuneration:** Pay workers fairly. - **Centralization**: Match the level of centralization to the organizational structure. - **Hierarchy**: Maintain a clear hierarchy within the organization. - **Order:** Establish order in the workplace by clearly organizing both physical materials and human resources. - **Equity:** Treat individuals fairly and make sure your actions are equitable. - **Stability of personnel**: Keep turnover low in order to build a strong and dynamic organization. - **Initiative:** Encourage people to take initiative. - **Esprit de Corps (team spirit):** Create a supportive and collaborative environment. - **C- The Contribution of Max Weber** - **Weber explored the idea that authority has several sources.** - **He defined the three forms of legitimate authority:** - **Charismatic Authority**: This is based on the individual qualities and personality of the leader. - **Traditional Authority**: This is based on a long-held tradition and can be passed down through an established lineage. - **Bureaucratic Authority**: This is based on the rules and structure of a particular organization. - **Weber proposed the concept of a "bureaucracy,"** which he saw as the most efficient and rational type of organization. - **He believed that the bureaucratic system is the ideal model for large organizations.** - **Weber's key principles for a bureaucratic organization include:** - **Division of Labour:** Specific tasks are assigned to specific positions within the organization. - **Hierarchy:** Clearly establish a hierarchy of authority within the organization. - **Selection based on technical competence:** The best person for the job should be hired. - **Rules and Regulations:** Clearly defined rules and regulations apply to all members of the organization. - **Impersonality:** The relationships should be professional and impersonal. - **Fixed salary structure:** The pay for each position should be defined and transparent. - **Career advancement:** Advancing within the hierarchy is based on merit and technical skills. - **Bureaucracy is prevalent in the modern world** and is often found in organisations like the military, government institutions, and educational institutions. - **While bureaucracies can contribute to efficiency, Weber recognized that they could create problems such as** a lack of flexibility, dehumanization, and excessive control. - **The key strengths of bureaucracy are:** - **Clear rules:** - **Formal structures:** - **Competent employees:** - **The key weaknesses of bureaucracy are:** - **A lack of flexibility:** - **A dehumanizing environment:** - **A lack of personal initiative:** # L'ECOLE DES RELATIONS HUMAINES: GROUP MORAL (1930-1960) - **The school of human relations highlights the importance of individual human needs and their role in organizations.** - **This school grew out of the limitations of the classical school.** - **The classical school focused too much on the technical aspects of organization**. - **They paid less attention to the human side of work.** - **The three main tenets of the human relations school are:** - **It recognizes the importance of the individual.** - **It acknowledges that informal organization exists alongside the formalized structure.** - **It acknowledges that organizations are more than just systems for achieving goals.** - **Organizations are also social entities, creating a sense of belonging and community for their members.** - **These principles have several consequences for how organizations should operate:** - **Human organization is different from technical organization** - **Decision-making should involve groups, not just individuals** - **Emphasis on collaboration and cooperation to improve communication and interaction within organizations** - **The human relations movement is very influential in modern management thought** # The Contribution of Elton Mayo - **Mayo focused on the psychological and social factors that affect employee motivation and productivity.** - **His studies challenged the assumptions of the classical school, which had taken a more mechanistic view of organizations.** - **Mayo's research showed the importance of group dynamics, social interaction, and communication for organizational success.** - **Mayo also highlighted the importance of employee satisfaction and the need to address issues like group morale and interpersonal relationships.** - **He concluded that there are four main factors that affect employee productivity.** - **A favorable social environment**: This involves creating a positive team spirit and working environment to foster a sense of belonging. - **Work acceptance**: Employees should feel that their jobs are meaningful and worthwhile. - **Positive working relationships**: Managers should build strong, collaborative relationships with their employees. - **Non-financial rewards:** These can be used to motivate employees, increase performance, and help to achieve organizational goals. - **However, Mayo believed that a worker's output is not defined by their physical ability but by their ability to perform within a team environment.** # Principles of A. Maslow's Theory of Needs - **Maslow's theory of needs is based on the idea that humans have a hierarchy of needs, which once satisfied can motivate.** - **The hierarchy of needs can help managers understand the motivations of individuals in the workplace.** - **Maslow's theory includes five basic needs, arranged in a hierarchy.** - **The five needs are:** - **Physiological Needs:** These are the most basic needs for survival. They include food, water, sleep, shelter, and warmth. If these needs are not met, it is difficult for people to be happy or motivated. - **Safety and Security Needs**: These include the need to feel safe and secure. This could mean feeling safe from physical harm, or financial security. The individual also needs to have a sense of order and stability. - **Belongingness and Love Needs**: This is related to the need for belonging and companionship, close relationships within the workplace, and social acceptance. - **Esteem Needs**: This is about the need to feel good about oneself, and to be respected by others. The individual needs to have a sense of accomplishment. - **Self-Actualization Needs**: This is about the need to achieve one's full potential and to live a meaningful life. # The Contribution of Douglas McGregor - **McGregor developed his theory of management known as Theory X and Theory Y. ** - **Theory X:** - **Theory X assumes that employees are lazy, dislike work, and lack ambition.** - **This view of employees assumes that they must be closely supervised and controlled.** - This is a pessimistic view of the employee. - The theory X manager also assumes that people are only motivated by money and other external rewards. - **Theory Y:** - **Theory Y assumes that workers are motivated to work, enjoy responsibility, and feel a sense of accomplishment.** - **Theory Y managers are more optimistic and believe that employees are motivated by a variety of things, including financial rewards, recognition, personal growth, and the opportunity to make a meaningful contribution.** - **The key differences between Theory X and Theory Y are:** | **Theory X** | **Theory Y** | | :--------------------------- | :-------------------------------- | | Employees dislike work | Employees enjoy work | | Employees are lazy | Employees are motivated | | Employees lack ambition | Employees are ambitious | - **Theory X:** - **Leadership Style**: Autocratic. This is a hierarchical style of management with clear instructions and a heavy emphasis on control. - **Motivation**: Extrinsic. Employees are motivated by money and rewards. - **Theory Y:**