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Two theories of organizations
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Classical theory
Neoclassical theory
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Classical theory (Four basic components to any organization)
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A system of differentiated activities.
People
Cooperation toward a goal
Authority
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Four major structural principles
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Functional principle
Scalar principle
Line/staff principle
Span‑of‑control principle
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Functional principle
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The concept that organizations should be divided into units that perform similar functions
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Scalar principle
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The concept that organizations are structured by a chain of command that grows with increasing levels of authority.
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Line/staff principle
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The concept of differentiating organizational work into primary and support functions
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Span‑of‑control principle
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The concept that refers to the number of subordinates a manager is responsible for supervising.
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Neoclassical theory(Critique of the four major structural principles of classical theory)
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Functional principle: argues for less rigid division of labor and for more “humanistic” work in which people derive a sense of value and meaning from their jobs.
Scalar principle: although the scalar principle prescribes formal lines of authority, in reality many sources operating in an organization influence the individual.
Line/staff principle: the distinction of line and staff is not as great as originally proposed.
Span‑of‑control principle: the factor that affects the span of control is greatly dependent on the effectiveness and ability of their managerial skills.
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Structure
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The arrangement of work functions within an organization designed to achieve efficiency and control.
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Mutual adjustment
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is the simplest coordinating mechanism and is most often achieved by individual talking to each other to achieve a particular outcome.
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Direct supervision
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When informal communication between individuals does not produce the needed coordination, one person serving in a position of authority is typically used. The person issues instructions to the workers and is ultimately responsible for their collective actions.
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Standardization of work processes
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Another mechanism to achieve coordination is to standardize or specify work process. The production assembly line of a manufacturing company is an example.
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Standardization of work output
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The work is designed in such a way that the same output is achieved irrespective of difference in time or location. I.E: Fast food industry.
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Standardization of skills and knowledge
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Mintzberg stated that coordination among work activities can be attained by specifying in advance the knowledge, skills, and training required to perform the work. In this case coordination is achieved before the work is undertaken.
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Mintzberg's seven basic parts of an organization
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Operating core
Strategic apex
Middle line
Techno structure
Support staff
Ideology
Politics
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