14 FAYOL PRINCIPLE

1. DIVISION OF WORK
Work should be divided among individuals and group to ensure that effort and
attention are focused on special portion of the task.
2. AUTHORITY
Principle that authority has to be balance with responbility, it cant be
separated.
3. DICIPLINE
Well-organized, where people in organization have to obey all rules without
coercion
4. UNITY OF COMMAND
All the workers only obey and accept order and report everything to only one
person/manager
5. UNITY OF DIRECTION
All groups who do the same activities must have one leader and one plan
6. SUBORDINARY OF INDIVIDUAL INTEREST TO GENERAL INTEREST
The interest of person should not take priority over the interest of the
organization.
7. REMUNERATION
Payroll system and method are fair and provide maximum satisfication for
workers and managers.
8. CENTRALIZATION
The concentration of power in a single group and its lead handed over to a
leader so that workers are not confused in carrying out the duties and
responbilities imposed
9. HIERARCHY
Levels of authority and responsible from the highest level and should be no
deviation
10.ORDER
For the sake of efficiency and coordination, all material and people related to
specific kind of work should be treated as equally as possible.
11.EQUITY
All employee should be treated as equally as possible
12.STABILITY OF TENURE PERSONEL
Retaining productive employees should be always high priority of
management.
13.INITIATIVE
Reward for ideas, suggestion, critic, and information presented by employees
so that create the new way which more creative and efficien in catch goal
14.ESPRIT DE CORPS
Mentoring, coaching and giving motivator to employees to have spirit of unity
and solidarity.

10 URWICK PRINCIPLE
1. The Objective
Every organisation and every part of theorganisation must be an expression
of the purpose of the undertaking concerned, or it iseaningless and therefore
redundant.
2. Speliciation
Each groups should have one function
3. Co-ordionation
The purpose of organising per se, asdistinguished from the purpose of the
undertaking, is to facilitate co-ordination: unity of effort
4. The principle of authority
In every organised group the supreme authority must rest somewhere. There
should be a clear line of authority to every individual in the group.
5. The principle of responsibility
The responsibility of the superior for the acts of the subordinate is absolute.
6. The principle of definition
All jobs and the duties that go with them must be clearly defined.
7. The principle of correspondence
In every position, the responsibility and the authority should correspond.
8. The span of control
No person should supervise more than five, or at most, sixdirect subordinates
whose work interlocks.
9. The Balance
The various teams and departments within an organisation should be kept in
balance in terms of position and power.
10.The Contunuity
The organisations structure should be designed to ensure the organisations
survival.
Frederick W. Taylors Principles
1 They develop a science for each element of a man's work, which replaces the
old rule-of-thumb method.
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.
3 They heartily cooperate with the men so as to ensure 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.

Max Webers Principles

1 Job specialization - Jobs are divided into simple, routine and fixed category
based on competence and functional specialization.
2 Authority hierarchy - Officers are organized in a n hierarchy in which higher
officer controls lower position holders i.e. superior controls subordinates and
their performance of subordinates and lower staff could be controlled.
3 Formal selection - All organizational members are to be selected on the basis
of technical qualifications and competence demonstrated by training,
education or formal examination.
4 Formal rules and regulations - To ensure uniformity and to regulate actions of
employees, managers must depend heavily upon formal organizational rules
and regulations. Thus, rules of law lead to impersonality in interpersonal
relations.
5 Impersonality - Rules and controls are applied uniformly, avoiding
involvement with personalities and preferences of employees. Nepotism and
favoritism are not preferred.
6 Career orientation - Career building opportunity is offered highly. Life long
employment and adequate protection of individuals against arbitrary
dismissal is guaranteed. Here managers are professional officials rather than
owners units they manage. They work for a fixed salaries and pursue their
career within the organization.
ELTON MAYO PRINCPLE
Groups with low norms and low cohesiveness are ineffective; they have no
impact, since none of the members are motivated to excel.
2 Groups with low norms and high cohesiveness have a negative impact, since
fellow members encourage negative behavior.
3 Groups with high norms and low cohesiveness have some degree of positive
impact through individual member accomplishments.
4 Groups with high norms and high cohesiveness have the greatest positive
impact since group members encourage one another to excel.
1

ABRAHAM MASLOW HIERARCHY OF NEEDS

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep,
etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, status,
dominance, prestige, managerial responsibility, etc.
5. Self-Actualization needs - realising personal potential, self-fulfillment, seeking
personal growth and peak experiences.

DOUGLAS MURRAY MCGREGORS THEORY X AND THEORY Y

Theory X : in this theory bosses assumed workers as drone, without ambitions,
motivation, or initiative who had to be punished and bullied by bosses to achieve
results.
Theory Y :

Work is as natural as play or rest

Workers who are enganged and fulfilled actually enjoy their work
Under the right conditions workers actively seek responsibility, take initiative
and make creative decisions
Self-fulfillment is the real reward workers seek.

CHRIS ARGYRISS SINGLE LOOP AND DOUBLE LOOP THEORY

SINGLE LOOP : single loop occurs when a manager respond with a simple
application of the rule approach to problem. example: Problem - budgets are being
exceeded. Solution: cut costs
DOUBLE LOOP: doubleloop occurs when a manager approach would be to question
the validality of the selected temperature. In the example involving exceeded
budgets, the double-loop approach would be to check the appropriateness of the
budget figure and the basis on which it was calculated.
LIKERT RESIS MANAGEMENT SYSTEM THEORY
1

Exploitive Authoritative System

The job of the worker is to obey the decision made by manager. The employess
do not participate in making decision. This system is concerned simply in
completing work. no teamwork and little communication other than threats.
Benevolent Authoritative
Just as in exploitive authoritative, decision are made by managers, however
employee are motivated through reward rather than threat or fear. Both
commication and team work are minimal
Consultative system
Managers partly trust subordinates, motivated by reward and involvement in
decision making prosess, management will constructively use employee ideas,
inspire a moderate amount of teamwork and some communication.
5 Participative system
Management have complete confidence in their employee. There is a lot of
communication and employees are fully involved in decicion making prosess.
Employee feel free to express their opinion and a lot of team work.

HERZBERGS THEORY OF MOTIVATION

Herzberg showed that to truly motivate an employess a business needs make

condition that make him or her feel fulfillef or involvement in workplace. For
example, motivates employee by appropriate and timely commication, involving in
making decision prosess, and a graeat teamwork. Hygiene made dissastification if
they were absent.

ADVENTAGES AND DISADVENTAGES OF FUNCTIONAL ORGANIZATION

Advantages:

Staff is managed by a person with experience in their same specialty who can
adequately understand and review their work.

Staffers have the opportunity to move up within their functional areas, which
gives a reason for them to stay long-term. The company gets the advantage
of their expertise and company knowledge over time.

Staffers work with others in their field, which allows for knowledge sharing
and lateral job moves to learn new skills.

A worker who is an expert in his functional area can perform tasks with a high
level of speed and efficiency, which enhances productivity

Disadventages:

Functional areas may have difficulties working with other functional areas.
There is often a perception that they are competing with other functional
areas for resources and a lack of understanding of what other areas do for
the company.

As the company grows larger, the functional areas can become difficult to
manage due to their size. They can become almost like small companies on
their own, with their own cultures, facilities, and management methods.
Functional areas may become distracted by their own goals and focus on
them, rather than on overall company objectives.
it can pose a challenge for top management to maintain control as the
organization expands.

ADVENTAGES AND DISADVENTAGES OF PRODUCT OR SERVICE

ORGANIZATION
Each group can run as a seperate profit center. Product-based structures allow
companies to remain flexible in the business environment. This allows the company
to add or remove structure sections as necessary. However, it can prohibit
companies from achieving company-wide goals since each unit operates on its own.
ADVENTAGES AND DISADVENTAGES OF DIVISIONAL ORGANIZATION
Adventages

Accountability. This approach makes it much easier to assign responsibility

for actions and results. In particular, a division is run by its own management
group, which looks out for the best interests of the division.

Competition. The divisional structure works well in markets where there is a

great deal of competition, where local managers can quickly shift the
direction of their businesses to respond to changes in local conditions.

Culture. You can use this structure to create a culture at the divisional level
that most closely meets the needs of the local market. For example, a retail
division could have a culture specifically designed to increase the level of
service to customers.

Local decisions. The divisional structure allows decision-making to be shifted

downward in the organization, which may improve the company's ability to
respond to local market conditions.

Multiple offerings. When a company has a large number of product offerings,

or different markets that it services, and they are not similar, it makes more
sense to adopt the divisional structure.

Speed. This approach tends to yield faster responses to local market

conditions.

Disadventages

Cost. When you set up a complete set of functions within each division, there
are likely to be more employees in total than would be the case if the
business had instead been organized under a purely functional structure.
Also, there must still be a corporate organization, which adds more overhead
cost to the business.

Economies of scale. The company as a whole may not be able to take

advantage of economies of scale, unless purchases are integrated across the
entire organization.

Inefficiencies. When there are a number of functional areas spread among

many divisions, no one functional area will be as efficient as would have been
the case if there had instead been one central organization for each function.

Rivalries. The various divisions may have no incentive to work together, and
may even work at cross-purposes, as some managers undercut the actions of
other divisions in order to gain localized advantages.

Silos. All skills are compartmentalized by division, so it can be difficult to

transfer skills or best practices across the organization. It is also more difficult
to cross-sell products and services between the divisions.

Strategic focus. Each division will tend to have its own strategic direction,
which may differ from the strategic direction of the company as a whole.

ADVENTAGES AND DISADVENTAGES OF MATRIX ORGANIZATION

Adventages

Decentralised decision making.

Strong product/project co-ordination.

Improved environmental monitoring.

Fast response to change.

Flexible use of resources.

Efficient use of support systems.

Disadventages

High administration cost.

Potential confusion over authority and responsibility.

High prospects of conflict.

Overemphasis on group decision making.

Excessive focus on internal relations.

ADVENTAGES AND DISADVENTAGES OF PROJECT ORGANIZATION

Adventages and disadventages
The team structure groups people according to a common objective. Each team is
empowered to meet its goal, taking responsibility for results. Team participants hold
the power. The company sheds its management layers, resulting in a horizontal
rather than vertical structure. Without chains of command, decisions are made more
quickly and the company becomes adaptable and able to move nimbly within the
marketplace. Meanwhile, empowered individuals make for motivated, invested
employees. The risk of the team structure lies in employee control. Workers must be
trained to take on challenges.