M.

Arch (Masters in Architectural and construction project management)

SEMESTER-01

SUBJECT: Management theories and business Organization

SUBJECT CODE: AR17MCP1.5C, credits:04

FACULTY:Dr.E.Jnana Dev

ASSIGNMENT:01

SUBMITTED BY: Ar. Mounika Sri Gedela

1. Definition of Management?

2. What are Taylor's principles of management?

3. Theory of Bureaucracy was developed by whom?

4. Write the 14 principles laid down by Henri Fatol

5. Draw the organisation chart, based on functions?

6. What is decentralisation?

7. Give example of committee organization Structure?

8. Give example of virtual organization Structure?

9. Write the characteristics of line and staff organization?

10.What is departmentation?
1. Definition of Management:

Management is a process of planning and controlling the activities of a business or

other organization. One key aspect of the management process is project
management, which involves the application of knowledge, skills, tools, and
techniques to a specific project in order to meet its requirements and objectives.
Product management processes include:
i. Planning
ii. Organizing

i. Planning:
● This involves determining what needs to be done when it should be done,
who will do it and how much it should cost.
● Planning also includes developing strategies for achieving goals that meet
the needs of stakeholders (e.g., customers).
ii. Organizing:
Organizing requires grouping people into teams according to their skills or knowledge
so they can work together effectively.Organizing involves designing the structure of
the organization, defining roles and responsibilities, and creating processes and
procedures for accomplishing tasks. It also involves identifying the resources needed,
such as human resources, financial resources, and physical resources, and
allocating them in an efficient and effective manner.

Importance of management process:

The product management process is very crucial for an organization. It is a set of

activities that must be performed to achieve organizational goals.
1. Management process refers to a series of activities performed by managers to
achieve organizational goals.
2. These management process steps aim to identify, analyze and solve problems
related to performance or efficiency within an organization. When these tasks are
done successfully, organizations succeed in achieving their goals.
Nature of management process:
The management process is a system that combines all of an organization's activities
to achieve its goals. It involves planning, organizing, leading and controlling. The
term ‘management’ refers to managing an organization through its functions and
activities using certain principles and methods

The product management process flow can be explained below:

1. Planning:
This step is where you create a detailed action plan for your business goals with
expected results in mind (e.g., increased sales).

2. Organizing:
This step involves arranging people, materials, machines, equipment and money to
achieve set objectives (e.g., organize human resources by team structure).

3. Leading:
This step is about motivating people/workers to perform better at their tasks (e.g.,
encouraging workers through incentives such as bonus schemes).

4. Controlling:
This step deals with measuring performance against corporate standards or targets
set at earlier stages.
2. What are Taylor's principles of management?

1.Frederick Taylor’s four principles of Scientific Management are:

I. Develop a science for each element of work

II. Scientifically Select, Train, Teach, and Develop the worker

III. Cooperate with the Worker
IV. Divide the Work and Responsibility

2. Harmony, Not Discord:

Taylor indicated and believed that the relationship between the workers and
management should be cordial and completely harmonious. Difference between
the two will never be beneficial to either side. Management and workers should
acknowledge and understand each other’s importance.

3. Mental Revolution:

This technique involves a shift of attitude of management and workers towards each
other. The aim of both should be to improve and boost the profits of the organization.
Mental Revolution demands a complete change in the outlook of both the workers
and management; both should have a sense of togetherness.
4. Cooperation, not Individualism-

It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between

workers and the management. Managers and workers should have mutual
cooperation and confidence and a sense of goodwill.

5. Development of Every Person to his Greatest Efficiency:

● The effectiveness of a company also relies on the abilities and skills of its
employees. Thus, implementing training, learning best practices and
technology, is the scientific approach to brush up the employee skill.
● To assure that the training is given to the right employee, the right steps should
be taken at the time of selection and recruiting candidates based on a
scientific selection.

3Q) Theory of Bureaucracy was developed by whom:

Max Weber, a German scientist, defines bureaucracy as a highly structured,

formalized, and also an impersonal organization.He also instituted the belief that an
organization must have a defined hierarchical structure and clear rules, regulations,
and lines of authority which govern it. Max Weber bureaucracy ideally has the
following characteristics:
● Specialization of labour

● A formal set of rules and regulations

● Well-defined hierarchy within the organization

● Impersonality in the application of rules

Max Weber’s Bureaucratic Form – 6 Major Principles

1. A formal hierarchical structure – In a bureaucratic organization, each level

controls the level below it. Also, the level above it controls it. A formal hierarchy is

the basis of central planning and centralized decision-making.

 2. Rules-based Management – The organization uses rules to exert control.

Therefore, the lower levels seamlessly execute the decisions made at higher

levels.

3. Functional Specialty organization – Specialists do the work. Also, the organization

divides employees into units based on the type of work they do or the skills they

possess.

4. Up-focused or In-focused Mission – If the mission of the organization is to serve

the stockholders, board, or any other agency that empowered it, then it is

up-focused. On the other hand, if the mission is to serve the organization itself

and those within it (like generating profits, etc.), then it is in-focused.

5. Impersonal – Bureaucratic organizations treat all employees equally. They also

treat all customers equally and do not allow individual differences to influence

them.

6. Employment-based on Technical Qualifications – Selection as well as the

promotion of employees is based on technical qualifications and skills.

4. Write the 14 principles laid down by Henri Fatol:

Henry Fayol’s 14 principles of management look at an organization from a top-down

approach to help managers get the best from employees and run the business with
ease.

i. Division of work

ii. Authority

iii. Discipline

iv. Unity of command

v. Unity of direction

vi. Collective interest over individual interest

vii. Remuneration
viii. Centralization

ix. Scalar chain

x. Order

xii. Equity

i. Division of work: The first Henry Fayol principle of management is based on the
theory that if an employee is given a specific task to do, they will become more
efficient and skilled in it. In order to implement this principle effectively, look at the
current skill sets of each employee and assign them a task that they can become
proficient at. This will help them to become more productive, skilled, and efficient in
the long run.

ii. Authority: A manager needs to have the necessary authority in order to ensure that
his instructions are carried out by the employees. If managers did not have any
authority, then they would lack the ability to get any work done. However, this
authority should come along with responsibility. According to Henri Fayol, there
should be a balance between authority and responsibility. If there is more authority
than responsibility, the employees will get frustrated. If there is more responsibility than
authority, the manager will feel frustrated

iii.Discipline : This principle states that discipline is required for any organization to run
effectively. In order to have disciplined employees, managers need to build a culture
of mutual respect. There should be a set of organizational rules, philosophies, and
structures in place that should be met by everyone. Bending rules or slacking should
not be allowed in any organization. In order to achieve this, there is a need for good
supervision and impartial judgment.

iv. Unity of Command: This principle states that that should be a clear chain of
command in the organization. The employees should be clear on whose instructions
to follow. According to Fayol, an employee should receive orders from only one
manager. If an employee works under two or more managers, then authority,
discipline, and stability are threatened. Moreover, this will cause a breakdown in
management structure and cause employees to burn out.

v. Unity of Direction: This henry fayol principle of management states that the work to
be done should be organized in such a way that employees work in harmony
towards the same objective, using one plan, under the direction of one manager. For
example, if you have a range of marketing activities such as advertising, budgeting,
sales promotion, etc., there should be one manager using one plan for all the
marketing activities. The different activities can be broken down for different
sub-managers, but they should all work towards a common goal under the direction
of one main person in charge of the whole thing.

vi. Collective Interest Over Individual Interest: This principle states that the overall
interest of the team should take precedence over personal ones. The interest of the
organization should not be sabotaged by the interest of an individual. If anyone goes
rogue, the organization will collapse.

vii. Remuneration: This henry fayol principle of management states that employees
should be paid fair wages for the work that they carry out. Any organization that
underpays its workers will struggle to motivate and keep quality workers. This
remuneration should include both financial and non-financial incentives. Also, there
should be a structure in place to reward good performance to motivate employees.

viii. Centralization:Centralization refers to the concentration of power in the hands of

the authority and following a top-bottom approach to management. In
decentralization, this authority is distributed to all levels of management. In a modern
context, no organization can be completely centralized or decentralized. Complete
centralization means that people at the bottom have no authority over their
responsibilities.

ix. Scalar Chain:A scalar chain refers to a clear chain of communication between
employees and their superiors. Employees should know where they stand in the
hierarchy of the organization and who to go to in a chain of command. To
implement this in the workplace, Fayol suggests that there should be an
organizational chart drawn out for employees to see this structure clearly.

x. Order:This principle states that there should be an orderly placement of resources

(manpower, money, materials, etc.) in the right place at the right time. This ensures
the proper use of resources in a structured fashion. Misplacement of any of these
resources will lead to misuse and disorder in the organization.
xi.Equity: Equity is a combination of kindness and justice. This principle states that
managers should use kindliness and justice towards everyone they manage. This
creates loyalty and devotion among the employees towards the organization they
work for.

xii.Stability of Tenure of Personnel: This principle states that an organization should

work to minimize staff turnover and maximize efficiency. Any new employee cannot
be expected to get used to the culture of an organization right away. They need to
be given enough time to settle into their jobs to become efficient. Both old and new
employees should also be ensured job security because instability can lead to
inefficiency.

xiii.Initiative:This principle states that all employees should be encouraged to show

initiative. When employees have a say as to how best they can do their job, they feel
motivated and respected. Organizations should listen to the concerns of their
employees and encourage them to develop and carry out plans for improvement.

xiv. Esprit de Corps:Esprit de Corps means “Team Spirit”. This henry fayol principle of
management states that the management should strive to create unity, morale, and
co-operation among the employees. Team spirit is a great source of strength in the
organization. Happy and motivated employees are more likely to be productive and
efficient.
5.Draw the organization chart, based on functions:
6.What is decentralization:

Decentralization refers to a specific form of organizational structure where the top

management delegates decision-making responsibilities and daily operations to
middle and lower subordinates. The top management can thus concentrate on
taking major decisions with greater time abundance.
The basic advantages and disadvantages of decentralization from an organizational
point of view.

Advantages:

i. Motivation of Subordinates: Decentralization improves the level of job satisfaction

as well as employee morale, especially amongst the lower level managers.
Furthermore, it strives to satisfy the varying requirements for participation,
independence, and status. Decentralization also promotes a spirit of group

ii. Growth and Diversification:

Under decentralization, every single product division attains sufficient autonomy to

exercise their creative flair. In this way, the top-level management can create
healthy competition amongst different divisions.
While carrying out a discussion on the advantages and disadvantages of
decentralization, it is imperative to note that it aids subordinates in exercising their
own judgment.
They even develop managerial skills and help in solving the succession problem
which ultimately ensures the growth and continuity of an organization.

iii. Quick Decision Making:

Another important pointer in the advantages and disadvantages of decentralization

is that decisions are taken and executed by authorized personnel. This, in turn, results
in faster and accurate decisions which are well aware of the real scenario.

iv.Efficient Communication:

The wider span of management under decentralization leads to fewer hierarchical

level. This makes the communication system more efficient as intimate relationships
develop between superiors and subordinates.
v.Ease of Expansion:
Decentralization can add inertia to the expansion process of a growing business. This
might often result in the opening of new business units in varying geographical
locations.
Decentralization unleashes the fullest potential of the organization and can react
easily to area-specific requirements.

vi.Better Supervision And Control

Lower level managers can alter production schedules and work assignments with
adequate authority. They can even take disciplinary actions and recommend the
promotion of their peers.
This, in turn, leads to greater efficiency in supervision. Performance evaluation of
each decentralized unit helps in exercising adequate control.

vii.Satisfaction of Human needs:

Decentralization serves as an important tool for satisfying our basic need of

independence, power, prestige, and status. A cadre of satisfied manager is build up
by this satisfaction as they feel responsible towards the company’s betterment.

viii.Relief to top executives:

Top executives can focus more on more on the executive level work like planning
and decision making if the lower level employees take all the responsibilities on their
own. This relieves their workload which eventually is for the greater good of the
organization.

Disadvantages of Decentralization

i.Difficult To Co-Ordinate

While talking about the advantages and disadvantages of decentralization, it is

imperative to note that substantial autonomy is enjoyed by every single division. This,

in turn, makes it difficult to coordinate the overall activity.

ii.External Factors:

The trade union movement, market uncertainties, and government intervention

might make it impossible to benefit the most out of decentralization.

iii.Narrow Product Lines:

Decentralized product lines need to be adequately broad so that autonomous units

can flourish within the same. This might not be of much help in small business houses

having narrow product lines. Lower levels in the organization also lack competent

managers thus adding to the difficulty quotient.

iv.Expensive:

In decentralisation, every employee takes responsibility for the better of the

organisation so they work harder to achieve all the organisational objective. In

return, they have to be paid more which sometimes proves to be very expensive for

the company.

7.Give example of committee organization Structure:

Organizational chart templates are a vital visual representation of your company’s,

project’s, or business unit’s internal structure.
It’s a diagram that illustrates rank, responsibility, including information flow in your
company and paints a detailed picture of the internal structure of a business. Org
charts, like trees, are spread out into supplementary branches and leaves that define
each individual’s role in a company. Org charts have a variety of uses and can be
structured in many different ways. They might be used as a management tool, for
planning purposes, or as a personal directory.Organizational Charts are also known
as Organograms, Organogram Charts (sometimes spelled Organigrams), and
Hierarchy Charts.

There are different organizational charts in that one is committee organization

structure:
A committee organizational structure chart can be defined as a group of members
who discuss and develop strategic solutions to problems.
The objective of setting up the Committee is to develop broader organizational
goals, finalize plans, and policies for the organization. Such committees are important
as the members of the committee bring rich experiences, expertise, diverse
perspectives, and information which are not one man’s job.

8.Give example of virtual organization Structure:

A virtual organization structure is a type of organizational structure in which

individuals and teams work together from different geographic locations using
communication technology.

Virtual organizations have key characteristics:

1. It is a borderless organization, located in Cyberspace (web-based)
2. Geographically spread (multi sites)
3. Interchangeable partners given a similar business culture
4. A combination of complementary resources to accomplish a specific goal
5. Spread power amongst the partners

● Online Collaboration Platforms: Online collaboration platforms like Slack, Asana, or

Trello allow virtual teams to communicate, assign tasks, and track progress. These
platforms allow members to collaborate in real-time, regardless of their physical
location.
● Project Management Software: Project management software like Basecamp,
JIRA, and Redmine enable virtual teams to easily collaborate and manage their
projects. These applications provide tools for tracking tasks, setting deadlines, and
managing resources.
● Video Conferencing Software: Video conferencing software like Zoom, Skype, and
Google Hangouts enable virtual teams to communicate with each other even
when they are in different locations.
● Virtual Workspaces: Virtual workspaces like Google Docs, Microsoft Teams, and
Dropbox allow virtual teams to store and share documents, spreadsheets,
presentations, and other files. These tools enable teams to collaborate on projects
and access information quickly.
9.Write the characteristics of line and staff organization?

A line-staff organization is a structure that distributes work responsibilities from upper

management to lower-level employees. The managers establish standards for the
quality of the work and deadlines for employees to finish their tasks, and they
communicate their expectations to the team. It's the team's responsibility to meet
those expectations in the assigned time.

Line and staff organization is a modification of line organization and it is more

complex than line organization. According to this administrative organization,
specialized and supportive activities are attached to the line of command by
appointing staff supervisors and staff specialists who are attached to the line
authority.
10.What is departmentation?

Departmentation refers to the grouping of operating duties into jobs, the combining
of jobs and mixing of companies into divisions called ‘Departments’. It refers to the
horizontal differentiation in an organization. It is a technique of arranging activities
and personnel to facilitate the accomplishment of usual objectives.

Basis of departmentation:
i. Specialization
ii. Coordination
iii. Control
iv.Stability
v.Focus on results
vi.Human consideration

Principles of Departmentation:
i. Specialization
ii. Coordination
iii. Control
iv.Interdepartmental coordination
v.Cost benefits
vi. Duplication of work
vii.Special attention
viii.Human consideration
ix. Flexibility
x.Utilization of resources

Departmentation controls the overall performance of the organization in a better

way. Different departments manage different activities. Departmentation increases
the status of the employees from time to time; thereby contributes to the
improvement of the employees.
Sources:

1. http://civilconstructionmanagement.blogspot.com/2014/03/departmentation_9.html

?m=1

2. https://slideuplift.com/blog/7-types-of-organizational-chart-templates-that-you-can

-steal/#:~:text=A%20committee%20organizational%20structure%20chart,and%20poli

cies%20for%20the%20organization.

3. https://www.indeed.com/career-advice/career-development/line-staff-organization

4. https://www.tutorialspoint.com/what-are-the-bases-and-principles-of-management-

departmentation#

5. https://www.managementstudyguide.com/line_staff_organization.htm

6. http://www.orgcharting.com/wp-content/uploads/construction-company-organizati

onal-chart.png