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Theories of Organization-Unit 2
Theories of Organization-Unit 2
Cynthia R. Alarios
Presenter
FREDERICK
WINSLOW TAYLOR
Scientific management theory is a
method of improving efficiency in
the workforce.
The scientific method consists of
three steps: observation,
experimentation, and analysis.
1. Scientific Management
• Science, not rule of thumb
• Harmony, not discord
• Cooperation not individualism
• Maximum output not restricted output
HENRI FAYOL
Father of Modern Management
Theory
Functions of Management
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
2. Administrative Theory
• Division of work
• Authority and Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of individual interest
• Remuneration
• Centralization
• Scalar Chain
• Order
• Equity
• Stability of tenure
• Initiative
• Esprit de Corps
MAX WEBER
Bureaucracy- a system of
government in which most
of the important decisions
are made by state officials
rather than by elected
representatives.
3. Bureaucratic Model
• Hierarchy of Authority -A systematic hierarchy in the organization
defining the position of each employee from top to the lowest level.
An organizational model
with relatively few or no
levels of middle
management between the
executives and the
frontline employees.
Advantages vs. Disadvantages
• Increased leader control • More leader responsibilities
• Improved efficiency • Less employee autonomy
• Elevated responsibility • Possible confusion
• Easier decision making • Lacks of specialists
• Fewer budget costs. • Limited growth
4.B Hierarchical System
It contains a direct
chain of command
from the top of the
organization to the
bottom.
Advantages vs. Disadvantages
• Clearly defined career path and • It can be costly
promotion path • Slower decision-making
• Department loyalty • Poor communication
• Efficient leadership and • Department rivalry
communication
• Delegation of authority
• Encourages specialization
References
• Das, U., Mishra, A., 2019, Management Concepts and Practices
• https://www.indeed.com/career-advice/search?
q=divisional+organizational+structure
• https://penpoin.com/organizational-structure-by-product/
• https://www.villanovau.com/resources/leadership/scientific-management-
theory-explained/#:~:text=Scientific%20management%20theory%20is
%20a,observation%2C%20experimentation%2C%20and%20analysis.