Cleverpens

by: Fatima W.Q. Jayme

Introduction:

          An organization cannot function without human resources, operational and production processes, ethics, and governance. With the rapid and transformative disruption caused by machine learning and artificial intelligence, maintaining clear organizational structures through organizational charts has become indispensable.

An organizational chart is based on people and titles, whereas structure specifies the purpose, accountability, and key performance indicators (KPIs) for each business function and job. This clarity enables teams to understand their roles and how they contribute to the organization’s overarching objectives. Employees are more likely to stay interested and motivated at work when their duties coincide with the company’s objectives.

Key Concepts	Management	Organization	Organization and management
Definition	It is the process of planning, organizing, directing and controlling available resources for a common good.	It is the structured arrangement of people, tasks, and resources within a business or organization	It is a collective endeavor combining human interaction with structured approaches to achieve communal and collective feat.
Target Aim	Accomplish company mission guided by its vision	Developing organizational policies for change.	Strive to achieve common ground through collaborations and initiatives.
Tasks	Optimum usage of resources. Business growth and development Better quality goods. Hierarchy of authority Discipline and morale Mobilizing the best talent Promotion of R&D. Reduces the element of risk. Improving performance:   Plan for the future	Resource allocation optimization. Establish a common purpose. Division of labor. Ensure abundance of skilled human resources. Coordinate efforts and control. Promote commitment to growth. Create a clear communication flow. Define the boundaries of control in vulnerable areas of the company.	Establish clear objectives and standards. Developing communication channels. Assigning clear roles and responsibilities. Monitoring progress and performance Implementing corrective actions. Fostering collaboration and teamwork.
Common Ground
Goal-oriented approach; Resource optimization; Planning and organizing; Leadership and direction; Control and evaluation; Adaptability and change; Interdependence

Development of Organization and Management as a field of study

           Management thought and organizational thought, although related, refer to distinct perspectives within the study of how organizations function.  Managerial thought focuses on the principles and practices of how individuals lead, direct, and control resources to achieve organizational goals. It is about the HOW of getting things done within an organization. Organization thought, on the other hand, encompasses the broader understanding of how organizations are structured, how they behave, and how they interact with their environment. It is about the WHAT and WHY of organizational existence and operation.

          Example:  Imagine a car; management thought is like understanding how the engine works, how the brakes are applied, and how the steering wheel is used to navigate.  Organizational thought is about understanding the overall design of the car, its purpose (transportation), and how it interacts with the road and other vehicles.

Variable	Management thought	Organizational thought
Key concepts	Efficiency and Effectiveness, Productivity, Leadership style, Decision-making processes. Resource allocation	Organizational structure (e.g., functional, divisional, matrix), Organizational culture, Organizational behavior, Organizational development
Focus	Deals with the practical aspects of managing people resources and processes within an organization to achieve specific goals.	Defines organizational purpose, values, and long-term vision.   It focuses on the overall structure, systems, and dynamics of organizations, including their interactions with the external environment.
Scope	Covers areas like planning, organizing, leading, and controlling	Encompasses the organization’s mission, strategic goals, culture, and overall direction.
Example	Classical management theories, Scientific management Bureaucratic management Behavioral management theories include Fredrick Taylor’s scientific management. Henri Fayol’s administrative management, and the various leadership theories that emerged over time.	Developing a clear organizational vision, establishing core values, creating a positive work culture, and fostering a sense of purpose among employees.   Understanding how different departments within the company interact, how organizational culture impacts employee motivation, and How organizations adapt to changes in their environment.
Goal	To improve efficiency, productivity, and overall effectiveness of operations. To optimize organizational performance and achieve specific objectives through effective management practices.	To provide a sense of direction and inspire employees to work towards a shared future.
KEY DIFFERENCES
Level	It primarily concerns managerial levels and functions	It is broader in scope, encompassing the entire organization’s structure and culture
Time Horizon	It often focuses on the immediate to medium-term perspective	It has a longer-term perspective.
Perspective	It is more process-oriented, focusing on how things get done.	An outcome-oriented approach focusing on what the organization aims to achieve.
Essence	Management thought provides the tools and techniques for managing the “how”.	Organizational thought provides the direction and purpose for the “what”.

In essence, management is a subset of organizational thought. It provides the practical tools and techniques for managing resources and activities within an organization, while organizational thought offers a broader framework for understanding the organization as a whole.

Evolution of Organization and Management Theories

Management theories and organizational theories are frameworks that provide different perspectives on how to effectively manage and structure organizations.

Management theories are frameworks that provide different perspectives on how to effectively manage and structure an organization. Management theories focus on the principles and practices of leading and directing people and tasks within an organization.  Likewise, management theories focused on the processes and functions of leadership and supervision.

Organizational theories delved into structures, design, and functioning of organizations as a whole. These theories can be broadly categorized into classical, neo-classical, and modern perspectives, each offering unique insights into organizational dynamics. Organizational theories explore broader structures, systems, and environments in which organizations operate.

Several key theories exist within both categories, each offering a unique lens through which to understand and improve organizational effectiveness.

Elements	Management Theories	Organizational theories
Focus	It primarily focuses on the practices and principles of managing people and tasks.	It focuses on the overall structure, design, and functioning of the organization.
Scope	Management theories often have a narrower scope, dealing with specific management functions or approaches.	Organizational theories focus on the overall structure, design, and functioning of the organization.
Interconnectedness	Management theories are often applied within the context of organizational structures and systems

Management Theories

Management Theories	Description
Classical Management Theories (Economic focus)	This theory, encompassing scientific management and administrative management, focuses on efficiency and structure, emphasizing principles like division of labor, hierarchy, and formal rules.
Scientific management (Productivity maximization)	Developed by Fredrick Taylor. It advocates for using scientific methods to optimize work processes and increase productivity through standardization and specialization.
Human Relations Theory	This theory was developed by Elton Mayo. It focuses on the importance of social and psychological factors in the workplace. It highlights the impact of morale, teamwork, and employee satisfaction on productivity.
Administrivia Management Theory (Organizational principles)	Developed by Max Weber. It proposes a hierarchical structure with clear lines of authority and formal rules to ensure order and efficiency.
Modern Management Theories	Includes system theory, contingency theory, and the quantitative approach, which considers more complex factors like external environment, adaptability, and mathematical models for decision-making.
Systems Theory (Component harmony)	Views organizations as complex systems composed of interconnected parts, emphasizing the flow of information, resources, and feedback within the organization and its environment.
Contingency Theory	This theory posits that there is no single best way to manage or organize, and that the most effective approach depends on the specific context, situation, and environment.
Theory X and Theory Y (Motivation perception), Employee motivation, and Human relations	Developed by Douglas McGregor. These theories describe two contrasting views of human nature. Theory X assumes that workers are inherently lazy and need close supervision, while Theory Y assumes that workers are motivated and enjoy their work.
Modern Management Theories	These include the quantitative approaches. It uses data and analytics for decision-making and employee compensation.
Holistic Management Theory	Developed by Allan Savory.  Integrated approach promoting sustainable land use and management practices
Knowledge worker theory	Skill development by Peter Drucker.  It places of interest on prudence, integrity, and effectiveness.

Organizational Theories

          The relationship between management and organizational theories is closely intertwined.  Management theories often inform the practical application of organizational theories. For example, understanding the principles of scientific management can help organizations design efficient workflows and structures, while recognizing the importance of human relations can guide managers in creating a positive and motivating work environment. Conversely, organizational theories provide a broader context for understanding the effectiveness of different management approaches.  For instance, contingency theory suggests that the best managerial practices depend on the specific organizational structure and environment.

Organizational Theories	Description
Classical organizational theory	This theory focuses on the formal structural aspects of organizations, including bureaucracy, specialization, and formalization. It looks at the efficiency and the role of management in achieving goals. Key contributors include Max Weber (bureaucratic theory)
Neo-classical Organizational Theory	Expands on classical theory by considering the social and psychological aspects of organizational behavior, including employee motivation and group dynamics. It highlights the importance of human relations within the organization.
Modern Organizational Theories	Emphasizes the dynamic relationship between organizations and their external environment.  Theories under it emphasize open systems, focusing on the organization’s interactions with its external environment, including social, cultural, and regulatory influences.
Institutional Theory	A modern theory that focuses on how external social institutions shape organizational structures and practices.
Contingency Theory	A modern theory that emphasizes the importance of situational factors in organizational design and management. It is about flexible leadership.

          In essence, management theories focus on the “HOW” of organizational operations, while organizational theories focus on the “WHAT” and “WHY” of the organizational structures and behaviors. Together, they provide a comprehensive framework for understanding and improving organizational effectiveness.

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