Bureaucracy

1. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Bureaucracy Max Weber, a German Scientist is known as Father Of Bureaucracy. He studied different types of Business and government organisations and distinguished 3 basic types of administration in them. 1. Leader Oriented 2. Traditional Oriented 3. Bureaucratic Oriented

2. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Leader Oriented Administration • There is no delegation of management functions • All Employees serve as loyal subjects of a leader.

3. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Traditional Oriented Administration • Managerial positions are handed down from generation to generation. • Who you are is more important than what you can do becomes the primary criteria for work assignment.

4. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Bureaucratic Administration • Delegation of management responsibilities is based on a person’s demonstrated ability to hold the position. • No person can claim a particular position either because of his loyalty to the leader or because position has been traditionally held by his members of family. • People earn positions because they are presumed to be best capable of filling them. • Weber considers the last type as ideal type of administration

5. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Important Features Of Bureaucratic Administration 1. There is insistence on following Standard Rules Weber believed that the authority in an organisation should be governed by standard rules OR Institutional Cult should replace personal cult. Weber told that this would provide equality in treatment of subordinates and continuity and predictability of action. This would obviate / prevent the need for searching adhoc solutions to the problems

6. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers 2. There is systematic Division Of Work • Increases production by improving efficiency and saving time in changing from one job to another.

7. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers 3. Principle of Hierarchy is followed – Each lower officer is under the control and supervision of higher one

8. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers 4. Its necessary for the individual to have knowledge and training in the Application of Rulesbecause these form the basis on which legitimacy is granted to this authority. • Administrative acts , Decisions and Rules are recorded in writingThis makes the organisation independent of people besides making people’s understanding more accurate. • There is Rational Personnel Administration People are selected based on their credentials and merits and are paid according to their position in the hierarchy. Promotions are made systematically. There is emphasis on winning people’s loyalty and commitment.

9. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Contributions and Limitations of Bureaucracy Contributions - • Bureaucracy can be viewed as logical extensions of management when it becomes impossible for 1 person to fulfill all the management functions(Planning, Organising, Directing ,Controlling) • The concept has enabled most large scale organisations which require functionally specialised staff to train and control the people with heterogeneous backgrounds and to delegate specific responsibilities and functions to them.

10. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Limitations - Important Dysfunctional / Undesirable / non-functional Consequences of Bureaucracy are as follows • Overconformity to rules – In a bureaucratic Organisations, employees observe ‘Stick to the rule’ policy because they fear being penalised for violation of these rules. They follow only letter of law without going into its spirit. Eg – a doctor in emergency ward spends precious time in filling various forms before helping the accident victim. Violation of rules beget more rules to take care of violations

11. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Buck Passing – In bureaucratic organisations, the employee’s initiative is stifled. In situations, where there are no rules, employees are afraid of taking decisions independently, lest / else they may be punished for wrong decisions. Hence they shift decisions to others or postpone them. As a result, office work increases. 3.Categorisation of Queries – In a bureaucratic organisations, probable queries coming from outside are generally classified in advance into a few broad categories. Answers for each category are also prepared in advance. Differences, if any between queries within a category are ignored. On receiving a query, the employee’s job is simply to determine its category and tick the reply applicable to that category.

12. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Displacement Of Goals – is a very common phenomenon in bureaucratic organisation and was discovered by German Sociologist Robert Michels. Goal displacement / Displacement Of Goal takes place when an organisation substitutes for its legitimate goal some other goal for which it was not created, for which resources were not allocated to it and which it is not known to serve.

13. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • A stranger enters an office seeking some information from employee sitting there. But the employee instead of supplying him the information asks him to follow the rules and go to the enquiry counter.

14. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Displacement of goals can occur in several ways a. After sometime, leaders may devote much attention and resources to preserve and maintain the organisation itself rather than its initial purpose due to several interest groups in & outside organisation which begin to use organisational goals as means to serve their own individual goals. b. Employees develop Professional Automation – employees may so intensively internalise the rules that goals which these rules framed to achieve are totally forgotten. The means become more important than ends.

15. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Eg – If a librarian is praised for the neat and orderly look of the library and not for increase in number of book borrowers. • If a factory worker is praised for his regular attendance and not for the quality of his performance. • If a teacher is praised for pass percentage of his students and not for the quality of his instruction. • Its not surprising if they begin to feel after sometime that orderly look of library , regular factory attendance and high percentage are all what are demanded of them. c. After sometime, secondary goals of an organisation may completely subordinate its primary goals, so that latter are no longer served effectively.

16. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Story is told of a transport spokesman who countered complaints that buses often whizzed past waiting commuters by arguing that picking up passengers upset timetables. • Infact appraisals in many organisations are based on information that is easy to collect rather than that which is intrinsically important

17. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • A university may initiate certain social or extra curricular activities to attract students to classes , but if social or extra curricular activities consume a lot of university’s time and resources, they undermine the achievement of teaching goal. d. After sometime, sectional interests may develop among subunits of an organisation and heads of these units may become so much enamoured with their section goals that they may forget organisational goals.

18. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • No real right of appeal – The clients of a bureaucratic organisation feel dissatisfied because they have no real right of appeal. Superiors are often side with a view point of their subordinates. 6. Neglect of Informal groups – Man is imbued / filled with sentiments. Being a social creature , he forms informal groups that play an important role in all organisations. Bureaucratic organisations often ignore existence of informal groups which usually carry out a big chunk of organisational work.

19. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers 7. Rigid Structure – Precise description of roles and over conformity to rules make bureaucratic structures rigid. Rigid structures though they work well in stable environments, do not cope well with today’s changing environment. Organisation needs flexible structures to frequently interact with their environment for collecting , processing and monitoring information and changing the job description and roles of their employees.

20. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers 8. Inability to satisfy the needs of mature individuals – Maturity – Immaturity theory laid down by Chris Argyris tells in great detail how bureaucratic organisations are unable to meet the needs of mature individuals who work in them. • Accordingly, a mature individual wants independence, initiative, self control, opportunity to use his skills and information to plan his future. • But hierararchy and control features of bureaucratic organisation work against these needs.

21. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Neo-Classical Approaches – called so because they refine and improve classical concepts. • The Human Relations Movement – Managers still faced difficulties because employees did not always follow predicted or rational patterns of behavior. • Hence there was an increased interest in helping managers deal more effectively with people side of their organisations . • Real inspiration for human relations movement came from Elton Mayo & his colleagues at Western Electric Company’s plant in Cicerno, Illinois.

22. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Plant employed 29,000 workers to manufacture telephone parts and equipment. • These experiments are described in the following parts

23. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Illumination Experiments • Relay Assembly Test Room • Interviewing Programme • Bank Wiring Test Room Examination of these experiments with result is not discussed

24. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Modern Management Approaches : • Behavioral Approach : This approach is improved & more mature version. The findings of the same are given below : Some points are listed below : a.) Behaviorists prefer more flexible Organization Structure & jobs built around Capabilities & Aptitudes of average employees against Classical Organizations. Classical Organizations are built around traditional concepts of Hierarchical authority, unity of command, line & staff relationships & narrow spans of control. This system is highly mechanistic & degrades human spirit.

25. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers b.) Recognizes practical & situational constraints / limitations on human rationality for making Optimal Decisions. In view of Complex nature of Business Problems, this approach attaches great importance to participative & group decision making instead of individuals responsible for solving them. c.) This approach stresses on desirability of humanizing administration of control process. This encourages process of self direction & control instead of imposed control.

26. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers d.) They favor participation in establishment, measurement & evaluation of standards of performance, prompt information feedback, feedback to those who fell below the mark, need for Positive & Reformative measures instead of Punitive Action. e.) They have made extensive studies on Leadership. Of Course, Democratic form of leadership is desirable, but certain situations may call for Autocratic, Task Oriented Style of Leadership.

27. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers f.) Realistic Model of Human Motivation is Complex. Because, different individuals react differently to the same situation or react the same way to different situations. No two individuals are exactly the same. Therefore Manager should evolve strategies to influence people according to their individual needs etc.

28. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers ii. Quantitative Approach : • Also called as Management Science Approach. • The interdisciplinary group of scientists who were engaged for this purpose were OR (Operations Research) teams because their work consisted of analyzing operations. • Here, we try to construct a Mathematical Model for simulating a given problem.

29. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • By changing the values of variables in the Mathematical model (such as Increasing Cost of Raw Materials) & analyzing the different equations of the model generally with Computer, we try to determine what the effect of each change would be. Thus the OR team presents the Management a Rational Base for Decision making. • This helps in decision making, it provides Quantitative Tools & Techniques aiding in decision making. • This facilitates disciplined thinking while defining Management Problems & establishing relationships among variables involved.

30. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • This Approach looks for precision & perfection. • Widely used in Planning & Control Activities. • But is uncommon in areas such as Organizing, Staffing & Leading the Organization where Problems are more Human than Technical in Nature.

31. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers iii. Systems Approach : • This provides the Manager of an Organization an Integrated Approach to Management Problems by treating MANAGEMENT AS A SYSTEM. • The Important Features are given below :

32. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • A System is a set of Interdependent Parts which together form a Unitary Whole to perform a given function. • An Organization is a System consisting of Four Interdependent Parts, namely, Task, Structure, People & Technology. • No part of the System can be accurately analyzed & understood apart from the whole system (because of the Multiplicity of Factors affecting a Man.) Each part bears a relation of Interdependence to every other part. Systems Approach gives a fair idea.

33. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • A system has flows of Information, Material & Energy. They enter the system from environment as Inputs & leave the System as Outputs. For Eg : Raw Materials, Human effort, Technology & Information are Inputs. Outputs are Goods, Services & Satisfaction. • One important mechanism which enables a System to adapt & adjust to the changing conditions of its environment & to exercise Control over its Operation is “Feedback”. This information is fedback to concerned people so that work can be assessed & corrected suitably.

34. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers iv Contingency Approach : • This Approach tries to integrate the Various Schools of Management Thought. • In this Approach, there are no Management Principles & Concepts of the Various Schools which have a General & Universal Applicability under all Conditions.

35. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • There is “No One Best Way Of Doing things Under All Conditions”. • Methods & Techniques which may have been highly effective in one situation may not work at all in another situation. • Thus, it is the Task of the Manager to try to identify, which technique will, in a particular situation best contribute to the attainment of Management Goals.

36. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Therefore, Managers should develop a Sort Of a Situational Sensitivity & Practical Sensitivity. • Some Applications of Contingency Approach are as below : • Designing Organizational Structure. • Deciding degree of Decentralization. • Resolving Conflicts. • Managing Change. • Employees Development & Training Programmes.

37. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers UNIT – 2 PLANNING

38. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers PLANNING • Most Basic Function of Management. • To design an Environment for effective performance of individuals working together in Groups. A Managers most essential function is to see that everyone understands the Groups purposes & objectives. • If group effort is to be effective, People must know what they are expected to accomplish which is PLANNING.

39. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Nature of Planning :

40. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Important Points on Planning: • This marks the beginning of the Process of Management. • Manager must Plan before he can possibly Organize, Staff, Direct or even Control. • This is an Intellectual Process, Think before you Act.

41. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • This basically deals with : 1.) What is to be done ? 2.) When it to be done ? 3.) How it is to be done ? 4.) Who is to do it ? • Decision Making is an Integral Part of Planning. This involves selecting Missions & Objectives & actions to achieve them. i.e., Choosing from among Alternative Courses of Action.

42. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Planning strongly implies Managerial Innovation. • Here, we consciously determine Courses of action & base our decisions on Purpose, Knowledge & considered estimates. • Planning & Control are inseparable Siamese Twins of Management.

43. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Any attempt to Control without Plans is Meaningless, since there is no way for people to tell whether they are going where they want to go (the Result of the Task of Planning). • Thus we can say that, Plans provide Standards of Control. • Here, Decision Making with take place at many points. In Fact, it is the Most Critical part of the Planning Process.

44. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Managers must also decide which Assumptions about the future & about the environment they will use in their plans. • Planning is not a “One Time Activity”. It is a Continuous Process. • But, Plans must be Flexible. Flexible means ability to change direction to Adapt to Changing Conditions/Situations without Undue Cost.

45. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • A Plan must provide for Contingencies (In Fact, as Many Contingencies as Possible.) • There should be a Built In Flexibility in at least Five Major Areas, Technology, Market, Finance, Personnel & Organization. • Flexibility in Technology means, to Change the Product Mix according to Changing Needs of the Customer.

46. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • Flexibility in Market means, Shifting the Market itself to a New Region. • Flexibility in Finance means, to Mobilize Additional Financial Resources whenever the need arises. • Flexibility in Personnel means, ability to shift individuals from one Job to Another. • Flexibility in Organization means, Ability of Organization to Change the Organization Structure.

47. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers • But, all of this is possible only within certain limits. • Planning is an All Pervasive Function. It is Important for all Levels of Management. One Major Difference concerns the Time Period Covered. Top Level Managers are generally involved in Planning Activities for a Period of Six Months to a Few Years. Middle Level, for a Week or a Month. First Line Supervisors, for may be a Day. • Top Level Management spend more time on Planning, Lower Level Management executes them.

48. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Why does one Have to Plan ? • Without Planning, the Business Organization becomes directionless & its decisions would become Random or Adhoc Choices. Therefore, Planning becomes Key for Success of a Business Organization. • Four Vital Reasons describe the Importance of Planning as given below :

49. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers Reasons for Planning : • Minimizes Risk & Avoids Uncertainty. • Leads to Success. • Focuses Attention on Organization’s Goals. • Facilitates Control.

50. www.BookSpar.com | Website for Students | VTU - Notes - Question Papers 1.) Minimizes Risk & Avoids Uncertainty: • In today’s Business Environment, Organizations are becoming increasingly Complex to manage & Intuition alone can no longer be relied upon as a means of taking decisions. For this, Planning has a very Important & Crucial Role to Play.