Thursday, December 26, 2013

Managerial role in organisation


ACCA - F1   ACCOUNTANT  IN  BUSINESS


Management practice sets fundamentals for establishing cultural identity of an organisation. Manager's role is to help preserve (the good practice) and promote (induction of new techniques) existing cultural settings to generate optimal output for the organisation. For this, we see three different approaches adopted by organisation, which describes the role of manager.

The industrial revolution 1913

A century ago, for the first time Ford motors introduced assembly line. It revolutionized the automotive industry and in no time, the style spread throughout other industry. In increased productivity for same labour input decreased unit price  and increased benefit to employees. (While the Model T created a seismic shift in mobility, it was the automotive assembly line that allowed for that shift. The Ford assembly line was developed 100 years ago in 1913, to help mass produce the T.)

Classical school : 

In 1911 Frederick W. Taylor introduced scientific management technique which focus on the task to increase productivity from individual employees. Money was the key motivating factor. Other contributor of Classical approach Henry Fayol focused on role of manager. According to him manager should focus on planning, organising, commanding, coordinating and controlling to increase productivity. By then, Max Weber suggested bureaucratic approach of management.

Mooney and Reiley set out three common principles in Classical Approach which are:
The principle of coordination : the must have for employee to work together with unity of command, the exercise of authority, and the require for discipline;
The scalar principle : the hierarchy of organization, the duties need to be graded, and the delegation of works;
The functional principle: a well defined specialization of works and the clear distinction between different kinds of duties.

Human relationship school: 

The first approach of this study focus on  productivity in relation to  variables such as employee morale, dynamics of group worker, the supervision method, relationship between workers, the behavioural principles of motivation. The importance of human relationship in an organisation is the central issue. If focus on group culture. This focus on collaboration of different units/individuals to cancel the bottleneck effect, which would otherwise, has existed. The second approach is Edward Mcgregor's  Theory X and Theory Y. Here Theory X refers to those group and individuals who needs strict rules and guiding force because of their dislike to work whereas Theory Y refers to individuals and groups who are self organised and motivated and seek responsibility to optimize productivity.

The Modern approach by Peter Drucker and Mintzberg:

According to Peter Drucker manager job is divided into five basic tasks. They are:
Set objectives
Organise
Motivation and Communication
Measures
Develop people

According to Mintzberg manager's job is divided into 10 sub-headings under 3 headings. They are:
Informational: Monitor, (Communicator) Disseminator and Spokesperson
Interpersonal: Figurehead, Leader and Liaison (within and outside organisation)
Decisional: (Intrapreneural) Entrepreneur, Disturbance handler, Resource allocator and Negotiator

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