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Botswana College of Distance & Open Learning

Diploma in Business Management

Principles Of Management

Assignment: 1

Mmoniemang Motsele:

Question 1: What do you understand by term “Management”?

Definitions of Management

From my understanding I think Management means to get the work done through others
by most advantageous utilization of all available resources depending upon their ability
& capability. Resources include the use and direction of human resources, financial
resources, technological resources, and natural resources.

1. According to George R. Terry, "Management is a distinct process consisting of

planning, organizing, actuating and controlling, performed to determine and
accomplish stated objectives by the use of human beings and other resources".
2. According to Henry Fayol, "To manage is to forecast and to plan, to organize,
to command, to coordinate and to control".
3. According to Harold Koontz, "Management is the art of getting things done
through and with people in formally organized groups”.

Levels of management

Two leaders may serve as managers within the same company but have very different
titles and purposes. Large organizations, in particular, may break down management
into different levels because so many more people need to be managed. Typical
management levels fall into the following categories:

 Top level: Managers at this level ensure that major performance objectives are
established and accomplished. Common job titles for top managers include Chief
Executive Officer (CEO), Chief Operating Officer (COO), President, and Vice
President. These senior managers are considered executives, responsible for the
performance of an organization as a whole or for one of its significant parts.

The role of the top management can be summarized as follows –

 Top management lays down the objectives and broad policies of the enterprise.
 It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
 It prepares strategic plans & policies for the enterprise.
 It appoints the executive for middle level i.e. departmental managers.
 It controls & coordinates the activities of all the departments.
 It is also responsible for maintaining a contact with the outside world.
 It provides guidance and direction.
 The top management is also responsible towards the shareholders for the
performance of the enterprise.

Middle level: Middle managers report to top managers and are in charge of
relatively large departments or divisions consisting of several smaller units.
Examples of middle managers include clinic directors in hospitals; deans in
universities; and division managers, plant managers, and branch sales managers
in businesses. Middle managers develop and implement action plans consistent
with company objectives, such as increasing market presence. Their role can be
emphasized as –
 They execute the plans of the organization in accordance with the policies and
directives of the top management.
 They make plans for the sub-units of the organization.
 They participate in employment & training of lower level management.
 They interpret and explain policies from top level management to lower level.
 They are responsible for coordinating the activities within the division or
 It also sends important reports and other important data to top level
 They are also responsible for inspiring lower level managers towards better
 They evaluate performance of junior managers

Low level: The initial management job that most people attain is typically a first-line
management position, such as a team leader or supervisor — a person in charge of
smaller work units composed of hands-on workers. Job titles for these first-line
managers vary greatly, but include such designations as department head, group
leader, and unit leader. First-line managers ensure that their work teams or units meet
performance objectives, such as producing a set number of items at a given quality, that
are consistent with the plans of middle and top management. Their activities include –

 Assigning of jobs and tasks to various workers.

 They guide and instruct workers for day to day activities.
 They are responsible for the quality as well as quantity of production.
 They are also entrusted with the responsibility of maintaining good relation in
the organization.
 They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher level goals and objectives to the
 They help to solve the grievances of the workers.
 They supervise & guide the sub-ordinates.
 They are responsible for providing training to the workers.
 They arrange necessary materials, machines, tools etc for getting the things
 They prepare periodical reports about the performance of the workers.
 They ensure discipline in the enterprise.
 They motivate workers.

Managerial roles:

Managers in various organizations perform many roles, so that they can assist the
organization to achieve its goals. To meet the many demands of performing their
functions, managers assume multiple roles. A manager must perform certain functions
and assumes certain responsibilities for any organization. A role is an organized set of

Henry Mintzberg: has identified ten roles common to the work of managers. The ten
roles are divided into three groups: interpersonal, informational, and decisional. The
informational roles link all managerial work together. The interpersonal role ensures that
information is provided. The decisional roles make significant use of the information

TABLE 1 Mintzberg's Set of Ten Roles

Category Role Activity
Informational Monitor Seek and receive information; scan periodicals and
reports; maintain personal contact with stakeholders.
Disseminator Forward information to organization members via
memos, reports, and phone calls.
Spokesperson Transmit information to outsiders via reports, memos,
and speeches.
Interpersonal Figurehead Perform ceremonial and symbolic duties, such as
greeting visitors and signing legal documents.
Leader Direct and motivate subordinates; counsel and
communicate with subordinates.
Liaison Maintain information links both inside and outside
organization via mail, phone calls, and meetings.
Decisional Entrepreneur Initiate improvement projects; identify new ideas and
delegate idea responsibility to others.
Disturbance Take corrective action during disputes or crises;
handler resolve conflicts among subordinates; adapt to
Resource Decide who gets resources; prepare budgets; set
allocator schedules and determine priorities.
Negotiator Represent department during negotiations of union
contracts, sales, purchases, and budgets.

Discuss F. W. Taylor’s contribution to the development of management as a

F W Taylor is termed as the father of scientific management and his prime contribution
in the area of management is the founding of efficiency movement and also the start of
the progressive era.

He is best known in the world of management for his study of time and motion. What he
put forward was to break the job into many component parts and then measure each of
them to the hundredth of a minute.

He believed that the management of that era was unprofessional and he supported that
it should be taught as a separate discipline and to get the best result from the work
force there should be partnership between qualified management and cooperative
workforce. It was he who said that the trade unions were irrelevant as both the sides
were important for each other's existence.

Features of Scientific Management

1. Scientific task setting: F. W. Taylor suggested the introduction of standard task

which every worker is expected to complete within one day (working hours e.g.
8½ hours) the task is to be calculated through careful scientific investigation. For
this, work study (i.e. method study and work measurement study) is essential.
Taylor suggested time study, motion study, fatigue study and rate-setting for the
introduction of scientific task. Time study is the art of observing and recording the
time required to do each detailed element in an industrial operation. Motion study
refers to the study and analysis of the movements of an operator while
performing a job so that attempts can be made to remove useless/unwanted
movements from the process. Both the studies together help in determining the
best method of performing a job and the standard time allowed for it. This
replaces the old rule-of-thumb knowledge of the workers. This method is always
used in big companies and mines like Toyota Company, Debswana Mines and
Morupule Colliery.

2. Planning the task: For performing the task by every worker, Taylor suggested
the need of planning the production activity accurately. This idea of planning is
Taylor's gift to the science of management. Planning of task gives answers to the
following questions. What has to be done, how it is to be done, where the work
shall be done and when the work shall be done.

3. Scientific selection and training of workers: Taylor suggested the need of

scientific selection of workers for the plant/production activities. The procedure of
selection must be systematic so as to select the best and the most suitable
persons for different types of jobs. Correct placement of workers is equally
important. He also suggested the need of training of workers so as to raise their
ability or efficiency. Training is to be integrated with the promotion policy. He also
suggested differential piece wage plan for compensation payment to workers. He

also suggested the importance of cordial relations between management and

4. Standardization: Taylor suggested the importance of standardization of tools

and equipment, materials, conditions of work and speed of machines. This brings
co-ordination in different activities and all workers will be able to perform the task
assigned easily. The workers will have satisfactory working conditions for work
due to such standardization.

5. Specialization: Taylor suggested specialization in the administrative and

organizational setup of the plant. He suggested functional foremanship. Taylor
recommended eight functional foremen for different activities and functions. The
foremen suggested by him are like route clerk, instruction card clerk, speed boss
etc. Such specialization is useful for raising efficiency of the whole organization.

Benefits / Advantages of Scientific Management

1. Application and use of scientific methods.

2. Wide scope for specialization and accurate planning.
3. Minimum wastages of materials, time and money.
4. Cordial relations between workers and management.
5. Benefits to workers (higher wages and less burden of work), management (cost
reduction, better quality productions) and consumers (superior goods at lower

F. W. Taylor’s Contribution to the Development of Management Thought / Science

The contribution of F. W. Taylor to management thought is as explained below:

1. Emphasis on rational thinking: Taylor suggested rational thinking on the part

of management for raising efficiency and productivity. He wanted managements
to replace old methods and techniques by Modern methods which will raise
productivity and offer benefits to all concerned parties. He was in favour of
progressive, scientific and rational thinking on the part of management on all
managerial problems. Such progressive outlook is essential for the introduction
of new techniques and methods in the Management.

2. Introduction of better methods and techniques of production: F. W. Taylor

suggested the importance of improved methods and techniques of production.
Work-study techniques are his contribution to management thought. He
suggested new methods after systematic study and research. Taylor
recommended the use of new methods for raising overall efficiency and

3. Emphasis on planning and control of production: Taylor suggested the

importance of production planning and control for high production, superior
quality production and also for low cost production. He introduced the concept of
production management in a systematic way.

4. Importance of personnel and personnel department: Taylor suggested the
importance of manpower in management. He was in favour of progressive
personnel policies for the creation of efficient and satisfied labour force. He
suggested the need of personnel department and its importance. He favored
incentive wage payment to workers.

5. Industrial fatigue and rest pauses: Taylor noted the nature of industrial fatigue
and suggested the introduction of suitable rest pauses for removing such fatigue
of workers. He wanted to reduce the burden of work on workers through the use
of scientific methods.

6. Time and motion study: Taylor introduced new concepts like time study, motion
study and work study in the field of industrial management such concepts are for
the introduction of new methods which will be more quick, scientific and less
troublesome to workers.

Scientific management not only developed a rational approach to solving organizational

problems but also contributed a great deal to the professionalization of management.
Time and motion studies, scientific selection of workers, work design and one best way
to doing a job are some new ideals suggested by Taylor and are responsible for the
introduction of Many positive changes in the field of industrial/ production management.


I therefore recommend Taylor’s management as it appears that in today’s world, a few

of his systems are still being implemented in some organizations. i.e.; time rate pay,
time, and job performance monitoring system, 8½ hours of work. It increased
productivity cost reduction, better quality productions as compared to the old traditional

Question 2
Explain theories X and Y of motivation as put forward by Douglas McGregor

Motivation Theories X and Y - McGregor

In his 1960 management book, The Human Side of Enterprise, Douglas McGregor
made his mark on the history of organizational management and motivational
psychology when he proposed the two theories by which managers perceive employee
motivation. He referred to these opposing motivational theories as Theory X and Theory
Y. Each assumes that management's role is to organize resources, including people, to
best benefit the company. However, beyond this commonality, they're quite dissimilar

Theory X

 According to McGregor, Theory X leadership assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid work
whenever possible.
 Most people are not ambitious, have little desire for responsibility, and prefer to
be directed.
 Most people have little aptitude for creativity in solving organizational problems.
 Motivation occurs only at the physiological and security levels of Maslow's
Needs Hierarchy
 Most people are self-centered. As a result, they must be closely controlled and
often coerced to achieve organizational objectives
 Most people resist change.
 Most people are innocent and unintelligent
 Essentially, this theory assumes that the primary source of most employee
motivation is monetary, with security as a strong

The Hard Approach and Soft Approach

 Under Theory X, management approaches to motivation range from a hard

approach to a soft approach.
 The hard approach to motivation relies on coercion, implicit threats,
micromanagement, and tight controls -- essentially an environment of command
and control.
 The soft approach, however, is to be permissive and seek harmony in the hopes
that, in return, employees will cooperate when asked. However, neither of these
extremes is optimal.
 The hard approach results in hostility, purposely low-output, and extreme union
demands. The soft approach results in increasing desire for greater reward in
exchange for diminishing work output.
 It would appear that the optimal approach to human resource management
would be lie somewhere between these extremes. However, McGregor asserts
that neither approach is appropriate since the foundations of Theory X are
The Problem with Theory X

Drawing on Maslow's Hierarchy of Needs, McGregor argues that a need, once satisfied,
no longer motivates. The company relies on monetary rewards and benefits to satisfy
employees' lower level needs. Once those needs have been satisfied, the motivation is
gone. Theory X management styles, in fact, hinder the satisfaction of higher-level

Consequently, the only way that employees can attempt to satisfy higher level needs at
work is to seek more compensation, so it is quite predictable that they will focus on
monetary rewards.

While money may not be the most effective way to self-fulfillment, in a Theory X
environment it may be the only way. People will use work to satisfy their lower needs,
and seek to satisfy their higher needs during their leisure time. Unfortunately,
employees can be most productive when their work goals align with their higher level

McGregor makes the point that a command and control environment is not effective
because it relies on lower needs for motivation, but in modern society those needs are
mostly satisfied and thus no longer motivate. In this situation, one would expect
employees to dislike their work, avoid responsibility, have no interest in organizational
goals, resist change, etc. thus creating a self-fulfilling prophecy. To McGregor,
motivation seemed more likely with Theory Y.

Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that
they are never completely satisfied. As such, it is these higher-level needs through
which employees can best be motivated.

In strong contrast, Theory Y leadership makes the following general assumptions:

Work can be as natural as play if the conditions are favorable.

People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.

People will be committed to their quality and productivity objectives if rewards are in
places that address higher needs such as self-fulfillment.

The capacity for creativity spreads throughout organizations.

Most people can handle responsibility because creativity and ingenuity are common in
the population.

Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with

organizational goals by using the employee's own need for fulfillment as the motivator

Applying Theory Y Management - Business Implications

If Theory Y holds true, an organization can use these principles of scientific

management to improve employee motivation:

Decentralization and Delegation - If firms decentralize control and reduce the number
of levels of management, managers will have more subordinates and consequently will
be forced to delegate some responsibility and decision making to them.

Job Enlargement - Broadening the scope of an employee's job adds variety and
opportunities to satisfy ego needs.

Participative Management - Consulting employees in the decision making process

taps their creative capacity and provides them with some control over their work

On analysis of the assumptions it can be detected that theory X assumes that lower-
order needs dominate individuals and theory Y assumes that higher-order needs
dominate individuals. An organization that is run on Theory X lines tends to be
authoritarian in nature, the word “authoritarian” suggests such ideas as the “power to
enforce obedience” and the “right to command.” In contrast Theory Y organizations can
be described as “participative”, where the aims of the organization and of the individuals
in it are integrated; individuals can achieve their own goals best by directing their efforts
towards the success of the organization.

However, this theory has been criticized widely for generalization of work and human

Question 3

Challenges faced by managers

1. Competition: Managers today face many challenges regarding their work the major
challenge that is faced by managers nowadays is the competition. They need to see the
ever changing scenario regarding their work. World is now global village with Internal
organization coming in and bringing ideas from abroad, giving more competition to
managers. Twenty years ago, few workers used machines or email, and computers
occupied entire rooms, not desktops. Advances in information and communication
technology have permanently alters the workplace by changing the way information is
create, stored, used, and shared

2. Diverse workforce: A diverse workforce refers to two or more groups, each of those
members are identifiable and distinguishable based on demographic or other
characteristics like gender, age group, education etc. several barriers in dealing with
diversity include stereotyping, prejudice, ethnocentrism, discrimination, tokenism, and
gender-role stereotypes

3. The need for ethics: Management decisions need to be weighed to ensure that they
do not have a negative effect on ethics of people in and outside the organization. Ethics
is concerned with the question of who benefits and who should benefit from activities of
an organization. Managers in organization today need to be cognizant of ethics in the
decision they make and how these decisions will affect people within and outside the

4. Anticipate Global Talent Shortage: The most critical problem is hiring, retaining,
training and motivating professional talent in a troublesome scenario where the already
critical shortage of human talent in some professional areas and in diverse managerial
disciplines due to the beginning of the retirement with no enough replacements of the
baby boomers’ workforce; economical growth in China and India and resurgence of
energy market firms due to record crude oil prices has motivated a fierce competence to
hire, train and retain the already scarce talent available in the job market. Being so,
human talent is being more critical to ensure the competitiveness of a company for the
long term.

Such perspective is the expression of a growing trend of cannibalization in hiring and

recruiting scarce professional resource that finally is engaged to work with the bigger
companies (in marketing and strategy, cannibalization refers to a reduction in the
sales volume, sales revenue, or market share of one product as a result of the
introduction of a new product by the same producer). This trend is particularly
critical in the Oil & Energy and Engineering industries where it is possible to observe a
continuous turnover of engineers from one company to the other one looking for better
salary perspectives and superior career development plans.

Being so, some companies belonging to these industries are beginning to develop
systematically their respective Strategic Workforce Planning to analyze, evaluate and
forecast the talent that they need to develop their strategic planning. In parallel, these
companies are developing a more proactive HR management and are making the
necessary adjustments to excel in the role of hiring, retaining, training and motivating
professional talent.

5. Employer Brand Management: Today’s global organizations should excel in

developing Employer Brand Management practices to generate multicultural workplaces
where an employee can feel pride and satisfaction for belonging to an organization
where he/she is considered, respected and recognized. The Great Place to Work
Institute, located in San Francisco, USA has developed practices to improve five cultural
dimensions (Credibility, Respect, Fairness, Pride and Companionship) to pursuit this

When an employee as usually happens in most of today's companies is considered as a

mere commodity that may be easily replaced, relocated, hired and finally fired out, it is
easy to expect that in such workplaces an anguish feeling of demoralization,
progressive disengagement and lots of motivation finally will have a profound and
detrimental impact over employee’s productivity, increasing the rate of employee’s
attrition and affecting the whole company’s productivity for the long term. This is the
reason that justifies the progressive adoption of Employer Branding practices.

6. Managing efficiently multicultural organizations: In global organizations that are

engaged in developing transformational projects with a worldwide scope dealing with
cultural differences in organizations requires from a strong, empowered and influential
leadership with the willingness of applying the proper corporate governance practices to
homogenize those differences around an inspiring business vision that being strongly
encouraged by senior Management and enabled by collaborative technologies may be
instrumental in reducing the inefficiencies of having multidisciplinary teams
geographically dispersed with different cultures working in markets, products and
projects that could be intrinsic and inherent to the particular country´s culture, history
and traditions.

7. Market changes: Coping with continuous rapid changes in marketplace and the
need to find new ways of anticipating changes are as challenging as they ever were.
For example, current global financial crisis is considered a significant change which
requires innovative enlightened management skills to adapt to it. Reshaping the
organizational structures strategic merging with other organization, searching for new
markets and reducing overheads costs are some of the initial solutions which can be
implemented to cope with such change.

8. Micro-electronic technology: Micro-electronic technology becomes widely used by
successful competitive organizations to increase productivity and enhance the outcome
results. It includes the use of automated manufacturing process, advances
telecommunication, internet, software, etc. high technology opens the door up to the
globe marketing and this requires innovative ideas to cope with such change and to
minimize costs. It also helps communicate more effectively with internal corporation and
external market and customers

9. Responsiveness: Today’s organizations are facing many challenges and threats

from internal or external environment and it has to be responsive to the. The quick
responsiveness would be required to meet the opportunities and challenges happened
out of these changes. Mangers need to have sensitivity to cultural diversity within their
organization and find ways of accommodating needs of various groups of people. Many
managers are finding it necessary to rethink traditional policies and look for ways to
accommodate the varying needs of the diverse groups of people.

10. Empowerment: The key challenge facing managers and leaders today is to
understand how to empower and motivate their team. We all know that people who are
motivated will be more productive and perform better at work.

The leader of the team is responsible for creating a good work environment for his/her
team. This involves spending time trying to understand what motivates each individual
and addressing problems faced by the team.

11. Feedback mechanisms. Employees want to know how they are doing - whether
poorly or well. Failure to give them the feedback they need is to keep them in the dark
regarding the assessment of their performance and how and where they need to

12. Decision making. Many managers make decisions that other employee’s will either
have to implement or that will affect them. If these decisions are made without bottom-
up feedback, you can guarantee that the outcome of the decisions will be less than
desired or expected.

Organizations constantly encounter forces driving them to change. Because change
means doing something new and unknown, the natural reaction is to resist it. Extension
programme managers must overcome this resistance and adopt innovative and efficient
management techniques to remain high performers. They must improve their personal,
team, and cultural management skills if they hope to adapt themselves to a changing
world. Overwhelmingly, current management wisdom touts the goal of getting decisions
made as low down in the organization as possible.
The basic idea is that since people closest to the work are likely to know the most about
solving problems in their areas, they should be involved in the decisions concerning
those areas. An added benefit is that they are more motivated if they have some control
over their work and over their own destinies.
Question 4

Four functions performed by every manager in the entire organization

The functions of management uniquely describe managers' jobs. The most commonly
cited functions of management are planning, organizing, leading, and controlling,
although some identify additional functions. The functions of management define the
process of management as distinct from accounting, finance, marketing, and other
business functions. These functions provide a useful way of classifying information
about management, and most basic management texts since the 1950s have been
organized around a functional framework.

Henri Fayol was the first person to identify elements or functions of management in his
classic 1916 book Administration Industrielle et Generale. Fayol was the managing
director of a large French coal-mining firm and based his book largely on his
experiences as a practitioner of management. Fayol defined five functions, or elements
of management: planning, organizing, commanding, coordinating, and controlling.

Planning is the function of management that involves setting objectives and determining
a course of action for achieving these objectives. It is the starting point of the
management process. It is the foundation on which other elements of the management
process are built. Planning requires that managers be aware of environmental
conditions facing their organization and forecast future conditions. It also requires that
managers be good decision-makers.
The first function is planning. In this function, you are setting goals and objectives, then
scheduling the steps to achieve the goals in a certain time. Then you need to decide
on the resources that are needed to ensure that the objectives are met.

Pre-planning can save a tremendous amount of time. One way to do this is to use
SWOT analysis completed by senior management before you even start the planning
process. SWOT stands for strengths, weaknesses, opportunities, and
threats. Completing a SWOT analysis will save you almost an entire hour in the
planning process (Rowland, R. p.4).

In order to reach the objective outlined in the planning process, structuring the work of
the organization is a vital concern. Organization is a matter of appointing individuals to
assignments or responsibilities that blend together to develop one purpose, to
accomplish the goals. These goals will be reached in accordance with the company’s
values and procedures. A manager must know their subordinates and what they are
capable of in order to organize the most valuable resources a company has, its
employees. (Bateman, Snell, 2007). This is achieved through management staffing the
work division, setting up the training for the employees, acquiring resources, and
organizing the work group into a productive team. The manager must then go over the
plans with the team, break the assignments into units that one person can complete,
link related jobs together in an understandable well-organized style and appoint the jobs
to individuals. (Allen, G., 1998).

Organization is strong at the University of Botswana with the ability to be flexible. The
University of Botswana’s leadership provides needed direction for staff to achieve
personal success that leads to organizational success. Managers at (UB) are
responsible for keeping communication lines open between departments to eliminate
any issues from forming. Wyeth would not be a healthcare leader if there was little or no


Organizational success is determined by the quality of leadership that is exhibited. "A

leader can be a manager, but a manager is not necessarily a leader," says Gemmy
Allen (1998). Leadership is the power of persuasion of one person over others to inspire
actions towards achieving the goals of the company. Those in the leadership role must
be able to influence/motivate workers to an elevated goal and direct themselves to the
duties or responsibilities assigned during the planning process. (Allen, G., 1998).
Leadership involves the interpersonal characteristic of a manager's position that
includes communication and close contact with team members. (Bateman, Snell, 2007).

Managers at Wyeth are there to motivate workers to fulfill the goals of the company and
out-perform their competitors. They as leaders have day to day contact with workers
using open communication and are able to give direction individually as well as within
teams, departments and divisions. Management is there to inspire subordinates to ‘step
up to the plate’ and find innovative means to solve department problems. Authorizing
staff to have the capability to deal with situations is a significant part of leading. (Allen,
G., 1998).


The process that guarantees plans are being implemented properly is the controlling
process. Gemmy Allen stated that ‘Controlling is the final link in the functional chain of
management activities and brings the functions of management cycle full circle.’ This
allows for the performance standard within the group to be set and communicated.
Control allows for ease of delegating tasks to team members and as managers may be
held accountable for the performance of subordinates, they may be wise to extend
timely feedback of employee accomplishments. (Allen, G., 1998).

Department meetings are daily at the University of Botswana. Meetings are used to
review the daily schedule, prevent problems and to ascertain when problems do exist in
order to address and solve those that occur as quickly and as efficiently as possible.
Control is the process through which standards for performance of people and
processes are set, communicated, and applied. (Allen, G., 1998). Managers and
supervisors are given work performance evaluations that are a form of control as it
connects performance assessments to rewards and corrective actions. Evaluating
employees is a continual process that takes place regularly within the company. (Allen,
G., 1998).

Importance of Functions of Planning

The four functions of management planning, organizing, leading and controlling,

assume a great worth in the success of any business every day. (Bateman, Snell,
2007). In all organizations, each employee’s individual contribution to the success of the
company is of enormous importance as the company’s goals would not be met and
success would not be reached. Even with room for improvement, Wyeth has the
appropriate functions of management in position to be a long-term success

Question 5

Steps to be followed in the organizing process

The process of organizing is the way in which tasks and resources are distributed
among departments, to set a plan or strategy in motion is based on certain principles
and these are:

1. Specialization
2. Departmentalization
3. Organization structure
4. coordination
5. Restructuring

Work Specialization

Specialization is a situation where a task is broken up into smaller units to take the
advantage of specialized knowledge or skills to improve productivity. The division of
task into smaller units however means that the various units have to be coordinated, as
indispensable part of organization.


It is the process of forming employees into groups to accomplish specific organizational

goals. Departments can be organized according to functions workers perform, as in
accounting and human resource departments; by products, as in a department store
organized by retail product categories; by type of customer, as in men's wear or
women's wear; or by geographic divisions. Workers with varying skills and levels of
expertise are grouped into a specific department and their interactions with one another
are governed by established procedures.

Organization Structure

Every organization is composed of certain parts. These parts then have their various
functions and are interdependent on each other for a smooth functioning of the
organization. An organization’s structure is a framework that allots a particular space for
a particular department or an individual and shows its relationship to the other. An
organization’s structure may be of many types, the most common of these being the
hierarchical and the flat organizational structure.

A horizontal organizational structure is what we call the traditional structure or at times,

the bureaucratic structure where there are one or more levels between the most junior
and the senior most employees. This helps in proper distribution of work but can be
harmful in terms of efficiency and decision making.

A flat organization is much more relaxed and so-called modern in approach where
everyone directly reports to a single boss. This could provide greater speed in the
decision making process but then the boss ends up taking care of a lot of things thus
making delegation difficult.

Once the organization has been divided into various departments the next important
point is coordination. Lack of coordination often leads to frustration and waste of time.


It is the corporate management term for the act of reorganizing the legal, ownership,
operational, or other structures of a company for the purpose of making it more
profitable, or better organized for its present needs. Alternate reasons for restructuring
include a change of ownership or ownership structure, demerger, or a response to a
crisis or major change in the business such as bankruptcy, repositioning, or buyout.
Restructuring may also be described as corporate restructuring, debt restructuring and
financial restructuring.

Executives involved in restructuring often hire financial and legal advisors to assist in
the transaction details and negotiation. It may also be done by a new CEO hired
specifically to make the difficult and controversial decisions required to save or
reposition the company. It generally involves financing debt, selling portions of the
company to investors, and reorganizing or reducing operations.

The basic nature of restructuring is a zero sum game. Strategic restructuring reduces
financial losses, simultaneously reducing tensions between debt and equity holders to
facilitate a prompt resolution of a distressed situation.


Bateman, T. S. & Snell, S. (2007). Management: Leading and Collaborating in a

Competitive World (7th ed., pp. 16 -18). McGraw - Hill.

Bateman, T.S. & Snell, S. (2004). Management: The New Competitive Landscape, (6th
ed., pp.13). McGraw – Hill

Allen, G. (1998). In Supervision. Retrieved August 17, 2010, from

Rowland R. Johnson, Mandy Goldner, Mitch Lee, Keith McKay, Robert Shectman, John
Woodruff: Principles of Management S 1992: p4

Loren B. Belker The First-Time Manager 5th Ed.

J. Payne , S. Payne Management Basics: The How-To Guide for
Managers (Adams Critical Skills for Your Business)

Williams, C. (2007) Management (4th Ed.) Mason, Okalahoma: South Western

Hill, C.W.L. & McShane, S. (2008) Principles of Management New York: McGraw Hill

Kinicki, A. & Kreitner, R. (2008). Organisational Behaviour, Key Concepts, Skills and
Best Practices, New York: McGraw Hill

Robbins, S.P. & Decenzo, D (2005) Fundamentals of Management (5th Ed.) Upper
Saddle River, NJ: Prentice Hall

Goodman, Stephen H. and Fandt, Patricia M. (2007) Management: Challenges for

Tomorrow’s Leaders (4th ed.). Mason, Oklahoma: South Western

Robbins, S.P. & Coulter, M. (2005) Management (8th Ed.) Upper Saddle River, NJ:
Prentice Hall

Dessler, G. (2003) Management: Principles and Practices for Tomorrow’s Leader (3rd
Ed.) Upper Saddle River, NJ: Prentice Hall

Williams, C. (2007) Management (4th Ed.) Mason, Okalahoma: South Western

Hill, C.W.L. & McShane, S. (2008) Principles of Management New York: McGraw Hill

Recommended Reading

Dessler, G. (2003) Management: Principles and Practices for Tomorrow’s Leader (3rd
Ed.) Upper Saddle River, NJ: Prentice Hall