Schools of thoughts in Management and organizational theory:
1. The Classical School: The classical school is one of the oldest formal schools of management. The classical school of school is basically concerned about the ways to manage work and organizations more efficiently and effectively. It can be subdivided in three groups which are scientific management, administrative management and bureaucratic management.
Scientific management can be defined as the systematic study of work methods to improve more efficiency. It was introduced in order to create mental revolution in workplace.
Administrative management mainly focuses on management process and the principles of management. It provides a more general theory of management. …show more content…
Divisional structure: it is the type of organizational configuration which separates and groups together the employees responsible for a particular product type or market service according to workflow. This type of structure tends to increase the flexibility and it can be further broken down in product, market and geographic structure. (Business Dictionary, N/A)
Comparison of functional and divisional structure in terms of design elements and principles: In functional structure, only one department work for the whole system. Every company has separate department for specific areas. In this structure only one department take care of all department, branches and franchise. From this they are able to focus on the entire goal of company. But when it grows, functional becomes large, instable and inflexible because it has to consider their goals as the departments. Only small and medium sized organizations use functional structures. Marketing has been done only by the marketing …show more content…
It shows all the information in the structure from the lower position to senior positions and also their powers and authorities. Formal and informal, authorities and influences has a different impact on the organizational structures.
Formal power also known as positional power comes with the position in an organization has a powerful impact on the structure as in decision making roles. . a manager can fire an employee, increase his/her salary, can give them promotions with the use of their formal power. They can give threat to the employees to complete the tasks within the deadlines.
Informal power is very important as it possesses by the most experienced and expertise. They have the ability to shows their team a path to obtain their goals. Therefore the whole team has a deep faith on them as they have experience and effectiveness in their field.
Bad influence can lead the whole team into darkness. Good leaders can only take their team to the heights to obtain their goals. Authority has a big impact on the organizational structure. Managers have the authority to take decisions for sake of their team and company but not for themselves. (Small Business,