Administrative & Management Theories, Principles, Practice

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ADMINISTRATIVE AND MANAGEMENT THEORIES, PRINCIPLES AND PRACTICE
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ADMINISTRATIVE AND MANAGEMENT PRINCIPLES, THEORIES AND
PRACTICE
Abah, E. O. (PhD)
Department of Political and Administrative Studies
College of Humanities and Social Sciences
Kampala International University Uganda
May, 2017
i
TABLE OF CONTENTS
Cover/Tittle page………………………………………………………………………………...i
CHAPTER ONE ........................................................................................................................................... 7
ADMINISTRATION .................................................................................................................................... 7
1.0. The concept of Administration .............................................................................................................. 7
1.1.UNIVERSALISM OFADMINISTRATION .......................................................................................... 7
1.2.PUBLIC/PRIVATE ADMINISTRATION ............................................................................................. 8
1.3.FEATURES OF PUBLIC ADMINISTRATION.................................................................................... 8
1.4.FEATURES OF PRIVATE ADMINISTRATION ................................................................................. 8
1.5.The concept of Public administration ..................................................................................................... 9
1.6.The scope of Public Administration...................................................................................................... 10
1.7.The conditions for perfect administration ............................................................................................. 11
1.8.Introduction to Administrative Law ...................................................................................................... 12
1.9.Scope of Judicial controls of administrative actions ............................................................................. 12
1.10. Administrative control ....................................................................................................................... 13
1.11. Administrative control devices .......................................................................................................... 14
CHAPTER TWO ........................................................................................................................................ 15
2.0. RELATIONSHIP BETWEEN PUBLIC ADMINISTRATION AND OTHER SOCIAL
SCIENCES.................................................................................................................................................. 15
2.1. Relationship between public administration and Political Science or Politics .................................... 15
2.2. Relationship between public administration and Sociology ................................................................ 17
2.3. Relationship between public administration and Law ......................................................................... 17
2
2.4. Relationship between public administration and Psychology .............................................................. 18
2.5.Relationship between public administration and History ..................................................................... 18
CHAPTER THREE .................................................................................................................................... 20
3.0. Organizational concepts and principles ............................................................................................... 20
3.1.Decentralization and delegation of authority ........................................................................................ 22
3.2.Decentralization takes two forms .......................................................................................................... 23
3.3. Reasons for decentralization ................................................................................................................ 23
3.4.Advantages of decentralization ............................................................................................................. 23
CHAPTER FOUR....................................................................................................................................... 26
CONCEPT AND TYPES OF ORGANIZATION ...................................................................................... 26
4.0.The concept of Organization................................................................................................................. 26
4.1.Types of Organizations ......................................................................................................................... 28
4.2.Formal Organization ............................................................................................................................. 28
4.3.Types of Formal Organizations............................................................................................................. 31
4.4.Public Organizations ............................................................................................................................. 31
4.5.Features of Public Organizations .......................................................................................................... 31
4.6.Reasons for Establishing Public Organisations: ................................................................................... 32
4.7.Problems of Public Organizations: ....................................................................................................... 33
4.8.PRIVATE ORGANISATIONS: ........................................................................................................... 34
4.8.1.Features .............................................................................................................................................. 34
4.8.2.Problems of Private Organizations: ................................................................................................... 35
4.9.Informal Organizations ......................................................................................................................... 35
4.10.The Emergence of Informal Organisations: ........................................................................................ 36
4.11.Features of Informal Organizations: ................................................................................................... 39
4.12.Merits of Informal Organisations:....................................................................................................... 39
3
4.13.Demerits of Informal Organizations ................................................................................................... 40
4.15.Typologies of formal organization ...................................................................................................... 41
4.16.ETZlONl‟S ORGANISATIONAL CLASSIFICATION .................................................................... 45
CHAPTER FIVE ........................................................................................................................................ 47
THEORIES OF ORGANIZATION ............................................................................................................ 47
5.0. Classical Theory................................................................................................................................... 47
5.1.Functions of Theories: .......................................................................................................................... 47
5.2.The Classical Theory of Organization: ................................................................................................. 48
5.3.Bureaucracy: ......................................................................................................................................... 49
5.4.Characteristics of Bureaucracy: ............................................................................................................ 49
5.5.Impersonality of Relationships: ............................................................................................................ 50
5.6.Functional Ramifications of Bureaucracy:............................................................................................ 51
5.7.The Dysfunctions of Bureaucracy......................................................................................................... 52
5.8.The administrative theory ..................................................................................................................... 55
5.9.The Committee: .................................................................................................................................... 58
5.10.Advantages:......................................................................................................................................... 59
5.11. Disadvantages: ................................................................................................................................... 59
5.12. The Functions of Management: ......................................................................................................... 60
5.12.Assumptions:....................................................................................................................................... 61
5.13. Taylor‟s Principles of Scientific Management:.................................................................................. 61
5.14.Criticisms of Scientific Management:................................................................................................. 62
5.15. Advantages:........................................................................................................................................ 62
5.16.Criticisms of Administrative Theory .................................................................................................. 63
CHAPTER SIX ........................................................................................................................................... 64
THEORIES OF ORGANIZATION ............................................................................................................ 64
4
6.0.The Neo-classical Theory ..................................................................................................................... 64
6.1.Human Relation .................................................................................................................................... 65
6.2.Electric Company.................................................................................................................................. 65
6.3.The Hawthorne Studies ......................................................................................................................... 65
6.4.The Illumination Experiment ................................................................................................................ 66
6.5.The Second Relay. Test Room .............................................................................................................. 67
6.6. FINDINGS: .......................................................................................................................................... 69
6.7. Human Resources Theory: ................................................................................................................... 70
CHAPTER SEVEN .................................................................................................................................... 73
THEORY OF ORGANIZATION ............................................................................................................... 73
7.0. The Modern Theory ............................................................................................................................. 73
7.1. Modern Theorists ................................................................................................................................. 73
7.2.Barnard and the Cooperative View of Organisation: ............................................................................ 74
7.3. Barnard On Authority: ......................................................................................................................... 75
7.4. Zone of indifference:............................................................................................................................ 76
7.5. The Open system Approach: ................................................................................................................ 77
7.6. Characteristics of Open System: .......................................................................................................... 77
7.7. Distinctive Features of Modern Theory: .............................................................................................. 78
7.8. Contingency Theory: ........................................................................................................................... 80
7.9. Reduction of Uncertainty in Organisation: .......................................................................................... 84
CHAPTER EIGHT ..................................................................................................................................... 87
8.0. LEADERSHIP, DECISION- MAKING AND MOTIVATION IN AN ORGANIZATION .............. 87
8.1. What is Leadership? ............................................................................................................................. 87
8.2. Importance of Leadership .................................................................................................................... 88
8.3. EMERGENCE OF A LEADER: ......................................................................................................... 89
5
8.4. Qualities of a Leader ............................................................................................................................ 89
8.5. Functions of a Leader........................................................................................................................... 91
8.6. V. Improving: ....................................................................................................................................... 92
8.9. Techniques of a good Leader ............................................................................................................... 92
8.10. The Autocratic Style: ......................................................................................................................... 96
8.11. The Democratic or Participative Style: .............................................................................................. 97
8.12. The Laissez Faire Style: ..................................................................................................................... 98
8.13. Advantages:........................................................................................................................................ 98
8.14.Problems of A Leader: ...................................................................................................................... 101
8.15. RE-APPRAISAL AND PROSPECTS OF LEADERSHIP: ............................................................ 101
CHAPTER NINE ...................................................................................................................................... 103
9.0.DECISION-MAKING AND MOTIVATION IN ORGANIZATIONS ............................................. 103
9.1. Types of Decisions:............................................................................................................................ 103
9.2. Information and Decision-making: .................................................................................................... 103
9.3. The Model of Rational Decision-Making: ......................................................................................... 104
9.4. Conditions under Which Decisions are Made:................................................................................... 105
9.5. Limitation of Decision-Making: ........................................................................................................ 106
9.6. Advantages of Committee System: .................................................................................................... 107
9.7. Responsibility for failure is therefore hard to fit. ............................................................................... 108
9.8. MOTIVATION .................................................................................................................................. 108
9.9. The Need Theory: .............................................................................................................................. 109
9.10. BIBLIOGRAPHY ............................................................................................................................ 111
9.11. ARGYRIS PERSONALITY DEVELOPMENT ............................................................................. 112
BIBLIOGRAPHY ..................................................................................................................................... 113
ARTICLES: .............................................................................................................................................. 115
6
CHAPTER ONE
ADMINISTRATION
1.0. The concept of Administration
According to Herbert A. Simon, „when two men co-operate to roll a stone that neither could have
moved alone, the rudiments of administration have appeared‟1. This simple act has two basic
characteristics which have come to be called administration. There is a purpose-moving the stone
and there is co-operative action- several persons using combined strength to accomplish
something that could not have been done without such a combination. In its broadest use
administration can be defined as the activities of groups co-operating to accomplish common
goals.
In practical term administration involves more than co-operating to achieve a common goal.
Other things to be considered include:1.
Methods of co-operation
2.
How workers are selected to do the job.
3.
How workers are motivated or induced to put in their best
4.
How the job is divided among the workers
5.
How the workers are taught how to do the job
6.
How the activities of various workers are co-ordinated.
1.1.UNIVERSALISM OFADMINISTRATION
Given our definition of administration as co-operation aimed at achieving some objectives, it is
obvious that administrative activity is a universal phenomenon. Everybody is involved in some
1
Simon Herbert. Administrative Behaviour 2
nd
2
Agi, S.P.I. Master Degree Lecture notes on Administrative Law, University of Calabar Nigeria 1998.
7
ed. New York: Macmillan press 1957.
form of administration at various levels every day. Furthermore the administrative process is a
function which is performed in every sector.
1.2.PUBLIC/PRIVATE ADMINISTRATION
Public Administration: Is administrative organization in government institution such as
Federal, State, local Governments and other governmental organizations or agencies.
Private Administration: - is the administrative process and organizations by non-governmental
institutions.
1.3.FEATURES OF PUBLIC ADMINISTRATION
1.
Bureaucracy public administration is highly bureaucratic. It is characterized by excessive
formality and routine, as in multiplicity of forms, records and often unnecessarily detailed
information required before action can be taken. The rules of bureaucracy are strictly
adhered to, informality is not allowed.
2.
PoIitics Public Administration is highly political. Most of the administrative decisions are
based on political consideration.
Redtap This is a dominant feature of public administration
3.
Accountability Public administration is accountable to the general public usually through
the legislature.
1.4.FEATURES OF PRIVATE ADMINISTRATION
1.
Profit motive Private administration operates on the basis of profit motive. It does not
provide social services. If it cannot make profit it folds up
2.
Accountability Private Administration is accountable only to its share-holders.
The concept of Administration has also been used with concepts such as Governing, Ruling,
Controlling, Operating, Directing, etc.
8
Administration has been defined as a systematic ordering of affairs and the calculated use of
resources aimed at achieving what is desired and preventing the contrary.
Administration has also been defined simply as getting things done. 2
From these two definitions the concept of administration is used to imply the marshalling and
mobilizing if resources i.e. (Money, Men and Material resources) in order to gain that which is
desired at the lowest possible cost in energy, time or management.
In real life situation, people have different interest and differing means, but motivated by
whatever means and interest people have, people continually setting goals for themselves.
Administration then, consists of whatever the people does thereafter to attain their set goals. This
assertion however, shows that there is administration in every planned effort. The concept of
administration has a Latin meaning “Administrare” which simply means, „to serve‟ or „to assist‟.
Also Administration seems to have affinity with the word „minister‟ which also is a Latin wordto serve or servant.
Administration as a concept has a rather substitute but extended meanings and those meanings
are usually found more in the public than in the private sector administration. It should be noted
that administration is almost always connected to the notion of „service‟.3
1.5.The concept of Public administration
The word public may mean anything owned by the state or anything meant for the state. For an
institution to be called public, it must be owned and controlled fully or partly by the state so long
as the output is at the disposal of a large number of people in the society. We also can have
privately owned institutions, controlled by private. We can call them public if their activities are
geared towards serving the general public.
2
Agi, S.P.I. Master Degree Lecture notes on Administrative Law, University of Calabar Nigeria 1998.
3
Quoted in Adebayo Festus principles of public administration, new dimension press Ibadan 1999.
9
Combining the two concepts – Public Administration, we have a unique type of administration.
And using the definition earlier advanced, we can define Public administration as the systematic
ordering of the affairs of the state.
Breach defined public administration as that part of management which is concerned with the
installation, and carrying out (implementing or executing) the procedure by which a particular
programme of government is laid, and checking and controlling the progress.4
Public administration may be defined as the detailed systematic (bureaucratic) executing of
public policy.
Every application of a general rule is an art of administration, while the broad plans of
government activities are not administrative, their detailed and systematic execution in
administrative. Administrative functions must of necessity consist of clearly defined and
assigned responsibilities.
Public administration is the machinery through which government provides it‟s economic and
social services to its citizens. It is also the organization and direction of persons in order to
accomplish the specified objectives of the state.
1.6.The scope of Public Administration
The scope of modern Public administration in modern society (days) is as broad as the scope of
governmental activities. And the impact of its activities transcends all segments of the society.
Broadly there are four functions which public administration performs:
1.
Policy formulation and analysis
2.
Identification of functions
3.
Programme implementation
4.
Programme evaluation
4
Breach the practice of public administration New York MaGRAW Hill Book Company 1998
10
Through these functions, public administration (largely performs) tried to ensures efficient
allocation of resources.
As we said earlier, administration is the capacity to coordinate. It is therefore pivotal and
strategic in every organization.
It is indeed the key stone to the success and the very existence of every organization. The
ecological boundary of administration is the organization, while that of public administration is
government institution. This is so, became public administration being the machinery for
implementing government policies, particularly operate within the spheres of government.
1.7.The conditions for perfect administration
For the administration to function effectively it must be guided by the following considerations:
1.
That administration should be unitary – an individual in the administration receives
orders from one source. And the objectives to be achieved must be clearly defined. Lack
of uniformity in the rules, in the standards, in the procedures and in the objectives breeds
conflicts. And that conflict might weaken the ability of the organization.
2.
There should also be a simple system of surveillance and control, governing everybody in
the administration. While all information should be collated from a single source, to
avoid dual command.
3.
The norms enforced by the administration must be uniform. And even if the
administration system is unitary, the objective of the various units may not necessary be
different.
4.
Objectives must be implemented. That is, from the beginning the design of the activities
must be towards the implementation of the objectives. The activities of the organization
should be designed in such a way that it facilitates the realization of objectives of the
organization.
5.
There should be perfect compliance to the stated objectives and to the rules or norms
governing the organization. And this reinforces the beliefs that as individuals join an
organization, they are expected to sacrifice their personal values and beliefs and take to
that of the organization. When that is achieved, a form of co-ordination could be said to
11
be achieved, which is generally referred to as coordinate through domination of an idea.
(i.e, dominance of an idea, you forget about your norms and values and stick to that of the
organization).
6.
There should be adequate timing, sufficient resources, effective training methods, well
designed information systems and clearly defined functions or roles and staff motivation.
1.8.Introduction to Administrative Law
Administrative law is a branch of jurisprudence. It is the body of laws determining the powers,
the organization and the types of duties the administration performs. It is largely concerned with
acts or statutes. It is the law dealing with judicial control of administrative actions. And this
judicial control of the administrative powers takes many forms which are often defined by the
parliament.
It is the parliament that sets the limits of the exercise of the administrative powers which must be
consistent with certain legal principles, such as the principle of natural justice.
The Judiciary reviews administrative acts (actions) that contravene the principle set by the
executive.
It is largely concerned with the relationship between the administrative (executive) arm of
government and the judicial arm.
The essence of judicial control is to ensure that the executive does nothing in excess or in default
of his jurisdiction (areas of competence).
1.9.Scope of Judicial controls of administrative actions
Analysis of a judicial control of administrative actions is best approached by clarifying examples
according to the nature of the fraud which can be in many forms:
1.
Lack of jurisdiction (ultra-vire):
12
A given administration may face a situation of ultra-vire if it is improperly constituted or if it has
no powers to adjudicate irrespective of the parties or the subject matter before it. Or if it although
has the jurisdiction to consider matters or make orders beyond its competence. That action may
be declared ultra-vire.
This type of action necessitates intervention by the judiciary to which the judiciary may declare
ultra-vires.
2.
Procedural defects:
And this may be referred to as the rule of natural justice. There may be many administrative
activities which are within the statutory powers of the administration but which may still be
declared, defective, due to defective procedures. And defective procedures may be as a result of
application of wrong condition that is failure to apply the right condition/procedures.
These are the most important functions of the judiciary over the administrative arm.
1.10. Administrative control
It is a vague concept. It refers to effort being made to ensure that administrators operate in
accordance with the laid down rules and regulations. For the administration to be effective and to
function within limits or to operate within the laid down rules and regulations, it must be
controlled first by the Legislature and secondly by the Judiciary.
The civil service enjoys a long time tradition of anonymity and political neutrality. And it was
the instrument through which the government renders its services. Civil service is endowed with
adequate authority in order to enable it provides these services in accordance with the laid down
rules and regulations. For most part, the way and manner these rules and regulations are applied
by the administrators, more often than not paid room for maladministration and ultimately
inability to meet the laid down objectives. This concept, maladministration, takes many forms:
1.
It could be in the form of pre-occupation with the protection of rules and regulations
without bordering to match these rules and regulations with the very objectives for which
13
the civil service exists. That is to say, the mere application of rules and regulations does
not necessary mean to increase to efficiency and productivity, as some of the rules may
be obsolete and out of tune with the reality. If this type of rule is strictly adhered to, it
could lead to maladministration.
2.
Another form of maladministration may be called “technical obstruction”. This is a
situation where the administrator insistently searches for another rule even when that rule
is obsolete to support his arguments against the subject matter or the administrative issue
at hand.
3.
There is the situation of dubious obstruction. This is a situation when an officer tampers
with documents in files, either by removal or alteration of some of the contents or simply
hides the file to get missing temporarily or permanently. All these are forms of
maladministration that happens out of malice or lack of skill and self-confidence for
effective and prompt utilization of the administrative discretion reports on the individual
administrator. Some of these happen deliberately and some so happen out of sheer
ignorance, or incompetence.
Generally, administrators with questionable integrity misused their administrative discretionary
authority imposed on them and this necessarily calls for administrative control.
1.11. Administrative control devices
This could be divided broadly into two (2) : a)Internal b) External control devices.
a.
Internal administrative control devices are in the form of the administrative norms, rules
and regulation all of which regulates the administrative behavior. They are internal
because they are in –built in the organization. In the civil service there are set up rules
and regulation to guide the civil servants in their behaviors.
In a rational legal organization, these rules and regulations are often standardized. In the civil
service, these are in the form of the Civil Service Rule(s), and the Civil Service Commission‟s
Rules, the Financial Instructions(s) and the Financed Memoranda.
Another important administrative control service is auditing. In most cases the civil service
books are audited.
14
b. The external administrative control devices came about largely due to the ineffectiveness or
misuse of the internal administrative control devices. The external control includes the
Legislature, the Judiciary the Political parties, the Mass media, Commission of inquiries, Public
opinions, Administrative tribunals, Adhoc committees and Public Complaints Commissions.
These types of controls came about because of the misuse of the internal control devices.5
CHAPTER TWO
2.0.
RELATIONSHIP BETWEEN PUBLIC ADMINISTRATION AND OTHER
SOCIAL SCIENCES
Public Administration is related to other social sciences such as sociology, political science,
psychology and history etc.
There is in-built relationship in various disciplines which people undertake or study. That is,
there is an in-built relationship between public administration as a discipline and other
disciplines in social sciences. However, this relationship does not invalidate the uniqueness of
public administration as an area of study.
Public Administration is linked to both discipline of political science or politics, sociology,
psychology and history. It is also related to law.
Public Administration as a discipline was initially a part of the social sciences but following a
separation, they were left inevitably several links between Public Administration and other social
sciences.
2.1. Relationship between public administration and Political Science or Politics
We have initially defined Public Administration as the implementation of public policy;
therefore, at the level of practical politics, administration is related to politics.
In the sense that while public policy making is the concern of the politicians, their detailed and
systematic execution of the policy is the concern of the Public Administration.
5
Lecture notes on principles and practice of public administration, Bayero University Kano Nigeria
15
The relationship between politics and administration therefore has the indication that when
policies failed or are bad, the failure in the implementation of such policy could be said to have
began i.e. when politics are bad, they may not be implemented.
In fact, there exist a dependent relationship between politics and public administration. Policies
made by politicians are implemented by public administrators (civil servants).
Public Administration as a discipline is essentially concerned with the analysis of nation‟s
constitution. Therefore, as a discipline, this analysis has a direct relationship with the study of
processes employed for actualizing the values contained in the constitution.
Public Administration is directly responsible for making available to societies the value-declared
by the politicians.
In spite of the relationship between politics and Public Administration, politics an administration
dichotomy is one of the key paradigms in the study of public administration. According to
Woodrow Wilson, politics and administration are two distinct spheres and that each has its own
group of functionaries, while P. J. Godnor supported Wilson, but added that there are two
primary or alternative functions of government in all society. And these are:1.
The expression of will of the state
2.
The execution of the will of the state.
In actual fact, a rigid distinction between politics and administration cannot be maintained this
buttress the contention of Appleby that Public Administration is policy making.
It is one of the numbers of basis of political process by which people achieve and control
governance, i.e administration itself is policy making.
The saying that “government comes and government goes” while administration remains, shows
that while the policy making units stay temporarily in office, the policy implementing units is
permanent (career) ie politics is temporary but administration is permanent.
16
The ideas of politicization of civil service indicate that there is no distinction between politics
and administration. Politicization means civil servant performs those functions or duties being
performed by the politicians.
Administration in essence is simply an instrument in the hands of political officials who are
supposed to be dominant in the executive arm of the government.
2.2. Relationship between public administration and Sociology
Like many other social sciences, Sociology also comes into existence with the assistance of
public administration. Sociology as a discipline is the study of human beings in the society. It
involves the study of values, traditions, culture and religious of a society.
Organizations are largely referred to as social systems. They are meant for affecting social
interests and values. This implies that such social mechanism must be explained using
sociological terms. And that is why the development of administrative thought has adopted a
more sociological orientation. And so, that function in the traditional language of organization
theory that has been replaced by roles, which in itself is a sociological concept.
A relationship between sociology and administration can be made in the sense that as people are
governed by religion practices, norms, rules, cultural practices, regulations; an effective
understanding of this will make for a good administration.
And that is why administrative practices these days tend to be sociologically oriented. As it has
been discovered that the best way governance could be achieved is by first understanding the
values of the people.
2.3. Relationship between public administration and Law
Administration as a discipline relates to law, considering the concept of administrative law and
administration of justice. In actual part the process involved in dispersing justice is in itself
administrative. Like the apprehension of criminals, taking the criminals to the law courts, and
passing sentence on the criminals are all administrative. Even the implementation of the verdict
17
is itself, administrative as these are all stages in the implementation of the law. The procedures
for making law in the civil service are purely administrative.
2.4. Relationship between public administration and Psychology
Psychology being the study of human behaviour, also relates to administration in that a proper
understanding of the human nature and his behaviour pattern is a necessary factor to be
considered by every administration.
Public administration, in its advancement, owes a lot to the advancement of psychology as a
discipline. It should be noted that the beginning of public administration as a discipline, was
involves by a particular disregard for the human element and thereafter the human relations
realized that the human brings rather than tools, machines, and processes or the organisation
design, determines efficiency. It is therefore pertinent that individual‟s commitment to
organizational goals depends on meeting his psychological needs so that the organisation will
prosper.
And psychology provides the answer and henceforth, psychological techniques have been
employed for the purpose of reorientation employees for their organizational roles.
2.5.Relationship between public administration and History
History being the study of past events and occurrences relates to administration. In fact history is
very significant to the development of administrative thought. In this respect, factors which
contributed to social development and the industrial revolution in the 18th and 19th century in
Europe and America, has a direct relationship with the emergence of public administration.
18
Presently, there is an increasing emphasis on administrative planning, as planning has become
widely accepted for guiding and enhancing national development. And no doubt, planning as it
is done today, adopts a historical perspective.
Most plans are largely based on previous plans. Modern organisations have standardized rules
and regulations entrenched in the civil service rules and regulations. And the fact that
administrative practices are based on precedent makes the relationship between administration
and history obvious.6
6
Dallatsu lecture series at Bayero University Kano 1999
19
CHAPTER THREE
3.0. Organizational concepts and principles
a)
The concept of Hierarchy
In organization design, the concept of hierarchy is introduced as a concept which established the
level of authority in an organization.
In a typical organization chart, an emphasis is placed on hierarchy as established level of
authority has the responsibility for the control of the subordinate level of authority. This is
usually referred to as hierarchy.
Emphasis on hierarchy in an organization produces an authoritarian type of management which
may have negative effect on organization behavior. So, modern organization theories largely see
hierarchy from the negative perspective (i.e negative hierarchy). As opposed to this negative
hierarchy there should be positive hierarchy which implies that emphases not being placed on
orderliness and procedures, but on functional authority vested on skillful individual. Here
hierarchy is deemphasized. It‟s in favour of functional authority to be vested on skillful
individual.
Therefore the people on the top may not necessary be supervising those below them.
The concept of hierarchy however is still important as it ensures discipline and the proper use of
authority.
b)
Span of control
This is derived from the psychological concept of span of potential which refers to the number of
elements human minds can effectively cover within a specified period. Span of control is used
here to mean the number of subordinates an individual supervisor can effectively supervise in a
given situation. A determination of a span of control is particularly relevant as jobs to the
performed are usually described and grouped in to departments and supervisors assigned. In the
20
assignment of these supervisors, their abilities to supervise should of necessity be determined as
that ability will determine the accomplishment of the organizational roles.
The number of subordinates which an average individual can effectively supervise is between (4)
four to (12) employees. But most importantly are the following specific considerations that
should determine the degree of every individual superior‟s span of control.
1)
The nature of work
The span of control would be wide or be narrow depending on the nature of the work to
be performed. If the work is simple, straight forward and uncomplicated, the span of
control of the supervisor will be wide and the revise should be the case with job that is
complex.
2)
The nature, experience and knowledge of the supervisor. Where the individual supervisor
is strong his span of control can be wide. Supervision implies moving from one place to
the other and an employee that is strong (ie physically), may be able to move from one
supervisor to the other. Strength in character also determines the extent to which an
individual supervisor can supervise large number of employers. A more knowledgeable
supervisor may have a wide span of control than a supervisor that is less knowledgeable.
So also is the experience, also where a group has an unlimited time to accomplish a
certain task no control is imposed on the span of control of the supervisor. But in the
situation where there is time constraint, may narrow span of control.
3)
Nature of the work force: Span of control would be wide or narrow depending on the
nature of the people employed. Where the workers are knowledgeable and they are
experienced, and they are willing to work the span of control of the supervisor will be
wide but the reverse is the case where the workers are indolent and inexperienced.
4)
Size of the organization:
There are two considerations in determining the size of an organization:
1.
An organization may be large in terms of the number of departments, the sub divisions or
persons employed. And where such number is large and level of authority several, the
span of control may he wide if the supervisor can be able to control effectively the
subdivisions and the personnel.
21
2.
The second dimension to the size of the organization concerns organization that is
geographically spread be it extends to a wide geographical space. The effect of
geographical spread on organization could only the understood with reference to the
natural limitation on human beings. Nature has placed limitation on human being to be at
more than one place at a time. This limitation therefore narrows individual‟s span of
control and necessitates delegation of authority.
3.1.Decentralization and delegation of authority
The concept of decentralization and delegate of authority usually go hand in hand.
It is the presence of one that brought the need for the other. Decentralization necessitates
delegation of authority.
Delegation of authority takes many forms but regardless of the form it takes, it comes about as a
result of authority being decentralized or devoluted.
Decentralization refers to the process in which the organization due to its size or complexity is
broken down into parts or units; it is usually in relation to authority structures. That is rather than
concentrating authority on one focal point or units, it is dispersed. When an organization is
decentralized, then authority must be delegated. Both concepts are brought about by either the
size of the organization or the limit imposed by nature on human beings.
Authority delegation implies subletting authority and responsibility to subordinates units within
the organization.
The nature of the organization itself and of the situation determines the extent of delegation.. In a
situation where the organization is centralized, there may be minimum or no delegation of
authority at all. This is because when an organization is centralized, it means that in relation to
the central authority the subordinate units exercise little recreation, in both decision making and
implementation, that is to say in a centralized organization the control is from the centre and this
type of organization reflects Fayol‟s principles of centralization and unity of command.
22
That every individual in the organization should receive orders from one source. Also the
employees are responsible to one source of authority.
Centralization also ensures discipline in the organization. It also has a disadvantage of killing
initiatives of the workers. For centralization to be effective it requires energetic, intelligent and
hard working executives which are almost always very difficult to come by.
3.2.Decentralization takes two forms
a)
The types that give authority to subsidiary units or departments in decision making and
implementation. This could be referred to as the situation of devolution while (b) where
subordinates units exercise relatively less authority and discretion in decisions making is
called deco centralization or decongestion.
3.3. Reasons for decentralization
1. The organization size
This could be in term of its personnel activities, geographical spread or units or subdivisions and
complexities of functions. Decentralization has the advantages of ensuring specialization and
encouraging people to use their initiatives but has the disadvantage of difficulty of control and
coordination.
3.4.Advantages of decentralization
1. It enhances specialization, loyalty of the subordinates or loyalty workers to their immediate
bosses in the decentralized areas.
Disadvantages
1. There is problem of coordination.
Co-ordination
As organization are decentralized authorities are divided, thus came the need for coordination.
The need for co-ordination comes about because of de- centralization. Coordination refers to the
brining other in a content and thermions failure of persons, department or units, each setting its
mind towards a common purpose. Coordination is brought about because of the needs for orderly
23
arrangement of group efforts. When a nuclear of individuals must work together, integration and
lordliness becomes a determining factor. Coordination therefore is the process by which leaders
achieved integrated patterns of groups and individuals efforts. For effective co-ordination to be
achieved, authority must be delegated to subordinates wither because to the original some of the
authority
Where the various units are delegated with authority to functions, there various functions they do
or perform most be brought together to make a meaning. Effective coordination is the senesce of
management as it determines to a large extent the success of a failure of the organization in
question.
1.
Coordination must be deliberately planned so that activities of all the individuals depts.,
units or sub division are integrated into a master plan ensuring the attainment organizing
the objectives. Similarly, organizing the employees with work groups and work itself into
activities requires proper coordination to effective the plan and then attain the desired
state. Coordination therefore would be effected into ways : viz
By organizations ( through proper organization
By motivation (motivation of workers)
There are essentially two types of co-ordination in every type of organization:
a)
Coordination from within and
b)
Coordination from without
Inside the organization the individual activities, sectional or dental activities must be brought
together in a human fishing while obstacles the organization activities of competitors suppliers,
consumers must be regulated and harmonized with those of the organization
Coordination could be effected at B level of the organization
1.
At the managerial level
2.
At the executive and „at the supervisory level
24
Co-ordinate by organization implements the proper arrangement of functions in the organization.
As organization here, refers to the arrangement and interrelationship of sale division of work, by
allocating those sub division to workers places within a structure of authority and issuing or
orders that guard the behavior of the entire members co- ordinate could be effected
1.
Coordination by organization requires establishing a good communication system/
demands and a good reporting system
2.
Secondly co- ordinate through dominance of guide is necessary as individuals fining an
business they home this personal beliefs and their expectations in those must be
harmonies of those of the organization. This could be attained through motivation
By dominance of an idea the development of and intelligence samplings of purposes in the inside
of the employees,. If this situation prevails, it becomes easy for the members of the organization
to fit themselves. within to their assizes tasks of enthusiasm. In this types of situation, with or
without orders or supervision, individuals can apply themselves to the follow expected of them.
3.
Finally coordination ensures unity of direction in the midst of diversified activities. It also
enables the leader to have paranoiac view of the organization. It also reconciles the
impact of internal causes as it ensures smooth running of all organization efforts.7
7
Collection of notes on the general principles of administration at the Undergraduate program at Bayero
University Kano Nigeria (2000)
25
CHAPTER FOUR
CONCEPT AND TYPES OF ORGANIZATION
4.0.The concept of Organization
For the uninitiated student, the concept of organization may appear abstract. This needs not be
so. Indeed, organisation can be defined as an association of persons grouped together around the
pursuit of specific goals. According to Chester Barnards, organization is system of Consciously
coordinated personal activities or forces - a “System of inter-related activities”8. To Raph Davis,
organization is a group of people working together under a leader to accomplish an objective. 9
Yet Stogdill, defines organisation as a structured system of behaviour with the position and roles
comprising it having the potential of being pre-structured, that is, designed and prescribed before
the roles are filled by actors.10 An organisation is also defined by Schein as the planned
coordination of the activities of a number of people for the achievement of some common,
explicit purpose or goal, through division of labour and function, and through a hierarchy of
authority and responsibility.11 These various definitions of organisation emphasize group activity
and coordinate for the achievement of specific goals. Organisetions have been used to
coordination for the achievement of specific goals. Organisations have been used to coordinate
activities for a very long time, particularly in the military, religious and political life as well as
large scale public works. Consider the administrative feat required constructing the great
pyramid in Egypt -it covers thirteen acres and contains over 2 million stone blocks each
weighing an average of 5,000pondss - with the technology available in the Egypt of 2600 B.C.12
8
Cheater Barnards. The Functions of the Executive (Cambridge, Mass: Harvard University Press, 1938).
9
Ralph Davis. The Fundamentals of Top Management (New York: Harper Brothers Publishers, 1951).
10
Ralph Stogdil. “Dimensions of Organization Theory” in James Thompson. Approaches to Organizational Design
(Pittsburgh: University of Pittsburgh press, 1966).
11
Edgar H. Schein. Organizational Psychology. (New Delhi: Prentice Hall of India,Ltd),p.15.
12
See Clauds S. George. The History of Management Thoughts (New Jersey: Englewood Cliffs, prentice Hall
Inc.1965) Chapter 1-3.
26
Similary, a lot of administrative feat was required to construct the 130 kilometers Benin-City w
alls which were built around the twelveth century.The con struction of this wall required the
organization of a target work force.
Organisation, right from time has been part and parcel of the human society. Human beings have
contact with orgenisations right from the time of birth to the time of death. As Etzioni puts it, we
are born in organisations, educated by organisations and most of us spend much of our lives
working for organisations.13
As individuals, groups or family members, we have all experienced organisations in one form or
the other. In the pre-colonial Africa for instance, we all experienced organisation from youth as
members of various age-grades with specific duties in our community. The need for foot paths,
water, shelter and security were usually met through the collective ‟efforts of specific age-grades
or organised group efforts. For example, if you want a driver‟s license, an air ticket, social
security, health insurance, hospital care, education, a divorce and so on, an organisation has to
be approached directly or indirectly through its representatives. This means that organisation is
all pervasive. The pervasiveness of organisation in the contemporary times is as a result of the
bureaucratization of all spheres of human activity.
According to Tosi, “an organisation comes into being when there are persons able to
communicate with each other, who are willing to contribute action, to accomplish a common
purpose”.14 These elements of an organisation are therefore:
i.Communication;
ii.Willingness to serve;
iii.Common purpose.
1) Communication - For an organisation to be established s common purpose must not only be
commonly known but must indeed be communicated in some ways. With some exceptions
verbal communication between men is the method by which this is accomplished.
13
Amitai Etzioni. Modern Organizations(New Jersey: 1964), p.1.
14
Henry L. Tosi: Theories of Organization (Chicago: St Clair press, 1975), pp.56-58
27
(ii) Willingness to Serve - The vitality and continued existence of an organisation lies in the
main, on the willingness of members to contribute forces to the cooperative system. This
willingness requires the belief that the purpose can be carried out. The continuance of
willingness depends to a very large extent, upon the satisfactions that are secured by individual
contributors in the process of carrying out the purpose. For example, regular payment of salaries
or increase in salaries and allowances can sustain the spirit of willingness. If the satisfactions do
not exceed the sacrifices required, willingness may disappear and conversely, if the satisfactions
exceed the sacrifices, willingness would persist.
(iii) Common Purpose - A purpose does not incite cooperative activity unless it is accepted by
those whose efforts will constitute the organisation. Organisation members will contribute to the
attainment of goals if they sufficiently have a common purpose. In other words, the purpose of
the organisation must be placed over and above individual motives.
4.1.Types of Organizations
Broadly, there are two types of organisations. They are: Formal organisation; Informal
organisation.
4.2.Formal Organization
A formal organisation can e defined as the vehicle for achieving group goals. It is a consciously
designed set of activities with well spelt-out units and line of communication, and which have
inherent tendency for monitoring activities and correcting them when they do not conform with
the desired goals. According to Mouzelis, a formal organisation is a form of social grouping
which is established in a more or less deliberate or purposive manner for the attainment of
specific goal.15 Thus, purposiveness and goals specificity seem to be the two crucial criteria
differentiating organisations from other types of social units. For instance, a firm, a university or
a political party are typical examples of formal organisations. In all of these cases, men in a
purposive manner, coordinate their activities and efforts in order to achieve a specific goal.
Features of a Formal Organisation:
i. Clearly defined structure - i.e. hierarchy
15
Nicos p.Mouzelis.Organisation and Bureaucracy (Chicago: Aldoine publishing Co., 1968),p.4.
28
ii. Permanence.
iii. Organisational growth and elaboration.
iv. Large size.
(i) Clearly Defined Structure:
The hierarchy of organisation is clearly defined for managers and employees. Thus, the stated
roles of each manaqer and employee is clearly stated in some details and this is usually done by
meens of organisatioflat chart and position descriptions i.e. the actual duties of each member of
the organiSatiOfl is clearly spelt out. In other words, it is the existence of different degrees of
authority at the various levels of the organisation. It is the chain of forma! authority relationships
from the top of the structure to its bottom, tying different levels of the organisation together. The
degree of authority at a particular level may be defined in terms of the range of discretion an
individual has over resource allocation, both physical and human. In general, individuals in
higher positions tend to have greater discretion and are accorded more status and deference than
those at lower levels. It is, through the authority structure that the various activities of the
organisation are tied together in order to achieve some degree of coordination in attaining goals.
(ii) Relative Permanence:
29
Most organisations are established to last for a long time, but they do not grow in structure overnight, but as they grow, the structures begin to elaborate or expand and so, many positions and
departments or sub-departments eve further created. In other-words, organisations are usually
conceived to out-live their founders e.g. the Edo State University. However, not all organisations
endure. Some organisations die when they are unable to over-come the environment al forces
around them. For example, the College of Education, Igueben. The fact however remains that
most organisations endure.
(iii) Organisational Growth and Elaboration:
Once established, organisations try to resist the initial forces within the environment, after which
they start to grow in leaps and bounds. For example, the United African Company (UAC), Lever
Brothers, the Edo State University among others. For example, the Edo State University has
grown considerably with many Faculties and Departments now introduced. The same is true of
the UAC and Lever Brothers. Big time organisations produce a semblance of the following:
30
This elaborated .structure with three managerial level is a response to the added complexities of
the organisation time goes on however, there may be need further exp this structure, and this is a
continuous process in most modern organisatiion today.
(iv) large size to a large size is an implicit characteristics of an origination.16 Organization are
usually of such as size that within them, it is extremely difficult or it is impossible to maintain
close interpersonal relationships with a large number of members, relative to the total
membership. The fact is that organizations are not only large, they grow even larger with time
and hence a high degree of coordination is necessary for the achievement of organizational goals.
4.3.Types of Formal Organizations
There are two types of formal organizations. They are:
(i) Public Organizations;
(ii) Private Organizations or non-public Organizations.
4.4.Public Organizations
These are organizations established by government to provide essential services to the people at
reduced cost. Although they are not expected to make profit, they should however be able to
break-even. Organizations are almost usually referred to as public corporations or parastatals.
E.g. NEPA, NRC, NAA, NITEL etc.
4.5.Features of Public Organizations
(I) Ownership - Public organizations are owned essentially by the government. This could be the
federal or the state government.
(ii) Finance - Public organizations are financed by government through the annual budget. But
the organizations are however free to source funds from banks or other financial institutions
on the approval of the government.
(iii) establishment - All public organisations are usually established by government - by Act of
Parliament and in the case of a military regime, by enabling Decree
16
Tosi op. cit., p.2.
31
(iv) Staffing - Workers in public organisations are not civil servants but public servants.
(v) Auditing - Public organisations are not subject 1 external auditing but to internal auditing.
(vi) Collegiate Management - Public organisations ai usually managed by a Board - known as the
Board Directors. This Board is usually appointed by th government to formulate the broad
objectives of th organisation. The Board is not concerned with th day to day running of the
organisations.
(vii) Legal Personality - Public organisations have legal personality. That means that they can
sue or be sued in their corporate capacities.
4.6.Reasons for Establishing Public Organisations:
There are several reasons to explain why government set up public organisations. Some of these
reasons are as follows:
i. The need to provide essential services to the people sometimes propel government to establish
organisations, eg. the Edo Transport Service.
ii. The need to provide employment opportunity - Government sometimes establish public
organisations to provide employment opportunities to its citizens outside the civil service.
iii. The need to provide services which do not attract private entrepreneurs because they do not
produce immediate profit. Governments sometimes establish organisations to provide
services which individual private entrepreneurs would otherwise not provide because they
do not bring about immediate returns. e.g. the Radio Stations.
iv. The need to break the monopoly of private enterprenuers - Government sometimes constder
the establishment of public organisations necessary to check the excesses of private
organisations. E.g. transport services.
v. The need to provide some critical services which have security implications - Some services
have security implications and hence such services cannot be left in the hands of the
32
individuals. For example, the Defence Industries Corporation (DIC), the Nigerian National
Minting and Printing Company (NNMPCL)
vi. The cost of establishment - Government sometimes decide to produce some Services which
are not attractive to the individual entrepreneurs because of their huge financial outlay. e.g.
the Nigerian Railways Corporation.
ii To generate revenue for development - Some organisations are established by government
essentially to generate revenue for national development, e.g. the Nigerian National
Petroleum Corporation (NNPC).
iii. The need for even development - Government may decide to establish some organisations in
order to enhance even development. Under such a situation, the economic viability of such
an organisation count for less, e.g. the Airports at Ibadan and Abeokuta.
4.7.Problems of Public Organizations:
Public organisations are faced with several problems amongst which are:
Bribery and Corruption - This is one of the major problems facing public organizations in many
countries of the world, today. This takes the form of outright bribery before services are rendered
or by over- invoicing of contract popularly known in Nigeria as kick-back or ten percent.
(ii) Lack of adequate statistical data with which to plan - Most developing nations like Nigeria
do not have adequate statistics of its people. This is therefore making it impossible to plan
adequately. For example, if Water Corporation does not know how many people live in
Benin, it would be impossible to decide how may gallons of water that may be required
daily. The result is that the water is either over-supplied or under-supplied as is most usually
the case.
(iii) Lack of public cooperation - In other to make public organisations to function adequately,
the public must show some degree of cooperation. But from experience, this cooperation
has been lacking in Nigeria. People see thieves removing NEPA cables and refuse to
complain, people fail to report burst water pipes to the Water Corporation. people fail to
report fraudulent practices in some of these public organisations to the government or the
33
management of such organisations. Their refusals to report these vices is one of the banes
of public organisations.
(iv) Poor attitude to Work - Many people see government work as nobody‟s work. Hence
people are generally lackadaisical. Workers are in most cases not always on seat. Where
they are, they busy themselves doing nothing. Officials used to hawk wares from one
department to the other.
(v) Lack of adequate funds - Most public organisations are unable to function effectively
because of inadequate resources available to them. This has led to situations where they are
unable to pay their workers salaries and allowances. There is no way a hungry man can be
effectively productive.
(vi) The Politicization of Appointments - Appointments at the highest levels of most public
organisations are politicized. This has led to a situation where they are now becoming
avenues for satisfying political failures. This has led to the placing of round pegs in square
holes.
(vii) Lack of Spare parts - Most public organisations are inefficient because of the lack of spare
par3. Any time there was a breakdown of machines or equipment, an order would have to
be placed and this has usually taken up to months or even years before such parts are
delivered. E.g. NEPA Transformers and other accessories.
4.8.PRIVATE ORGANISATIONS:
These are organisations established by individuals or groups. E.g. the UAC, Kingsway, Bata,
Chellarams etc.
4.8.1.Features
(i) They are owned by private individuals or groups.
(ii) They are financed by individuals or groups through personal savings, loans or through the
sale of shares to members of the public.
(iii) They are usually established through an Article or Memorandum of Association.
34
(iv) Like the public organisations, they are also managed by Boards, but the difference is that this
Board is appointed by the owners of the organisation or by the shareholders.
(v) Legal personality - Like public organisation, they can sue and be sued in their corporate
capacity.
4.8.2.Problems of Private Organizations:
(I) Lack of adequate capital - This is because the financing of prate organisatioqs is entirely left
to the individual owners, and sourcing ians from banks may not be as easy as that of
public organization.
(ii) The death of a key member or owner of the organisation may lead to the collapse of the
organisation.
(iii) Lack of security of tenure - There is no security of tenure in private organisations. The
reason is that the organisation can hire and fire at will - a situation that is absent in public
organisations.
4.9.Informal Organizations
Informal organisations are shadows of formal organisations. They are the silhouette of the formal
organisations. They mirror the formal organisations and hence without formal organisations, they
cannot exist.
According to Hicks and Gullet,17 informal organisations are composed of the unofficial and
unauthorised relationship that unavoidably occur between individuals and groups in formal
organisations. To Tosi, formal orgariisations once established, in their turn also create informal
organizations.
Informal organisations are therefore necessary to the organisation of formal organisations as a
means of communication of cohesion, and of protecting the integrity of the individuals. Informal
organisation is also seen by Schein as wise patterns of coordination that arise among members of
a formal organisation which are not called for by the blueprint.
17
H.G. Hicks and C.R. Gullet. Organisation: Theory and Behaviour (United states: McGraw Hill Inc 1982 ed.),
p.108.
35
The organisational blue-print requires the coordination of only certain activities. But for a variety
of reason, the main actors who fulfill organizational roles rarely limit themselves to the
performance of these activities. Two workers in a department are only supposed to do their
particular job, yet they may wish to talk to each other, to have lunch together, to share gripes
about their jobs and boss and in various other ways establish relationships over and above the
formally required ones. Such relationship tend to arise in all formal organisations, and as we
shall see later, many of the problems of organisations arise from the complex interactions
between formal and informal organisations.
The process of bringing people together in a formal organisational setting necessarily results in
the formation of informal organisations. As people associate and interact with one another,
relationships develop and continue. These spontaneous, unstructured relationships constitute
informal organisations and they exist at all levels of the formal organisation.
For the avoidance of doubt, it should be noted that the management of the formal organisation
has no choice as to whether or not these informal organisations will be formed. formal
organisations are not subject to management control in the same way that formal organisations
are.
Consequently, management can neither prevent the formation of informal organisations nor
abolish them once they are formed.
4.10.The Emergence of Informal Organisations:
There are several reasons to explain the emergence informal organisations within the framework
of form organisations. They includes:
(i) The need to satisfy social need - The most important reason that people join or form
informal organization is for the satisfaction of social needs. People desire affiliate and
socialize. People do not only wish socialize but seek companionship and this need satisfied
when such companionship is established.
(ii) The need for a sense of belonging and identification Affiliation with the informal
organisation is not based on friendship but a sense of belonging. The desire to belong is a
feeling of personal comfort social relations that is sometimes called solidarity social
36
integration. Through this sense of belonging the individual satisfies a need for
identification. We are accepted and become a part of a group, identify with that group.
(iii) Knowledge of approved behaviour - The informal group provides members such assistance
determining acceptable and unacceptable behaviour in the formal organisation. When a
person join formal organisation he is immediately not aware unsure about what behaviour
is expected of him. Most cases, such a person relies on his colleague guide him. Since the
individual wants to behave i acceptable manner, he relies on his coIIeague provide such
guidance.18
(iv) Sympathetic Ear - People encounter tension on basis in their various work places. When
this happens, they seek understanding and compassion from others. Through informal
organisation, they are able to find sympathetic friends who may have had similar
experiences and therefore can understand their problems. It is psychologically healthy for
the individual to be able to express his problems to others, and this serves as a „release
valve‟ and enables the individuals to cope with his environment. When individual is
provided sympathy and learns that others have had similar experiences, his confidence in
himself is strengthened and preserved.
(v) Assistance in meeting objectives - Individuals in organisation are able to obtain certain
objectives through membership in a group that could not be easily obtained individually.
For example, a new secretary may be hesitant about asking his bo.ss to repeat instructions.
Yet, because he would be unhappy doing the work wrongly or incorrectly, he could ask His
co-workers for guidance. Under such a situation, the informal organisation has helped the
individual in meeting his objectives.
(vi) Communication and information - A work group is a good means of disseminating
information. Workers at all levels of the formal organisation desire to know what is going
on in the organisation. If the formal organisation communicate information as soon as it
was available, there would be little need for the informal organisation to get information.
However, in practice, information in formal organisations are often slow, transmitted
18
Tosi op.cit., P.59
37
poorly or even withheld. Facts and rumours transmitted by word of mouth generally travel
fast. People find it advantageous to know what is going on and this need is satisfied most
efficiently by the informal organization.
(vii) Location - The location determinant simply states that in order to form into groups of any
lasting nature, people have to have frequent face-to-face contact. Thus, the geography of
physical location in a plan or office is an important factor in predicting who will be in what
group.‟19
(viii) Occupation - This is another key factor determining the rise and composition of informal
groups. There is a tendency for people performing similar jobs to group together.20 e.g
typists in Edo State University.
(ix) Interests - Even though people might be in the same location, performing similar jobs,
differences o interest among them explain why several small instead of one large, informal
organisations emerge.
(x) Special issues - This often results in the formation of informal groups, but this determinant
is set apart from the one mentioned in vii- ix above. In this case people who not necessarily
have similar interests occupations, or locations may join together for common cause. Once
the issue is resolved, then the forms.21 Thus , special issues give rise to a rather
impermanent informal association.
19
C. Prerrow. Organisational Analysis: A Sociological Overview (Belmont, Califonia: Wadsworth publishing.1970).
20
Paul.H Rigby. Conceptual foundations of Business Research (New york: John Wiley $ Sons,1965).
21
Albert Rub enstein and Chad wick Haberstroh(Jr.) (eds.) Some Theories of Organization(Homewood, lllinois:
R.D.Irwin and the Dorsey press,1966).
38
4.11.Features of Informal Organizations:
(i)
Standard of Behaviour - Rules and regulations they begin to identify status differences.
Status plays a significant role in the inter-action between the members of the group. The
status that a person in an organisation has depends upon two types of factors namelythose external to the organisation and those internal to it. The external ones include sex,
education, age, etc. and the internal ones include such things as job title, pay, or work
schedule.
4.12.Merits of Informal Organisations:
The informal groups assist the formal organisations in several ways than one. For instance,
without them the formal organisations would be severely handicapped. Specifically, they are
beneficial in the following ways:
(i)
Support of Organisational Goals - The informal organisation helps the formal organisation
to meet its objectives. When the informal organisation supports the formal organisation‟s
goals, the job of the formal supervisor is made easier.
(ii)
Additional means of Communication - The informal organisation provides the formal
organisation with an additional channel of communications. Although managers
generally view “grape-vine” as destructive, it can also add to organisation‟s effectiveness.
The grapevine has advantage of being fast and accurate more often than not. It has a
tremendous capacity of carrying information that are both helpful and harmful to the
formal organisation. The grapevine can be very beneficial, rapid problem-solver in an
organisation. has been labelled automatic horizontal communication.22
(iii)
Compensation of managers who lack in ability - In many instances, the informal
organisation helps compensate for managerial limitations. For example, if a manager
gives a wrong or inadequate command, the subordinates may voluntarily adapt the
command to the requirements of the actual situation. Or if a manager is weak in planning
ability, the employees may informally help with the planning so that good plans results.
22
Joseph L. Massie. “Automatic Horizontal Communication in Management”. Academy of Management Journals
.August, 1960, p.88.
39
4.13.Demerits of Informal Organizations
Even though organizational roles demand only certain limited activities from each person, it is
the whole person who comes to work. People bring with them many attitudes, feelings and
perceptions which are not anticipated by the organisation and which do not clearly fit into its
plan. As they work with others, they develop relationships with them, informal agreements, and
patterns of coordination, all of which go beyond those specified formally by the organisation.
Intact, such informal procedures often are developed precisely to cope with problems, formal
procedures and regulations fail to resolve.
Often, people‟s perceptions, feelings and attitudes as reflected in informal procedures exhibit a
strong loyalty to the sub-unit to which they belong and are shaped by the kind of work the subunit does. As people identify with sub-units, their self-esteem begins to be tied to its
performance, and it becomes increasingly difficult for them to understand and empathize with
the problems of other units or those of the organization as a whole. Increasingly, they may work
for their own unit end become indifferent or hostile to other groups. This i what Hicks and Gullet
refers to as „displacement o objective‟.
In particular, informal organisations exhibit the following disadvantages:
(i) Rumours - There is no doubt at all that informa organisations contribute to the information
flow in formal organise spread of information which are sometimes destructive, distorted,
inaccurate and incomplete Such items are called rumours. In- general, rumours tend to be
vivid in content, inaccurate representations of facts, emotional rather than logical in content
and frequently concealed from members of higher levels ol managerial authority. People start
and spread rumours to enhance their status, to fill gaps in social conversations and to avoid
suspense over expected events.23
(ii) Group Conformity - It is true that informal groups establish standards of behaviour for
members and members are expected to adhere to these established standards. But such
established standards may sometimes be detrimental to the formal organisation. For example,
the individual might be pressured into restricting output or exceeding the time limit for coffee
23
Ted. J .McLaughlin, P.Caurance and David Robinson.Communication (Ohio: Charles E. Merill Bokks, 1964),
pp.276-278.
40
breaks or perhaps even cheating on her or his expense account. In either case, such standard is
dysfunctional to the formal organisation.
(iii) Resistance to Change - The informal organisationsth perpetuating their cultural values may
end up perpetuating the status-quo and hence may resist change which might be designed
to improve performance in the formal organisation.
(iv) Multiplicity of Groups - Informal groups are usually very many within any given formal
organisation. These groups are in most cases making demands on the organisation which
demands are usually conflicting and contradictory. This does not augur well for the
existence of the formal organisations.
4.15.Typologies of formal organization
Typoloqy of organisation simply refers to the types of formal organisation that exists. There are
several types but these have been broadly classified into three units each identifiable with the
following Scholars - Talcot Parsons, Blau and Scott and Amitai Etzioni.
Talcot Parson‟s24 typology was based on the societal needs which organizations fulfil. These
needs, according to his analysis, fall into four categories:
(a) Adaptation - activities which services the environment such as the production and distribution
of goods and services;
(b) Goal attainment - the defining of societal goals and the policy making aspect that is
government institutions such as local or state Governments:
(c) Integration - keeping the established relationship together and united, free from chaps and
conflict; and
(d) Culture or pattern maintenance - the perpetuation of the cultural values of the society.
Corresponding to each of these four societal needs are tour types of organisations according to
Parson: Economic organisation, the political organisation, the stability maintaining, deviance
reducing organisation, and the socializing organisation.
24
Talcot parsons. Stucture and process in Modern societies (Glencoe, III. Fred press, 1960)pp 44-58.
41
Related to Parson‟s categories of societe‟ needs are four classes of organisations: (i) Economic
organisation - ref ere to commercial and industrial firms which are essentially profit oriented.
(Adaptation); (ii) Political Organiations - This refers to governmental institutions, agencies and
political parties (Goal Attainment);
( Stability maintaining and deviance reducing organisations - This refers to institutions like the
judiciaries the courts, the Police who ensure that there is no chaos in the society, and of course,
we also have the austodial psychiatric hospitals and Institutions like the Remand Homes etc.
(Integration). (iv) Socialising OrganisationS - This refers to institutions like the churches,
schools mosques and various types of associations. (Culture/Pattern Maintenance).
Blau and Scotta25 treated their own typology which was based on Cuo-Bono principle, meaning
who benefits?
Blua and Scott identified four (4) categories of beneficiaries: members or rank and file
participant; managers or owners of the organisation; people outside the organisation or clients
(public in contact); and the public at large or the society in which the organisation is established.
25
Peter M. Blau and Richard W. Scott. Formal Organisations (San Francisco: Chandler publishing Co.1962).
42
There are four (4) organisations which correspond to these benefits as posited by these scholars.
i. Mutual benefit organisations - This refers to political parties, professional associations and
clubs.
ii. Business organisations - This refers to industrial firms, whole-sale firms/stores.
iii. The service organisation - This refers to institutions like the hospitals, schools and other
welfare social agencies.
iv. The common-weal organisations - This refers to institutions that are oriented towards the
general public good, such as the fire brigade, police, and Internal Revenue Department.
The Armed Forces also falls under this category.26
(3 The third typology given by Amitai Etzioni27 was centered on why people respond or get
involved in organisations. He therefore went further to identify the various basis of compliance.
In the main, Amitai Etzioni argues that people‟s response or involvement in organisations is a
function of the nature of the organisation and why the people are there. Is it prestige symbol,
economic organisation?
Etzioni identified three methods of controlling members of an organisation:
i. Coercive Control. This is based on the application of force threat of application of force or
physical sanctions or the restriction of movement, isolation, ostracisation, or withhold benefit
like food, promotion, freedom etc. This is a form of sanction. The most direct one is the
physical one which infuses pain like torture.
ii. The Remunerative Control - This is based on the manipulation of economic benefits and this
could be salaries, wages, fringe benefits.
iii. The Normative Control - manipulation of prestige symbols. With all these forms of control,
the individuals can respond in three ways:26
Ibid.
27
See Amitai Etzioni.A comparative Analysis of a complex organization (New york:The free press, 1975)pp 3-67
see also R.J.House in Henry Tosi. Theories of Organization Chicago:St Clair press, 1975).
43
1. Alienated or Estranged;
2. Calculative;
3. Moral involvement.
(i) The alternative response involves the members hostility to the organisation‟s rules and
regulations „goals.
(ii) The calculative response is that neither the member would show a very strong opposition or
acceptance to the organisation. They calculate whether they would gain more or less and
when they calculate they would gain more,they are soft in their response and where they
found that they would gain less, they are more passive in their response. i.e. this response
could either be positive or negative.
(iii) The moral response - This involve positive attachment to the organizational goals with
participation in achieving desired goals.
The outcome of this control/involvement relationship
By compliance, Etzioni means a relationship consisting of the power employed by superiors to
control subordinatet end the orientation of the subordinates to this power.
Etzioni‟s three fold classification of organisations is board on this compliance structure.
44
4.16.ETZlONl’S ORGANISATIONAL CLASSIFICATION BASED ON COMPLIANCE
STRUCTURE
Source: H.L.. Tosi, Theories of Organisation (Chicago, III. St. Claire press, 1 975) p.75.
There are three types of organisations according to Etzioni. They are:
(i) Coercive organisation,
(ii) Remunerative organisation;
(iii) Normative organisation
Coercive, Remunerative and Moral & Social
i.
Concerciver organiation
These are organisations in which force is the major instrument of control over the members, and
high estrangement or alienation characterises the response of those who belong to the
organisation. Coercive organisations include prisons, custodial psychiatric or mental hospitals
and forced labour camps.
ii.
Remunerative organisátion
In this category, or organisations, material remuneration is the major control weapon. Here,
members of the organisation determine the level of involvement they feel will benefit them most,
hence, calculative response or involvement characterises the orientation of the members of the
remunerative organisation. This is particularly so in industrial and commercial firms where most
45
University graduates, clerical and secretarial staff, and labatory technicians, non professional are
good examples.28 Members of the remunerative organisation are essentially controlled through
the manipulation of salaries, wages, fringe benefits, commissions and working conditions.
Although, white collar employees (skilled workers) are controlled by remunerative means,
normative control - that is the manipulation of status symbols - seems to play a greater role.
iii. The Normative Organisation
In these organisations, the major source of control is social acceptance and moral involvement.
Here, members‟ orientation is characterised by high commitment to the organisations. Normative
organiSationS incluc‟e churches, schools and universfties, law firms (chambers), research units
or .gencies and voluntary organisations. In this type of organisation, a social power is exercised
through Informal sanctions such as social ostracism or social epproval, the manipulation of
prestige symbol or status symbols such as titles or ranks through the Influence of the leader, the
maneuvering of counterparts millieu of opinion.
Corresponding to each of these four societal needs are tour types of organizations according to
Parson: Economic organisation, the political organisation, the stability maintaining, deviance
reducing organisation, and the socializing organisation.
28
Alt Bayfield and W.H Crocker. “Employee Attrudes and Employee performance” in the psychological Bulletin
September, 1951 pp 396-424.see also R.M Stogdill.Individual Behaviour and Group Achievement. (New York:
Oxford press, 1959).
46
CHAPTER FIVE
THEORIES OF ORGANIZATION
5.0. Classical Theory
A theory is an attempt at synthesizing and integrating empirical data for, maximum clarification
and unification.‟29 According to Rudner, a theory is a systematically related set of statements,
including some law-like generalization that is empirically testable ... and the sort of systematic
relatedness is deductive relatedness. 30
Each individual has a number of personal theories based on postulates and assumptions of
varying degrees of adequacy and truth from which he makes deductions. These may be based
partially on his personal experience or on his reading of relevant literature. The concept which
forms the language system of theory must be observational, or experimental. That is, they must
be such that their existence can be verified through examination of the phenomena. These
concepts are formed. related to each other and used in the deductive process based upon a set of
rules. which are also part of the theory.
5.1.Functions of Theories:
The functions of theories are generally to explain and predict. Rubenstain and Habenstain asserts
that useful theories of organisation should help us to explain and predict or observe behaviours in
an organisation. In particular. theories perform the following functions in organizations
I. Theories help to explain and observe organization behaviours.
ii. Theories aid people to predict future behaviour in complex organization.
iii. Theories help to influence future organizational behaviours.
iv. Theories also serve as the basis for research. The proposition and hypothesis which are
explicit and implicit in theory provide guides and directions for empirical efforts toward the
29
E.G Osuala. Introduction to Research Metrology ( Onistsha: Africa- FEP Publishers Ltd.,1982).p.15.
30
Richard S. Rudner. Philosophy of social science (New Jersey: (Engewood Cliffs, Prentice Hall, 1966).
47
theory its if structures theories including principles and laws do not provide information on
the state of the world but only on the nature of the world. Theories therefore suggest how
researchers can proceed to study the state of the world.
Generally, the value of any theory lies in its utilitarian quality of prescription and description.
Some approaches to organisation especially those which Krupp has called designed theory31
present normative prescriptions about what conditions and relationships should exist in
organisations.
5.2.The Classical Theory of Organization:
The origins of the set of concept which we now refer to as classical theory can be traced to the
late l800s. However, bureaucratic organisation and elements on classical theory have been
around for thousands of years. For many countries, components of classical theory and
bureaucratic organisations were features of the Chinese and Egyptian administration and even
the Roman Catholic Church. The impact of the classical theory of organisation has been and still
is profound. Its effect is seen in virtually all complex organisations. Indeed, the classical
concepts of organisations account in large measure for the existence of complex organisations;
and in many ways, it made them and thus modem civilization possible.
The classical theory evolved in three ways namely - bureaucracy, administrative theory and the
scientific management. These three ways share common assumptions, and were developed at
about the same time (1900-1950). They are very closely related, and hence they can be analysed
together, almost as one. However, each of the three currents was developed by separate group of
writers working nearly independently of each other.
Bureaucracy was developed for the most part by sociologists. For example, people like Max
Weber influenced the development of the bureaucratic model. This model refers to a specific
type of a social organisation for administrative purpose. It takes a descriptive view of
organisation. Administrative Theory was developed by such scholars as Henri Fayol, Lynda
Unwick and Luther Gulick. They were more interested in improving practice. They were
concerned with the prescription of principles and practices for better organizational performance.
31
Sherman Krup.pattern in Organisation Analysis: A Critical Examination (New York: Holt, Rinehart and Winston,
1961).
48
The Administrative theorists focused on over-all, relatively macro aspects of organisations. The
Scientific Management was developed by practicing managers and Fred Taylor was in the forefront in the development of this theory. This theory took a specific or micro view of the
organisation. It was concerned essentially with the. Individual and the foreman in the
manufacturing organisations. The common denominator which underlines these theories is
structure - the structure of formal organisations. In other words, these three streams see
organization largely as a mechanistic structure.
5.3.Bureaucracy:
In recent times, Bureaucracy has become the most dominant form of organisation in the public
and private sector. In common usage, bureaucracy means red-tape, inefficiency, delay and
bureaucratic hurdles. It therefore has negative connotation to the ordinary man on the street.
However, in sociological parlance, the term has a more neutral and less negative meaning. It
simply means a formal organization, a social unit - established deliberately for carrying out
specific administrative tasks in complex societies. According to Hicks and Gullet, bureaucracies
are established to overcome what otherwise would be utter confusion, chaos and instability in
organization.32
Max Weber was the first sociologist to undertake a methodical examination of bureaucratic
organisation both in the western world and ancient society. In his view, the ideal bureaucracy
provides the most rational or efficient means for carrying out large scale administrative tasks.
The efficiency of bureaucracies, he argues, is attributable to the fundamental characteristics of its
structure. It is to these characteristics we now turn.
5.4.Characteristics of Bureaucracy:
i) Hierarchical Structure:
This is the arrangement of positions/offices in a hierarchical order. This structure is pyramid-like
with each lower levels under the control and supervision of a higher one or level. For example, in
a university1 the deans are under the control of the Vice-chancellor and the I-leads of
Departments are under the control of the Dean of Faculty. In the same manner, power and
32
H.G. Hicks and C.R. Gullet. Organisatons: Thery and practice. (New York: McGraw Hill Inc., 1982(ed.)p.127.
49
authority are delegated to his subordinates. This ensures that there is clear-cut division of work,
competence, authority, responsibility, and other job components. Thus, the entire operation is
organised into an unbroken, ordered and clearly defined hierarchy. Each position is responsible
for the activities that it can best perform or supervise. Each person‟s jurisdiction is totally
defined and mutually exclusive. Hierarchy in general, is to be found in any administration which
has a certain degree of magnitude and complexity.33
ii) Written Rules and Regulation:
There are written rules which govern the organisations and they are applied uniformly. These
rules are designed to provide for continuity and stability that are very crucial in a bureaucratic
set-up in organisations. Decisions are governed or ought to be governed by a consistent system
of abstract rules, regulations and procedures. The rules in organisations persist while the person
holding positions may change. Behaviour is subject to systematic discipline and control. Rules
define the tasks and responsibilities of each participant as well as the formal mechanisms which
could permit the integration of these tasks. Rules ensure continuity stability in organisations 5.5.Impersonality of Relationships:
i) Weber believed that the ideal official should be filled with a “spirit of form tipna1iy, - i.e.
without hatred or passion and hence without affection or enthusiasm.” Bureaucratic must act
according to the rules and avoid emotional attachment to clients or subordinates in order to
make rational decisions.
33
Nicos p. Mouzelis Organisation and Bu reaucracy (Chicago: Aldine publishing Company, 1967) pp.39-49.
50
iv) Professional Competence:
Officials are selected according to their tech competence, rather than social status or political
affiliation
Remuneration of staff is determined by the level of responsibility and contribution to the
attainment bureaucratic goals.
v) Professional Appointment:
This characteristic of bureaucracy is closely akin to the Technical competence discussed above.
The official career or professional appointment with promotions Promotion is based on
achievement and seniority rather social or political considerations, “god-fatherism” or “son-ofthe- the soil” explanations.
vi) Statutory Authority and Power:
In bureaucracy, authority and power rest in the office not on the individual occupying the office.
The power individual. wield, in office is corporate or organizational, rather personal.
5.6.Functional Ramifications of Bureaucracy:
i) Specialization - This feature of bureaucracy makes it possible to achieve large increases in
organisational productivity and efficiency. In modern times workers can only be experts in
limited areas of work. Bureaucracy allows people to specialize in limited areas of highest
competence and interest. As Simon once wrote,
“Concentration on a limited range of values is almost essential if the administrator is to be
accountable for his decisions”34
ii) Rules and Regulation for Predictability
Bureaucratic rules and regulations, hierarchy, and professional competence allows for
predictability of actions even when changes occur personnel. Imagine the chaos and
unpredictability of the behaviour of new entrants to an organization if there were no rules and the
34
Herbert Simon. “Decision-making and Administrative Organisation “ Public Administration Review, 1944,p.22.
51
existence of experienced professionals to guide operations. Bureaucracy brings some kind of
order into organisation and hence rationalises human relations that would otherwise be irrational
and accidental35
iii) Rationality - Bureaucracy makes rationality possible in organisations. In a bureaucracy,
decisions are predicted on objectives and agreed criteria rather than individual‟s whims
caprices or favouritism. Parsons summarized this by saying that “bureaucracy provides the
systematization of conduct according to rational norms.”
iv) Emphasis on Technical Competence - Bureaucracy emphasizes technical competence as the
sole basis for recruitment into positions. The opportunity to apply selected, employed, and
trained, is open to all and this ensures adherence to democratic ideals. 36 However, at some
levels, appointment into positions may be based on some other criteria other than technical
competence particularly where there is the need to ensure representative bureaucracy.
5.7.The Dysfunctions of Bureaucracy
Bureaucracy has been seriously criticized by sociologists and philosophers. Karl Marx for
example believed that Bureaucracy is an instrument used by the dominant social class to oppress
the underprivileged class. For Marxists, bureaucracy is characterized by strict hierarchy and
discipline, incompetent officials, lack of initiative or imaginations and the over-respect of
authority and the fear of responsibility and a process of self-aggrandizement. Thompson has
regarded these negative aspects of bureaucracy as the disease of bureaucracy which result from
“bureaupathic behaviours”.37 Some of these dysfunctions includes:
Rigidity
Critics of bureaucracy claim that it is rigid, static and inflexible. They claim that it is nonadaptive and hence in conflict with the basic adaptability laws of nature. Strict adherence to rules
and regulations produces timidity, conservatism and technicism. A bureaucracy has a special
35
Frans Neuman. “ Total Bureaucratization and the Powerless Individual” in Robert K. Merton et.al(ed.) Reader in
Bureaucracy (New York: Free Fross,1963).p.152.
36
Talcot parsons(ed.) “ The theory of social and Economic Organisation” quoted in Hicks & Gullet op.cit.p.137.
37
Victor A. Thompon, Modern Organisation (New York Knopt, 1961)pp.152-177.
52
kind of rationality. When faced with new forces such as innovation, it tends to view them as
disturbances to an otherwise ordered situation.
Pathology of Specialisation
It is true that specialisation increases productivity in an organization but it is equally true that
specialisation also promotes conflicts between specialised units in an organisation to the
detriment of the organisational growth. It can also constitute a barrier to effective communication
between units.
Impersonal Relationship
Because of its emphasis on orderliness, predictability and rationality, bureaucracy ignores
persons - the basic element in an organization. It even has been called “organization without
persons.‟38 It forgets that organizations are created for man and not man for organization.
Bureaucracy does not allow for individual discretion and hence grossly subordinates the
individual to the organization.
iv) Displacement of Objectives:
The bureaucrat has an unfortunate tendency to forget his ultimate rational organisational reason
for existence - i.e. to contribute to the overall objectives of the organisation. In pursuing his
individual objectives or the objectives oF his subunit, he often fails to adequately contribute to
broader objectives. Thus, he displaces the broader objectives in favour of personal interest and
this is what is referred to as “bifurcation of interests”. Individuals have goals of their own, which
do not always coincide with organizational goals. In fact, from the point of view of individual
members, organizational goals are simply the means through which individuals may achieve
their private goals”.39
v) Limited Categorization:
38
Hick and Gullet, op.cit.,p.145.
39
Thus, for example we may say that the organizational goal of a shoe making factory is to produce and sell
shoes. But for worker, the production of shoes is simply a means through which he achieves his wage goals.
53
To secure the advantages of coordination and specialization, bureaucracy requires strict
categorization or compartmentalization - of activities and persons. Persons are pigeon-holed into
various departments and units and hence are not allowed to work outside these departments and
units. It might be better however, if some of the work of this department were combined with
that of another. For example, a pipe fitter who has installed a pump is prohibited by work rules
from making the electrical connection even if he is totally qualified to do so. An electrician may
have to be hired to connect it. And while this is going on, the machine would remain still - thus
taking several hours to do what the pipe fitter could have done in five minutes.
vi) Self perpetuation and Empire Building:
Once it is fully established bureaucracy is among those social structures which are hardest to
destroy, even when it has outlived its usefulness. The same power that a bureaucrat requires to
do his work in a professional environment can be used by him to perpetuate his job beyond its
useful life. Through their desire to perpetuate the old, bureaucracies discourage innovations. A
bureaucrat (for example, a chemist) has vested interest and comparative advantage in an old
technology. He thus might oppose new technology (for example, a chemical process) in his
organization in which others (perhaps much younger than himself) may be more expert than he.
Thus bureaucracy has a levelling, essentially, conservative effect.
vii) Cost of Control:
Rules, regulations and sometimes countless procedures employed to gain conformity in a
bureaucracy typically do not create value per-se. Some career specialists spend endless hours
formulating, implementing, interpreting and enforcing bureaucratic procedures. Sometimes,
these are excessive. A lot of money is also used in designing forms which may be unnecessary
for financial health of the organisations. According to Merton documentary records are to a
certain point indispensable to large-scale organisation, but when these are so valued for their
own sake as to be needlessly multiplied and elaborated, they get in the way of discharging
functions of the bureaucracy.40
viii) Anxiety:
40
Robert K. Merton et.at., Reader in Bureacracy (New York: Free press, 1952),p.396.
54
The pressure to conform and to improve status in a bureaucracy often produces anxiety. The
bureaucratic spirit corrupts character and engenders moral poverty. In every bureaucracy, we
may observed place-hunting, a mania for promotion and obsequiousness toward those upon
whom promotion depends, there is arrogance towards inferiors and servility towards superiors.41
Dependence, insecurity or frustration - all are prevalent in bureaucracy and they often produce
anxiety on the workers and sometimes these are severe enough to disrupt the entire orgamsation.
ix) Dysfunction of Rules and Regulations:
Bureaucratic set of rules probably have the most obvious dysfunctional qualities - i.e. the set of
rules in bureaucracy. The goal of the organisations is obviously displaced because the means
often becomes greater than the goals. So instead of the rules leading to the achivement in the
organisation. In other words, rules often become the end rather than the means for final
attainment in an organisation.
5.8.The administrative theory
The administrative theory and bureaucracy are closely related. In very many respects, they are
identical. For example, both are largely deductive and view the organisation in normative sense that is, an abstract or a mental assembling or synthesis. Both streams propose hierarchy,
rationality, certainty professionalism and objectivity. Generally however, the bureaucratic
theorists stopped short of specific prescriptions of how to implement this normative model. The
administrative theorists usually were practical men of action; often they were practising
managers. Their major orientation was to prescribe principles and other concepts for achieving
formal organisations. Bureaucratic theorists said what an organisation ought to be; administrative
theorists told how to accomplish it. The bureaucracy also focuses on the organiation while the
Administrative theory focuses on management - a component of the organisation.
The elements of administrative theory include principles of management, concepts of line and
staff committes and functions of management. The key contributors to the principles of
management include: Luther Gulick, Lyndal Urwick, J.D. Money Re‟Jey. Henri Fayd etc.
Fayol‟s Principles of Management:
41
Robert Michael. Political parties (New York: Free press 1962),p.191.
55
In 1916, Henri Fayol - a French mining engineer and lustrialist outlined a number of principles
that go far toward during the essence of administrative theory movement. Those., Implies are:
Division of Labour:
The principle prescribes to division of work or specialisation leads to higher productivity
because it would enable one to work at activities in which he is comparatively highly skilled.
Authority and Responsibility:
Authority is the right to give orders. A member of an organisation is responsible for the
accomplishment of the organisation‟s goal of his position. Appropriate sanctions are required to
encourage good and to discourage poor performance.
Discipline:
There must be discipline among organisation members to ensure stability and hence enhanced
productivity. This however requires:
a) that there be good superiors at all levels:
b) that agreements are as clear and tire as possible:
c) that sanctions are judiciously applied.
Unity of Command:
In order to reduce confusion and conflict in an organisalion. each member should receive orders
twin and be responsible to only one superior.
Unity of Direction:
All members of an organisation should have unity of direction. That is, they should all work
towards the achievement of the organisation‟s goals.
vi) Remuneration of Personnel:
Fayol believes that workers should be given pay for their work, and that wages or salary should
be fair and utilised as a reward for good performance rather than exploitation.
56
vii) Subordination of Individual Interest to the General
Interest:
In an organisation the interest of one worker or group of workers should not take precedence
over that of the enterprises. Reconciliation of interest can be achieved in three ways:
(1) “Firmness and good example on the part of superiors, (2) agreements as fair as possible and
(3) constant, supervision” (Fayol, 1949)
viii) Centralization and Decentralization:
This principle prescribes that there should be a good between centralization and decentralization.
The management should know when to centralise and when to decentralise authority and power
to ensure increased productivity.
ix) Scalar Chain:
There is a SCalar-chain or hierarchy dictated by the principle of unity of command linking all
members of the orgamsation. However, in large organisations, following this path is often
laborious. An alternative “gang plank” route in therefore suggested. Fayol gave the following
example. Suppose staff 6 needs to work with 12 to accomplish a task. Following the scalar chain,
6 would go through 5, 4, 3, 2, 1, 8, 9, 10 and Ii in turn to reach Fayol suggested that 6 being on
the same level with could contact him directly on a gang plank” , if the procedure is acceptable
to management.
57
Order
Fayol suggested that there should be,a place for everything and everything in its place. Order
brings about stability and hence increased productivity in organisation.
xi) Equity;
Justice and fairness should prevail in the organisatton.
xii) Stability of Tenure:
The organisation should provide security of tenure for its members. This is required for an
employee to get used to new work and succeed in doing it well. Job security should therefore
reward good performance.
xiii) Initiative:
Members in an organisation should not be treated like rpts. They should be free to use their
initiative to think out and execute plans at all levels. The manager who can do this and get others
to do it is far superior to one without this ability.
xiv) Espirit-de-corps
This principle emphasize harmony, unity and togetherness in organisation. This is based on the
principle that unity is strength - superior performance comes from pride, loyalty and a sense of
belonging.
5.9.The Committee:
The use of committee in organisational management has become widespread. The credit for this
goes to the Administrative theories. Committee provides an organisational structure in ddition to
line and staff.
The committee system has an advantage of contributing to creativity and communication in an
organisation.
58
5.10.Advantages:
ii) The Committee system tends to democratise the process of decision-making in an
organisation.
iii) The Committee system has an advantage of presenting decision-makers with high quality
options as two heads are better than one all things being equal.
iv) The Committee system allows for broad representation of opinion in the decision making
process in an organization.
v) The Committee system can be used as a method of avoiding action and for taking
responsibility when it is not deemed appropriate for an individual to do so.
vi) The Committee system is most rewarding in taking decisions that require technical
expertise.
5.11. Disadvantages:
i.
The Committee system allows for slow decision- making process in an organisation.
ii.
It unnecessarily increases the Cost of running the organisation by way of sitting
allowances, provision of refreshments and snacks, etc.
iii.
The committee system could sometimes lead to indecision because of the lack of
agreement among members.
iv.
The committee system also has a tendency of splitting accountability and responsibility in
an organisation.
v.
The committee system could be used by a weak leader to avoid responsibility even when
an individual decision would have been more profitable for the organisation.
vi.
The committee system could also lead to the tyranny of the minority. Most usually,
committee decisions are nothing more than the decisions of few influential members.
vii.
Although committees may be good at formulating policies but they are poor at providing
leadership and in executing decisions.
59
5.12. The Functions of Management:
Management in an‟ organisation is expected to perform some important functions. To Fayol. the
best way to understand an organisation is to srud‟ its administrative apparatus its management.
Fayol identified the following management functions‟42 planning. organising. staffing. directing.
coordinating, reporting and budgeting. Liter in 1936. Gullick coined POSDCORD as an acronym
to describe his list of important management functions.
Planning - The most important aspect of an organisation is planning. It is the responsibility of
management to adequately plan the activities of the oranisation. A good plan in Fayols word.
should be an embodiment of unity community, flexibility and precision 43 Scientific
Management
The scientific management developed about the same time as bureaucracy and administrative
theory - from about 1900 to the [present. All three streams of thought are compatible and
complementary: they have common views about the nature of men and his organisations.
Scientific management was developed by Frederick Taylor -a mechanical engineer who later
held a top management position in a steel and metal industry. He was the first to give an
adequate complete exploration of scientific management.
The unit of analysis of scientific management is the physical activities of work whereas
Bureaucracy and Administrative theories the structure and process of the human organisation.
Thus. compared with one another scientific management is micro while Bureaucracy and
Administrative are macro. The scientific management theorist emphasise man-machine
relationships with the objective of improving performance. It advocates an inductive, empirical,
detailed study of each consignment in order to find out the most efficient method of execution.
Bureaucracy and administrative theories are lesss empirical. Infact, they are more deductive with
prescriptive models not necessarily based on particular empirical study. They are concerned with
prescriptive models not based on scientific findings but on experience and general observations.
42
Hicks and Gullet op.cit., p.168.
43
Henri Fayol, General and industrial Management Constance Stores(trans.) (London: pitman,1949),p.45.
60
Scientific management is the application of scientific methods to the study, analysis and problem
solving in the organisation. This is why some see it as merely a set of techniques and mechanism
for improving organisational efficiency.
5.12.Assumptions:
The scientific management have two broad objectives:
i) That improved practice would come from the application of scientific methods to
organisatonal problems.
Assumes rationality in classical terms - that is, each employee is an economic man - interested in
maximizing its income and the organisation seen as instrument of production.
In other words, the scientific management is concerned with how to produce the best possible,
how to produce the best possible work and how to secure the best possible effect.
5.13. Taylor’s Principles of Scientific Management:
Taylor saw the opportunity to use the engineer‟s discipline, objectivity and rationality in the
solution of managerial problem. He wanted to reduce random, rule-of-the-thumb and personality
factors decision-making. He therefore codified the following principles:
i)That management should be based on science not ruleofthethumh
ii)that there should be harmony and not discord in organization.
iii)That there should be cooperation and not individualism. In other words, there should be unity
of direction or espirit-de-Corps.
iv)That there should be maximum output as opposed to restricted output caused in most cases by
„soldiering‟. In another place, Taylor also developed and described what
They are: often have been called his four principles of scientific management.
i)That management should develop a science for each element of man‟s work, and this should
replace the old rule of the thumb method.
61
ii)That inhaeW1ent should scientifically select and train, teach and develop the workman,
whereas in the past, he chose his own work, and trained himself as best as he could.
iii)That management should heartily cooperate with the workers so as to ensure that all the work
being done is in accordance with the principles of the science which has been developed.
iv)That there should be almost equal division of labour responsibility between management and
the workmen. The management should take over all work or which they are best fitted than the
workmen, while in the past, all of the work and the greater part of the responsibility were thrown
on the men.
5.14.Criticisms of Scientific Management:
i) One of the major criticisms against scientific management is that it over-rated the scientific
methodology as completely value-free whereas this can hardly be.
ii) Another criticism is the assumption that man is an economic being and that man performs
better when his economic benefit is maximized. In real sense, this is hardly the case. He
neglected other factors such as the social-cultural environment and the influence of work group.
iii) The assumption that it is possible to produce the best man has also been criticised. It is not
possible to produce the best-man and he did not properly define who this best man is.
5.15. Advantages:
1)One of the greatest contributions of the scientific management is that it reduces „soldiering‟. It
believes that much efficiency could be gained if soldiering - loafing or marking time on the job
could be reduced
ii) The scientific management also emphasised adequate
pay for workmen in organisation in order to enhance their productivity. To some extent, this has
led to the improvement of condition of service for the workmen.
Organismg - in order to efficiency and increased performance in an organisation, the
management should organise both men and materials in appropriate proportions. The
organisation of humans fall into a hierarchical order whereby superiors with authority sits at the
top and each level below with less authority sits below the hierarchy.
62
Staffing - This is an all important activity in the organisation, i.e. organising labour to perform
the duties laid down for them. Staffing therefore refers to the recruitment and training of staff
and maintaining very favourable working conditions.
Directing - This is the continuous task of leading the organisation. Workers must be directed to
ensure efficiency in organisation.
Coordinating - Management should be involved in the coordination of the activities of all the
various departments to ensure efficiency and stability in the organisation. To coordinate
activities implies the fostering of cooperation between different departments in the organisation.
Reporting - Here, one has to keep the superiors informed of the amount of work done through
reports and records. This is necessary in order to know areas of weaknesses and strength.
Budgeting - This refers to the preparation of estimates of the proposed incomes and expenditure
of the organisation, usually over a period of one year.
5.16.Criticisms of Administrative Theory
i.
The administrative theory had been subjected to a number of criticisms among which are:
ii.
It has not been verified under controlled, repeatable scientific conditions. This is because
the empirical evidence developed in the classical tradition of the scientific method is
inadequate to support most elements of the administrative theory
iii.
The administrative theory is accused of being full of inconsistencies. tauogies and lack of
sophistication.
iv.
The elements of administrative principles are like proverbs, they occur in pairs. for
almost every principle, one can find an equally plausible and acceptable contradictory
principle. Although the two principles of the pair will lead to exactly opposite
recommendations, there is nothing in the theory to indicate which is the proper one to
apply. e.g. centralisation and decentralization.
63
CHAPTER SIX
THEORIES OF ORGANIZATION
6.0.The Neo-classical Theory
The first aspect of this theory deals with Neo-Classical approach or the Human Relations school.
All these theories built upon the classical theories. The Neo-Classical theory accept the classical
principles but it emphasized the behaviour of individuals in those positions in contrast to
positions as held by the classical theory.
According to Gullet, “the basic assumption of the Neo-Classical theory is that the psychological
and social aspect of the worker as an individual and his work group, ought to be emphasized.
44
The Classicist, emphasize structure, the organisation chart, while the neo-classicists argue that
it is the people and not the black boxes in the organisational chart that conduct the functions of
an organization. In other words, it is the people and the way they feel that contribute to the
effectiveness of the organisation. Thus, they emphasise the “psychological state of the workers”.
To them, effective control emanates from the individual rather than through the administration of
positive and negative monetary and career- relevant inducements. From the human relations
point of view, the desire to produce at an optimal level rests on the employee himself, rather than
the “economic-man” of the classicists who depends on financial inducement.
Since external control is not a motivator to the worker, socio-psychological methods must be
applied. Therefore, the emphasis is on considerate non-authoritarian leadership and group
participation in decision making.”45 (The key word is the individual and his psychological state
of mind). It is believed that Oratory type of leadership, the worker is likely to work harder, and
more effectively than that of an authoritarian type of leadership.
44
Herbert G. Hicks and and C. Ray Gullet, Organisation: Theory and Behaviour, (New York:McGraw Hill,
1975),p.192.
45
Curt Tausky, Work Organisations:Major Theoretical perspectives Secxond Edition (New York:Peacockl
publishers, 1978),p.42.
64
6.1.Human Relation
Fred Luthans sees human relations as “the practice or management which places heavy emphasis
on employee cooperation and moral”,46 while Ray Miles opine that human relations means
“treating people as human beings (Instead of machines in the productive process) 8knowledge
their needs to belong and to feel important by listening to and heeding their complaints where
possible and by involving them in certain decisions concerning working conditions and other
matters, then morale would surely improve and workers would cooperate with management in
achieving good production”47
Human relation‟s school started in the late 1 920s and the early 1 930s when Elton MayO and his
Harvard Associates conducted extensive research at the Hawthorne Plant (in Chicago) of the
Western
6.2.Electric Company.
Another major contribution to the Neo Classical school emerged in the early 1940s from the
research of Kurt Lewin and his associates. Other writers prior to Lewin also contributed to the
Neo Classical theory. Such other scholars are Hugo Musterber who also wrote on certain aspects
of NeoClassical theory.
A major contributory factor to the emergence of the politics of human relations is the Hawthorne
studies.
6.3.The Hawthorne Studies
The Hawthorne studies48 which started in 1 927 was conducted in 4 stages.
(I) Illumination Experiment;
(ii) Relay Room;
46
47
Fred Luthans, Organisational Behaviour (New York McGraw Hill, 1978),p.9.
Raymond Miles, Theories of Management, (New York:McGraw Hill Book Company,1975),p.40.
48
See, Fritz J.Roethlisberger and William J. Dickson, Management and the Worker, (Cambridge, Mass Luthans
rd
op.cit., pp.43-47; Edgar H.Schein, Organisational psycholo gy 3 prentice Hall, Inc., 1980), pp.56-59. Cyril Sofer,
Organisation in Theory and practice, (London: Basic Books, Inc., 1972), pp.64-70.
65
(iii) Second Relay Room;
(iv) Bank Wiring Room.
6.4.The Illumination Experiment
The light experiment was conducted in order to determine experimentally the effect of varying
degree of lighting on the worker‟s productivity, Initially, 3 departments were studied with
varying degrees of illumination and no consistent relationship whatsoever was found to
productivity‟
They decided to pick one department which was subdivided into control and test groups in
different buildings. The lights in the control room was made almost constant but was varied in
the test room.
The results were surprising to the researchers as productivity increased in both groups. In another
control and test groups lighting was again kept constant in the control group and decreased in the
test group. Again there was an increase in productivity in both groups.
Apparently some unanticipated and uncontrolled variables were influencing the expected
relatior1ShP between illumination and productivity‟ This unexpected and uncontrolled variable
was the human factor. Therefore, the results of the illumination experiment turned out to be
accidental discovery and this discovery later gave rise to the Relay room experiments.
(ii) The Relay Room Experiment
Two women assemblers were chosen for this study. They were allowed to select four others to
join them in the test room which was separate from the rest of the plant and management.
In the test room, better lights were installed and fans provided. The daily output of each woman\
was carefully recorded by a friendly observer as was the temperature of the test room. This
observer was a supervisor.
The women were also exposed to medical examinations every six weeks during which time, icecream and cakes were served. After many months, new pay incentive scheme was introduced in
the test room and the assemblers wages from then on was determined by the group output of the
relay assembly test room. Thereafter the output of these assemblers continued to determine their
66
pay and as a result, shorter work hours and longer rest periods were introduced. These activities
spanned a period of two years, “during which time the productivity of the test room rose over
that of the base period before the first experimental change in wage payment began”.49
In order to further test the workers productivity based on the effect of wage incentives on the
employees, the second test room relay experiment was carried out.
6.5.The Second Relay. Test Room
The second experiment (Relay Room) was conducted in order to further test the effect of pay
inducement on worker‟s productivity.
Again, the group of five women were used in the study. Conditions of work remained the same
as for those in the regular departments. When the five women were given the wage incentive,
productivity rose, but dropped when the pay inducement was removed, and participants paid on
the basis of the productivity of their entire department in the plant.
Within the small group, therefore, productivity went up when wage was increased but as soon as
their productivity was now determined by the output of the entire group and pay incentive
eliminated, their productivity dropped.
What then are the implications: From the data, the researchers found that working conditions
such as pay and fatigue were unimportant factors in relations to the human components of work.
Therefore, we find that it is the human factor that predominates over all other factors. The
researchers noticed that the groups were friendly with each other and hence work became more
pleasant end when work is pleasant. Productivity is bound to increase
Thus, the researchers concluded that the nor authoritarian and considerate supervision in the First
Relay Room experiment coupled with good human relations between the work groups were seen
as the determinants of increased output..
However, the outcome of the studies were seen as inconclusive. Roethlisberger and Dickson50 in
noting the 30% increase in productivity during the First Relay Room concluded that:
49
Curt Tausky, op.cit., p. 44.
50
Fritz J. Roethlisberger and Willam J. Dickson, op. cit p. 160
67
(a) “There was absolutely no evidence in favour of the hypothesis that the continuous increase in
output in the Relay Assembly Test Room during the first two years could be attributed to
wage incentive factor alone”;
(b) “The efficacy of wage incentive was so dependent on its relations to other factors, that it was
impossible to consider it as a thing in itself having an independent effect on the
individual”. That is even incentive alone does not create enough motivation for workers to
produce at optimal levels and in order for it to work, it has to be considered with other
factors - human factors especially. It is also plausible to argue that productivity increase
was as a result of what has come to be known as the “Hawthorne effect” -(by this we mean
the unintended effect of the special attention given to the participants by the researchers
during the test) in addition to other prevailing conditions like the friendliness of the
supervisor, the serving of ice- creams and cakes and even the medical examinations.
(iv) Bank Wiring Experiment:
The next and final study is the Bank Wiring Room experiment. It started in November, 1931 and
ended in May, 1932.
The aim of the study was to conduct an” observational analysis of the informal work group”.51
In order to conduct this study, 14 male operators were co-opted and were paid according to how
much the group produced. The actual work units involved nine wire-men, three solder men and
two inspectors who inspected the electric switches assembled by the group.
An observer who gathered objective data was conducted. In order to gather information about the
attitude, teelings and thoughts, about the workers, an outside interviewer was made to come in
regularly.
Apart from the observer and interviewer, all other conditions remained the same in the main
wiring room department. Worthy of note too is the fact that those in the wiring room were
supervised by their regular supervisors.
51
Fred Luthans, op.cit., p. 14.
68
Therefore, all conditions re always the same.
6.6. FINDINGS:
The results of this study were basically opposite to those in the Relay Room test. It means
therefore that the increases in productivity in the relay room did not occur but rather,
there was “restricted output” by the bank wirers. This therefore gave rise to the “output
restrictions” by workers.
Going by the scientific analysis and principles, the industrial engineers had expected that the
group would produce 7,312 connections per day, about 234 switches per man. in reality
however, the workers informally restricted output and produced 6,000 connections per
day or 2 switches per proper work day.
This informal group norm of 6,000 connections end 2 switches per day in managements view
meant output restriction rather than inability to produce 234 switches per man or 7.312
connections per day. In other words, it was therefore, a deliberate act by the workers to
produce at the rate they were producing.
This position was manifested by the following observation:
i.
ii.
iii.
The man who watched the experiment found that the men stopped working before closing
time.
Majority of the men told the interviewer that it possible to produce more,
Following tests of intelligence and dexterity, it was clear that there was no relationship
between capacity to produce and actual production. The workers were capable of
producing more than what the really produced. They were mentally and physically able to
produce more.
Fred Luthans in his Organizational Behaviours52 presented four reasons for output restriction:
Fear of Unemployment - This is a reference to the workers‟ need to retain their job by not
completing every job available at once. Luthans‟ argument on the “Lump-sum theory of
work” was backed by reasoning such as “don‟t work yourself out of a job”. In order to
keep one‟s job therefore, one has to pile up his work.
The fear of raising the standard - Majority of the workers believed that once they attained
the standard rate of performance, management would lift the standard, thinking that it
i.
ii.
52
Ibid, p.15.
69
iii.
iv.
was too easy to achieve. This meant that management would continue to raise the
standard of production.
Protection of the Slower Workers - “The workers were friendly on and off the job, and
understood the depth of each others family responsibilities which necessitated sustained
employment. The faster workers protected the jobs of slower workers by maintaining the
same level of production.
The satisfaction on the part of management. When workers continued to produce at the
rate they were producing no one seemed to care. This meant that the management was
satisfied with the level of production. Therefore, if the management did not complain,
they (workers) believed it implied satisfaction on the part of the management.
From the above studies, we found that the incentive system which dictated that the more an
employee produced0 more he earned, failed to debar workers from output
Thus, we discovered that social pressures, ostracism, ridicule, and name calling rather than
financial incentives Constitutes a more effective form of gaining employee compliance in the
informal group of an organization.
The key concept in Mayo‟s approach to Human,1etions is the harmony between the informal
group and the formal organization. In the words of Felix and Lloyd Nigro, I internal equilibrium
had to be established and maintained the organization considered as a network of social relations
sentiments”.53
6.7. Human Resources Theory:
Although human resources theory maintains the interest of its predecessor (the Human Relations
Theory) it emphasizes. another aspect of an organization - the daily work people execute.
It is the belief of the Human Resources Theorists that employee satisfaction and productivity is
heightened when their tasks are designed properly. In Tausky‟s view, the logic of this argument
is founded on a model of personality- marked by a tendency of personal growth (selfactualization). So far, we have noted the displacement of the “economic man” of the scientific
management by the “social man” of the human relations approach, and the social man of the
human relations is now going to accede to the “seif-actualising” man of the human resources
school.54
Here, as in other theories, a form of organisation is proposed which is linked to motivation.
53
Felix A.Nigro and Lioyd G.Nigro, Modern Public Administratiomn Fourth Edition, (New York: Harper and
Row,1977), p.135.
54
Curt Tausky, op. cit., p. 53
70
From human resources stand point, task design can no longer be ignored from this perspective
for the following reasons:
a.
b.
c.
The sustained rising level of education that western and the developing countries are now
providing. The emphasis on education is, therefore, “changing the attitudes, aspirations,
expectations of major segments of the socety.”55
The satisfactoriness of the tenet that workers could be utilized to achieve organizational
goals is now open to questioning. That is, the workers no longer want to accept or endure
the dehumanizing conditions on the job, in order to achieve material rewards. Even the
unemployed are rejecting dehumanizing jobs, „at a time when we expect they could
accept anything for a living‟. In order words, workers are now interested in protecting
their own dignity.
Organizations will experience diminishing results with atomized tasks due to their
rigidity and inability to adapt to constant changes in their environments. In this view,
therefore, education and wealth merge to demand the creation of jobs which are not
dehumaflising. When one is educated, it is argued, he no longer accept jobs broken into
pieces and those that are dehumanising.
Job design under scientific management tends to limit the number of different tasks in the job
and reduce the variations within a task as much as feasible.
Again, scientific management tries to content of a job constant as much as possible reduce the
training time needed to learn a job have a limited task, you do not have to spend learning it. But
under Human Resources, principles56 are almost opposite:
i.
Maximum Variation in Functions:
This principle demands that job design should include the creation of a maximum variety of
functions within the job as much as possible.
ii.
Holistic Pattern of Task:
Evolve an all-inclusive pattern of work involving disparate levels of energy and attention.
iii.
Quantity and Quality Standard Setting:
Make sure that latitude of the work allows for predetermination of quantity and quality standards
and feedbacks of outcomes.
iv.
Respected Skills:
Tasks that are seen as requiring respected skills should be included on the job.
55
Louis E. Davis, “The Coming Crisis for production Management: Technology and Organisation” International
Journal of production Research, Vol. 9(1971), p.69.
56
Peter A. Clark, Organizational Design: Theory and practice, (London:Tavistock publications Ltd., 1972), p. 30
and F.E Emory, and Einar Thorsrud, Form and content in industrial Democracy, (London: Tavistoc-publications,
1969), pp.103-105.
71
v.
Communication and Physical Proximity
If the jobs are inter-related, provision should be made for easy communication and physical
closeness among staff:
vi.
Control Over Setting Standards and Boundary Task
Holders of inter-linked jobs should have control over setting of standards, boundary task (e.g
maintenance jobs), and be informed about results (feedback).
From what we have had so far, W8 find that it is a recommendation that the task should be as
multi-farious as possible.
Again, Human Relations Theory merges motivation theory and job design prescriptions and this
motivation theory is based on the theory of personality which argues that the individuals
desire to develop to their utmost best in an organisation (le. self-actualise, develop their
potentials in an organisation).
The writings of the following theorists - Abraham Maslow, Fred Herzberg, Chris Argyris dealt
extensively and clearly with human personality. See more on motivation in Chapter six.
72
CHAPTER SEVEN
THEORY OF ORGANIZATION
7.0. The Modern Theory
The third key theory of organisation is modern theory or system theory. It takes a general look at
the orgamsation, its elements and component parts. Modern theorists argue that the organisatjon
must adaptto changes in its environment if it is to Survive.
Chester Barnard had a tremendous influence on the development of modern theory. In his The
functions of the Executive. Barnard defines an organisation as a “system of consciously
coordinated personal activities of two or more persons”.57 The emphasis in that definition is on
two words systems” and “persons”. Modern theorists argue that human not boxes on the
organograni chart constitute formal organisations. Barnard‟s criticism of the classical approach is
that I is too descriptive and superficial 58
Other contributors to modern theory are: Alfred Korzybski, Mary Parker Follet, Norbert Wiener
and Ludwig Von Bertalanffy.59
7.1. Modern Theorists
Name
Chester Barnard
Relevant Work
The Function of the
Executive
i) Sees the organisatjon as a dynamic
social system of cooperative
interaction
ii) The organs, individuals suppliers
and customers are part of the
environment.
Ludwig
Von General systems
Bertalanffy
theory: A new approach
to the unity of science.”
i) Adopts a general systems view. Sees
organisation
as
primary
problem of life.
(3) Norbert Wiener
- Believes in system con4i-ol through
information feedback. Holds
Cybernetics
57
Chester Barn ard, The functions of the Executive (Cambridge, Mass: Harvard University press, 1938), p.73.
58
Ibid, p.vii.
59
H.G Hicks, and C.R Gullet, Organization: Theory and practice, (new york: McGRAW-Hill, 1982) pp.210-212.
73
(4)
Mary
Follet
Parker Dynamic Administration
The Collected Papers of
Mary Parker Follet
Heniy Metcalf
& L. Urwick (eds.)
(5) Alfred lCorzybski
Science & Sanity:
An Introduction to
Non Aristotelian
Systems & General
Semantics.
that orgaanisation system is
made up of inputs. process.
outputs,
feedback
and
environment.
r) Of the same cooperative view with
Barnard.
ii) Suggests “working things out in
cooperative spirits”. iii) Every
person is important as a
member of society or group. iv)
Individual and organizational
interest should be integrate.
Emphasize process nature of reality.
Believes we live in three
woitis:
I. World of events
ii. World of objects
iii. World of symbols
Adapted from H.G. Hicks and C.R. Gullet, Organisational Theory and Practices, (New York:
McGraw-Fiji!, 1982) pp.210 - 213.
7.2.Barnard and the Cooperative View of Organisation:
Chester Barnard, as we all know, had tremendous influence on the break from classical to
modem theory. In his view, the organisation is a “system of consciously coordinated personal
activities of two or more persons:. It emerges when there are persons willing to contribute efforts
towards the attainment of a common purpose, in an atmosphere replete with effective
communication. In other words, you need three things to hold the organization together:
(a) Common purpose;
(b) Willingness of members to contribute efforts;
(c) Ability to communicate.
The sustenance of the members willingness to contribute is function of the level of satisfaction
people derive from working towards the attainment of the purposes of an organization
satisfaction must outweigh sacrifices to sustain willingness and achieve organisational
efficiency.60 Willingness evaporated where sacrifices outweigh satisfaction or benefits
Organisational survival depends on its ability to maintain equilibrium between sacrifices
60
C. Barnard, op. cit., p. 83.
74
contributions) and satisfaction (incentives). In order to get the necessary cooperation from
members, an organisation must provide satisfaction at a level that members see as profitable.
Therefore, management‟s key function is to provide incentives or “manage an economy of
incentive”, that is management must provide incentives and satisfaction. Barnard considered the
social psychological incentives as primary. The primary incentives are psychological while the
economic incentives re secondary.
For organisations to survive, Barnard argued, they must provide both specific and general
inducement.61 Specific incentives (all into three categories:
i.
ii.
iii.
Material incentives - This includes money or salaries, cozy working environment.
Personal non-material incentives - That is the distribution of prestige and power.
The satisfaction of ideals - such as feelings of loyalty, pride and contribution to valued
causes.
There exists four forms of general inducement:
i.
Social psychological conditions of work For example, providing rewards for social
within the work group and with others, in. organisation in general.
ii.
Congruence between the person‟s working condition and his or her working habits,
methods or attitudes There must be agreement between a workers methods, habit and
beliefs; and working conditions.
iii. Opportunity to achieve satisfaction arising fromi working with people of similar desires
and values.
The organisation‟s efficiency depends on its ability to offer effective inducement in sufficient
qualities to maintain the balance of the system, and its overall effectiveness further depends on
its ability to maintain similar balance with its external environment. Chester Barnard further
asserted that the organ isation is made up of three things:
i. People must be capable of communication.
ii. They must be willing to cooperate.
iii. A common purpose or objectives.
The key idea in Barnards approach is therefore cooperation and maintenance of equilibrium
between contributions and general inducement in order for the organisation to be successful.
7.3. Barnard On Authority:
Barnard was very critical of classical theory on the ground that the authority came from the peak
of the organizational hierarchy
61
Ibid, pp.142-149.
75
Barnard claims that the definitive test 01 authority can be found in the acceptance of the
authority by the subordinates. He defined authority as “the character of a communication (order)
in a formal organisation by virtue of which it is accepted by a Contributor or a staff of the
organisation as governing his actions.
In his view, the individual will cooperate and participate when four elements are present:
i.
The person must understand the communication; I. understand what he is supposed to do
and in m cases put down as job schedule or job description
ii. The question addressed must be consistent with I purposes of the organization; i.e. in
order I members to participate, the issues involved must in agreement with the au and
objectives of 1 organization.
iii. The task must be compatible with personal goals interest of the member.
iv. The person must be mentally and physically able comply.62
7.4. Zone of indifference:
The zone of indifference in management terms refers
situation where most workers have a relatively broad zone acceptance on legitimate issues. A
person will respond position to an order if it falls within the zone of acceptance. This zone one in
which people do not really care what they are asked to Within that zone, orders do not conflict
with the workers inter But orders that fall outside this zone of indifference attract for reactions,
reluctance or disobedience from members of establishment. It is imperative for managers in
public, private non-governmental organizations to take cognizance of this limitation in order to
secure the employee compliance and optimal performance.
Barnards concept of authority has had a tremendous ml on managerial practice and organisation
theory, v reinforced trends towards viewing an organization as a complex inter-dependent social
system. i.e. the system does not operate one its own but dependent on very many variables.
At the end, he succeeded in notifying managers that authority is more than a position in an
organisational chart. It means you have to get the acceptance of members of the organisation. To
some extent Barnards position seems irrelevant to the emerging scenario in most dictatorial
military regimes in developing countries, where instructions are handed down (using the
machinery of government) to the staff in parastatals and even some private organisations.
Reluctance in some of these countries, it is argued, easily gives way to compliance even in areas
where orders conflict with workers interest.
62
Ibid,p. 165.
76
7.5. The Open system Approach:
The open system consists of inputs - that is money or other efforts; process - the combination of
all variables to attain organisational goals; and output - the finished products released to the
environment which influences the organisation through feedback.
The output refers to the finished product which are exported. However, it should be noted that
the inputs come from the environment, e.g. the human resources. The environment also have a
way of influencing the organisation,
The open systems approach simply means that there are some interactions and inter-dependency
with social and technological elements in an organisation. Organisations are therefore seen as a
system of inter-related variables and hence if there is a change in one variable, it equally brings
about changes in other variables.
This is in line with the saying that nothing happens by itself. There is cause in every event and
that cause may be changes in the environment.
Formal organisations are seen as open systems because of their open interaction with external
environment. Their survival and success depends on their successful interactions with the forces
in the environments i.e. a good interaction Or relationship with the environment. In cannot
operate in isolation.
In the Social Psychology of Organisation, Daniel Katz and
Robert I. Kahn describe an organisation as a vigorous input/output system which is glaringly
open in its interactions with the environment.63 They see the organisation as energetic and in
open reciprocal relationship with the forces in the environment in order to survive.
7.6. Characteristics of Open System:
The open system is characterized by inputs; processes; output; environmental assistance;
resistance and survival, and feedback: Other features of the open system include: maintenance of
equilibrium and equifinality. Inputs are needed for the survival of the organisation. They could
be raw materials, human resources, capital etc. The input of energy, human and material
resources from the external environment is therefore one of the characteristics. For an
organisation to succeed. it must have a process through which inputs are transformed through
social and technological processes into services and products.
Open system export products (exporting of products) to the external environment. In most cases.
the output of one organisation hecornes the input of other organ isations. In order to invigorate
63
Daniel Katz and Robert L. Kahn, The social psychology of Organisations, (New York: John Wiley & Sons Inc
1966).
77
the system. open systems or organisations must depend on its environment. The system
constantly seeks to re-energise itself from the environment.
The organisation resist and survive by importing more inputs than it requires in order to resist
dis-organisation or entropy. The system maintains a stable course (homeostasis) through
feedback from its environment. The system also depends on its internal operations and
organisational performance in order to maintain a stable course.
Open systems seek to maintain equilibrium or balance through internal and external forces by a
process of adaptation to changes in the environment. Walter Buckley dealt extensively with this
adaptive theory. The open system is capable of arriving at the same final state (equifinality) after
experiencing different condition bind parts of development. No matter how hard the processes
are the end product is always the same; e.g. if you have an organisation that distributes rice, no
matter what the hazards are, the products is to distribute rice.
The open system therefore enjoys universal applicability in the sense that almost everything
(biological, human, technical or economical) can be interpreted in open systems terms. If you
have a biological system i.e. the human being, the man gets his food from the environment and
sends it to the digestive system which processes the food and send the nutrients to the various
parts of the body and the waste is sent out as output which may in turn be used as a manure
(input)for further production. The fuel is an output from an oil refinery, but an input for a
manufacturer who uses it to generate electricity for his factory. The students come in and the
university put them through a process and award a degree as a form of output and the graduate
would come again from the environment to the university as teachers. Same can be said of the
business org anisations.
Thus, the open systems approach recognises the input of the environment but fails to relate this
finally to management concepts and techniques that lead to the attainment of objectives. And it is
where this open system ends that the contingency theory takes off.
7.7. Distinctive Features of Modern Theory:
Modern theory has many distinctive characteristics. It perceives the organisation as a system
made up of five elements:
input, process, output, feedback and environment. Modern theorist see the organisation as a place
where inputs come in the form of human resources to produce goods which in some cases may
serve as inputs for other organisations. These resources which constitute the input comes from
the environment. In some cases, one other ja9g knowing what the organisation has been doing or
balancing mistakes is through the feedback, which enable the organisation to rectify mistakes as
they‟ are brought to it through feedback.64
64
See Walter Buckey, Sociology and modern Systems Theory (Englewood Cliifs, N.J.: Prentice-Hall, 1967)pp.5859.
78
Modern theory emphasises the active interactions or interdependency within the hierarchy and
the organisations. This is distinct from the classical thinking which emphasises static boxes of
the organisation chart. Modern theory looks at the components of the organisation and the
organisation as a whole. When you take a look at these components, you are engaging in micro,
but when you take an overall view or holistic view of the organisation, you are doing a macro
analysis. It is macro within a nation‟s industrial network, and it is micro with respect to its
internal units.
Modern theorists believe that actions are motivated by very many factors and desires. They argue
that desires or actions are motivated by very many variables of factors.65 To them, the
organisation exist because contributing members expect to derive some” benefits from the
organisatión. Thus Barnard argues for a balance between contribution and incentives in the
organisation. Unlike the Classicists, they do not believe actively that goals can be reduced to
economic man who produces more when given more money. We are saying that this is not
entirely acceptable to the system theory since it is only one of the numerous.
Modern theory is probabilistic because it argues that actions are motivated by many desires. In
other words. we cannot really predict which of the various factors can result in higher
productivity. Modern theory does not make predictive or categorical statement like the Classicist.
The Classicist would say that once you adhere to the principles, production would improve. To
the systems theorist, however, there are very many variables which cannot really be determined
and hence it is probabilistic. Modern theorists tend to qualify statement with phrases such as
“may be”, “usually” or “in general”.
Modern theory is multidisciplinary since it has acquired many concepts and techniques from
other disciplines. Valuable contribution has been made by Administrative theory. sociology.
Economics and Psychology etc. The sum total of these theories have been harnessed and
synthesized to produce this theory of management. Thus. we say modern theory is eclectic. This
even summarizes the nature of public Administration as a discipline.
supra-disciplinary character because it has borrowed many concept from various disciplines.
Modern theory describe organisational and management characteristics. Some earlier theories
were normative or prescriptive. They suggested what should, must or ought to be done. But
modern theory seeks understanding of organisational phenomena and leave the choice of
objectives and methods to individuals.
Modern theory assume that events are caused by very many variables and most of these variables
are inter-related and interdependent. Furthermore, they recognise the fact that the output of one
organisation - the result of processed input, can in turn influence the organisation through the
65
See H.G Hicks and C.R Gullet, op.cit., pp.215-216.
79
feedback mechanism. That is, causal factors may in turn be affected by the things they caused
through feedback.
Modern theorists believe that organisations try to adjust to the forces in the environment through
adaptation. They viewed the organisation as an adoptative system. In order for the organisation
to survive and prosper, it must continually adapt to the environmental changes. Thus, the
organisation and its environment are seen as inter-dependent. Buckley tells us that they can do
this in one or two ways:- through a process of hoiiieostasis or morphostasis; and
Morphogenesis66
In Buckleys term, morphostasis means “those tocesses in complex system environment each et
tends preserve or maintain a system‟s given form, or oraganisation state
Morphogenesis on the other h implies, “those processes which tend to elaborate or change a
rstem‟s given form, structure or state”. In the society, when you perform your annual rituals, you
are engaging in a homeostatic behaviour - trying to maintain the culture or existing culture of the
place. Morphogenesis actually means that you try to use education in adapting to changes or
trying to expand or elaborate the structure you met.
When you try to change the society or societal development, you are in effect involved in a
morphogenetic process. These informal adaptations are highly imperative for the success and
effectiveness of the organisation. This is why Warren G. Bennis 67 in The temporary society
which was co-authored by Philip Slater, calls for a new form of Bureaucratic organisation. The
“old style” Bureaucracy was meant to deal with the predictable behaviour in the society, and they
believe that in the present world, you can no longer predict behaviour in the society. and since
you have to deal with the unpredictable, it means you have to design a new system to deal with
the new situation. The old-style‟ bureaucracy was able to handle the predictive behaviour of
human affairs but in the present society, we have to deal increasingly with the non-routine and
unpredictable in human behaviour. If we must deal with all these, we must evolve a new system
to deal with the unpredictable in human behaviour.
7.8. Contingency Theory:
This theory takes a situational look at the organisation. The contingency approach is different
from the principles of management which has a universal approach and prescriptive in nature.
This approach is situational and non-prescriptive. In other words, whatever model you want to
apply in an organisation depends on the situation or prevailing circumstances. The contingency
theorists argue that different situations require different organisational relationships for optimal
66
Walter Buckley, op.cit., pp.58-59.
67
Warren Bennis and Philip Slater, The Temporary Society (New York: Harper an d Row,1968), p.56.
80
effectiveness. This approach relates the organizational environment to specific organisational
structures.
The generally accepted starting point for the contingency theory is the research conducted h‟
Joan Woodward.68 Her interest in this study was to find out the relationships between technology
and structure of organization. Wood ward argued that technology played a very important role in
organizational effectiveness. In her view, technology plays a role equal to not more vital than
those of the processes and structures.
The findings of her research supported this contingency (situational) approach to management
i.e. dealing with situation as they-are arguing that there is no specific way or the :one-hest.way to
organize.
In the stud, she used about I X) British companies located in the Southern part of England. She
classified these firms into three types of production technology69
i. The unit and the small batch technology;
ii. The mass and the large batch technology;
iii. The process.
(1) The Unit and Small Batch Technology:
The small batch or unit technology depends on self-contained units which produces according to
the specifications of clients, or customers. The customers bring in their specifications and these
small units produces according to these specifications i.e. Proto-type - an original model for
which you produce more. More successful when they use humanistic and flexible design.
(2) Large Batch and Mass Production:
Normally, a moving assembly line is required for the mass and the large batch. Here there is bulk
production of goods in large quantities. More successful when they use classical design.
(3) The Process Production:
In this type, of technology, the production of liquid-gas, Refinery etc. can be undertaken on
intermittent basis. More successful when they use humanistic and flexible design. After the
classifications of industries, she went on to analyse the internal organizational variable
structures.
68
. See Joan Woodward.Industrial Organisational, (London: Oxford University press. )1965).
69
. See Edgar Schein,Organisational Psychology, Third Edition,(Eaglewood Cliffs, N.J.: Prentice-Hall, Inc., 1980)
pp.208-210. See alao Henri Tosi, Theories of Organisation (Chicago,III St.Clair press,1975),pp.105-118
81
SUMMARY OF WOODWARD FINDINGS
Types of Technology
Organisation Structure
Human Relation
Unity of Small Batch
Average span of control
for 1st Line Supervisors
21-30; „medium No.
reporting to top
Executive; 4, medium
levels of managements;
3, and top management
committees instead of
single head 12%.
Span for 1st Line
Supervisor
41-50
reporting
to
top
executive 7, levels of
management, 4 and
management committee,
32%
Span for 102 Line
Supervisor,
11-20;
Reporting
to
top
Executive 10, levels of
management, 6, and
management
committees, 80%
Small intimate
Functions
groups, much
Development
participation
personnel
permissiveness
skilled
and flexibility in workers,
job intermen experienced
relationship
managers
Mass or Large Batch
Process
High Status
Clear-cut
duties,
Line staff conflict
and generally bad
industrial relations
Production
Personnel
(Line and
staff)
Good interpersonal
relations like the
unit technology and
little conflict or
stress.
Maintenance
personnel
Young
technically
competent
managers.
Source: Fred Luthans, Organisational Behaviour, ( 1w York: McGraw-H11 Boom Company,
1977) p. 160.
Under structure, and in a small batch and unit, she found that the average span of control for first
line supervisor is between 2 1-30 - in the unit technology, and the median number reporting to
Executive 4 and median levels of management 3, and top management committee instead of
single head 12%. Under the Human relations heading, you have the intimate group and much of
participation. See the above diagram for the explanations of her findings in sum total.
From this study, Woodward found that the organizational characteristics which showed direct
relationship with technological advance were:
i. Length of the line of command or authority;
ii. The span of control of the Chief Executive;
iii. The 5 of total turnover allocated to the payment of salaries and wages. What 5 of the
earnings of the company was diverted to the payment of salaries and wages.
82
iv. Ratio of managers to personnel - How many managers in the company compared to the
entire work force; the ratio of clerical and administrative staff to the manual workers; the
ratio of direct to indirect labourers; and the graduate to non-graduate supervisors in the
production departments.
In concluding her study however, she departed somehow from her initial extreme position - that
the technology plays a greater role in organisational structure - and found out that technology
does not play greater role to the detriment of organisational effectiveness and structure. Although
technology was an important factor, the degree of importance was not as high as Woodward
previously assumed.
The key idea in contingency theory is that the type of structure the organisation uses depends on
the technology applied. In a critique of this position, Woodward said it is not suggested that her
research proved technology to be the only important factor in the, determination of orgnisatiotial
structure. She argued that technology could be singled put as a unit of focus for investigation and
analysis. However, the patterns which emerged from “the analysis of the data indicated that there
are prescribed and functional relationships between structure and technical demands.” Hence it
proves that technology can influence the structure of an organisation.
Woodward has therefore shown that the kind of technology employed by an organisation helps to
determine its structure. If this is the case, it means variations in the organisational structure can
be explained from the dissimilarities in technology. For example, companies involved in mass
production of goods tend to have more levels of command or authority than small batch
production companies.
The focus of contingency theory does not end in looking at ihe technology used but goes on to
examine the inter-relationship or inter-dependencies and sub-systems in the organisations and the
relationship between the organisation and the environment.
Kast and Rosenzweig asserted that the contingency approach emphasises the multi-variable
nature of organisations and tried to comprehend how organisations function under different
conditions and in specific circumstances Contingency views, they opine, are ultimately directed
towards suggesting organisational designs and managerial actions most appropriate for specific
situations.70
Basically, the contingency approach says there is no “one best way” in managing an organization
the best way is dependent on the prevailing situation of the workers. Furthermore, the
organisation will be more effective if its internal environment is compatible with the external
70
Freemont E.Kast and James E. Rosenzweig, Contingency Views of Organisation and Management (Chicago:
Science Research Associates,1973)p.313
83
environment, i.e. harmony between the internal and external environment. Therefore, the
environment is a potent factor in organisational effectiveness.
7.9. Reduction of Uncertainty in Organisation:
Warren bennis and Philip Slater in The Temporaty Society have argued that the old style
Bureaucracy was meant for the predictable and the routine in human affairs, and that a form of
organisation would be needed to take care of the non-routines and the uncertainties in human
organisations. Uncertainty is a very important concept in organisations and managers dislike it.
When we look at the “throughout”, we find that they are controllable through the structural
means: i.e. lines of command, Division of Labour. rules etc.
Since managers in organisations hate uncertainties, there must be ways of controlling them the
organisational process or the „throughout‟ is controlled through structural means and by
structural means, we meant: rules, regulations. the chain of command, division of labour, or
specialisation of functions etc. However, forces in the environment can affect the organisational
„throughout‟. Therefore, in order to control the effect of environmental fluctuation of the
organisations, boundary positions must be established, and y this we mean positions such as that
of Personnel Manager, the Advertising and Sales Manager or the Purchasing Manager or Officer.
The reduction of uncertainties can be achieved in three ways or through the use of three methods:
i.
ii.
iii.
Buffering;
Levelling;
Forecasting.71
(1) Buffering:
Buffering as a control process in the organization involves shielding the organization from the
critical fluctuations in the environment. Buffering can take place on the input side or on the
output side. On the input side, this involves the gradual accumulation of materials for steady
organizational use in the organizations i.e. stocking of material ie. needed materials of the
organization we don‟t have to wait until we want to produce before we start running around. This
too can also happen in the recruitment of personnel into the organization. On the output side, ie
the end product in order to reduce uncertainties, the organization must maintain proper invent of
goods or products in the warehouse. So there must be a duly listed and adequate quantities in the
warehouse in order to meet the demands of the consumers.
71
Curt Tausky, work Organisations: major Theoretical Perspectives, Second Edition, (New York:
F.E.Peacock,1978)pp.64-67.
84
‘2) Leveling:
This is the ability to keep an equitable or smooth environment. For example in order to hedge
against fluctuations in the environment, or in order to be capable of fighting fires, the Edo State
fire Services must involve landlords by educating them on ways of preventing fires. The
Nigerian Airways for example, might want to reduce fares, in low season periods in order to
attract travelers Declining profits, creates uncertainties for the organization Therefore, levelling
is basically a manipulation function manipulating events to suit the organisation. In Nigeria can
be argued that government‟s inability to cot uncertainties such as declining revenue and
skyrocketing inflation contributed to the present economic difficulties we knew some years back
that we were employing too n hands, certain measures would have been adopted (leveling) in
advance to curb the now bloated bureaucracy and enhance capacity to maintain essential services
today.
(3) Forecasting:
This is the anticipation of environmental fluctuations therefore one is able to maintain and
control the anticipated uncertainty, where this is done, organizational crises is minimized. In
government or public service for exam one need to know or be capable of forecasting
preferences of the people before planning or executing development projects. In other words,
you have to fore in order to know what the people want and when e.g. W Board that has to pump
water when most people are a from their homes; whereas they would have been able forecast
when people would need water most. They o to pump the “water at that time of need.
From the proceeding discussions, the extent of or importance of environmental fluctuations is
also relevant. Boundary positions helps to control the effect of the environmental uncertainties in
organizations. However, organizations with very stable environment rely less on boundary
positions. Boundary positions rise prominence if there i a serious fluctuation in the environment.
For example when market demands fall, the sales and advertising managers become very
prominent in the organization. Not too long ago we heard that the Bendel Brewery, Benin City,
was going through some difficulties, i.e. fall in demand of their products. In situations like that
the managers rise to prominence. It can make or break the managers. it can break them when
they fail to cope and it can make them when they effectively save the situation. The purchasing
officer also becomes prominent when raw materials are scarce and when he can successfully do
this he becomes promineit and can be broken or made depending on his ability to do well in such
situations.
85
In a crisis situation which is an uncertain situation, the managers must be able to perform form at
an optimal level in order to keep his job. They are crisis managers and any one of them that
cannot manage crisis is not a managerial material.
We find that an elaborate and complex organizational structure and processes are essential in
order to keep uncertainties at a low ebb. However, the higher the uncertainties, the higher the
cost of the product. If the organization must spend much money in order to prevent uncertainties,
they would have to pass it to the ultimate consumers, in form of high prices. In Jay Galbralith‟s
words, “the greater the uncertainty, the greater the cost.72 This view is in agreement with the
views of other contingency theorists.
72
Jay Galbrai th, Designing Complex Organisations, (Reading Mass.:Addison-Wesley publishing ompany,1973),
p.26.
86
CHAPTER EIGHT
8.0. LEADERSHIP, DECISION- MAKING AND MOTIVATION IN AN
ORGANIZATION
Leadership as a concept is as old as man himself. For one thing, man has always lived in a
structured system from time immemorial and whether we realized it or not, this type of structure
has always produced a leader to some kind.
Even in the natural order of things, God created Adam and later Eve on creation of the world.
Adam as it were, was supposed to lead Eve. Similarly, in the family setting, man is generally
regarded as the leader of the family unit. It is in similar way we have various leaders at different
levels in any human organization.
8.1. What is Leadership?
According to a Harold koontiz. Leadership is generally defined as influence, the art or process at
of influencing people so that they will strive willingly towards the achievement at group goals.73
In other word, to lead is to guide, conduct, direct and precede. To Kelly, leadership is simply the
ability to influence others in the group. Therefore, all group members may exhibit a degree of
leadership but the leader is one whose influence predominates at a particular point in time.74 If a
person exercises influence over colleagues much more than they do over him, he is said to
exercise leadership. If this influence covers a wide range, he is described as a leader.75
A leader therefore„s one who directs the activities in an organisation or sub-unit of an
organisation. It is the leader that gives direction to the efforts of all workers in accomplishing the
goals of the orgenisation. Without leadership, the link between the individual and osganisational
goals may become tenuous.76 The absence of leadership has the potential of leading to suboptimization in which individuals work to achieve their own goals while the overall organisation
becomes inefficient in achieving its objectives. According to Davis, „without leadership, an
organisation is but a muddle of men and machines. Leadership is the ability to persuade others to
seek defined objectives enthusiastically. It is the human factor which binds a group together and
motivates it toward goals...
73
Harold Koontz Cyrill O’Donnel. Essentials of Management (New York: McGraw Hill, 1978),p.439.
74
Joe Kelly. How Management Manage (New Jersey; prentice Hall Inc.1980),p.201.
75
J.O’Shaughnessy.Business Organisation (London George allen and Unwin Ltd., 1966), p.83.
76
H.G.Hicks and C.R.Gullet.Organisation (London: George Allen and Unwin Ltd., 1966),p.83.
87
Leadership transforms potential into reality.
It is the ultimate act which brings to success all of the potential that is in an organisation and its
people.77
This is why there is no gain-saying the fact that leadership is indispensable in an organisation.
To some scholars, a leader and a manager are not necessarily inter-changeable. To such scholars,
leadership- is a sub-class of management while managers perform the functions of creating,
planning, organising, motivating, communicating and controlling. Included within these
functions is the necessity to lead and give direction. But we think that the difference is that of
degree rather than of kind. For one thing, all managers are leaders but all leaders are not
necessarily managers. For manager‟s ability to lead effectively may affect his ability to manage..
but a leader needs only to influence the behaviour of others. He is not necessarily required to
perform the functions of a manager. But there is a symbiotic relationship between the leader and
the led. The leader cannot lead unless he has followers who follow.78
8.2. Importance of Leadership
Leadership is an important aspect of managing. Managers must exercise all the elements of their
rotes in order to combine the human and material resources in the appropriate proportion to
achieve the desired group objectives.79
Management activities such as planning, organising, and decision making are dormant cocoons
until the leader triggers the power of motivation in people and guides them towards goals.
leadership transforms potentials into reality. “It is the ultimate act which brings to success all of
the potentials that is in an organisation and its people”.80 Every group of people that performs
near its total capability has some person as its head who is skilled in the art of leadership.81 All of
these have been brought to light if only to emphasis the importance of leadership in the
efficiency of an organisation.
77
Ibid, p.301
78
Kelly.op.cit.p.201.
79
Harold koontz. Op. cit.p.438.
80
Keith Davis.Human Behaviour at work (in Hicks and Gullet. Op. cit.),p. 301.
81
Harold koontz. O; cit.p.440
88
8.3. EMERGENCE OF A LEADER:
Leaders emerge through several methods. But broadly speaking, leaders emerge either through
achievement or ascription. But in most known human organisation. leadership is usually
achieved either because of the leader‟s personality traits or other characteristics which have
appealing effect on the followers or members of the group. Once emerged, a leader would
continue to enjoy the confidence of his members if he do not deviate from the group norms.
8.4. Qualities of a Leader
The ability of a leader to make members work towards the achievement of organizational
efficiency, to a large extent, depends on the qualities of the leader and his ability to manipulate
the various leadership techniques.
Scholars of various shades of opinion have come up with several traits of a leader. There is no
uniformity of identified traits or any significant correlation of traits with actual instances of
leadership. As Eugene Jennings has rightly observed, “research has produced such variegated list
of traits presumably to describe leadership that for all practical purposes, describes nothing
Several years of study has failed to produce one personality trait or set of qualities that can be
used to discriminate between leaders and non-leaders.82
Stogdill however found that the various researchers identified physical traits related to leadership
ability such as energy, appearance and height). For intelligence and ability traits, sixteen
personality traits (such as adaptability, aggressiveness, enthusiasm and self confidence), six test
related characteristics (such as achievement drive, persistence and initiative) and nine social characteristics (such as co-cooperativeness, inter-personal skills and administrative ability).83
However, Harold Koontz described three leadership traits - ability to comprehend that human
beings have differing motivating forces at varying times and in different situations; the ability to
inspire; and ability to act in a manner that will develop a climate for responding to and arousing
motivations.84
82
Eugene Jennings. “ Anatomy of Leadership” quoted in koontz O’Donnel op.cit., p.442.
83
Stoghill “ personal Factors Associated with Leadership” quoted in Koontz O’Donnel op.cit., p.442.
84
Harold Koontz.op.cit., p.440.
89
Other scholars have given what to them constitute the traits of a good leader. According to
Alfred Cooper, a leader must posses the following traits:85
i.
Ability to inspire liking and respect,
ii.
. Loyalty - the leader must be loyal to the management because no leader can successfully
serve two masters whose interest are not always identical. Hence leaders at various levels
in an organisation should not affiliate to labour unions in order that they might be wholly
loyal to the organisation;
iii.
Fairness - while it is doubtful whether any of the leaders ever attains to complete
impartiality in their dealings with their subordinate it is a fact that playing favorites often
changed a leader into more trouble than any other supervisory crime against the working
force;
iv.
Forcefulness - Any leader who lacks forcefulness, a very desirable qualification for
leadership with a hardboildness;
v.
Intelligence - This is the ability for a leader to think dearly and rapidly. Subordinates like
to work for a boss who is smart. When they bring a problem to him that confronts them,
and one that may be even entirely new to the leader himself, they like to see him study
the matter for a few moments and then come up with the best possible solutions to it.
vi.
Integrity - This is a moral quality of leadership. A leader is usually respected because of
his integrity. It is the quality that makes it impossible for the leaders to engage in such
(practices as double -crossing. under-cutting, back-biting and lying. Subordinates want a
boss they can depend on one they feel will shoot square with them today, tomorrow and
next year;
Vii.
Kindness - Without this quality no person can become a good leader. Some workers
usually misconstrue kindness for weakness on the part of their leaders and make the
leader‟s leniency an excuse to lying down on the job. The leader who therefore knows
when to be lenient and when to be severe has mastered an important division of
leadership technique;
vii.
Judgement - We say a leader has good judgment when he can quickly choose between a
number of possible courses of action, the only one that in the long run will result in
production at the lowest costs;
85
Alfred Cooper. How to Supervise people (New york: McGraw Hill, 1958), p.1011.
90
ix.
Knowledge of work - A leader should strive to have at least a basic idea of all the work
processes in the organisation. This is to ensure that no laxity is perpetuated by the leaders
ignorance of the work process;
x.
Health - This has frequently been underestimated as a quality of leadership. Forcefulness,
fairness, kindness and all other qualities would suffer if the leader is not in physical
condition. However, it, may not be possible for a leader to posses all these traits, but a
good leader should strive to satisfy a substantial number of these traits if he is to bring
about efficiency in his organization.
8.5. Functions of a Leader
The duties of a leader are achievement of organisational goal. Cooper, a leader has the following
functions:
(i)
Development of bread policies of administration that determines the general activities and
functions of the entire organization all pervading in the According to Alfred three but
important
(ii)
Financial success depends on leadership since he secures and manages the capital on which
the company operates. We shall discuss more of this under financial control in a later
section.
(iii)
Decides what should be produced or service to be rendered to the shape the product or
service shall
But Donald A. Rudkin and Fred D. Veal Jr. have subdivided the functions of a leader into 5 units
as follows:86
i. Planning - This is the must important instrument in the running of an organisation. It
involves the future plans and line of actions of an organisation. Any leader that does
not plan would surely grope in the dark.
ii. Organising:
It is one thing to know what should be done and it is another thing altogether to know how
to do it. It is therefore the duties of the leader to know in what proportion the available
human and material resources should be combined for the achievement of the
organisational goal. Organising also involves the clear cut allocation of functions that are
available in the organisation.
86
Donald Rudkin and Fred Veal. Jr. Principles of Supervison ( England: Anerbach pub. 073).p.1
91
iii. Supervising:
This is yet another aspect of leadership function. It is not enough to plan and organise. More than
that, the leader should ensure that the function of all the various sections are supervised and coorclinated.
iv. Controlling:
This is almost identical to supervision. Control ensures that all the rules and regulations laid
down for take.
the smooth running of the organisation are complied with and violations followed with sanctions.
8.6. V. Improving:
This is also an important aspect of the running of an organisation. It is the duty of the leader to
ensure that new grounds are broken in form of research, to improve both the performance of staff
which may be through training and the development of new equipment and machines to improve
the organisation‟s production.
To these authors, no management job is successful unless all the above five functions are
satisfactorily performed by the leader. They are constantly performing what they call the cycle of
management functions. They represented these functions in the following cyclic diagram.
Diagram.
Cycle of Management Functions - Adapted from Rudkin‟s work.
8.9. Techniques of a good Leader
In order that the required organisational efficiency is achieved, the leader must use several
methods/techniques which he must manipulate constantly to suit various circumstances and
situations. Some of these methods and techniques would be discussed under the following:
92
(a) Personal Adaptation:
According to Donald Rudkin, good leader must be on who can adopt and adapt the whole or a
combination or a substantial number of the following personal factors:
i.
He must know his people (workers) and treat them as individuals and not as inanimate
objects.
ii.
He must establish a good working climate or atmosphere in the organisation and his
organisation is known as good place to work.
iii.
He must be decisive. That is, he must be firm and not unnecessarily flexible.
iv.
He should look out for his people and the organisation.
v.
He should be capable of resolving conflict and solving problems. In others words, he
must have a sense of good judgment anti be - good in crisis management.
vi.
He should have initiative and innovative.
vii.
He should have imagination and creative Above all, he should use his time well..
viii.
He should be one who encourage ideas and participation.
ix.
He expects much and give credit for lob well done.
x.
He never loses his composure When his expectations are not met, he finds out why and
then takes appropriate action in private.
xi.
He is honest to a fault, his people respect him and he levels with them.
xii.
He spends most of his time supervising and talking with people.
xiii.
He supervises generally and sees what is going on in the organisation.
xiv.
He encourages self-development and follows his own advice.
(b) Adaptability to Workers Needs:
A good leader who hopes to achieve efficiency in an organisation must adapt to the workers‟
needs. For example, Alfred Cooper identified about four need which a leader should meet.87
Good tool and equipment - The worker wants the job at work to interest him, and in order that he
might be effective and efficient, the leader must provide the worker with the necessary
87
Alfred Cooper. Op. cit., p.33.
93
tools/machines with which to work. You cannot expect the optimum from a worker who lacks
equipment/tools.
ii. Fair wage - The worker wants fair wage in return for doing his job. It is only fair that the
employee who give a everything he has to the job should be adequately remunerated.
iii. Satisfactory working Condition - The worker wants a satisfactory working condition,
including hours of work, Surroundings in the organisation and suitable transportation
facilities.
iv. Participation in decision making - The worker would like to have a say in managerial
decisions partaining to his own welfare and that of his organisation. He therefore wants to
work for a leader who understands how to handle subordinates, specifically one of who he
can both like and respect.
Conversely, it is not difficult to know what a worker do not want. In order to expect optimum
production from the worker therefore, the leader must as much as possible avoid those things
which would hurt the employee. For instance, an employee does not want to be treated as a
social problem, he does not want unsolicited interference from his leader in his private affairs
and above everything else, he does not want to work for a leader whom he considers unduly
harsh or insipidly weak and ingratiating or lacking in sufficient intelligence and job knowledge
to properly oversee the employer‟s productive efforts.88
(c) Motivation:
According to Hicks and Gullet, “motivation encompasses forces both within and external to the
individual worker”.89
To them, the internal motivation comprise of the needs, wants and desires which exist within are
individual. These forces influences him by determine his thoughts, which in turn lead to his
behaviour in particular situation. Abraham Maslow did a lot of research on the hierarchy of
needs in this regard.
On the other hand. external motivation is of more importance to this topic end hence attempt
would be made to give an elaborate discussion on it. External motivated does not negate the
internal motivational factors, but builds on it. External motivation therefore include the forces
which exits inside the individual as well as the factors controlled by the manager or leader. This
include job context, job enrichment, recognition, advancement and responsibility. Since
employees re-act either positively (in form of restricted production to everything their manager
does, it is therefore essential that the leader the manager who values efficiency should capitalise
88
Ibid. p.34.
89
Hicks and Gullet op.cit., p.275..
94
more on those things which generate positive responses from the employees for the over-all
organisational efficiency. A good leader should therefore use both positive rewards of praise,
promotion, increased wages, and negative rewards in form of reprimand or punishment, if
performance is not acceptable. The good leader must use more of the positive rewards than
negative rewards.
This is because positive rewards are capable of making the worker to be more dutiful and
dedicated while negative reward though capable of stopping undesired behaviour, but it is not
capable of bringing about desired behaviour. Since many people are usually not self motivated, it
is important for the leader to use external motivation as often as possible to get the workers to
work efficiently towards the achievement of the organizational goals.
McGregor has through his theory „X‟ and „V1 explained more on this motivational fecter.
The scientific management school also upholds the ides that man work utter when he is given
external motivation.
Taylor for example, e instance where workers work But Joe Kelly had this to say. He lays when
you try to deal with a problem in an organization you end up dealing with people.
You puzzle over “what makes them tick, what it will take to make them do what you want,
making them do what you want is what motivation is all about”.90
A good leader who really values efficiency therefore should be able to use various motivational
theories that abound to get the best out of his employees.
(d) Styles of leadership
There are broadly three styles of leadership. They include the autocratic style, the democratic or
participative style and the laissez Faire or free-rein style. The first two Likert has classified as
“job-centered and employee- centered.”91 According to him, the employee-centered leader is:
(i) Considerate but firm and acts in a way that emphasizes personal worth. He has a genuine
interest in the success and well-being of subordinates.
(ii) Does not interfere but supportive
(iii) Has confidence in his subordinates and therefore his expectations are high. He sets high
goals but leave his subordinates to get on with the job.
(iv) Develops high group loyalty and uses participative techniques.
90
.Joe Kelly op. cit., p.275.
91
See J.O’Shaughnessy op.cit,.p.91
95
The job-centered leader according to him, channels his attention in the job to be done and is apt
to regard employees merely as instruments for achieving production goals. He gives close
supervision and delegates a few decisions as possible. Linkert argues that in general, employeecentered leader achieves higher productivity and efficiency.
According to Ronald Rudkin, one weak point of the authoritarian leader is that he leaves little or
no room for opinion. It is his belief that the worker do not want to work and that his job is to
make him do so. In contrast however, the democratic leader gives freedom for individual
thinking. He believes that people did not dislike their work (he knows they do not prefer work to
golfing or fishing). He believes his role is to establish a climate within his organisation that
encourages participation and suggestions on making jobs more rewarding.
This perfectly suits the theory „Y‟ of McGregor‟s theory of motivation.
A leader is free to choose any one or a combination of styles in the management of his
organisation The correct choice of a leadership style coupled wir appropriate motivation can lead
to improved performance in an organisation. In the same token, the choice of inappropriate
leadership style could lead to workers resentment, aggression, insecurity and dissatisfaction. A
good leader is therefore one who is able to choose the appropriate leadership style in any given
situation. It must however be emphasised that no one leadership style is the best. Indeed, most
leaders use all the styles at one time or the other, but the style used most frequently serves to
classify a leader as an autocratic, participative or laissez faire leader.
8.10. The Autocratic Style:
The autocratic style of leadership refers to a situation where all authority and decision-making is
centred on the leader. This central control derives from the use of rewards praise, sanctions or the
threat of sanctions or punishment. An autocratic leader is one who decides what he wants and
how he wants it. ft is usually a one-way authority relationship. An autocratic leader requires
conformity from his subordinates and considers hie decisions to be superior to those which his
“inexperienced” or “unknowledgeable” workers could offer to solve the problem at hand.
Advantages
The autocratic leadership style has the advantage of allowing for quick decision-making in an
organisation. The manager does not have to be engaged in unnecessary consultations before
decisions are reached or made.
Secondly, the autocratic leadership style also has an advantage of economy. This is because all
the expenses incurred in the process of consultations are clearly avoided.
Disadvantages:
96
One of the major disadvantages of the autocratic leadership style is that it could lead to
dissatisfaction on the part of the workers who may feel alienated from the system.
Secondly, it could lead to a situation where wrong decisions are made. This is because there is a
limit to an individual wisdom. Such decisions could lead to a collosal waste on the part of the
organisation.
8.11. The Democratic or Participative Style:
This style of leadership became pronounced and popular during the neo-classical era of
management. This approach seeks to obtain the cooperation of workers in 8chwiflg
organisational goals by allowing item to participate in the process of decision-making. This
school believes that workers would support and accept a decision they were involved in reaching
- a situation which is very likely to increase the organisation‟s productivity.
Although this leadership style does not relieve the leader of his decision-making responsibilities,
but it does require that he recognise the subordinates as being capable of making suggestions and
decisions which may be of help to the achievement of the organisational goal.
Advantages
One of the major advantages of the democratic style is that participation in decision. making can
lead to improved management! workers relationship, higher moral and job satisfaction, and this
can be translated into increased productivity in an organization.
Secondly, it enhances better quality decisions. This is because of the popular saying that “two
heads are better than one.
Thirdly, participatory leadership style could enhance legitimacy end obedience. This is because
workers are bound to accept and obey decisions which they have taken part in making
Fourthly, it gives the workers a sense of belonging in the organisation. This could serve as
motivation for increased productivity Disadvantages:
A major disadvantage of this leadership style is that it could lead to diluted decisions in order to
please every one and this could decrease productivity and efficiency of the organisation.
The second disadvantage is that it is time-consuming. The result is that it leads to slow decisionmaking process.
Thirdly, it increases cost of administration. The need to democratise or consult workers in the
process of decision- making increase the cost of administration either directly or indirectly.
97
8.12. The Laissez Faire Style:
The laissez faire otherwise known as the free-rain does not depend on the leader to provide
external motivation as do the autocratic and democratic styles.92 The workers are simply given
goals to accomplish and they are left to themselves or on their own to achieve it using their
experience and ingenuity. The leader only assumes the role of a group member or a coordinator.
The bottom line is that under this type of leadership style, workers are virtually left to themselves
to achieve the goals which have been set for them with minimal control.
8.13. Advantages:
The first advantage of this style is that it increases workers independence and this forces them to
function as members of a group.
The second is that when workers are left to themselves, they tend to see it as challenge and hence
work very hard to accomplish whatever task given to them.
disadvantages:
One major disadvantages of the free-rein style is that, without the existence of a strong leader,
the organisation may lose direction and control, and this could affect the organisation‟s
productivity.
Secondly, this type of leadership style could encourage displacement of objectives. That is,
workers may end up devoting more attention to their benefit rather than the benefit of the
organisation as a whole. Of course, this is understandable because human beings are naturally
selfish and egoistic.
(e) Communication:
Organisations are structured to work towards objectives. In this structure, managers,
subordinates, peer and the external environment are necessarily linked by the organisation‟s
communication processes. “To reach the objectives, the organisation demands that leadership be
exercised, people motivated, decisions made, efforts co-ordinate and operations controlled”.93
Each of these functions involves interaction between persons and thus involves communication.
A leader should however bear in mind that if he makes poor planning, good communication with
not compensate for planning errors. Similarly, he should bear in mind that there are a great
number of obstacles to effective communication. Since failure in communication can cause
92
Hicks and Gullet op. cit ., p. 319.
93
Machael p. Barber.public Administration (London: M & E pub., 1978).p.26.
98
serious errors, delays, bottlenecks and mis-understanding in the organisation, Kelly suggests, that
the leader should ensure the followings:94
I. That the message is received by the other p art V.
ii. That the message is interpreted in the same way by the recipient as by the sender.
iii. That the message is remembered; and
iv. That the message is applied.
Above all else, the leader should ensure that he encourages both the downward as well as the
upward communication flow.
(f) Delegation:
Delegation has been defined as “institutionalized right to make decisions or give orders on behalf
of an organisation”. A good leader who values the efficiency of the organisation must as much as
possible delegate some of his functions since he cannot be ubiquitous. A leader who delegates
functions is expected to bring about organisational efficiency in the following ways:
i. Delegation makes possible the achievement of economics of scale and specialisation.
ii. It diffuses the authority to make decisions to lower levels of the organisation thus enhancing
initiative and job satisfaction as well as identify action with the goals of the organisation.
iii. The view of the classicists is that authority should „be delegated to the extent and in the way
necessary for the accomplishment of till results expected. Therefore, the extent delegation
should be matched by the particular job to be done.
(g) Financial Control:
Financial requirement is the bedrock of an organisation. No organisation can operate without
finance. Therefore, the leader must ensure that a necessary precautions are taken to curb financial
recklessness arising from the following avenues:
(i) Over-lapping and Duplication of Role:
The leader should ensure as much as possible that over-lapping and duplication of role i
discouraged in an organization. When roles are duplicated, it does not only lead to more co in
terms of wages and remunerations, it may also lead to waste because accountability would be
difficult.
94
J.O’Shaughnessy op.cit.,p.115
99
(ii) Specifying Responsibilities:
The classical approach claimed that each person in the organization should know hi
responsibility so that accountability performance is clearly established. But j criticism of this
approach is that too emphasis on staff assessment and defining responsibility promotes
competition when co-operation max, be more desirable. Inter-personal competition should be
stimulated when men‟s work is independent rather that inter-dependent, and where there exist
objective assessment of performance. Otherwise, interpersonal competition leads to frustration
and conflict and over-all efficiency is sacrificed.95 A leader should therefore guide against this.
(iii) Emphasis on Quality Rather Than Quantity:
The leader should emphasise quality rather than quantity. In this direction, on the job training for
employees should be encouraged to bring about efficiency in an organisation.
(iv) Decision-Making:
Where a leader emphasises participation of the employees in decision-making, he should ensure
that this is not done as to bring about increased cost. The way to do this is to ensure that the use
of group decision-making is minimd to the barest minimum. If a leader involves that group in
every decision-making, it would lead to waste of production hours and consequently to
organisational inefficiency.
(v) Time Availability:
A final decision must not be a too urgent nature. More use should be made of cost- benefitanalysis (CBA) when fundamental decisions are to be made in the organisation.
(vi) Periodic Auditing:
The leader who wants to encourage efficiency must make sure that periodic auditing is carried
out in the organisation and any mismanagement on the part of any employee is punished. This
wey, the leader would be encouraging efficiencyjn the org anisation. For example, when the
Military came to power in Nigeria on December 31, 1 983, they revealed how the accounts of
various parastatals have not been audited for years. This gave room for mismanagement and
hence inefficiency. If the various leaders had taken the necessary auditing procedure, perhaps,
the case would have been different today.
(vii) Maintenance of Appropriate Financial Record
All records concerning the financial transactions of the organisation must be properly kept.
Where officials are aware that all these records are properly kept, they would be wary not to mis95
Keith Davis .HUMAN Behaviour at work quoted in Hicks and Gullet op. cit., p. 301.
100
use any kobo that may be entrusted to their care. The only person to ensure that this is done in an
organisation is the leader.
Finally, prudent financial management is a very crucial aspect of leadership in the organisation.
The periodic check by the auditors would help check over-zealous staff Who would want to
mismanage the organisation‟s scarce resources. The leader should ensure that he maintains very
strict control over the orqanisation‟s finances because this is the hub of any organisation.
8.14.Problems of A Leader:
From the above foregoing analysis, there is no gain- saying the fact that the leader who possesses
all of the above qualities and uses the above leadership techniques adequately, will be a pivot for
greater achievements in an organisation. But however, like every other thing, there is the other
side to the coin. The problems that confronts a leader are manifold. They include:
(i) The dilemma of a leader in his ability to know what leadership style to adopt and to what
situation in an organisation. If his vision is blurred and his judgement defective, all the other
advantages accruing from other qualities and techniques would mean little or nothing.
For instance, Rudkin believes that the democratic and the authoritarian models are simply two
extremes, which he argues are wrong. He sard for example, that every one will not put up with
being told constantly what to do. Similarly, not every one can work as he pleases. Some jobs
have to be supervised in an autocratic manner, while others almost equally well with the
individual allowed to doing his job the way that suits him. The leader in an organisation is
always at a loss as to when to really apply any of the models as any mis-application would result
to low performance of the organisation. But suffice it to say that the leader who knows when to
apply which model must surely increase the employee‟s efficiency and hence the organisational
efficiency.
(ii) The second problem that a leader has to contend with is that of delegation. Since the leader
would invariably have to bear the responsibility of any wrong judgement on the part of his
subordinates, he is at times unwilling to delegate responsibility. Hence he tries to do
everything all by himself and we all know that there is a limit to which you can stretch a
human being.
8.15. RE-APPRAISAL AND PROSPECTS OF LEADERSHIP:
From the above analysis, we have been able to show that a leader who possesses the necessary
qualities and who knows when to apply the various leadership techniques, would definitely
improve the efficiency of his organisation. Similarly, we have been able to stress the importance
of good leadership towards this end.
The importance of leadership is becoming very clear today than what it has been in the past, and
it is hoped that in future, researchers would intensify their research into other ways of further
101
improving the all-pervading functions of a leader. The substantial attention is today being given
to the training of leaders/Administrators in the various levels, is a realisation of the important
role of a leader in any setting. For instance, the Nigerian Government has over the past few years
set-up several institutions where Chief Executives/Administrators (leaders) are being trained to
bring about efficiency in their various fields of endeavours,for the overall benefit of the nation as
a whole. Such institutions
The importance of leadership for any organisational efficiency could not have been better put
than what Keith Davis has said. To him “without leadership, an organisation is but a muddle of
men and machines. It is the human factor which binds a group together and motivate it towards
goals. Management activities such as planning, organising and decision-making are dormant
cocoons until the leader triggers them toward goals. Leadership transforms potential into reality.
It is the ultimate act which brings to success all the potentials that is in an organisation and its
people”.96 We cannot agree more.
96
Keith Davis. Human Behaviour at Work quoted in Hicks and Gullet op.cit., p.301.
102
CHAPTER NINE
9.0.DECISION-MAKING AND MOTIVATION IN ORGANIZATIONS
Decision-making, properly speaking, is an act of choice. Generally, it takes place when one
alternative action
selected in preference to others in any given situation. Although decision-making is supposed to
be a process or series of events leading to a choice, but it continues even after a choice is
made.
9.1. Types of Decisions:
There are broadly two types of decisions, namely:
Programmed decision;
Non-programmed decision.
(i) Programmed Decision:
Prcgrammed decision refers to a decision which is taken according to laid down rules and
procedures. For example, a student caught for examination malpractices is expected to be
arraigned before the Disciplinary Committee where a decision is taken about his/her guilt after a
due process. Every organisation has established policies end procedures that simplify decision
making in particular situations. To a very large extent, programmed decision limits the freedom
of decision-maker. It is not the administrator or manager but the organisation that decides what
to do. It is usually called routine decisions because it is the easiest for managers. A student who
fails a core course repeats that course. That is sri organisational decision.
(iii) Non-Programmed Decision:
This is a decision that is made ifl a complex situation which may require a new solution. Such
problems are often covered by policies and have not come up often enough to require a policy.
Under the non-programmed decision, the manager or administrator has to rely very heavily on
his problem-solving ability, creativity and personal judgement. Managers and administrators are
often trained or retrained to develpp their problem-solving capacities to meet emergent problems
which were not otherwise envisaged.
9.2. Information and Decision-making:
Every decision-making process begins with information. But the manager or administrator does
not consider all the information available to him before decisions are made. He takes only the
information that is readily available and that which he considers creditable and relevant.
103
Furthermore, he digest only enough of it to feel sure that he has found a viable answer to a
specific question. The administrator is therefore governed by rationality.
„
9.3. The Model of Rational Decision-Making:
The rational decision-making model is based on the following assumptions:97
i. That it is to have an accurate and complete understanding of the multiple goals relevant to
the problems;
ii. That the decision-maker has some method of accurately, precisely, and relevantly
sequencing the problems in order of their importance;
iii. That the decision-maker has complete knowledge of all reliable ways of predicting the
consequences of each alternative;
iv. That the decision-maker is capable of assigning a measurable value, usually in terms of
utility or profit, to etch of these choices, and that he can construct a complete and
unambiguous preference order, which will allow him to select the “best” alternative;
v. That the decision-maker is free to choose the alternative that maximizes his outcome;
vi. That the cost of gathering information is zero; and
vii. That decision criteria can be expressed as unidirnensional variables.
However, rational decision making in real terms, is rarely possible and hence rarely employed in
complex situations. To Simon, this is because decision-making process involves three steps,98
namely: searching the environment for problems demanding a decision - basically an intelligence
activity;
ii. processing data so that concepts, figures, and information are manipulated to suggest
alternatives - essentially a creative process; and
iii. selecting an alternative - a somewhat irrational, intuitive process.
Simon found that managers are guided by. “bounded rationality”. This concept means,
essentially that there are limits to the information-processing capacities of the mind. That
capacity of the human mind to formulate and solve problems is relatively small compared with
the problems themselves. Apart from this handicap, decision-makers do not consider all possible
97
Joe Kelly, How Managera manage(New jersey: prentice Hall Inc. Englewood Cliffs,1980),p.237.
98
H.A.Simon.Administrative Behaviour 2 ed. (New York: Macmillan press,19957,p.254.
nd
104
alternatives or even make attempt to do so, because it would .be unrealistic to think that this is
possible. In most cases, decision-makers only seek alternatives similar to past choices so that
they can be guided by experience. Also, rationality is a nebulous term. What is often claimed to
be rational for one actor cannot necessarily be rational for another. Finally, the rationale school
fails to realise that human beings by their very nature are composite individuals. Apart from the
fact that they hardly get all the necessary information, even if they get all the information, they
neither have the capacity to scrutinize all the information nor do they actually have enough time
to do so. What managers do therefore is to collect sufficient information to enable them find
solution that will work. Managers simply stop searching when they reach the first satisfactory
alternatives.
In general, managers satisfice rather than maximize. They make “good enough” decision and the
basic ways of satisficing are:99
In terms of return generally, take just a little more than you need; don‟t be greedy because greed
mobilizes the opposition;
ii.
give a certain amount to the stockholders, a certain amount to the government and a little
bit to the consumers;:
iii.
make sure the losers within the firm are paid off;
iv.
keep some resources in reserve by increasing inventory or hiring more staff (especially
secretaries, consultants, and specialists) who can be let go if necessary.
9.4. Conditions under Which Decisions are Made:
Decisions, like plans, are concerned with the future and the future is not often safe. The future is
unpredictable end therefore decisions are made and must be made on the basis of information
available at present.
Managers make decisions under two conditions, namely:
i. condition of certainty;
ii. condition of uncertainty.
Under the conditions of certainty, managers have enough information or idea as to the outcome
of their decisions. But under a condition of uncertainty, managers hardly know the probability
attached to the available alternatives.
99
Kelly op.cit., p.238.
105
Generally however, most decisions involve varying degree of uncertainty.
Decision-Making Process:
In arriving at any decision, the following steps are necessary.
i. The Goal - Before a decision is made at all, the goal must be defined or established. This is
because decisions are not made in a vacuum. This serves as a point of reference when
examining alternatives.
ii. Definition of the Problem - We cannot solve a problem if we don‟t know it. Therefore, before
a problem can be solved, it must not only be known, it has to be properly defined and
analysed. This enables the decision maker to know the possible cause(s) of the problem before
an appropriate solution could be found.
iii. The Search for Alternatives - Once a problem has been identified, various alternative
solutions are generated. Usually, several alternatives may commend themselves.
iv. The Selection of Desired Alternative - After a proper examination of the various alternatives,
the manager must decide on the appropriate course of action. This is the point of decision.
The decision is made with reference to the goal he is attempting to accomplish. The decision
problem is to select the alternative that holds the greatest promise of accomplishing the
objective.
9.5. Limitation of Decision-Making:
Decision-makers, generally, have limited knowledge of situations for which they are expected to
make decisions. The reasons for these are not far to seek.
First, most problems are too complex for easy comprehension. In other words, there are very few
problem situation where we are sure we know all available courses of action and even if we do,
we cannot be too sure of their outcome. Yet, we must have knowledge of all items if we are to
maximize the results of our decision.
Secondly, the task that usually faces the manager is not to generate alternatives but indeed, to
analyse and select from those available or those presented to him. This process of analysis and
selection can be very burdensome especially when we are not sure of all the facts.
Thirdly, another uphill task that faces the manager is the cost of information and time for their
analysis. Gathering of data or information consumes time and money. None of this is in
abundance in most modern organizations. Therefore, managers only deçide to make a choice
after a specific number of alternatives have been generated and analysed, and because of time,
such analysis are usually not followed.
106
Group Decision-Making:
By nature, decision-making is an individual activity. At times however, groups are involved in
the process of decision-making. The most common of group decision- making is the committee
system. The committee system has its advantages and disadvantages:
9.6. Advantages of Committee System:
i.
Group decision-making has the potential of expanding the capabilities of individuals. For
example, it is usually said that two heads are better than one - all things being equal.
When people discuss things together, they exchange ideas •and therefore know those
things which otherwise they would not have known
ii.
Group decision-making enhances participation and hence brings about a sense of
belonging on the workers. When this happens legitimacy and obedience are further
enhanced and strengthened. The end result would be absolute commitment which will
bring about increased productivity.
iii.
Group decision-making is most rewarding in taking decisions that require chnicaI
expertise.
iv.
The group decision-making. can be used as a method of avoiding action and for taking
responsibility when it is i-wit deemed appropriate for an individual to do so.
v.
The group system of decision-making allows for a broad representation of opinion in the
decision-making process in an organisation.
vi.
The group system of decision-making has an advantage of contributing to creativity arid
communication in an organisation.
vii.
The group system reduces conflict in an organisation when decisions under consideration
have interdepartmental or inter-unit implications.
107
Disadvantages:
The group system of decision-making allows for slow decision-making process in an
organisation. This is because it takes time for a group to arrive at a consensus.
ii. The group system is expensive to an organisation. Apart from the fact that snacks and
stationeries cost money, when a group is assembled, members attention are diverted from
their primary jobs, whereas their salaries are unaffected.
iii. The group system can sometimes lead to indecision because of lack of agreement among
members. When this happens, unnecessary vacuum is created and this may be detrimental to
the organisation.
iv. The group system of decision-making may be used by a weak manager to avoid responsibility
even when an individual decision would have been more profitable for the organisation.
v. The group system can sometimes lead to a tyranny of the minority.100 Most usually, decisions
are nothing more than the decision of few influential members.
vi. The group system can lead to a split of accountability and responsibility in an organisation.
This is because when a group recommend a course of action, no single person is held
accountable or responsible for the outcome.
9.7. Responsibility for failure is therefore hard to fit.
Finally, it should be noted that the choice between individual and group decision-making is not
an easy one. The most effective manager is one who can accurately view a situation and decide
when to use the “group think” or think it alone.
9.8. MOTIVATION
Motivation refers to that thing which influences a worker to perform better in an organistion.
This propelling force may be internal or external: The internal forces which propel a worker
include the needs, wants and desires which exist within an individual make up. These forces
influence him by determining his thoughts, which in turn lead to his behaving in a particular
direction in a particular situation. For example, a student who desires to have a first class in the
university will consider how he can fulfil the requirements for that class. This may influence his,
behaviour in terms of regular class attendance, paying attention in class, taking good notes,
prompt response to class assignments, studying hard, writing good term papers, etc.
100
H.G. Hicks and R.C Gullet. Organisation: Teory and practice (United states: McGraw Hill Inc.,1982 ed.),p.168.
108
9.9. The Need Theory:
Abraham Maslow
This is considered an internal motivation because an individual‟s wants and needs exist within
himself. One of the most popular theorists of human need is Abraham Maslow. To Maslow,
man‟s needs are arranged in a hierarchy of importance, ranging from the lowest to the highest.
Maslow‟s hierarchy of need is as follows:
To Maslow, man is continually wanting; therefore, afl needs are never fully satisfied, but as soon
as one need is satisfied, its potency diminishes and another need emerges to replace it. This is a
never-ending process which serves to motivate man to strive to satisfy his needs. The five
classificatory scheme of Maslow‟s theory of need includes:
(i) Physiological Needs - This need is necessary to sustain life. They are the basic needs of man
which include food, air, water, sleep, sex, etc.
(ii) Safety Needs - When the physiological needs are relatively satisfied, safety needs becomes
the next major factor motivating man‟s behaviour. These needs include desire for protection
against danger, threat or deprivation. Workers seek security in organisations. This could be
economic security, job tenure or even physical safety from danger.
(iii) Social Needs - When the physiological and safety needs have been satisfied the next stage is
social needs which include belonging, association, acceptance by peers, love, etc. People
seek association, acceptance fully when the physiological and safety needs have been met.
(iv) Esteem Needs - Esteem or ego needs are innate in every person. They do not become
motivated until lower level needs have been reasonably satisfied. Unlike the lower level
needs, these are rarely completely satisfied. But once these needs become important to an
109
individual, he will continually seek satisfaction of them. These include self- esteem and the
esteem of others, such as self-confidence, self-respect, achievement, independence and
freedom.
(v). Self-Actualization - This comes after all other needs have been satisfied. This includes the
realization of one‟s potentialities, self-fulfilment, continued self-development, etc. What a
person has the potential to be, he or she must seek.
It should however be noted that the form these needs take varies from one person to the other just
as human personalities varies. Self-actualization needs can be satisfied through one or any
combination of athletics, politics, academics,the family, religion, business, etc.
In addition to the internal factors that motivate the worker, there are also the external factors. The
external motivation theory does not negate the internal motivation theory, but builds on it.
External motivation theory includes the forces which exist inside the individual as well as factors
controlled by the manager, including job content, items such as salaries, working conditions, „ob
enrichment, advancemeT1f, responsibility, etc. There are several theories which have been put in
place to explain external motivation. These include the Mcgregor‟s X and Y theory, the
Herzberg‟s Hygiene theory and the Vroom contingency theory among others. These theories
would be treated in details in the next volume. What is important to note here is that there are
two levels of motivation in an individual. That is the internal and the external and we have tried
to explain the basic differences between the two.
Chris Argyris
Chris Argyris idea as to what people want in work bears semblance to that of Maslow‟s, but he
looks at them from the personality development point of view. From him, we understand that
personality develops from an immature state to a mature state through changes in the following
aspects of self. There are about seven aspects to it
110
9.10. BIBLIOGRAPHY
111
9.11. ARGYRIS PERSONALITY DEVELOPMENT
from passivity to activity. At the beginning, personalities are passive and as we mature, we start
doing things for ourselves.
ii. From dependence to independence: People seek independence rather than dependence as they
mature. They tend to move away from seeking direction to personal autonomy.
iii. From inflexible to flexible behaviour. This means the ability to change and adapt. As people
develop in life, they no longer behave like kids but they try to adapt themselves to the
environments and situations. To do this effectively, they have to be flexible.
iv. From shallow interest to deep interest. People start finding satisfaction from doing something
and not just doing it for doing sake. For example, a student that is sent to school may initially
have shallow interest in his academic work, but as he matures and know the relevance of
education, he begins to develop deep interest.
v. From short perspective to long term perspective - As people mature in life, they start pursuing
long term goals. This they do by taking series of steps towards the achievement of such goals.
vi. From accepting subordination to desiring equality or superiority among peers. As maturity
manifests in individuals, they no longer follow their peer groups but instead, they prefer tribe
equal or even superior to them in discussions and determining activities.
vii. From lack of control to self control - People start controlling themselves as they mature.
They now resist some forms of external control. People now start to behave the way they
want to rather than accepting control from others. This is that stage where people now
seek leadership positions in the society.
Argyris believes that the personality development of an individual serves as a motivating factor
in the pursuit of their daily activities. Hence, as people mature, they start doing away with
passivity, dependence, inflexibility, shallow interest, short perspective, subordination and lack of
control. All of these take place at various -stages of human development.
112
BIBLIOGRAPHY
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