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Organization group project



Quality Management Theory

Human Relations Theory

Theory of Bureaucracy

Structural Functional Theory

Organizational culture and Leadership Theory


Year 2001(milion ) Year 2007(milion )

Total revenue 7,340 Total revenue 10,242

Net income 581 Net income 1,934

Sh Eq 3,109 Sh Eq 6,503

EPS 1.85 EPS 1.60

DPS 0,58 DPS 0,5


Established in 1972 1st era 1972-1981

2nd ers 1982-1991

Over 251.000 customers in
188 countries 3rd era 1992-2001

IT Company 4th era 202-present

66.000 employees in 130 Founders own 22.6% shares

Traded in NYSE and FSE
16.22 billion Euro annual
revenue Analyzed period 2001-2007
Quality Management
Quality - The ability of your product or service to satisfy
your customers.
TQM - An ongoing and constant effort by all of an
organizations functions to find new ways to improve
the quality of the organizations goods and services
Quality circles: Groups of workers who meet
regularly to discuss the way work is performed in
order to find new ways to increase performance
Changing cross-functional relationships
Continuous Improvement process
Quality Management
ISOs 8 Quality Principles (base for ISO 9000
1 Customer focus

2 Leadership

3 Involvement of people

4 Process approach

5 System approach to management

6 Continual improvement

7 Factual approach to decision making

8 Mutually beneficial supplier relationships

Quality Management

SAPs problem:

During Shai Agassi's management mandate,

the company faced product quality and
staffing issues, with the new companys
strategy to move R&D activities to the newly
created US offices
The German developers based in Waldorf were
angry about the product quality decreasing
and complained that They dont tell us what
to do we tell them what to build
Quality Management
Solution to SAPs problem P.3 Involvement
of people
People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organizations
Key actions:

Clarify and communicate to people the importance of their

contribution and role in the organization

Encourage people freely sharing knowledge and experience and also

openly discussing problems and issues.
Key benefits :

Motivated, committed and involved people within the organization

People eager to participate in and contribute to continual


People being accountable for their own performance

Human Relations Theory

Principles of H. R. Theory
Human relations theory is characterized by a shift in emphasis from

Go beyond physical contributions to include creative, cognitive, and

emotional aspects of workers

Based on a more dyadic (two-way) conceptualization of


SOCIAL RELATIONSHIPS are at the heart of organizational behavior--

effectiveness is contingent on the social well-being of workers

Workers communicate opinions, complaints, suggestions, and

feelings to increase satisfaction and production
Human Relations Theory

Principles of H. R. Theory

- Currently, SAP employees are represented by the eight

employee representatives elected to the company's
supervisory board. They represent SAP's worldwide workforce.

2. Include creative, cognitive, and emotional aspects of


-SAP launches its first AppHaus in Germany, a creative

environment where SAP designers, developers, and customers
can work together on new, innovative products.
Human Relations Theory
Dyadic two-way communication.

- SAP Community Network (SCN) thousands of SAP users

work and communicate.


Social relationship

- SAP North America Scholarship Program

- SAP Local Partnership Program

- Encourages and supports SAP employee volunteerism

Theory of Bureaucracy

developed by Max Weber (1864-1920), a German

professor of sociology.

Consists out of 4 principles

Theory of Bureaucracy

1st Principle

In a bureaucracy, a managers formal authority derives from

the position he holds in the organization.

This is one of the key issues that were ongoing in SAP.

They were reluctant to allow external experience and know-

Undermining the external managers actions
Theory of Bureaucracy

2nd Principle
In a bureaucracy, people should occupy positions because
of their performance, not because of their social standing.

Not what you know, but who you know was in some cases
the wrong way things were handled inside the company
The German teams were reinforcing their authority due to
their time within the company
Theory of Bureaucracy

3rd Principle
The extent of each positions formal authority and
task responsibilities, and its relationship to other
positions in the organization should be clearly

Clarsification of job expectations is essential

Organizations should define task and position

Theory of Bureaucracy

4th Principle
Authority can be exercised effectively in an organization
when positions are arranged hierarchically, so employees
know whom to report to and who reports to them.

Initiative in which employees are given the ability to act

without direction from a superior relieves the stress of
constant supervision.
Balance between a vertical and horizontal organizational
Structural Functional Theory

- 2003 by Kagermann and Plattner

- Strategic Cross-Organization Realignment

- Grouping SAPs 17 industry and product units into three

Business Solution


- 2005 by Kagermann

- Global Organizational Alignment

- SAP along five segments of the value chain:

Structural Functional Theory
1. Research and Breakthrough Innovation

2. Products and Technology

3. Production

4. Global Service and Support

5. Customer Solutions and Operations

Support functions:

- Finance and Administration & Human Resources and


- Specific board member managed each of the seven new

organizational groups
Structural Functional Theory

G O A L Organization
Structural Functional Theory

S C O R E Organization Model

Clear handoffs from one group to the next

Consolidation of industries
Consolidation of the business suite
Organizational culture and
Leadership Theory
Organizational culture

- behavior of humans who are part of an organization and

the meanings that the people attach to their actions

- organization values, visions, norms, working language,

systems, symbols, beliefs and habits

Leadership Theory

- theactivityof leading agroupof people or an

organization or theabilityto do this

- the act of inspiring subordinates to perform and

engage in achieving a goal
Organizational culture
and Leadership Theory
Organizational culture
and Leadership Theory

Organizational culture Leadership

Lack of clarity and Uncertainty about roles,

alignment on value drivers their purposes and value
as key factors to the contribution to the
business strategy plus organizational/team
culture success

Improvement potentials
Missing performance in collaboration with HR
indicators and inconsistent along the employee
input-output relations lifecycle

Organizational Theory, Design, and Change; Gareth R.

Jones; Pearson
Made by

Catalin Bizadea

Stefan Alecsandru

Andrei Milotin

Narcis Obeada

Cristian Panzaru
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