Chapter 2

ORGANIZATION AND
ADMINISTRATION
A. ORGANIZATIONAL THEORIES

- It is a form of human association

for the attainment of a goal or
objectives. Is the progress of
identifying and grouping the work
to be performed, defining and
delegating responsibility and
authority establishing relationships
for the purpose of enabling people
work effectively.
a) TRADITIONAL ORGANIZATIONAL
THEORIES
1) THEORY OF ORGANIZATION
(LUTHER GULLICK)
- The major functions of administration
using the acronym POSDCoRB.
* PLANNING
- Establishment of the methods to be done and how to accomplish the main
purpose.
* ORGANIZING
- Establishment of the formal structure of authority through which
work subdivisions are arranged, define, and coordinated for the
define objective.
* STAFFING
- Establishment of the personnel functions, trainings and selecting the
most qualified people to handle the position in the organization.
* DIRECTING
- Established of proper guidance of personnel in accomplishing the goals
of the of the organization.
* COORDINATING
- Establishment of proper coordination within the organization.
* REPORTING
- Establishment of proper keeping and recording of pertinent information within the
organization.
*.
BUDGETING
- Establishment of fiscal planning, accounting, and control of funds of
the organization
2) BUREAUCRATIC MANAGEMENT
(MAX WEBER)
• - Max Weber ( 1864-1920), a
German sociologist; described a
theory to operate an organization
in an effective way which is
known as the bureaucratic
management approach or
Weberian bureaucracy.
2) BUREAUCRATIC MANAGEMENT
(MAX WEBER)
- Weber believed that such an approach was a means of lessening
the cruelty, nepotism, and subjective managerial practices common
in early stages of the industrial revolution.
- The bureaucratic management approach emphasized the
necessity of organizations to operate in a rational way
instead of following the “ arbitrary whims ” or irrational
emotions and intention of owners and managers.
PRINCIPLES OF BUREAUCRATIC
MANAGEMENT
A)PROPER DIVISION OF LABOR
- Establishment of proper division of labor based on specialization and the
balance between power and responsibilities.
B)CHAIN OF COMMAND
- Established of proper organizational hierarchy in relying information from
top to bottom.
PRINCIPLES OF BUREAUCRATIC
MANAGEMENT
C) SEPARATION OF PERSONAL AND OFFICIAL PROPERTY
- Establishment of proper ownership and protocols of assets.
D) APPLICATION OF CONSISTENT AND COMPLETE RULES
- Establishment of proper rules and regulations in the organization for running the
organization.
E) SELECTION AND PROMOTION BASED ON QUALIFICATIONS
- Establishment of proper selection and promotion of workers based on skills,
experience, and age.
FEATURES OF BUREAUCRATIC
ORGANIZATION
• With high degree of division of labor and specialization.
• Well-defined chain of command.
• With consistent principle.
• With formal and impersonal relations.
• Well define protocols on rules and regulations.
• Selection and promotion are based on technical qualifications.
• Only bureaucratic or legal power is given importance.
CRITICISM OF BUREAUCRATIC
ORGANIZATION
• The emphasis only on rules and regulations.
• Delays in decision-making due to formalities and rules.
• Hampered coordination and communication due to formality and rules.
• Wastage of time, effort and money due to level of authority.
• Approach is not suitable for business organizations due to too much
formality.
CRITICISM OF BUREAUCRATIC
ORGANIZATION
• To much importance is given to the technical qualifications of the employees for
promotion and transfers. Dedication and commitment of the employee are not
considerate.
• Limited scope for Human Resource (HR). No importance is given to informal
groups and neither any scope is given to form one.
• Power is given to top-level management.
• The rules and levels of authority are just to much. It gives a greater sense of
security to the employees. But bureaucratic management gives a window for “red-
tapism”.
SCIENTIFIC MANAGEMENT
(FREDERICK TAYLOR)
• This focused on methods of increasing worker
productivity. Taylor believed that workers were
motivated primarily by economic rewards , and that
organization should be characterized by a distinct
hierarchy of authority comprising specialized
personnel. Taylor believed that if worker produce
the maximum amount of work.
ADMINISTRATIVE THEORY (HENRI FAYOL)
• DIVISION OF WORK- work specialization can increase efficiency with the same
amount of effort.
• AUTORITY AND RESPONSIBILITY – authority includes the right to command
and the power to require obedience; one cannot have authority without
responsibility.
• DISIPLINE – discipline in necessary for organization to function effectively,
however, the state of the disciplinary process depends upon the quality of its
leaders.
• UNITY OF COMMAND- employee should have one on boss or superior.
• UNITY OF DIRECTION – There should be one manager and one plan for a
group of activities that have the same objective.
• SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST
– The interest of one employee or group of employees should not take precedence
over those of the same objective.

• REMUNERATION OF PERSONAL- compensation should be fair to both the

employee and the employer.

• CENTRALIZATION- the proper amount of centralization depends on the situations.

The objective is to pursue the optimum utilization of the capabilities of personnel.
• SCALAR CHAIN- the hierarchy of authority is the order of ranks from the highest
to the lowest levels of the organization. Besides this vertical communication should
also be encourage as long as the managers is in the chain are kept informed.
• INITATIVE – The ability to conceived and execute a plan (though
initiative and freedom) should be encourage and developed throughout all
levels of the organization.
• SPIRIT DE CORPS- “union” Unity is strength; Harmony and teamwork
are essential to effective organization
• ORDER- materials and human resources should be in the right place at the right
time ; individuals should be treated with kindness and justice.
• EQUITY- employees should be treated with kindness and justice.
• STABILITY OF PERSONAL TENURE- an employee needs time to adjust to
a new job and reach a point of satisfactory performance; high turnover should be
avoided.
B) OPEN AND CLOSED THEORIES
1) HUMAN REACTION APPROACH
- The classical approach emphasized on the formal aspects of organization
basically ignoring the human aspects. The human relations approach focused
on the predicted patterns of behavior, thus the occurrence ]of the human
relations movement, emphasizing the informal aspect of the organization.
o KEY CONTRIBUTOR
a)Elton Mayo ( the Hawthorne study) - The study
suggests that when special attention is paid to
employees by management, productivity is likely
to increase regardless of changes in working
conditions. This phenomenon was labelled the “
Hawthorne effect”.
2) HERZBER’S MOTIVATION-HYGIENE
THEORY
• Herbzberg develop the two
factor theory (Motivator
theory and hygiene Theory),
this theory distinguishes
between sources of work
dissatisfaction and
satisfaction.
FACTORS AFFECTING DISSATISFACTION
(HYGEINE FACTORS)
Organization’s policy and
Administration
Supervision
Relationship with supervisor
Work condition
Salary
FACTORS AFFECTING SATISFACTION
(MOTIVATOR FACTORS)

Achievement Responsibility
Recognition Advancement
Work itself Growth
3) CONTINGENCY THEORIES
- This approach recognizes that many internal and external environmental
variables affect organizational behavior. There is no best way for structuring
and managing diverse types of organizations. The underlying theme of this
theory is that it all depends on a particular situation. The task of managers
then it is to determine in which situations and at what times certain methods
or techniques are the most effective. The approach is more pragmatic
although it encompasses relevant concepts of both classical and behavioral
theories.
4)THEORY Z AND QUALITY
MANAGEMENT
-Important emerging perspective includes theory Z and quality
management, focused on the Japanese management practices. The
emergence of total quality management (TQM) practices- a
customer oriented approach and emphasizes on both human
resources and quantitative methods in an attempt to strive towards
continuous improvement.
5) MCGREGOR’S THEORY X AND
THEORY Y ASSUMPTIONS
- Theory X assumes that people have little ambition,
dislike work, and must be coerced in order to
perform satisfactorily.
- Theory Y assumes that people do not inherent dislike
work and if properly rewarded, especially satisfying
esteem and self-actualization needs, will perform
well on the job.
THEORY X ASSUMPTIONS
 The average person inherently dislikes work and will try to avoid it.
Most people must be coerced, controlled, directed and threatened with
punishment to get them to work towards organizational goals.
The average person prefers to be directed, wants to avoid responsibility,
has relatively little ambition, and sicks security above all.
THEORY Y ASSUMPTION
Work, whether physical or mental, is as natural as play or rest, and most people do not
inherently dislike it.
External control and threat of punishment are not the only means of bringing about
effort toward organizational goals, people will exercise self-directed and self-control
when they are committed.
Commitment to goals in a function of the rewards made available.
An average person learns, under proper conditions, not only to accept but to seek
responsibility.
Ability to exercise a high degree of creativity in the solution of problems.
B) VGMO OF THE ORGANIZATION
1) What is vision?
- Vision is an aspiration and expectations in the organization.
2) What is mission?
- Mission is a way to achieve aspirations and expectations in the organization.
3)What is goal ?
- Goal are broad statements of general and long-term organizational purposes often
used to define the role of the police, for instance, to prevent crime, maintain order or
help solve community problem.
4) What is objective?
- Objective is specific short term statements consistent with an organization's goal.
C) FUNCTIONAL UNITS
BUREAU- the largest organic functional unit within a large department. It
comprises of numbers of divisions.
DIVISION- a primary subdivision of a bureau.
SECTION- functional unit within a division that is necessary for
specialization.
UNIT-functional group within a section; or the smallest functional group
within an organization.
D) TYPES OF ORGANIZATIONAL
STRUCTURE
1) Line organization
- The straight line organization, often called the individual, military or
departmental type of organization, is the simplest and perhaps the oldest
type; but it is a seldom encountered in its channels of authority and
responsibility extends in a direct line from top to bottom within the
structures, authority is definite and absolute.
D) TYPES OF ORGANIZATIONAL
STRUCTURE
2) Functional Organization
- The functional organization in its pure form is rarely found In present day
organizations, except at or near the top of the very large organizations.
Unlike the line type of structure, those establishments organized on, a
functional basis violate the prime rule the men or form best when they have
but one superior. The functional responsibility of each *functional manager*
is limited to the particular activity over which he has control, regardless of
who performs the function.
D) TYPES OF ORGANIZATIONAL
STRUCTURE
3) Line and Staff Organization
- The line and staff organization is a combination of the line and functional
types. It combines staff specialist such as criminalistics, the training officers,
the research and development specialist, etc. Channels of responsibility is to
*think and provide expertise* for the line units. The line supervisor must
remember that he obtains advice from the staff specialists.
E) ELEMENTS OF THE ORGANIZATION

 SPECIALIZATION – It is the grouping of individual activities,

segregation of line, staff, and auxiliary functions based on specialization.
 HIERARCHY of AUTHORITY – If a person within an organization
were given the freedom to do what they like (and to refuse to do what they
dislike), there should be little likelihood accomplishment.
 SPAN of CONTROL – A span of control is the maximum number of
subordinates at a given position that superior can supervise effectively.
E) ELEMENTS OF THE ORGANIZATION
 DELEGATION of AUTHORITY – Is conferring of an authority by a
superior position onto a lower-level position.
 UNITY of COMMAND – The organization should have only one
supervisor or *boss* in any organizational structure.
 FORMAL COMMUNICATION – Procedures, channels, and
standardized languages are essential to effective communication within
such large organization.
F) PRINCIPLES OF ORGANIZATION
Every formal organization whether small or large are governed by the
following principles:
1. PRINCIPLES OF UNITY OF OBJECTIVE – an organization is
effective if it enables the individuals to contribute to the
organization’s objectives.
2. PRINCIPLES OF ORGANIZATIONAL EFFECIENCY
– organization structure is effective if it is structured in such a way to
aid the accomplishment of the organization’s objectives with a
minimum cost.
F) PRINCIPLES OF ORGANIZATION
3. SCALAR PRINCIPLE – shows the vertical hierarchy of the
organization which defines an unbroken chain of units from top to bottom
describing explicitly the flow of authority. The scalar principles are:
a. Line of Authority and Chain of Command – the principle of
organization suggests that communications should orderly go upward
through established channels in the hierarchy. Diverting orders, directives, or
reports around a level of command usually has disastrous on efficiency of
the organization.
 b. The Span of Control of a supervisor over personnel or units shall
not mean more than what he can effectively direct and coordinate. In span of
control, levels of authority shall be kept to a minimum.
c. The Delegation of Authority shall carry with a commensurate
authority and the person to whom the authority is delegated shall be held
accountable therefore. It implies that delegation must carry with it
appropriate responsibility.
d. The Unity of Command – explains that subordinates should only
be under the control of one superior.
2. FUNCTIONAL PRINCIPLE – refers to the division of work
according to type, place, time and specialization.
3. LINE and STAFF PRINCIPLE – implies that a system of varied
functions arrange into a workable pattern. The line organization is
responsible for the direct accomplishment of the objectives while the staff
is responsible for support, advisory or facilitative capacity.
4. PRINCIPLE of BALANCE – states that the application of principles
must be balanced to ensure the effectiveness of the structure in meeting
organization’s objectives.
5. PRINCIPLE of DELEGATION by RESULTS – states that authority
delegated should be adequate to ensure the ability to accomplish expected
results.
6. PRINCIPLES of ABSOLUTENESS of RESPONSIBILITY – explains that the
responsibility of the subordinates to their superior for performance is absolute and the
superior cannot escape responsibility for the organization on activities performed by
their subordinates.
7. PRINCIPLE of PARITY and RESPONSIBILITY – explains that responsibility for
action cannot be greater than that implied by the authority delegated nor should it be
less.
8. AUTHORITY LEVEL PRINCIPLE – implies that decisions within the authority of
the individual commanders should be made by them and not be returned upward in the
organizational structure.
9. PRINCIPLE of FLEXIBILITY – means that the more flexible the organization, the
more it can fulfill its purpose.