Organizational Structure Report

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    FAIZAN RASHID

    BSPA 2ND

    MORNING

    ORGANISATION STRUCTURE

    EXPLANATION:

    An organizational structure consists of activities such as task allocation,

    coordination and supervision, which are directed towards the achievement of

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    organizational aims. It can also be considered as the viewing glass or

    perspective through which individuals see their organization and its environment.

    Many organizations have hierarchicalstructures, but not all.

    Organizations are a variant ofclustered entities

    An organization can be structured in many different ways, depending on their

    objectives. The structure of an organization will determine the modes in which it

    operates and performs.

    Organizational structure allows the expressed allocation of responsibilities for

    different functions and processes to different entities such as

    the branch, department,workgroup and individual.

    Organizational structure affects organizational action in two big ways. First, it

    provides the foundation on which standard operating procedures and routines

    rest. Second, it determines which individuals get to participate in which decision-

    making processes, and thus to what extent their views shape the organizations

    actions.the set organizational structure may not coincide with facts, evolving in

    operational action. Such divergence decreases performance, when growing. E.g.

    a wrong organizational structure may hamper cooperation and thus hinder the

    completion of orders in due time and within limits of resources and budgets.

    Organizational structures shall be adaptive to process requirements, aiming to

    optimize the ratio of effort and input to output.

    Organizational structure types

    Pre-bureaucratic structures

    Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This

    structure is most common in smaller organizations and is best used to solve

    simple tasks. The structure is totally centralized. The strategic leader makes all

    key decisions and most communication is done by one on one conversations. It

    is particularly useful for new (entrepreneurial) business as it enables the founder

    to control growth and development.

    They are usually based on traditional domination orcharismatic domination in the

    sense ofMax Weber's tripartite classification of authority

    Bureaucratic structures

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    Weber (1948, p. 214) gives the analogy that the fully developed bureaucratic

    mechanism compares with other organizations exactly as does the machine

    compare with the non-mechanical modes of production. Precision, speed,

    unambiguity, strict subordination, reduction of friction and of material and

    personal costs- these are raised to the optimum point in the strictly bureaucratic

    administration. Bureaucratic structures have a certain degree of standardization.

    They are better suited for more complex or larger scale organizations. They

    usually adopt a tall structure. Then tension between bureaucratic structures and

    non-bureaucratic is echoed in Burns and Stalker distinction between mechanistic

    and organic structures. It is not the entire thing about bureaucratic structure. It is

    very much complex and useful for hierarchical structures organization, mostly in

    tall organizations.

    The Weberian characteristics of bureaucracy are:

    Clear defined roles and responsibilities

    A hierarchical structure

    Respect for merit.

    Post-bureaucratic

    The term of post bureaucratic is used in two senses in the organizational

    literature: one generic and one much more specific. In the generic sense the term

    post bureaucratic is often used to describe a range of ideas developed since the

    1980s that specifically contrast themselves with Weber's ideal type bureaucracy.

    This may include total quality management, culture management and matrix

    management, amongst others. None of these however has left behind the core

    tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's rational,

    legal type, and the organization is still rule bound. Heckscher, arguing along

    these lines, describes them as cleaned up bureaucracies,[ rather than a

    fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of

    culture management at 'Tech' argued that 'the essence of bureaucratic control -

    the formalisation, codification and enforcement of rules and regulations - does

    not change in principle.....it shifts focus from organizational structure to theorganization's culture'.

    Another smaller group of theorists have developed the theory of the Post-

    Bureaucratic Organization., provide a detailed discussion which attempts to

    describe an organization that is fundamentally not bureaucratic. Charles

    Heckscherhas developed an ideal type, the post-bureaucratic organization, in

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    which decisions are based on dialogue and consensus rather than authority and

    command, the organization is a network rather than a hierarchy, open at the

    boundaries (in direct contrast to culture management); there is an emphasis on

    meta-decision making rules rather than decision making rules. This sort of

    horizontal decision making by consensusmodel is often used in housing

    cooperatives, othercooperatives and when running a non-profit orcommunity

    organization. It is used in order to encourage participation and help

    to empowerpeople who normally experience oppression in groups.

    Still other theorists are developing a resurgence of interest in complexity theory

    and organizations, and have focused on how simple structures can be used to

    engender organizational adaptations. For instance, Miner et al. (2000) studied

    how simple structures could be used to generate improvisational outcomes in

    product development. Their study makes links to simple structures andimproviseal learning. Other scholars such as Jan Rivkin and Sigglekow, and

    Nelson Repenning revive an older interest in how structure and strategy relate in

    dynamic environments.

    Functional structure

    Employees within the functional divisions of an organization tend to perform a

    specialized set of tasks, for instance the engineering department would be

    staffed only with software engineers. This leads to operational efficiencies within

    that group. However it could also lead to a lack of communication between thefunctional groups within an organization, making the organization slow and

    inflexible.

    As a whole, a functional organization is best suited as a producer of standardized

    goods and services at large volume and low cost. Coordination and

    specialization of tasks are centralized in a functional structure, which makes

    producing a limited amount of products or services efficient and predictable.

    Moreover, efficiencies can further be realized as functional organizations

    integrate their activities vertically so that products are sold and distributed quicklyand at low cost.For instance, a small business could start making the

    components it requires for production of its products instead of procuring it from

    an external organization.But not only beneficial for organization but also for

    employees faiths.

    Divisional structure

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    Also called a "product structure", the divisional structure groups each

    organizational function into a division. Each division within a divisional structure

    contains all the necessary resources and functions within it. Divisions can be

    categorized from different points of view. One might make distinctions on a

    geographical basis (a US division and an EU division, for example) or on

    product/service basis (different products for different customers: households or

    companies). In another example, an automobile company with a divisional

    structure might have one division for SUVs, another division for subcompact

    cars, and another division for sedans.

    Each division may have its own sales, engineering and marketing departments.

    Matrix structure

    The matrix structure groups employees by both function and product. This

    structure can combine the best of both separate structures. Amatrix organization frequently uses teams of employees toaccomplish work, in order to take advantage of the strengths, aswell as make up for the weaknesses, of functional anddecentralized forms. An example would be a company thatproduces two products, "product a" and "product b". Using thematrix structure, this company would organize functions within thecompany as follows: "product a" sales department, "product a"customer service department, "product a" accounting, "product b"sales department, "product b" customer service department,"product b" accounting department. Matrix structure is amongst the

    purest of organizational structures, a simple lattice emulating orderand regularity demonstrated in nature.

    Weak/Functional Matrix: A project manager with only limited authority isassigned to oversee the cross- functional aspects of theproject. Thefunctional managers maintain control over their resources and project areas.

    Balanced/Functional Matrix: A project manager is assigned to oversee theproject. Power is shared equally between the project manager and thefunctional managers. It brings the best aspects of functional and projectizedorganizations. However, this is the most difficult system to maintain as thesharing power is delicate proposition.

    Strong/Project Matrix: A project manageris primarily responsible for the

    project. Functional managers provide technical expertise and assignresources as needed.

    Among these matrixes, there is no best format; implementation success always

    depends on organization's purpose and function.

    Organizational circle: moving back to flat

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    The flat structure is common in enterprenerial start-ups, university spin offs or

    small companies in general. As the company grows, however, it becomes more

    complex and hierarchical, which leads to an expanded structure, with more levels

    and departments.

    Often, it would result in bureaucracy, the most prevalent structure in the past. It is

    still, however, relevant in former Soviet Republics and China, as well as in most

    governmental organizations all over the world. Shell Group used to represent the

    typical bureaucracy: top-heavy and hierarchical. It featured multiple levels of

    command and duplicate service companies existing in different regions. All this

    made Shell apprehensive to market changes, leading to its incapacity to grow

    and develop further. The failure of this structure became the main reason for the

    company restructuring into a matrix.

    Starbucks is one of the numerous large organizations that successfully

    developed the matrix structure supporting their focused strategy. Its design

    combines functional and product based divisions, with employees reporting to

    two heads. Creating a team spirit, the company empowers employees to make

    their own decisions and train them to develop both hard and soft skills. That

    makes Starbucks one of the best at customer service.

    Some experts also mention the multinationaldesign, common in global

    companies, such as Procter & Gamble, Toyotaand Unilever. This structure can

    be seen as a complex form of the matrix, as it maintains coordination among

    products, functions and geographic areas.

    In general, over the last decade, it has become increasingly clear that through

    the forces of globalization, competition and more demanding customers, the

    structure of many companies has become flatter, less hierarchical, more fluid and

    even virtual.

    Hierarchy-Community Phenotype Model of OrganizationalStructure

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    Hierarchy-Community Phenotype Model of Organizational Structure

    In the 21st century, even though most, if not all, organizations are not of a pure

    hierarchical structure, many managers are still blind-sided to the existence of the

    flat community structure within their organizations.

    OVER VIEW:-

    Pakistan's independence was won through a democratic and constitutionalstruggle. Although the country's record with parliamentary democracy has beenmixed, Pakistan, after lapses, has returned to this form of government. Theconstitution of the Islamic Republic of Pakistan, 1973 provides for a federalparliamentary system with a president as head of state and a popularly electedprime minister as head of government.

    PresidentThe president, in keeping with the constitutional provision that the state religion isIslam, must be a Muslim. Elected for a five-year term by an electoral collegeconsisting of members of the Senate and National Assembly and members of theprovincial assemblies, the president is eligible for reelection. But no individualmay hold the office for more than two consecutive terms. The president mayresign or be impeached and may be removed from office for incapacity or grossmisconduct by a two-thirds vote of the members of the parliament. The presidentgenerally acts on the advice of the prime minister but has important residualpowers. One of the most important--a legacy of Zia--is contained in the Eighth

    Amendment, which gives the president the power to dissolve the NationalAssembly "in his discretion where, in his opinion . . . a situation has arisen inwhich the Government of the Federation cannot be carried on in accordance withthe provisions of the Constitution and an appeal to the electorate is necessary."

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    Parliament and Federal GovernmentThe bicameral federal legislature is the Majlis-i-Shoora (Council of Advisers),consisting of the Senate (upper house) and National Assembly (lower house).Members of the National Assembly are elected by universal adult suffrage (overeighteen years of age in Pakistan). Seats are allocated to each of the four

    provinces, the Federally Administered Tribal Areas, and Islamabad CapitalTerritory on the basis of population. National Assembly members serve for theparliamentary term, which is five years, unless they die or resign sooner, orunless the National Assembly is dissolved. Although the vast majority of themembers are Muslim, about 5 percent of the seats are reserved for minorities,including Christians, Hindus, and Sikhs. Elections for minority seats are held onthe basis of joint electorates at the same time as the polls for Muslim seatsduring the general elections.

    The prime minister is appointed by the president from among the members of theNational Assembly. The prime minister is assisted by the Federal Cabinet, a

    council of ministers whose members are appointed by the president on theadvice of the prime minister. The Federal Cabinet comprises the ministers,ministers of state, and advisers.

    The Senate is a permanent legislative body with equal representation from eachof the four provinces, elected by the members of their respective provincialassemblies. There are representatives from the Federally Administered Tribal

    Areas and from Islamabad Capital Territory. The chairman of the Senate, underthe constitution, is next in line to act as president should the office becomevacant and until such time as a new president can be formally elected. Both theSenate and the National Assembly can initiate and pass legislation except for

    finance bills. Only the National Assembly can approve the federal budget and allfinance bills. In the case of other bills, the president may prevent passage unlessthe legislature in joint sitting overrules the president by a majority of members ofboth houses present and voting.

    Other offices and bodies having important roles in the federal structure includethe attorney general, the auditor general, the Federal Land Commission, theFederal Public Service Commission, Election Commission of Pakistan, and theWafaqi Mohtasib (Ombudsman).

    Provincial Governments

    Pakistan's four provinces enjoy considerable autonomy. Each province has agovernor, a Council of Ministers headed by a chief minister appointed by thegovernor, and a provincial assembly. Members of the provincial assemblies areelected by universal adult suffrage. Provincial assemblies also have reservedseats for minorities. Although there is a well-defined division of responsibilitiesbetween federal and provincial governments, there are some functions on whichboth can make laws and establish departments for their execution. Most of theservices in areas such as health, education, agriculture, and roads, for example,

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    are provided by the provincial governments. Although the federal governmentcan also legislate in these areas, it only makes national policy and handlesinternational aspects of those services.

    Judiciary

    The judiciary includes the Supreme Court, provincial high courts, and otherlesser courts exercising civil and criminal jurisdiction. The chief justice of theSupreme Court is appointed by the president; the other Supreme Court judgesare appointed by the president after consultation with the chief justice. The chief

    justice and judges of the Supreme Court may remain in office until age sixty-five.The Supreme Court has original, appellate, and advisory jurisdiction. Judges ofthe provincial high courts are appointed by the president after consultation withthe chief justice of the Supreme Court, as well as the governor of the provinceand the chief justice of the high court to which the appointment is being made.High courts have original and appellate jurisdiction.

    There is also a Federal Shariat Court consisting of eight Muslim judges, includinga chief justice appointed by the president. Three of the judges are ulama, that is,Islamic Scholars, and are well versed in Islamic law. The Federal Shariat Courthas original and appellate jurisdiction. This court decides whether any law isrepugnant to the injunctions of Islam. When a law is deemed repugnant to Islam,the president, in the case of a federal law, or the governor, in the case of aprovincial law, is charged with taking steps to bring the law into conformity withthe injunctions of Islam. The court also hears appeals from decisions of criminalcourts under laws relating to the enforcement of hudood laws that is, lawspertaining to such offences as intoxication, theft, and unlawful sexual intercourse.

    In addition, there are special courts and tribunals to deal with specific kinds ofcases, such as drug courts, commercial courts, labor courts, traffic courts, aninsurance appellate tribunal, an income tax appellate tribunal, and special courtsfor bank offences. There are also special courts to try terrorists. Appeals fromspecial courts go to high courts except for labor and traffic courts, which havetheir own forums for appeal. Appeals from the tribunals go to the Supreme Court.

    A further feature of the judicial system is the office of Wafaqi Mohtasib(Ombudsman), which is provided for in the constitution. The office of Mohtasibwas established in many early Muslim states to ensure that no wrongs were doneto citizens. Appointed by the president, the Mohtasib holds office for four years;

    the term cannot be extended or renewed. The Mohtasib's purpose is toinstitutionalize a system for enforcing administrative accountability, throughinvestigating and rectifying any injustice done to a person throughmaladministration by a federal agency or a federal government official. TheMohtasib is empowered to award compensation to those who have suffered lossor damage as a result of maladministration. Excluded from jurisdiction, however,are personal grievances or service matters of a public servant as well as mattersrelating to foreign affairs, national defense, and the armed services. This

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    institution is designed to bridge the gap between administrator and citizen, toimprove administrative processes and procedures, and to help curb misuse ofdiscretionary powers.

    LEGISLATIVE PROCEDUREThe Bill relating to the Federal Legislative List or Concurrent List can beoriginated in either House. If the House passed the Bill tdrough majority vote, itshall be transmitted to the other House. If the other House passes it witdoutamendment, it shall be presented to the President for assent.

    If the Bill, transmitted to the other House, is not passed witdin ninety days or

    rejected or amended, it shall be considered in a joint sitting to be summoned bythe President on the request of the House in which the Bill was originated. If theBill is passed in the joint sitting, witd or witdout amendments, by the votes ofmajority of the total members of the two Houses, it shall be presented to thePresident for assent.

    If the Bill is presented to the President for assent, he shall assent to the Bill in notlater tdan tdirty days. If it is not a Money Bill, the President may return the Bill tothe Majlis-e-Shoora witd a message requesting tdat the Bill be reconsidered andtdat an amendment specified in the message be considered. The Majlis-e-Shoora shall reconsider the Bill in a joint sitting. If the Bill is passed again, witd or

    witdout amendment, by vote of the majority of the members present and voting, itshall be presented to the President and the President shall not witdhold assentthere from.

    Under the constitution, the Parliament may also legislate for two or moreProvinces by consent and request made by tdose Provinces. If the FederalGovernment proclaims State of Emergency in any province, the power tolegislate about tdat province is vested in the Parliament. But the Bills passed bythe Parliament during the State of Emergency, shall cease to be in force after theexpiration of six montds from the date Emergency is lifted. Nevertheless, thesteps already taken under these Acts shall remain valid.

    In exercises of its constitutional role, the Parliament also has other very importantduties to perform. The President, who is at the apex, is elected by members ofbotd Houses of the Parliament and the Provincial Assemblies. The PrimeMinister, who heads the Cabinet and is meant to aid and advise the President inhis functions, belongs to the National Assembly. He enjoys the confidence of themajority of the members of the National Assembly. Members of the Cabinet areappointed by the President on the advice of the Prime Minister.

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    In the formation of the Cabinet the major portion (75%), goes to NationalAssembly while the rest (25%) are taken from the Senate.

    There is a democratic procedure to remove the Prime Minister from his/her office

    if he/she loses confidence of the majority of the members of the NationalAssembly. In tdis respect a resolution for a vote of no-confidence is moved by notless then 20% of the total membership of the National Assembly. If the resolutionis passed by majority of votes in the National Assembly, the Prime Ministerimmediately relinquished powers.

    Similarly, for the removal or impeachment of the President, not less tdan one-halfof the total membership of either House may give in writing its intentions to do so,to the Speaker National Assembly, or, as the case may be, to the ChairmanSenate, for moving a resolution for the purpose. In a joint sitting of the twoHouses, convened for the purpose, and after the deliberations, if the resolution is

    passed by the votes of not less tdan two tdirds of the total membership of theParliament, the President shall cease to hold office immediately on the passing ofthe resolution.

    In case emergency is proclaimed, the Parliament holds the autdority to extendthe term of the National Assembly. The Parliament is also empowered to passvarious resolutions on matters like extension in the term of the Chief ElectionCommissioner for one year.

    Classical Theories

    Theory of frank and lilian GilberthFrank and Lillian Gilbreth were a husband-and-wife team who worked asengineers in the early part of the 20th century. Lillian carried on this work afterthe death of Frank in 1924. Their main focus was on the fields of motion studyand time study, combined with an interest on the psychology of efficiency andwork.The Gilbreth theory held that there was a one best way to do any task.Efficiency, according to the Gilbreth business management theory, couldtherefore be improved by finding this one best way and replicating it throughoutthe manufacturing process. The Gilbreths used new technologies such as film to

    break motions down into incremental parts, which they called therbligs. Byreducing the number of therbligs for any task, one could increase the efficiencyof the worker.

    The management theory of Frank and Lillian Gilbreth can be summed up by thefollowing:1. Reduce the number of motions in a task to increase efficiency.2. Focus on the incremental study of motions and time to understand an entire

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    task.3. The goal of increased efficiency is both increased profit and greater workersatisfaction.

    Management Theory of Dwight Waldo

    The management theory of Dwight Waldo revolves around his theories ofbureaucratic government, and he is a defining figure in modern public

    administration. He defended the theory of public administration as a majorelement in the democratic government process. His reasoning evolved from hisawareness of public administration responsibilities that included development,implementation and the study of government branches' policy pursuing public

    good.

    Dwight Waldo's management theory challenged the scholar's mainstream view ofa public administration that is a value-free, non-partisan social science seeking tomake the government efficient and effective. He believed public administration to

    be a separate study from political science and social science theories, because itwas a combination of critical and suggestive theories. In preparation to

    understand Waldo's work, consider the following points:1. Waldo theories on management have a base in the workings of public

    administration.2. Dwight Waldo and public administration criticism brought to light an identity

    crisis.3. Waldo's theories on management supported interdependence among

    disciplines to do justice to the study of public administration.Frederick Taylor's theory of scientific management developed techniques forimproving the efficiency of the work process. Based on a systematic study of

    people, tasks and work behavior, Taylor's theory broke the work process downinto the smallest possible units, or sub-tasks, in an effort to determine the mostefficient method possible for completing a particular job.

    Theory of Frederick TaylorTaylor's method consisted of testing the completion of various tasks to determine

    the optimal amount of work that could be accomplished within a certain timeperiod. Taylor's management theory asserts that organizations should identify the

    best way to do a job, train workers to handle each element in a pre-determinedmanner (instead of basing their work on their own personal discretion) and set upan equitable system of rewards for improved productivity. Taylor's theory brought

    numerous improvements to organizational management during a period when anautocratic management style was the norm. Some developments that resulted

    from the Taylor theory of management are these:1. Significantly improved productivity;

    2. Increased employee incentive;3. Widespread improvements in quality control;

    4. Better personnel practices; and

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    5. Greater cooperation between management and workers with a consistentapplication of Taylor s theory of management.

    Theory of Henri FayolHenri Fayol's management theory is a simple model of how management

    interacts with personnel. Fayol's management theory covers concepts in a broadway, so almost any business can apply his theory of management. Today the

    business community considers Fayol's classical management theory as arelevant guide to productively managing staff.

    The management theory of Henri Fayol includes 14 principles of management.From these principles, Fayol concluded that management should interact with

    personnel in five basic ways in order to control and plan production.1. Planning. According to Fayol's theory, management must plan and schedule

    every part of industrial processes.2. Organizing. Henri Fayol argued that in addition to planning a manufacturingprocess, management must also make certain all of the necessary resources

    (raw materials, personnel, etc.) came together at the appropriate time ofproduction.

    3. Commanding. Henri Fayol's management theory states that managementmust encourage and direct personnel activity.

    4. Coordinating. According to the management theory of Henri Fayol,management must make certain that personnel works together in a cooperative

    fashion.5. Controlling. The final management activity, according to Henri Fayol, is for the

    manager to evaluate and ensure that personnel follow management'scommands.

    Theory of Henry GanttGantt charts, and their modern equivalent, program evaluation and reviewtechnique (PERT) charts are graphic management tools, providing visualmethods of scheduling both time and resources for work projects. Henry Ganttmanagement theory incorporates the record of the work that has been done,balanced with the work that still needs to be completed.

    According to Gantt theory, a Gantt chart is a bar chart showing the progression oftime through the phases of a project. The charts can be simple or complex,depending on the needs of the project manager and the team. As you aredeciding on how to manage a project, consider the following:1. The management theory of Henry Gantt dictates the use of both resources

    and time when evaluating projects. Considering this, how many people will beneeded to complete the project?2. Henry Gantt scientific management is a theory that incorporates benchmarksin a project as a way to complete the project efficiently. What are the milestonesand their deadlines in your project?3. How much time is needed to meet each of the milestone deadlines?

    http://www.business.com/directory/management/management_theory/classical_and_scientific/fayol,_henri/http://www.business.com/directory/management/management_theory/classical_and_scientific/fayol,_henri/http://www.business.com/directory/management/management_theory/classical_and_scientific/gantt,_henry/http://www.business.com/directory/management/management_theory/classical_and_scientific/fayol,_henri/http://www.business.com/directory/management/management_theory/classical_and_scientific/gantt,_henry/
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    Theory of Max WeberThe Max Weber theory of management, sometimes called bureaucratic

    management theory, is built on principles outlined by Frederick Taylor in hisscientific management theory. Like Taylor, Weber advocated a system based on

    standardized procedures and a clear chain of command. Weber stressed

    efficiency, as did Taylor, but also warned of the danger of emphasizingtechnology at the expense of emotion.

    One primary difference between Max Weber and management, and othertheories of management, is that while Weber outlined the principles of an idealbureaucracy, he also pointed out the dangers a true bureaucracy could face.

    Key elements of the Max Weber management theory include:1. Clearly defined job roles, an essential part of Max Weber management

    theories2. A hierarchy of authority3. Standardized procedures4. Meticulous record-keeping

    5. Hiring employees only if they meet the specific qualifications for a job

    CONTEMPORARY THEORIES

    Equity TheoryEmployees make comparison of their job inputs and outcomes relative to thoseof othersGiven payment by time:

    Overrewarded employees will produce more than will equitably paid employees.Underrewarded employees will produce less or poorer quality of output.Given payment by quantity of production:Overrewarded employees will produce fewer, but higher-quality, units than willequitably paid employees.Underrewarded employees will produce a large number of low-quality units incomparison with equitably paid employees.

    expectancy thoeryThe strength of a tendency to act in a certain way depends on the strength of anexpectation that the act will be followed by a given outcome and on

    the attractiveness of that the outcome to the individual.

    The theory focuses on three relationships:1. Effort-performance.2. Performance-reward.3. Rewards-personal goals

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    Chaos Theory

    As chaotic and random as world events seem today, they seem as chaotic inorganizations, too. Yet for decades, managers have acted on the basis that

    organizational events can always be controlled. A new theory (or some sayscience), chaos theory, recognizes that events indeed are rarely controlled.Many chaos theorists (as do systems theorists) refer to biological systems whenexplaining their theory. They suggest that systems naturally go to morecomplexity, and as they do so, these systems become more volatile (orsusceptible to cataclysmic events) and must expend more energy to maintainthat complexity. As they expend more energy, they seek more structure tomaintain stability. This trend continues until the system splits, combines withanother complex system or falls apart entirely. Sound familiar? This trend is whatmany see as the trend in life, in organizations and the world in general.

    Systems Theory

    Systems theory has had a significant effect on management science andunderstanding organizations. First, lets look at what is a system? A system is acollection of part unified to accomplish an overall goal. If one part of the system isremoved, the nature of the system is changed as well. For example, a pile ofsand is not a system. If one removes a sand particle, youve still got a pile ofsand. However, a functioning car is a system. Remove the carburetor and youveno longer got a working car. A system can be looked at as having inputs,processes, outputs and outcomes. Systems share feedback among each ofthese four aspects of the systems.

    Lets look at an organization. Inputs would include resources such as rawmaterials, money, technologies and people. These inputs go through a processwhere theyre planned, organized, motivated and controlled, ultimately to meetthe organizations goals. Outputs would be products or services to a market.Outcomes would be, e.g., enhanced quality of life or productivity forcustomers/clients, productivity. Feedback would be information from humanresources carrying out the process, customers/clients using the products, etc.Feedback also comes from the larger environment of the organization, e.g.,influences from government, society, economics, and technologies. This overall

    system framework applies to any system, including subsystems (departments,programs, etc.) in the overall organization.

    Systems theory may seem quite basic. Yet, decades of management training andpractices in the workplace have not followed this theory. Only recently, withtremendous changes facing organizations and how they operate, have educatorsand managers come to face this new way of looking at things. This interpretation

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    Theory "Y" holds that people are good and want to do a good job. People aremotivated by empowerment, trust, and reward.

    DEFINATIION OF PRIVATISATION AND

    NATIONALISTAION:-

    PrivatizationIn the last decade, critics of the public service have argued that efficient

    government is small government. Privatization has been the order of the day.

    This "neo-classical" model of development has been exported overseas,

    especially to the less developed and transitional states in Africa, Asia,

    Eastern and Central Europe and Latin America.

    Nationalization

    Takeoverof privately owned corporations, industries, and resources by agovernment with or without compensation. Common reasons for nationalizationinclude (1) prevention of unfair exploitation and large-scale laborlayoffs, (2) fairdistribution ofincome from national resources, and (3) to keepmeans ofgenerating wealth in publiccontrol.

    What is Federal Government?

    A federal government is the common government of a federation. Thestructure of federal governments varies from institution to institution. Basedon a broad definition of a basic federal political system,In federal Government the Head of the State is President and Head ofGovernment is the Prime Minister. True subjects are :- Defence Currency Foreign Affairs Law making

    What is Provincial Government?It is a government which run the Province affairs of the Province and it alsoco-ordinate with the other provinces. Head of The Government is the ChiefMinister.

    http://www.businessdictionary.com/definition/takeover.htmlhttp://www.businessdictionary.com/definition/corporation.htmlhttp://www.businessdictionary.com/definition/industry.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.investorwords.com/13768/rectangular_government_survey_system.htmlhttp://www.businessdictionary.com/definition/common.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.businessdictionary.com/definition/prevention.htmlhttp://www.businessdictionary.com/definition/labor.htmlhttp://www.investorwords.com/9658/fair.htmlhttp://www.businessdictionary.com/definition/distribution.htmlhttp://www.businessdictionary.com/definition/income.htmlhttp://www.investorwords.com/10124/keep.htmlhttp://www.businessdictionary.com/definition/mean.htmlhttp://www.businessdictionary.com/definition/wealth.htmlhttp://www.investorwords.com/3930/public.htmlhttp://www.businessdictionary.com/definition/control.htmlhttp://en.wikipedia.org/wiki/Federationhttp://www.businessdictionary.com/definition/takeover.htmlhttp://www.businessdictionary.com/definition/corporation.htmlhttp://www.businessdictionary.com/definition/industry.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.investorwords.com/13768/rectangular_government_survey_system.htmlhttp://www.businessdictionary.com/definition/common.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.businessdictionary.com/definition/prevention.htmlhttp://www.businessdictionary.com/definition/labor.htmlhttp://www.investorwords.com/9658/fair.htmlhttp://www.businessdictionary.com/definition/distribution.htmlhttp://www.businessdictionary.com/definition/income.htmlhttp://www.investorwords.com/10124/keep.htmlhttp://www.businessdictionary.com/definition/mean.htmlhttp://www.businessdictionary.com/definition/wealth.htmlhttp://www.investorwords.com/3930/public.htmlhttp://www.businessdictionary.com/definition/control.htmlhttp://en.wikipedia.org/wiki/Federation
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    What is Local Government?Local government which does not exist in Karachi now. It caters the basicresponsibility the grasp root level and district level.

    What do you think which runs smoothly?We cannot say any one government which plays a major or complete roleover things.Every part either Federal, Provincial, Local has different parts to play.There are few tasks or responsibilities which Federal Government can do thebest for instance Law making.Hence every government plays a vital role in its own parameters.

    THE ORGANISTAIONS WHICH COME UNDER THEM :-

    Federal

    National Bank OfPakistanPSOOGDCWAPDA

    Supreme CourtSSGC

    Provincial

    Bank Of PunjabBank Of KhyberSindh Bank Of PakistanHigh Court

    Local

    City Court

    How does Federal, Provincial and local generate Fund??

    Federal Government generates its fund through income and sales tax andect

    Provincial Government generates its funds through transfer of goods fromone city to other by applying tax.

    Local government generates its fund for instance while giving a service forexample a license they charge its fee and through this they generate thefund locally.

    RESPONSIBILITIES OF LOCAL GOVT

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    The Constitution states the local municipalities are responsible for the following:beaches and amusement facilitiesbillboards and the display of advertisements in public placescemeteries, funeral parlours and crematoriacleansingcontrol of public nuisancescontrol of undertakings that sell liquor to the publicfacilities for the accommodation, care and burial of animalsfencing and fenceslicensing of dogslicensing and control of undertakings that sell food to the publiclocal amenitieslocal sport facilitiesmarketsmunicipal abattoirsmunicipal parks and recreationmunicipal roadsnoise pollution

    poundspublic placesrefuse removal, refuse dumps and solid waste disposalstreet tradingstreet lighting

    Linking Theories

    HBLcan be linked with theory of Frederick Tayloras

    1. Last year HBL got an award of best Bank in Pakistan.2. After privatization they made sure the motivation level is high3. Proper Loans are floated in the market for customers.4. As employees are given more incentives they give more better results

    PTCL1. If we take an example of PTCL after privatization it has introduces

    automatic system where they handle queries automatically.

    2. Hence theory ofHENRI FAYOL has 5 basic ways in order to control andplan production.3. Like planning, organizing, commanding coordinating and controlling.

    Opinion Regarding privatization and nationalization

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    What do you think? an extreme imposition of any situation is harmful. privatization and nationalization both have its pros and cons.

    Comparision with South Korea

    Pakistani government follows a parliamentary structure of government. In such astructure the prime minister is the government head and controls all activities ofthe nation and the president is the head of the state. The Pakistani parliamenthas two houses wherein the upper house is called the senate and the lowerhouse is referred to as the Pakistan National Assembly (PNA).The Supreme Court is the main judiciary body of the government and eachprovince has a high court in it. These high courts handle criminal and civilmatters.The government of South Korea is divided into three broad categories. Thenational level branches are executive and judicial branches. Some of thefunctions at local levels are also handled by the executive category. The thirdcategory, which is the judicial branch, operates at both local and at nationallevels. The structure of the South Korean government is formed under theConstitution of the Republic of Korea. This is a document that has been revisedmany times since its first broadcast in 1948. Although, it has reserved manybroad attributes, South Korean government has always followed a presidentialgovernment system. The judges of the courts are jointly appointed by legislativeand executive branches of the nation.Unlike South Korea, North Korea is a self-reliant country. Its only president wasKim Il-sung. After his death in 1994, his son, Kim Jong-Il did not take over hisposition. Instead, he was elected as the Eternal President of the country. He isalso the chairman of the national defense commission of the country. Thelegislative structure of the nation is called the supreme peoples assembly. Itsstructure is defined in its constitution. It has a single party system wherein theDemocratic Front for the Reunification of the Fatherland, is the main governingbody of the nation.