Management of companies and organizations is a function that coordinates the

efforts of people to achieve the goals and objectives efficiently and effectively
using available resources. Management involves planning, organizing, staffing,
leading or directing, and controlling an organization or effort to achieve the goal.
Resources encompasses the deployment and manipulation of human resources,
financial resources, technological resources and natural resources. Management
is also an academic discipline, social science, is the object of study of the social
organization.
In early more than thousands of years before there were huge constructions
although great feats of human such as Egyptian pyramids, Great wall of China,
Taj Mahal in India, Huge Stupas in Sri Lanka. These are testimony of ancient
management skills before developing modern study of management which has
began late in the 19th century.
Early 20th century most of the capitalists were business owners who invest their
own money to their organizations and they managed the business by
themselves. But getting growth of the industrial environment had generated
large organizations with capital provided by outsiders of the business and it
created new management challenges.
Under the old type of management success depends almost entirely upon
getting the initiative of the workmen, and it is indeed a rare case in which this
initiative is really attained. Under scientific management the initiative of the
workmen (that is, their hard work, their good-will, and their ingenuity) is
obtained with absolute uniformity and to a greater extent than is possible under
the old system; and in addition to this improvement on the part of the men, the
managers assumenew burdens, new duties, and responsibilities never dreamed
of in the past. The managers assume, for instance, the burden of gathering
together all of the traditional knowledge which in the past has been possessed
by the workmen and then of classifying, tabulating, and reducing this knowledge

to rules, laws, and formula which are immensely helpful to the workmen in doing
their daily work. In addition to developing a sciencein this way, the management
take on three other types of duties which involve new and heavy burdens for
themselves.
Library of Congress Taylor, 1911 Frederick Winslow Taylor The Principles of
SCIENTIFIC MANAGEMENT 1910 Ch. 2: The Principles of Scientific Management
excerpts These new duties are grouped under four heads:

First

:They develop a science for each element of a mans work, which

replaces the old rule-of-thumb method.

Second :They scientifically select and then train, teach, and develop the
workman, whereas in the past he chose his own work and trained him
self as best he could.

Third :They heartily cooperate with the men so as to insure all of the work
being done in accordance with the principles of the science which has been
developed.

Fourth :There is an almost equal division of the work and the responsibility
between the management and the workmen. The management take over all
work for which they are better fitted than the workmen, while in the past almost
all of the work and the greater part of the responsibility were thrown upon the
men.

It is this combination of the initiative of the workmen, coupled with the new
types of work done by the management, that makes scientific management so
much more efficient than the old plan. . . .

Perhaps the most prominent single element in modern scientific management is

the task idea. The work of every workman is fully planned out by the
management at least one day in advance, and each man receives in most cases
complete written instructions, describing in detail the task which he is to
accomplish, as well as the means to be used in doing the work. And the work
planned in advance in this way constitutes a task which is to be solved, as
explained above, not by the workman alone, but in almost all cases by the joint
effort of the workman and the management. This task specifies not only what is
to be done but how it is to be done and the exact time allowed for doing it. And
whenever the workman succeeds in doing his task right, and within the time
limit specified, he receives an addition of from 30 per cent. to 100 per cent. to
his ordinary wages. These tasks are carefully planned, so that both good and
careful work are called for in their performance, but it should be distinctly
understood that in no case is the workman called upon to work at a pace which
would be injurious to his health. The task is always so regulated that the man
who is well suited to his job will thrive while working at this rate during a long
term of years and grow happier and more prosperous, instead of being overworked. Scientific management consists very largely in preparing for and
carrying out these tasks. . . .

The theory of administrative management includes many important concepts ,

but these concepts can generally be put into the following general categories .

Formalized management structure . According to this theory should create an

organization with the help of highly formalized structure with clear lines of
authority from top to bottom . This hierarchical structure .

For example, consider a large corporation . At the top of board of directors , who
gives instructions to the Director General , who in turn gives instructions to the
Vice-Presidents of each division of the company . Vice-Presidents will then give
instructions to their managerial staff , which provides guidance to supervisors
individual employees .

Division of labor . Another key feature of the structural organization dedicated to

the theory of management of the administrative management division of labor
between departments within the organization. Each department is responsible
for a certain aspect of the organization's activities to the achievement of
organizational goals .

For example , our company has a large production division , division marketing,
distribution and sharing of administrative division . Anyone who works on a
specific aspect of our business : manufacturing division produces the product
marketing division sells products distribution division shipments of products to
customers or retailers , and administrative division provides administrative
support to other departments .

The transfer of power and authority . Another key feature of the theory
delegation power and authority to those compatible with their responsibilities
within the organization administrators. If you do not have the power and
authority to engage in tasks that are required to achieve specific objectives ,
which are responsible for doing , the organization can not meet its overall

objectives .

For example, the management of the company , we have been discussing , is

responsible for decision making global policy for the company ; However, it is the
job of the CEO to see that these policies are implemented board . The Council
must give the Director-General the power to implement the policies . On the
other hand the CEO cannot do all of this and should delegate the power given to
him by the Board of Vice-Presidents , who will delegate some of its powers to the
relevant managers at the middle level , and so on.

Upravljanjavedenjska theory is often called relations gibanjemedloveki how to

address the human dimension of work. Behavioral theorists believed dabolje
understanding of human behavior at work, such as motivation, conflict ,
expectations and group dynamics , increasing productivity .

Theorists who contributed to this school because officials as individuals ,

resources and assets that can be developed and worked - not as machines than
in the past . Several people and seeks to contribute to this theory .

Elton Mayo 's contributions came as part of the Hawthorne studies , a series of
experiments to consistently apply the classical control theory only to reveal their
weaknesses . Hawthorne experiments consisted of two studies conducted at the
Hawthorne Works Western Electric Company in Chicago from 1924 to 1932 . The
first survey was conducted with a group of engineers who want to determine the
relationship between levels of light workers productivity . Surprisingly , they
found that the productivity of a worker increased by decreased levels of lighting
- that is, until the workers could not see what they were doing , according to
which the performance of course declined.

Some years later , the group zaeladruga experiments . Harvard researchers

Mayo and FJ Roethlisberger supervised a group of five women in the bank wiring
room . Soenskam gave special privileges such as the right to leave their
workstation without permission , take off, the right to free lunches and
differences in wage levels and working days . This experiment also resulted in a
significant increase in productivity levels .

In this case , Mayo and Roethlisberger concluded dapoveanje is caused by a

control system , rather than related to changes in light or other benefits for
employees . Since testers become the primary supervisory employee ,
bilapodlaga great interest shown by professionals to increased motivation and
hence productivity. Actually , postaldel studies and impact on its results testers .
This Hawthorne effect jeizvor term that describes the researchers gave special
attention to the study subjects and the impact that it has a focus on the study's
findings .

The general conclusion from the Hawthorne studies was that human relations
and social needs of employees , key aspects of corporate governance . This
principle of human motivation helped revolutionize the theory and practice of
management.

Abraham Maslow , psychologist practitioner who created one of the most widely
recognized need theory , theories of motivation , which is based on the
consideration of human needs . His theory of human needs had three
assumptions :

Human needs are never completely satisfied .

Human behavior is a dedicated and motivated by the need satisfaction .

Needs can be classified according to the hierarchical structure of odnajnije

interest to the top.

Maslow 's hierarchy of needs broke in five specific areas :

Physiological needs . Maslow grouped all physical needs are necessary for
maintaining basic human well -being , such as food and beverage in this
category. Once you are satisfied that it is necessary , although that is no more ,
jemotivator .

Security needs . These needs include the need for basic security , stability ,
safety and freedom from fear. Normal state there zaposameznika all these needs
generally satisfied. Otherwise , the primary motivators .

Belonging and love needs . After the physical and safety needs are satisfied
and are no longer motivators , the need for belonging and love emerges as the
primary motivator . A struggle to establish meaningful relationships with
significant others .

Esteem needs . You need to develop self -confidence and wants to achieve the
status , reputation , fame and glory .

Needs for self -realization . Assuming that all primary needs in the hierarchy ,
the individual feels the need to find me .

Maslow's hierarchy of needs theory to help managers visualize employee

motivation .

Douglas McGregor was heavily influenced by both the Hawthorne studies and
Maslow . He believed that there are two basic types of managers . One type ,
Theory X manager , has a negative attitude towards employees and assumes that
they are lazy , unreliable and unable to take responsibility . Moreover
paUpravljalec Theory Y assumes employees are not only reliable and able to take
responsibility , but they also have a high level of motivation .

An important aspect of the idea McGregor was his belief that managers who
have either set of assumptions creates a self-fulfilling prophecy - which , through
their behavior , these managers create situations where subordinates act in a
way that confirms the initial expectations the Manager.

As a group , these theorists have found that people who work for the inner
satisfaction rather than material rewards , shifting the focus to the role of
individuals in the organization's performance .

The Scientific Method

approaches learning as a series of small steps. That is, one study or one
source provides only an indication of what may or may not be true; the "truth" is
found only through a series of objective analyses.
>This means that the scientific method is self-correctingin that changes in
thought or theory are appropriate when errors in previous research are
uncovered.
Example: Scientists changed

their ideas about the planet Saturn when, on the basis of information gathered
by the Voyager spacecrafts, they uncovered errors in earlier observations. In
communication, researchers discovered that the early perceptions of the power
of the media (the "hypodermic needle" theory) were incorrect and, after
numerous research studies, concluded that behavior and ideas are changed by a
combination of communication sources and that peoplemay react to the same
message in different ways.
>Science attempts to provide
more reliable answers than those provided by other generally used ways of
knowing. To the extent that you can use the scientific method for decision
making in public relations management, then you elevate the function from the
intuitive enterprise of the artist and make it part of an organization'management
system. In this approach, research is at the core of how the function is managed.
First, research is done todefine the problem situation for the purpose of
developing a public relations program.
Second, research is done to monitor program implementation for performance
accountability and for strategic adjustments.
Third, research is done to measure program impact or effectiveness with respect
to goals and objectives.
Research adds a layer of complexity to the practice of public relations.
Several basic characteristics or tenets of the scientific method are especially
important in public relations research:
>
Science is objective.

Science tries to rule out eccentricities of judgment by researchers.

>
Science is empirical. Researchers are concerned with a world that is knowable
and potentially measurable.
(Empiricism is derived from the Greek word for "experience")
>
Science is systematic and cumulative.No single research study stands alone, nor
does it rise or fall by itself.
>
Science is predictive.
Science is concerned with relating the present to the future. In fact, scientists
strive to develop theories because, for one reason, they are useful in predicting
behavior.

As we have seen when discussing open systems, organizations are dependent on

the environment for their survival. If they are unable to import energy and
resources from the environment, or if their products or services are not required
by the environment, then they cannot survive. Nonprofit organizations are
created in response to demands from groups, organizations or individuals from

the general environment. They depend on the environment for the financial and
human resources necessary to carry out their activities (Heffron, 1989).
Definition of Environment
An organization's environment is defined as all the elements existing outside the
boundary of the organization that have the potential to affect all or part of the
organization (Daft, 1997).
Environmental Sectors
Daft (1997) identified 10 environmental sectors that may have an impact on
particular organizations: 1) industry, 2) raw materials, 3) human resources, 4)
financial resources, 5) markets, 6) technology, 7) general economy, 8)
government/legal, 9) sociocultural, 10) international.
Each of these sectors may be divided into two basic components: a) the general
environment, common to all organizations in a particular society, and b) the
specific environment, which pertains to those organizations, groups or
individuals with which the organization interacts directly. This specific
environment is often referred to as the environmental domain of the
organization. For example, technological change may be a common
environmental factor for all organizations, but specific technological
advancements may be more pertinent to some organizations which will be
interacting with specific agents of that technology. Not all sectors are equally
important to an organization at any given time, so that an organization will be
attuned to different sectors at different times.
Environmental Uncertainty
How does the environment influence an organization?
As we have seen from our open systems model, organizations need resources
from the environment, their products or services have to be desired by the

environment, and they need information from the environment to monitor these
other two needs. As long as an organization can foresee its needs being fulfilled
by the environment, and predict the demands from the environment for its
goods or services, it can continue to function in the way that it always has.
However, as any part of the environment becomes more uncertain, the
organization will have to adapt to the new demands or contingencies.
Environmental uncertainty, as defined by Pfeffer and Salancik (1978), refers to
"the degree to which future states of the world cannot be anticipated and
accurately predicted." Environmental uncertainty is problematic to an
organization only when it involves an element critical to the organization.
Environmental uncertainty increases or decreases as environments vary along
five basic dimensions:
homogeneity - heterogeneity: the number and diversity of constituencies that
influence the organization.
concentration - dispersion: the degree of interconnection among components of
the environment
stability - turbulence: the rate and magnitude of change in the environment
resource scarcity - resource munificence: abundance and availability of resources
hostility-supportiveness: extent of competition and level of acceptance of the
organization
Robert Duncan proposed a two dimensional model of uncertainty in which he
identified environmental changeability and environmental complexity as the
determinants of uncertainty.
Environmental changeability refers to whether elements in the environment are
stable or unstable. An environmental domain is stable if it remains the same over

a period of months and years. Under unstable conditions environmental

elements shift often and abruptly. Public utilities operate in stable environments,
whereas the garment and airline industries have been unstable in past years.
Environmental complexity refers to the heterogeneity of elements in the
environment, ie the number of dissimilar elements and organization has to deal
with.
The combination of these 2 dimensions can help ascertain the level of
environment uncertainty. Uncertainty is highest when the environment is both
unstable and complex.
Structural Contingency Theory
The earliest studies investigating the effects of the environment on
organizational structure were carried out by Burns and Stalker, in England in the
early 60's. They compared firms in a dynamic, changing industry to those in a
stable, established industry and found important structural differences. In the
stable industry successful firms relied on formal rules with decision making very
centralized, and narrow spans of supervisory control. In the more dynamic
industry, spans of control were wider, with less formality and less centralization.
In other words, they found that an organization's structure was contingent on
the kind of environment in which it was operating.
Following up on the Burns and Stalker studies, Lawrence and Lorsch (1967),
observing that different units of an organization face different types of
environments, found that each subunit develops a structure matching its own
environment. The successful organization was one which differentiated
according to environments, but which was able to integrate the diverse
elements. Successful coordination was key.
The two basic principles in the resource dependence argument are:

organizations respond more to demands of elements in the environment that

control critical resources
managers and administrators attempt to manage their external dependencies to
ensure survival and acquire more autonomy.
Dependence on the environment makes external constraint and control of
organization behaviour inevitable. Organizations are confronted with numerous
demands, many incompatible. The three most crucial factors in determining
dependence are:
importance of resource
extent of demanders discretion over resource allocation
paucity of alternatives or concentration of demanders control
Organizations may undertake two types of strategies: either establishing a
negotiated environment, or altering the pattern of interdependence by forming
mergers, joint ventures, interlocking directorships, executive recruitment or
changing their environmental domain through diversification and divestment.
They may also attempt to influence the environment through advertising and
public relations, political activity and lobbying, formation of trade associations
and illegal activities.
Population Ecology
This theory authored by Hannan and Freeman (1978, 1989) differs from the
others in that the focus is not on individual organizations but rather on
populations of organizations. It uses a biological evolutionary paradigm to
answer the question: "Why are there so many different types of organizations?"

The answer lies in the fact that organizations suffer from "relative structural
inertia". In other words organizations find it very difficult to make changes
quickly enough to keep up with the changing demands of the environment.
According to the theory, the environment selects organizations or rejects them.
Every organization has to find a niche for itself if it is to survive. As long as an
organization is fulfilling the demands of the niche, it will survive. However,
niches change and organizations usually cannot change quickly enough, so they
die and new organizations take their place. This is what accounts for the
variation in organizations. It is a question of the survival of the fitting. The
environment selects a reliable form, once selected the organization
institutionalizes the successful form. This leads to structural inertia, making
change difficult. The organizational form is retained as long as the environment
doesn't change. When the environment changes, old forms, unable to change,
die, and new forms rush in to take their place.
There are two types of organizations: Specialists and generalists. Specialists offer
one service or product. In the terms of PET, they serve only a single niche.
Generalists, have various services or products, thus they straddle niches. When
the environment changes, specialists usually die, but generalists can ride out
changes in one niche if the others are stable thus generalists have an advantage
over specialists in terms of survival in times of change. Specialists have the
advantage in terms of formation in times of change. They can quickly move into
a new niche and exploit it to their advantage.
Research has found that organizations suffer from a liability of newness. 80% of
organizations do not reach their fifth year. This is because of lack of external
legitimacy which makes it difficult for them to compete. They also have less
access to resources. Internally, they have inexperienced staff whose
organizational socialization takes time.