Organizational Structure Longman Island
An organization comprises of people who are all directed towards the achievement of a specific goal. For the people to be rightly focused towards their aim there are numerous conventional and contemporary management and organizational behavior theories that should be implemented. Even though each of the theories and concepts need to be applied with caution according to the nature of the business itself, studying them is necessary so as to understand the underpinning roots of how the organization should be structured and managed.
The theories that we will be looking at are General Principals of Management (Henri Fayol), Bureaucracy (Max Weber), and The Principals of Scientific Management (F. W. Taylor). Also, we will be looking at how the organizational structure plays an important part in developing the main framework of the system and the main lines of management and authority. The Organization The organization that we will be taking forward as an example to illustrate the application of the various management theories is the Long Island University.
LUI was founded in 1926 in Brooklyn with the aim of providing “effective and moderately priced education” to people from different walks of life. LUI has two main campuses in Brooklyn and Brockville and offers
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An organizational structure neatly outlines that lines of authority and responsibility and clearly shows who will be accountable to whom. Organizational structure comprises of some elements such as: 1) work specialization, whish describes to what extent to which can jobs be subdivided into separate tasks; 2) Departmentalization, whereby the basis for which the tasks will be grouped is decided. This can be in the form of functional groups such as marketing department and finance department or on the basis of product e. g. cars and bikes;
3) chain of command which identifies the who is responsible to who, with whom does authority lie and the management lines from top of the organization to the bottom; 4) span of control shows how many subordinates are working under one manager and therefore it tells how many people can one person manage effectively; 5) centralization and de-centralization which describes the extent to which decision making is done a single point in the organization or is dispersed; 6) formalization which defines what rules and standards will govern the behavior of employees and managers. (Robbins & Judge, 2004)
Literature Review Organizational structure exists in every organization and the way that it is present in Long Island University is that it lays down the entire chain of command from the Dean/Director to the lowest persons such as the cleaning and maintenance staff. Departmentalization is in the form of functions such as Finance department, Accounting and Human Resource which further narrows down to the teachers and staff of different courses and subject areas which again goes deeper to include the students designated to the teachers and also the different societies existing in the university.
Span of control varies according to the needs of the university and capabilities of the department heads and subsequent managers (Shafritz, Ott & Jang, 2005). Most of the course related issues are de-centralized to the respective departments whereas major decisions affecting the entire university such as expansion plans or major advertising programs are centralized with the dean being included in the decision making process (Shafritz, Ott & Jang, 2005).
Formalization involves the policies such as when the staff should prepare student progress report and deliver it to their respective superiors, when quality circle meetings should be held or what lines of communication will be used to pass information up or down the hierarchy (Daft, 2001). The university works as a team and matrix structure whereby departments can collaborate, tackle problems together and bring about solutions. Henry Fayol, a French industrialist brought The General Principles of Management which deal with the formal structure of the organization.
It provides the roots of sound effective management principles whereby the role of management can be broken down into different elements which are: 1) forecast and plan which means manager should be able to identify the businesses requirements in the future such as demand and plan accordingly; 2) organize which is to bring together the four factors of production in an efficient and effective manner; 3) command which is to have authority over something or someone to make work happen;
4) co-ordinate which is to bring together all departments in collaboration and harmony; 5) control which is to manage and guide the work of subordinates and make them accountable and responsible for it. The main purpose of the management principles is to ensure that the organization is geared towards the achievement of a set of objectives (Management Theory by Henri Fayol, 2009). Long Island University implements the General Principles of Management by firstly having President of the university responsible for the entire workings of the Institution.
The Board of Director has been established which oversees the general workings of the University and appoints managers and department heads. Also, each campus and branch has it own responsible body which organizes the campus initiatives, its objectives and co-ordinates and aligns them with the overall objectives of the University. Each of the functional heads is further responsible for managing and controlling the workings occurring in their departments. E. g.
the head one the Brooklyn campus is responsible for organizing his staff, bringing up change plans, writing policies, holding major events for the Brooklyn campus and extending co-operation and co-ordination with other branches and also other universities. Max Weber, a German sociologist advocated the concept of Bureaucracy/ Red-tape which he thought was an ideal way to run government agencies. He believed in a very rigid organizational structure with high inflexibility and the division of work units according to the work specialization or skills of people.
He believed in a centralized form of decision making whereby all the control would lie with the top most authorities. He believed that organizations should grow at a predictable rate and therefore they should continue to grow despite the nature of the business. Also, he advocated that organizations should either have an ‘in-focused’ view whereby committing to serve the stockholders or ‘in-focused’ whereby committing itself to serve the people within the organization and the organization itself.
Also, he wanted organizations to play by the rules and adhere to all regulations and formalities in a strict manner without any deviations (Max Weber-6 characteristics of the bureaucratic form, 2009). Long Island University does not completely employ the concept of bureaucracy but in certain segments it needs to observe it. This maybe the case in following government regulations or when dealing with government officials in case of taxes or when conforming to other government related issues.