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Management And Structure Of Organizations
By Sharon White
The first attempts to understand the management and structure of organisations developed in the early part of the 20th Century and by 1950 three principal schools of thought existed. These may be described as the Classical School, the Behavioural School and the Systems School. The Contingency School started to evolve around this time but did not find favour until the late 1960s and early 1970s. During the 1980s western management considered the success of Japan and its emphasis on quality. Writers such as Peters, Handy and Kanter tried to address the issues of the effects of the rapid increase in technology

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and globalisation and form the backbone of the Culture called Excellence movement. Classical Approach is characterised by three propositions. Firstly, organisations are rational entities, the aim of which is to achieve specific goals through their organisations into formalised structures. Secondly, the design of organisations is a science and that there is one best universal form for all bodies. Finally, the Classical Approach rests solely on the belief that people are economic beings. The development of a hierarchical structure, together with prescriptive methodologies of working are indicative of what could be loosely, and pejoratively, termed “bureaucracies”. Weber saw bureaucracies as technically superior to other forms of organisation. They introduced order and rationality into social life. The features of a bureaucracy can be summarised as specialisation, hierarchy of authority, a system of rules and impersonality. Hierarchy and the system of rules produce a rational legal system, which gives management the right to issue commands and the expectation for them to be obeyed. Impersonality ensures that the exercise of authority is carried out impartially. The organisations created by the Classical Approach can become hidebound by their procedures, they may deny the humanity of their personnel and the rigidity of their structures act as a barrier to entrepreneurial activity.


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Another Goldman unit hit by decline
Goldman Sachs' plans to expand its wealth management operations have been dealt a potential setback by a dramatic decline in the value of another of its funds
Nippon Oil, Nippon Mining considering a merger
Japan's top refiner Nippon Oil Corp and sixth-ranked Nippon Mining Holdings said they are considering a merger to create the world's eighth-largest oil major to better compete amid sliding prices and slower demand
Chinese group sues Vale Inco
A large Chinese battery manufacturer is suing two units of Vale, one of the world's largest mining companies, in a patent infringement case that highlights the growing number of Chinese companies using local courts to protect their interests
Harvard endowment loses $8bn in four months
The world's wealthiest university placed the decline at 22%, bringing the figure to $28.7bn and underscoring how higher education has been hard hit by the global financial crisis
Adobe slashes revenue forecast
The US software group lowers its outlook for the November quarter to $912-$915m and announces job cuts, the latest indication of how the crisis has hit the technology sector
Carlyle to cut 10% of staff as downturn bites
Private equity firm Carlyle is cutting 10 per cent of its staff in the latest indication that buy-out firms will not be immune to the meltdown in the markets
Fortress suspends Drawbridge redemptions
The listed private equity group has suspended redemptions at its flagship fund in order to maintain assets after investors sought to withdraw more than $3.5bn in funds
Vodafone to appeal against India tax ruling
The Mumbai High Court dismissed a landmark challenge by Vodafone against a $2bn tax case in a blow to the UK group and a potential setback for other companies looking to make major investments in India
EDF tries to scupper Buffett's energy bid
The French state-controlled utility launched a direct challenge to billionaire Warren Buffett with a $4.5bn bid for 50 per cent of the nuclear fleet owned by its US partner Constellation Energy
Discounts drive 15% sales jump on 'Cyber Monday'
US online retailers saw an annualised 15 per cent jump in sales on the Monday following the Thanksgiving weekend, according to early estimates, as aggressive bargains boosted traffic on the day the industry has dubbed 'Cyber Monday'
US auto union makes concessions
The main car workers' union said that it would suspend a contentious practice that allows so-called 'idled' car workers to collect virtually full pay and benefits without working
New Star agrees 240m rescue with banks
One of the UK's best known fund managers has agreed to a debt-for-equity swap deal that will leave a group of four banks, including HBOS, Lloyds TSB, HSBC and RBS, in control of the group
Iberia gives BA merger ultimatum
The chief executive of the Spanish carrier said it would be 'too complex' for BA to pursue deals with both it and Qantas of Australia
Merckle at risk of losing empire
German billionaire who lost large sums by betting on falling share prices may have to hand over control of large parts of his industrial empire to his banks.
Dassault in pledge over Thales chief role
Aircraft group will not put forward own executive should Ranque leave in wake of stake sale