LUTHER GULICK AND LYNDALL URWICK
FORMAL ORGANISAION THEORY
- PAPER ON THE SCIENCE OF ADMINISTRATION 1937
GULICK SPECIFIED THE FOLLOWING TEN PRINCIPLES OF ORGANISATIONS:
1) DIVISION OF WORK OR SPECIALISATION
2) BASIS OF DEPARTMENTAL ORGANISATIONS
3) COORDINATION THROUGH HIERARCHY
4) DELIBERATE COORDINATION
5) COORDINATION THROUGH COMMITTES
6) DECENTRALISATION OR THE HOLDING COMPANY IDEA
7) UNITY OF COMMAND
8) STAFF AND LINE
9) DELEGATION
10) SPAIN OF CONTROL
However, the most important principle, according to gulick is division of work (specialisation). Thus, he wrote. “work division is the foundation of organisation; indeed the reason for organisation. Division of work and integration are the bootstraps by which mankind lifts itself in the process of civilisation.”
Similarly, urwick specified eight principles of organisation:
1) PRINCIPLE OF OBJECTIVE:- an organisation should have an expressed objective.
2) PRINCIPLE OF CORRESPONDANCE:- at all levels authority and responsibility must be coterminous and coequal.
3) PRINCIPLE OF RESPONSIBILITY:- the superior must take absolute responsibility for the work of their subordinates.
4) SCALAR CHAIN:- a pyramidical type of structure should be built in an organisation.
5) PRINCIPLE OF SPAIN OF CONTROL:- No supervisor can supervise the work of more than five or at the six subordinates whose work inter- locks.
6) PRINCIPLE OF SPECIALISATION:- Limiting one’s work to a single function.
7) PRICIPLE OF COORDINATION:- Harmonious functioning of different parts of the organisation.
8) PRINCIPLE OF DEFINATION:- Clear prescription(defining in writing) of duties, authority and responsibility of each position and its relationship with other positions.
BASIS OF DEPARTMENTAL ORGANISATION.
Gulick has given 4P formula regard with the establishment of departments, universally.
- P purpose
- P process
- P person
- P place
According to him the organisation made on the basis of purpose, process, person or place.
1) Purpose based organisation: means the organisation which are formed for a particular purpose such as conducting coordination.
2) Process based organisation: refer the organisation in which basically the processing is done like ministry of law, statistic department, accounting department etc.
3) Person based organisation: are the organisation which are formed to serve any particular target group, community or society like department of scheduled caste, minorities etc.
4) Placed based organisation: are basically formed to serves any particular territory.
Though gulick has given separate basis idea. but in the modern organisation are having all the basis inherent. Whether, they are formed on any basis of purpose. It must have some process serve a particular target group will be located in a particular territory.
FUCTIONS OF EXECUTIVE/MANAGER
LUTHER GULICK explains Seven element of administration (or function of the chief executive ) in following ways:-
P---PLANNING:- this is the working out in broad outline the things that need to be done and the methods for doing them to accomplish the purpose set for the enterprise.
O---ORGANISING:- that is the establishment of the formal structure of authority through which work sub-divisons are arranged , defined and coordinated for the defined objectives.
S---STAFFING:- this is the whole personnel function of bringing in and training the staff and maintaining favourable conditions of work.
D---DIRECTING:- this is the continuous task of making decisions and embodying them in specific and general orders and instructions and serving as the leader of the enterprise.
CO---COORDINATING:- that is all important duty of interrelating the various parts of the work.
R---REPORTING:- that is keeping informed those to whom the executive is responsible as to what is going on. This includes keeping oneself and one’s subordinates informed through records, research and inspection.
B---BUDGETING:- all that goes with budgeting in the form of fiscal planning ,accounting and control.
What about controlling you never mention it
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