MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE

SUMY STATE UNIVERSITY

Department of Management

Term Paper
Course: Management and Administration Theory

"Current issues in the theory of management and administration"

Variant 3

(questions 7-9)

Student Kaliuzhna Sofiia

Group M-91an/1y

Sumy 2019
 Content

Introduction………………………………………………………………………3-4
1.1. Organizational structures. Definition and main
types...............................................................................………………………....5-8
1.2. Functional organizational
structure…………………………………………………………………………….8
1.3. Divisional organizational
structure…………………………………………………………………..............8-9
1.4. Matrix organizational
structure…………………………………………………………………………...10
2.1 Public administration, as a direction of
management…………………………………………………………………...10-11
2.2 Public Administration vs Management: What is the difference?
……………………………………………………………..……….....12
3.1 Process theories of motivation.
………………………………………………….............................12-14
3.2 Theory of justice and expectation theory.……………………....................14-16
3.3 Goal setting theory and concept of participatory management.
……………………………………………………......................16-21
Conclusion…………………………………………………………………...……22
Applications…………………………………..……………………………….23-25
References……………..………………………………………………………….26

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 Introduction

In this work, according to the topic, should be analysis existing basic types of
organizational management structures and presents there comparative
characteristic, described public administration as a direction of management and
researched the process theories of motivation.

The organizational structure of management, and public administration also, is an

important link in scientific theoretical management. In practice, the use of basic
model structures is not only a necessity, but also an inevitability. It is not possible
to establish long-term relationships with personnel in an enterprise using the
“chaos method”. Everything requires orderliness and hierarchy. That’s why people
use the theory of motivation to develop the enterprise and improve the quality of
their employees.

The aim of the course work is to study not only the main types of organizational
management structures, but also to show their visible advantages and
disadvantages, to show clearly with the help of diagrams the forms of their
functioning and the dependence of the origin of one on the other, and also to
compare them with each other. Naturally, reveal the topic of public administration
having told about its features, benefits and bad sides. And, of cource, take a look at
all basic principles and the insignificant theories of motivation and learning about
those, which are the best ones for the average market.

According to the goal, the tasks of the work will be:

 designate, analyze and compare types of organizations;

 highlight public administration, as a direction of management;
 told about process theories of motivation

Accordingly, the goals and objectives of the main part of the course work consists
of three chapters. The general structure of the work is as follows: title page, table

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of contents, introduction, main body, conclusion and list of literature used in
writing the work.

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 1.1 Organizational structures. Definition and main types.

An organizational structure is defined as “a system used to define a hierarchy

within an organization. It identifies each job, its function and where it reports to
within the organization.” A structure is then developed to establish how the
organization operates to execute its goals.

There are many types of organizational structures. There’s the more traditional
functional structure, the divisional structure, the matrix structure and the flatarchy
structure. Each organizational structure comes with different advantages and
disadvantages and may only work for companies or organizations in certain
situations or at certain points in their life cycles.

Thus, an organization is a group of people whose activities are deliberately

coordinated to achieve a common goal or goals.

Of course, all business organizations are open systems. They cannot exist
autonomously, closely. To carry out their activities, it is necessary to interact with
the external environment and obtain resources from it in the form of labor, capital,
equipment, raw materials, energy, information, etc. Resources using appropriate
technologies are processed, converted into products and services transferred to the
external environment.

In addition, an organization is a system that represents a certain integrity,

consisting of interconnected and interdependent parts, each of which contributes to
the characteristics of the whole.

The task of any organization is to realize the capabilities of the external and
internal environment. Opportunities arise, disappear, lead to the emergence of new
opportunities. This process is permanent.

Therefore, organizations must constantly respond to the emergence of new

opportunities, be adaptive, flexible and mobile in order to be able to realize them.

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All organizations differ in scale, organizational and legal forms, management
methods, technologies, etc.

Organization is not only the primary economic link in the economy, but also the
totality of long-term norms and rules for the construction and functioning of
rational structures and production processes of the enterprise, ensuring its
achievement of the established goals of long-term development.

The organization is characterized by the following elements:

1.Levels of organization:
 world system;
 National economy;
 sectors of the economy;
 business associations;
 enterprises;
 subdivisions (workshop, site, department, service, etc.);
 workplace.
2. The main categories of organization:
 types of organization;
 forms of organization;
 organization methods;
 organization principles.

The objects of organization of production at the enterprise are supply, production,

marketing, etc.

The subjects of the organization - the personnel of the enterprise, carrying out
production activities in accordance with their official duties.

Organizational structure is one of the main elements of organization management.

It is characterized by the distribution of management goals and objectives between
departments and employees of the organization. In fact, the management structure
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is an organizational form of the division of labor for the adoption and
implementation of managerial decisions.

Thus, by the organizational structure of management it is necessary to understand

the totality of managerial units located in strict subordination and ensuring the
relationship between the managing and the managed systems.

In the experience of functioning of institutions of accommodation the most

common types of organizational structures of management are: linear; linear-
functional; grocery; functional; matrix.

Divisional Functional

Matrix

Picture 1.1 Types of organizational structure

The organizational structure of management is not something frozen, it is

constantly being improved in accordance with the changed conditions.

Therefore, these structures are very diverse and are determined by many objective
factors and conditions.

The most important of them are as follows:

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  scale of business (small, medium, large);
 production and industry features of the business (production of goods,
services, purchase and sale);
 nature of production (mass, serial, single);
 field of activity of firms (local, national, foreign market);
 level of mechanization and automation of management work;
 qualifications of workers.

1.2 Functional organizational structure.

Firstly, let’s speak about functional organizational structure.

If you had a job, you probably worked in a functional organizational structure.

The functional structure is based on an organization divided into smaller groups

with specific tasks or roles.( Application 1)

For example, one company may have a group working in the field of information
technology, another in the field of marketing and another in the field of finance.
Each department has a manager or director who can manage several departments.
The marketing department and is responsible for the vice president, who is
responsible for the marketing, finance and IT department.

The advantages of this structure are that employees should group their skills and
functions, which allows them to focus their collective efforts on the performance of
their functions as a department.

One of the problems that this structure represents is the lack of interagency
collaboration. This can lead to various problems that may lead to problems in the
future.

In addition, employees have the opportunity to develop “tunnel vision”.

1.3 Divisional organizational structure

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Large companies that work on several horizontal goals sometimes use the
organizational structure of the unit.

This structure provides much greater autonomy between groups within the
organization. One example of this is a company like General Electric. GE has
many different divisions, including aviation, transportation, currents, digital and
renewable energy, among others.

In accordance with this structure, each division, in fact, acts as its own company,
controlling its own resources and how much money it spends on certain projects or
aspects of the division.

In addition, within this structure, units can also be created geographically, with a
company having units in North America, Europe, East Asia, etc.

This type of structure provides great flexibility for a large company with many
divisions, allowing everyone to work as their own company when one or two
employees report to the chief executive officer or senior management of the parent
company.(Application 2) Instead of approving all programs at the highest levels,
these questions can be answered at the department level.

The advantage of this structure is that the needs can be met faster and more
specifically, as each unit can operate more or less independently for the other units
of the company. However, separation can also be cumbersome because
communication prevents employees from different units from working together.
Separate road structure by size and scope. Small businesses may use a smaller
divisional structure, for example, have different offices in different parts of the city
or designate different sales teams to handle different geographical areas.

A drawback of this type of organizational structure is that, focusing on

departments, employees performing the same function in different departments
may not be able to communicate between departments. This structure also causes
problems with accounting practices and may have tax consequences.
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 1.4 Matrix organizational structure

Organizations can be structured in various ways, and the organization structure

determines how it works and works. The third main type of organizational
structure, called the matrix structure, is a hybrid divisional and functional structure.
Commonly used in large multinational companies, the matrix structure makes it
possible to take advantage of functional and divisional structures in one
organization.

Matrix structure is a type of organizational structure in which individuals are

grouped by two different operational aspects at the same time; this structure has
both advantages and disadvantages, but as a rule, it is better to use companies large
enough to justify the increased complexity.

In a matrix structure, employees can report to two or more bosses, depending on

the situation or project. For example, under normal functional circumstances, an
engineer in a large engineering firm may work for one boss, but a new project may
arise when the experience of that engineer is required. Throughout this project, the
employee also reports to the manager of this project, as well as to his or her
manager on all other daily tasks.( Application 3)

The advantages of this structure are that employees can share their knowledge
between different functional units, which allows you to better communicate and
understand the role of each function. By working on the functions, employees can
expand their skills and knowledge, which will lead to professional growth in the
company.

On the other hand, reporting to multiple managers can add confusion and conflict
between managers over what should be reported. And if priorities are not clearly
defined, employees can also get confused in their roles.

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 2.1 Public administration, as a direction of management

Public administration - the activity of public authorities and their officials on the
practical implementation of a policy course developed on the basis of appropriate
procedures. Public administration activities have traditionally been opposed, on the
one hand, to political activity and, on the other hand, to policy-making activities.

Various institutions are involved in public administration. These are government

agencies. Some of these are mainly related to policy formulation, such as
Parliament or Congress. Some of these are mainly related to policy formulation,
such as Parliament or Congress.

Other institutions are agencies, banks and hospitals, and governments of districts
and cities. They are translators and tailors of the government. without this, the
government would be ineffective and ineffective.

However, a complete definition for public administration is difficult to achieve

through a large number of tasks that fall under it. Some academics argue that all
government-related activities fall into this category, while others decide to argue
that only the executive aspect of functions includes government.

In addition, by the nature of public administration, there are two popular views,
one of which is integral, and the other is managerial. The integrated presentation
includes all general managerial, technical, technical and manual actions, as well as
employees of all levels. This view was supported by L.D. White and Dimok. This
may differ from one agency to another depending on their field of activity.

Thus, public administration can be understood as a governing influence - the open

interaction of the state apparatus and society when making important decisions for
the republic (society, population), actions, as an open public sphere of public
interests in which all public institutions, citizens can be not only in the role of

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management objects, but also to act as subjects, autonomous units in relations with
government and management. We can say that public administration is the
management of society together with society.

2.2 Public Administration vs Management: What is the difference?

These two disciplines are partly in line with each other. Public administration
mainly focuses on the development of public policies and public programs. Public
administration is accountable and involves very specific management activities in
public organizations.

The spheres of management and public administration concern both public policy
and how it can be used to improve social conditions. Both specialties actively
support the adoption and implementation of public policy. They also make
excellent use of critical professional skills, including public finance knowledge,
leadership skills, interpersonal communication skills, and strategic thinking.

The main difference between the two fields is the basic definitions of
administration and management. Management is concerned with planning and
taking action, while administration is about applying a policy that dictates how
management should act.

Public administration rules are a decisive factor in policy making, providing a

measure of how this policy should be implemented in society. On the contrary,
public administration rules dictate how public servants should implement this
policy. Public administration is a practical approach that focuses on day-to-day
policy deployment tasks, as public administration prioritizes control over
hierarchies, rules, and regulations that facilitate public policy implementation.

3.1 Process theories of motivation.

Effective management of human behavior can be ensured through an

understanding of his motivation.

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Motivation is a combination of internal and external factors that prompt a person to
work to achieve certain goals.Motivation is the process of influencing a person in
order to induce him to certain actions.

Motivation can be represented in the form of six stages:

1) the emergence of needs;

2) the search for ways to address needs;
3) determination of the direction (goal) of the action;
4) the implementation of the action;
5) remuneration for the implementation of the action;
6) elimination of need.

The motivation process is very complex and ambiguous. There are two groups of
theories (substantive and procedural),trying to explain this process.

Of the substantial theories, the most recognized is the theory of A. Maslow, which
states that people in their motivations rely on five types of needs. At the same time,
needs form a hierarchy in which any need becomes a motivator after the lowest
need in the hierarchy is satisfied.

The theory of motivation K. Alderfer identifies three groups of needs: existence,

communication and growth. Alderfer believes that, unlike Maslow’s theory, the
movement from need to need goes both ways: up if the need for the lower level is
not satisfied, and down if the need for the higher level is not satisfied.

McClelland's theory of motivation claims that people are motivated by the needs of
higher levels: power, achievement, and involvement.

According to the theory of F. Herzberg, the so-called health factors (wages,

working conditions and working hours, interpersonal relationships, etc.) create in a
person only feelings of presence or absence of dissatisfaction with work and do not
belong to motivating factors. A person’s motivation should be provided by such
factors as achievement, recognition, promotion of an employee, etc.
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The most well-known theories of the process of motivation are:

• theory of justice;

• expectation theory;

• goal setting theory;

• concept of participatory management.

3.2 Theory of justice and expectation theory.

Justice theory.

The essence of the theory of justice lies in the fact that the employee compares the
remuneration received with the efforts spent on achieving the result and with the
remuneration of other employees. If the employee considers the remuneration
unfair, then he reduces the effectiveness of labor.

The founder of this theory is S. Adams. Basic ideas of the theory of justice:

• the person compares the reward received with the efforts spent on achieving the
result;

• it also compares its remuneration with that of other employees doing similar
work;

• based on these subjective evaluations, one changes their behavior. For example,
if an employee considers the remuneration unfair, it reduces labor productivity as
much as its remuneration.

Since the productivity of employees who assess their remuneration as unfair (due
to the fact that the other person performing the same work gets more) will fall, they
need to be told and explained why there is such a difference.

For example, it must be clarified that a higher paying colleague gets more because
he has more experience allowing him to produce more. If the difference in

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remuneration is due to different labor efficiency, it is necessary to explain to
employees who receive less that when their performance reaches the level of their
colleagues, they will receive the same increased remuneration.

Some organizations are trying to solve the problem of employees having a sense of
an unfair assessment of their work by keeping the amounts of payments secret
(issuing salaries in envelopes). Unfortunately, this is not only difficult to do
technically, but also makes people suspect injustice even where it really is not. In
addition, if you keep the size of employee earnings secret, then (as follows from
the theory of expectations), the organization risks losing the positive motivational
effect of wage growth associated with career advancement.

The practical value of fairness theory for managers:

• Explains to them why the employee had a particular reaction to the remuneration;

• Allows them to anticipate employee behavior.

Theory of expectation.

The main developers of expectation theory are V. Vruma, L. Porter, and E. Lawler.

Victor Vroom believed that the presence of an active need is not the only necessary
condition for motivating a person to achieve a specific goal. A person should also
hope that the type of behavior he chooses will actually lead to the satisfaction or
acquisition of the desired.

An expectation is a person's idea of the extent to which his actions will lead to
certain results. Expectation has a very strong influence on a person's behavior in
the organization.

The process of motivation in the theory of expectation as it consists of the

interaction of three components: effort, fulfillment, result.

If people feel that there is no direct connection between the efforts expended and
the results achieved, then, according to the theory of expectation, motivation will
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weaken. Lack of interconnection can occur due to improper self-esteem of the
employee, due to his poor training or improper training, or due to the fact that the
employee was not given sufficient rights to complete the task.

Expectancy theory studies the interaction of these three components and is based
on three relationships:

1) labor costs are the results of labor (expectation that the effort spent will
necessarily lead to a result);

2) results of work - remuneration (expectation that remuneration will be received

for a particular result);

3) valence (satisfaction) of remuneration (expectation that remuneration will be

valent, means valuable for the employee).

The basic thesis of this theory is that in order for the incentive system to push a
person to work, he must believe that his efforts will increase the likelihood of
receiving appropriate remuneration.

The practical value of expectation theory for managers:

• explains to them that people carry out their actions according to what possible
result (reward) these actions can lead to;

• allows them to predict the behavior of subordinates under known systems of

employee work motivation.

Finally, according to the theory of expectations, the most effective motivation is

achieved when people believe that their efforts will allow them to achieve the goal
and will lead to obtaining the corresponding result and reward.

3.3 Goal setting theory and concept of participatory management.

Goal setting theory.

The main developers of the theory of goal setting E. Locke and G. Latem.
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The essence of theory - the goals that a person sets themselves, determine his
behavior. In order to achieve its goals, it is taking certain actions.The process of
motivation through goal setting can be presented in several stages.

environment awareness and event evaluation

definition of the goal that determines the direction and
intensity of the goal

drawing up a plan to achieve the goal

implementation of goals
getting the result
satisfaction with the result

Picture 3.3.1. Outline of the process of motivation through goal setting

In general terms, the model describing the goal setting process is as follows. A
person, taking into account his emotional state, is aware and evaluates the events
taking place around him. On the basis of this, he determines for himself the goals
that he intends to strive for, performs a certain work, achieves the intended result

The theory under consideration claims that a person’s willingness to spend certain
efforts and perform work at a certain level largely depends on four characteristics
of the goals: complexity, specificity, acceptability, commitment to them.and
receives satisfaction from it.

The complexity of the goal reflects the degree of professionalism and the level of
performance necessary to achieve it. There is a direct link between the complexity
of the goal and the implementation of work to achieve it. The more complex the
goals that a person sets, the better he can achieve. The exception is the case when
unrealistic, complex goals are set. Workers can simply ignore overly complex
goals. Therefore, the complication of goals gives a positive effect only when they
are real.

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The specificity of the goal reflects its quantitative clarity, accuracy and certainty. It
has been experimentally established that more specific and specific goals lead to
better results, better work performance than those that have a broad meaning, fuzzy
defined content and boundaries. A person who has goals that are too broad in
meaning and content works the same way as someone who has no goals at all. But
it is impossible to narrow the goals too much, because then important aspects of
the activities carried out by him will remain outside the field of vision and
attention of a person.

The acceptability of the goal reflects the degree to which the person perceives it as
his own. If a person perceives the goal set in this way, complexity and specificity
do not matter much to him. The acceptability of a goal for a person directly
depends on its attainability and profitability. If the potential benefits of achieving
the goal are not obvious, it may not be accepted. Therefore, leaders, formulating
goals for subordinates, should represent them as achievable, profitable, fair and
safe.

A commitment to a goal reflects a willingness to spend a certain level of effort to

achieve it. This is a very important feature, especially at the work completion
stage. It can be decisive if the work is much more difficult than it seemed when
setting goals. If everything is easy, the employee’s commitment to the goal
increases, and when difficulties arise, it decreases. Management should constantly
monitor the level of commitment of the goal among employees and take the
necessary measures to maintain it.

The last step in the motivation process in goal setting theory is employee
satisfaction with the result. It not only completes the chain of the motivation
process, but also is the starting point for its next cycle.

If a positive result is obtained, a person receives satisfaction, and if a negative one

is upset. The goal setting theory argues that a person’s satisfaction or frustration is
determined by two interrelated processes: internal to him and external. Internal

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processes are mainly related to how the person himself evaluates the result
obtained by him in comparison with the goal, and external processes - with the
assessment of the performance of the environment. The positive reaction of the
environment (gratitude of the leadership, promotion, increase of salaries, praise of
colleagues, etc.) causes satisfaction, negative leads to dissatisfaction.

Concept of participatory management.

The concept of joint management takes into account the natural desire of a person
to participate in the processes taking place in the organization. It is assumed that if
a person takes part in organizational activities, in decision making, then he works
with greater efficiency.

In practice, different methods are used to attract employees of the organization to

management.

Direction of concept implementation

Granting employees the right to make decisions on their activities

regarding their work;

Attracting employees to make decisions about the work they

perform;

Giving employees the right to control the quality and quantity of

products produced;

Attracting employees the right to rationalization activities;

Picture 3.3.2 Practical application of the concept of participatory

management.

The concept of participatory management is based on the premise that if an

employee takes an interest in internal business and receives satisfaction from his
work, then he works more efficiently and efficiently. Participatory management
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gives the employee partial access to decision-making on managing the enterprise
in the form of various forms of self-government and “quality circles”. Participation
in management motivates a person to do a better job, which ultimately affects
productivity and quality.

Participatory management can be implemented in the following areas:

 employees receive the right to independently make decisions on how to

carry out labor activities to fulfill the planned tasks (flexible work schedule,
personal quality control, problem solving technology);
 employees are involved by their immediate supervisor in making group
decisions on production issues (draft planned tasks, use of resources, forms
of remuneration, etc.);
 employees are given the right to operational control of product quality and
establish personal or group responsibility for the final result (personal brand
of quality, team quality control, delivery of products from the first
presentation, etc.);
 employees take personal and group participation in innovative, inventive
rationalization activities with various methods of remuneration for the
introduction of innovations;
 production and functional units (sections, brigades, services, departments)
are created taking into account the wishes of employees. This makes it
possible to transform informal groups into formal units.

Participation in management motivates a person to do better work, which affects

productivity and quality. By providing an employee with access to decision-
making on issues related to his activities in the organization, participatory
management, firstly, motivates him to do his job better, and secondly, contributes
to greater return, greater contribution of an individual employee to the life of the
organization. Thus, thanks to participatory management, the potential of the
organization’s human resources is more fully utilized.

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Participatory management exists in the following forms:

 Employee participation in profits and property;

 Employee participation in income;
 The participation of workers in management.

The participation of employees in profits and property represents a program for

motivating them by distributing a certain part of the firm’s profit between them,
either based on the results of work in the form of stipulated payments (bonuses), or
after a certain period of time in accordance with agreements on trust management
of shares owned by employees. This participation system is most effective in fast-
growing, highly profitable firms that provide significant incentives for workers.

Participation in income is a motivation program to reduce company expenses

according to established criteria: reducing labor costs and labor time per unit of
output, improving product quality, etc. This form of participation is most effective
in relatively small and stable firms, where the relationships between departments
are clearly visible, there is the ability to control costs and develop performance
standards.

The participation of employees in management is a program to motivate them by

providing opportunities to participate in the discussion and decision-making on the
activities of the company.

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 Conclusion

Finally in this course work we analyze existing basic types of organizational

management structures and presents there comparative characteristic, described
public administration as a direction of management and researched the process
theories of motivation.

As about organizational structures, we can sum up that every organization needs a

structure for systematic work. Organizational structures can be used by any
organization if the structure matches the nature and maturity of the organization. In
most cases, organizations evolve through structures as they progress and improve
their processes and workforce.

As for public administration, we can say that it is part of management, but not the
same things. Both of them have a lot of differences and similarities too. We can say
that public administration is the management of society together with society.

As for theories of motivation, we can sum up that motivation theories try to

explain human behavior to help us understand it better. They help explain the
different forces that push us to work, and how certain factors affect our decisions
about work and career. Each theory has its own explanation and evidence to
support this.

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Applicaion 1

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Application 2

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Application 3

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References
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1. Maslow L. Motivation and personality-1954 Harper, pages 267-311
2. Vikhansky O.S., Naumov L.I. Management: a textbook. 5th ed., Stereotype.
M.: Master: INFRA-M, 2010.576 s.
3. Management terminology: dictionary / comp. A.K. Semenov, V.I. Nabokov.
M „2002.222 s.
4. Mescon M. X, Azbert M., Hedouri F. Fundamentals of Management: 2000.
704 p.
5. Owen E. Hughes Public Management and Administration, second
edition,1998,pages 52-80

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