Private Sector and Public Sector Organizations, the Notion of Homo Economicus - Assignment Example

Questions Provide a brief explanation of the distinction between formal and informal types of organization.” A formal organization comprises ofa set of officially defined rules, tasks and relationships deliberately planned and created by the management, and it defines the manner in which the members ought to behave; while an informal organization is primarily formed through social interactions among its members and depicts the manner in which the members actually behave. The main objective of a formal organization is the accomplishment of common organizational goals such as profits, growth etc while that of the latter is the fulfilment socio-cultural needs of its members. Unlike formal organizations there are no fixed rules for communication in informal organizations (Koontz, Weihrich, 2006). 2. “Detail the principal differences between private sector and public sector organizations.” The public sector organizations are owned and managed by government for the people, while the private sector organizations are owned and managed by private individuals for their own personal interests or economic gains. The generic strategic objective of the former is to effectively achieve its mission of public good, while that of the latter is competitiveness; and the generic economic objective of the former is cost reduction and effectiveness as opposed to the latter’s goal of profit maximization, grown and expansion of market share. The key success factor of the former is economies of scale, while that of the latter is increased market share (Needham, Dransfield, 1994). 3. “Provide a detailed and accurate definition of the concept of employment.” The term employment refers to an active engagement of an individual in a service or work under an express or implied, oral or written contract in exchange for wages, salary or compensation for a specified duration of time (as mentioned in the contract). 4. “Explain the purpose and function of management in an organizational context.” The main purpose of management is to define the mission, vision and the long term objectives as well as various general strategies for the organization and ensure that the same are duly complied with and effectively accomplished. Its functions include planning, organizing, directing, controlling, staffing among other interpersonal roles such as leading, motivating and communicating with its employees. The management is also responsible for innovating and effective allocation of resources, conflict resolution in times of crisis. In conclusion, the management is responsible for the effective management of the organization to ensure its long term sustainability in the industry. 5. “What are the principal categories of environmental forces that can impact on an organization and the way it operates?” There are two broad categories of environmental forces which may influence the organizational functioning – internal and external forces. The factors which are within the control of the management and occur within its boundaries are termed as internal forces and include factors such as management styles, organizational culture, strategy, leadership, staffing and personnel issues etc. (eg – strikes, termination of employees). External forces, on the other hand, include factors which are beyond the control of the management and occur on account of factors external to the organization. These include social, cultural, political, and technological factors (eg. Change in taxation, government policies etc) (Stroh, et al., 2002). 6. “Explain the notion of homo economicus (‘economic man’).” The concept of Homo Economicus (or economic man) developed by John Stuart Mill, refers to a representation or structure of human organization wherein the individual seeks to exploit, explore or further his / her own personal interests in the presence of various constraints or setbacks that confronts an individual (Peil, 2009). The concept states that individuals act in a manner which ensures their highest possible self-interest by exploring opportunities and overcoming constraints - natural as well as institutional, and have an ability to accomplish their predefined goals, at a minimum possible cost. 7. “What do we mean when we consider work to be a moral obligation?” Work as a moral obligation suggests that it is obligatory for individuals to engage in some kind of employment or work in order to sustain their livelihoods. Work is a primary source of survival, and is morally and ethically obligatory in nature. Although some might argue that it is not compulsory to work, and that it is optional, which may be true on other grounds, but as far as morals are concerned, work is obligatory, similar to paying taxes. 8. “What is a labour market?” A labour market is a market where labourers / workers compete for employment and employers compete for workers. It is a market formed and governed by the interaction of employers and labourers. In economics, the labour market can be broadly categorized into microeconomics and macroeconomics definition. Labour market with regard to microeconomics is mainly concerned with the study of individuals and firms owned by individuals and the interaction amongst them, while from a macroeconomic perspective; labour market is concerned with the study of interaction between different types of market such as money market, goods market, or foreign trade market. 9. “Define the term profession.” Although there is no fixed definition of the term profession, it can be defined as an occupation based on specialized educational training, aimed at offering specialized services to others in exchange of a predefined monetary compensation. For instance, services such as teaching, counselling, nursing, providing legal counsel etc can be regarded as a profession, where the individual concerned, on account of his/her professional training, offers specialized services to his/her customers/clients in exchange for a fee. 10. “What do we mean by the term ‘rational forms of organization’?” The term ‘Rational forms of organization’ refers to a model used to envisage the manner in which firms structure their organizations with a view to align themselves with the predefined goals and objectives which the firm aspires to accomplish. The term rational suggests a sense of effectiveness in terms of organizing and accomplishment of organizational goals. Such organizations are driven by rational methods of decision making which stresses on finding out the best possible alternative of performing a given task which seeks to maximize its overall efficiency, by scientifically analyzing the processes employed by individuals or employees. 11. “Explain the concept of leisure time.” The concept of ‘leisure time’ refers to the idea of time free from work, duty or professional responsibilities or commitment and which can be enjoyed by individuals in accordance with their own free will, in activities which interest them. 12. “Provide a plausible explanation as to why a recent study by the Work Foundation indicated that self-employed people tended to be happiest in their work.” According to this study the self employed people were observed to work longer hours and yet were found to be happiest in their work. This was because, self-employed people unlike those in paid employments worked for their own firms, where the primary goal was to secure a better future. The level of uncertainty is relatively higher in self-employment and hence longer hours hardly deter the individuals. Furthermore, factors such as job satisfaction & security, opportunity to progress, and fulfil their personal ambitions which rank high among the employees are largely absent in case of paid employment. 13. “Explain the term ‘job security’.” The term ‘job security’ refers to the likelihood that an individual will be able to retain his / her current employment. It indicates the faith an employee has in continuing his/her existing gainful employment. It is dependent on the contract signed at the time of employment which indicates the duration for which the person can remain employed with the organization along. Usually government jobs are considered more secure than private ones, although it varies according to industry type, location, and other factors. 14. “What do we mean by the term ‘specialisation of tasks’?” Specialization, in organizational context, refers to a method of production whereby the firm stresses on the manufacturing of a limited scope of goods or services, with a view to achieve enhanced productive efficiency within the given business area or industry. Specializing in particular tasks refers to gaining expertise in the said task through systematic training and utilizing the same for personal or professional benefits. 15. “Explain how control is maintained over processes in a bureaucracy.” In order to control the wide range of management processes in a bureaucracy or a bureaucratic organization standardized, or formalized procedures can be used for executing operating decisions. In a bureaucracy decisions are usually centralized and management activities are pre-defined and well structured. This ensures greater control over management processes and hence results into enhanced productivity and faster organizational growth. 16. “Provide a brief overview of how FW Taylor developed his ideas on scientific management.” Fredrick Winslow Taylor, considered as the father of scientific management, developed his ideas during the end of nineteenth century which was regarded as a time when industrialization was at its peak and the management of work and workers a key issue of concern among the management. Taylor had spent a significant part of his life working on the shop-floor and was highly aware of the problems faced by the workers and based his ideas on the same. During his work as an apprentice in an engineering firm, he conducted some of his most widely known experiments on enhancing labour productivity. 17. “Explain the principle facets of Taylor’s ideas on scientific management.” Some of the key features of Taylor’s ideas on scientific management include, the development of the optimum work method, through the process of methodical observation, measurement and study; the scientific selection and development of workers; the assembling of well trained workers and aligning them with well developed work processes for optimum results; ensuring the co-operation of managers as well as their subordinates through division of labour for enhanced productivity etc. 18. “Provide a brief outline of how work is organized under the system we now refer to as ‘Fordism’.” Under Fordism, work is organized through processes such as: linear work sequencing, interdependence of tasks, moving assembly line, centralized machinery, logistical planning, and decomposition of tasks to the simplest possible level, co-ordinating flow of raw materials, use and refinement of dedicated machinery, standard operating procedures, and specialized machine tools. 19. “Outline the key findings of Elton Mayo’s Hawthorne Experiments that would be of interest to those seeking an understanding of human behaviour in the workplace.” According to Hawthorne, an individual displays a strong association with his/ her group and the sense of belonging to the group is rated higher than any monetary reward. Thus managers must consider the individual as belonging to a group rather than treating them as individuals. Active involvement of individuals within a group can be ensured by allocating specific tasks / goals to the group and by allowing them in discussions and consultations, since this helps in developing a sense of participation among the members and that job satisfaction can be increased through encouraging employee participation in decision making processes. 20. “Explain the notion of complexity and how it fits into our understanding of skill in the workplace.” Complexity refers to difficulty in understanding the problem or finding a solution to the problem on hand. In terms of understanding of skill in the workplace, complexity refers to the dilemma often experienced by recruiters while hiring employees, particularly with regard to the skills required and aligning them with organizational goals. 21. “List the components of Maslow’s hierarchy of needs from the lowest to the highest.” Physiological needs - such as air, water, food, etc; Safety and security needs - such as shelter, protection from harm; Social needs - such as association with a group; Esteem needs - such as pride, achievement etc; and self actualization needs. 22. “Summarise the key criticisms of Maslow’s hierarchy of needs.” One of the major criticism of Maslows theory is that needs do not always occur in the fixed format, as described by him, and those who are struggling to satisfy their basic physiological needs may harbour thoughts of fulfilling their self-actualization needs, at the same time; meaning thereby that two needs belonging to different levels can occur simultaneously. Human needs cannot be categorized in any sort of order and can occur regardless of the same. For instance, self-actualization may occur before the lowest level of need is satisfied as is often noticed in case of artists, poets, actors etc. 23. “What is the key distinction between content and process theories of motivation.” Content theories focuses on specific characteristics of an individuals needs or goals which they aim to accomplish based on their motivated behaviour while process theories aim to offer a model of the interactions between the key variables involved in the process of motivation. Process theories emphasizes on individual behaviour against a given setting and explains the manner in which employee behaviour is initiated, redirected or stopped, while content theories seek to explain the concept of motivation with regard to factors which arouses, energises or initiates the behaviour of employees (Martin, 2010). 24. “Outline the key dynamics of the expectancy theory of motivation.” The key dynamics of the expectancy theory of motivation include: increasing expectancy by offering a conducing work environment which facilitates better performance; recognizing and listing outcomes which are positively bold and progressive; and ensuring personal recognition, praise, favourable reviews, pay hikes, and other similar highly motivating responses leads to enhanced performance. 25. “Outline what research has indicated to be the consequences for health of an unsatisfying experience of work.” Unsatisfying work experience is known to be the most potent source of health disorders among employees. Some of its disastrous consequences include: Generalized Anxiety Disorder whose symptoms include restlessness, sleep deprivation, fatigue, loss of concentration, anxiety, etc; loss of confidence, self-esteem, and motivation; stress, psychological illness etc. among others. References: Koontz, H., Weihrich, H., (2006). Essentials of Management, McGraw-Hill Publication, Pp. 144 - 150 Martin, J., Martin, F., (2010). Organizational Behaviour and Management, CENGAGE Learning Publication, Pp. 183 Needham, D., Dransfield, R., (1994). Business Studies, Nelson Thornes Publication, Pp. 86 Peil, J., (2009). Handbook of Economics and Ethics, Edward Elgar Publishing, Pp. 223 - 225 Stroh, L. K., Northcraft, G. B., Neale, M. A., (2002). Organizational Behavior: A Management Challenge, Routledge Publication, Pp. 425 -430 Read More