A thesis submitted to mba program of azerbaijan state oil and industry university by adila bahmani

CHAPTER III. DİRECTİONS OF İMPROVİNG THE MANAGEMENT SYSTEM OF NON-GOVERNMENTAL ORGANİZATİONS

3.1. World experience on the directions of improving the management system of non-governmental organizations

One of the modern approaches to organizational and governance is Situational Approach. As a result of the social, economic and cultural changes that have taken place in developed countries, administrators could not solve the problems that they encountered by applying the principles and methods of classical and neo-classical approaches. There was a need for new thinking. As a result, new approaches began to emerge at the end of the 1950s and early 1960s. The main purpose of the previous approach was to shape the "best organization structure" and to develop "governance principles" that can be applied everywhere. New approaches are based on the notion of "single best" organizational structures and rules that can be accepted everywhere and always argue that the organization is interacting with environmental conditions. As a result of these provisions, the relationship between organizational structures, management mechanisms, and the organization's internal operations and environmental conditions, the production technologies used, and the size of enterprises have begun to be explored (Stark Biddle, C.; 1984).

The situational approach is a different way of thinking than the previous theories based on the "principles". The Situational Approach does not have a predictive feature, in contrast to classical and neoclassical approaches. The situational approach deals with the "situation" facing the enterprise and the assessment of certain "conditions".

The situational approach defines the structure of the organization as a structure that falls into different forms as a result of the interaction between different internal and external circumstances. That is, the structure of the organization is dependent upon the Situation approach. The structure of the organization is determined by the internal and external conditions. In other words, the structure of the organization is formed not by the application of certain principles, but by these principles, ensuring a harmonious combination of internal and external conditions.

The situational approach requires changing situations and conditions to be used in different management strategies and different technologies. Therefore, there is no concept of the best organization structure that can be applied anywhere and under any circumstances. The concept of "best" will change from state to state. For example, if the hierarchical organization or authoritarian leadership style proposed by a classic approach in a concrete situation and context is appropriate, then the System-4-type structure and the democratic leadership style will fit in the opposite case.

Another feature of the situational approach is that it accepts the organization as a system. In other words, Situational Approach Organizations perceive a system as open and investigate relationships and relationships between organizations and the external environment. The key feature of this approach is to explore the relationship between the subsystems inside the organization and the relationships between these subsystems and the elements in the external environment.

The Situational Approach is an organization's structure that deals with the various environmental elements (customers, state intervention, competition, market conditions, technology, social and cultural conditions, etc.) as well as various internal environmental elements (vision, mission, vision, , characteristic of the staff, goals, etc.) (Fowler, A. 1997).