Post on 11-Nov-2014
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ORGANIZING
Definitions “Process of determining the activities to be performed, arranging these activities to administrative units, as well as assigning managerial authority and responsibilities to people employed in the organization.”
Heney – A harmonious adjustment of specialised parts for the accomplishment of some common purpose
Mc Farland- An identified group of people contributing their efforts towards the attainment of goals
Allen – Identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships to work effectively
Chester Bernard – A system of cooperative activities of two or more persons
G.R.Terry – Establishing effective behavioural relationships among persons
Joseph L Massive – Structure and process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integartes its activities
Organising – Differentiating and Integrating activities for attaining common objectives
Attainment of the objectives of the enterprise
Optimum utilisation of resources
Growth and diversification
Creativity and innovation
Effective communication
Better relations between labour and management
Increase employee satisfaction and decreases employee turnover
Organisation as a process
Organisation as structure or framework of relationships ( Results of the process)
Organizing - the process of creating an organization’s structure
Organizational structure - the formal framework by which job tasks are divided, grouped, and coordinated
Organizational design - process of developing or changing an organization’s structure
PROCESS OF ORGANIZINGEstablishing enterprise objectives.
Formulating supporting objectives and plan.
Identifying , analyzing and classifying.
Grouping of activities.
Delegation of authority.
Horizontal and vertical coordination.
Every Organization has a StructureBut structures can differ
Due to choice
The words used to describe them also can differ
Organization chart, design, structure
The Structural Configuration
Is the skeleton of the organization
Reflects corporate governance
Is intended to meet organizational objectives
Arises out of strategic directions
And causes managers to ask:
What structure will best aid us in meeting our strategy and objectives?
Restructuring Occurs for Many Reasons
Turnover in top management
Competitive positioning
Mergers and/or acquisitions
Cost-savings
Even the illusion of managerial control
ORGANIZATIONAL ROLES
Organizational role incorporates :
Verifiable objectives.
A clear idea of the major duties or activities involved .
An understood area of discretion or authority.
The person filling the role knows what he or she can do to accomplish goals.
Organization Chart
“A chart that shows the structure of the organization including the title of each manager’s position and, by means of connecting lines, who is accountable to whom and who has authority for each area.”
Advantages of Organisation
Adoption of new technology
Better human relations
Check on corrupt practices
Coordination
Creativity , initiative and innovation
Enhancement of managerial efficiency
Growth ,expansion and diversification
Proper weightage to all activities
Specialisation
Training and development
FORMAL & INFORMAL ORGANIZATION
On the basis of relationship:
FORMAL ORGANIZATION refers to:
Structure of well defined jobs.
Definite measure of authority, responsibility and accountability.
Each individual consciously combine their effort to accomplish common task.
INFORMAL ORGANIZATION refers to:
It is a joint personal activity without conscious joint purpose even though contributing to joint results.
The relations are not developed according to procedures and regulations.
FUNCTIONAL ORGANIZATION STRUCTURE
“Refers to grouping activities in accordance with the functions of an enterprise, embodies what enterprises typically do.”
Most widely employed at some level of organization.
The characteristics of various departments are recognised & thoroughly understood.
Coordination of activities.
ADVANTAGES:
Is logical reflection of functions
Simplifies training
Furnishes means of tight control at top.
DISADVANTAGES:
Deemphasis of overall company objectives
Overspecialises & narrows viewpoints of key personnel
Reduces coordination between functions
Responsibility of profits is at the top only.
DIVISIONAL ORGANIZATION STRUCTURE
“Divisional structure groups together people who work on a similar product, work in the same geographical region, or serve the same customers.”
ADVANTAGES:
• Expertise focused on special products, customers, regions.
• Better coordination across functions within divisions.
• Better accountability for product or service delivery.
• Easier to grow or shrink in size as conditions change.
MATRIX ORGANIZATION STRUCTURE
“Combining of functional & product patterns of departmentation in the same organization structure.”
‘Grid’ or ‘project’ or ‘product management’’.
A matrix is a highly flexible form that is readily adaptable to changing circumstances.
ADVANTAGES:
Is oriented towards end result.
Professional identification is maintained.
Pinpoints product profit responsibility.
DISADVANTAGES:
Conflict in organization authority exists.
Possibly of disunity of command exists.
ORGANIZATION LEVELS & SPAN OF MANAGEMENT
Organizational levels exist because there is a limit to number of person a manager can supervise effectively.
The relationship between organizational levels & Span of management is
classified as:
Wide Span of Management
Narrow Span of Management
Span of Management(normally called Span of Control)
The number of employees reporting to a supervisor.
Traditional view, 6 or so per manager.
Many organizations today, 30 or more per manager.
Generally if supervisors want to be closely involved with employees span should be small.
Hamilton- An average human brain can handle only 3-6 other
human brains
Urvick – 4 For superior authorities,
- 8-12 at the bottom level
ADVANTAGES:
Superiors are forced to delegate
Clear policies must be made
Subordinates must be carefully selected.
DISADVANTAGES:
Many levels of management.
High costs due at many levels.
Excessive distance between lowest level & top level.
ADVANTAGES:
Close Supervision
Close control
Flat communication between subordinates & superiors
DISADVANTAGES:
Tendency of overloaded superiors to become decision bottlenecks.
Danger to superior’s loss of control.
Requires exceptional quality of managers.
PROBLEMS WITH ORGANIZATIONAL LEVELS
Levels are expensive
Complicate communication
Complicate planning and control
FACTORS DETERMINING EFFECTIVE SPAN
Subordinate training
Clarity of delegation of authority
Clarity of plans
Use of objective standards
Rate of change
Communication techniques
Amount of personal contact needed
A person should have one and only one manager to whom he or she is directly responsible.( a traditional management style)
Contemporary management methods have broken away from the principle through the developments such as ‘team working’
Contemporary Organisations
VIRTUAL ORGANIZATIONS
An organization that has few on-site employees and does most if its interactions online.
The Virtual Organization
A rather loose concept of a group of independent firms or people that are connected often through information technology.
These firms may be suppliers, customers, and even competing companies.
Team Structure
Team-Based Structures - entire organization is made up of work teams
employee empowerment is crucial
teams responsible for all work activity and performance
complements functional or divisional structures in large organizations
-allows efficiency of a bureaucracy
-provides flexibility of teams
Network structure
A recent innovation in organizational architecture is the use of network structures.
A network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy.
Network structures often result from outsourcing.
Outsourcing is the process of moving activities that were previously performed inside the organization to the outside (where they are done by other companies).
Boundary less Organization
Jack Welch, former CEO at GE (General Electric), stated his vision for the company as a boundary less company, an “open, anti-parochial environment, friendly toward the seeking and sharing of new ideas, regardless of their origin.” .
Boundary less Organization - design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure ( Eg: walmart)
strategic alliances break down barriers between the company and its customers and suppliers
seeks to eliminate the chain of command, to have limitless spans of control, and to replace departments with empowered teams
flattens the hierarchy by removing vertical boundaries
horizontal boundaries removed by organizing work around processes instead of functional departments
Delegation
Manager assigning some part of his work to his subordinates and also giving them necessary authority to make decisions within prescribed limits
This downward pushing of authority to make decisions is delegation
Advantages of delegation
Relieves the manager of his heavy work load
Leads to better decision making as employees close to scene of action have better view of facts
Speeds up decision making
Training ground for subordinates
Builds morale
Barriers to effective delegation
Reluctance from Manager’s side:
- Fear of loss of power
- I can do it better by myself
- Lack of confidence in subordinates
- Fear of subordinates overtaking the boss
- Difficulty in briefing( Lack of communication power)
Barriers to effective delegation
Reluctance to accept delegation from Subordinates:
- Fear of criticism
- Lack of adequate information and resources
- Lack of self confidence and initiative
- Absence of positive personal gain
Empowerment
Is a term used to express the ways in which non-managerial staff can make autonomous decisions without consulting a boss/ manager
How?
- Demonstrating your concern for people
- Sharing leadership vision
- Sharing goals and direction
- Trusting people
- Providing information fro decision making
- Delegate work as well as authority
- Provide frequent feedback
- Point out problems and not people
- Listen and provide guidance
- Help employees feel empowered
Types of organization
Org. is designed on the basis of principles of division of labour, span of management, nature , scale and size of business
Line and staff Organisations
Organisation design and configuration
Org. Design- Process of creating structure for the organisation which will help to achieve org. mission and objectives
Org. Configuration – A frame work to understand org. structures. 6 components. Henry Mintzberg.
- Operating core, strategic apex, Middle line, techno-structure, support staff, ideology