Date post: | 14-Jun-2015 |
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Business |
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ORGANISING
Organizing
A process of defining essential relationships among people tasks and activities in such a way that all the organization resources are integrated and coordinated to accomplish its objectives efficiently and effectively.
Process of organizing
Determination of objectives Division of activities Grouping activities Defining authority and responsibility Coordination of activities Reviewing and reorganizing
Organization Chart
The visual representation of organization structure is organization chart
Organization structureFormal system of task and reporting
relationships showing how workers use
resources.
Ways to Structure a Business By function: arranging the business
according to what each section or department does
By product or activity: organising according to the different products made
By area: geographical or regional structure
By customer: where different customer groups have different needs
By process: where products have to go through stages as they are made
Functional Structure An organizational structure composed of all
the departments that an organization requires to produce its goods or services.
Functional structure
Production Marketing Accounts Personnel IT
Board of Directors
Chief Executive
Advantages Encourages learning from others doing
similar jobs. Easy for managers to monitor and evaluate
workers. Allows managers to create the set of
functions they need in order to scan and monitor the competitive environment Disadvantages
Difficult for departments to communicate with others.
Preoccupation with own department and losing sight of organizational goals.
Organisation by Product/Activity
Imaging andPrinting Group
PersonalSystems Group
EnterpriseSystems Group
HP ServicesHP Financial
Services
Hewlett Packard
Divisional StructureManagers create a series of business units to produce a specific kind of product for a specific kind of customer
Other Organisational Structures By Customer:
Wholesale Retail Industrial customer
By ProcessExample, textile business Weaving Dyeing
Product Structure Managers place each distinct product line
or business in its own self-contained division
Divisional managers have the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its industry
Market Structure Groups divisions according to the particular
kinds of customers they serve Allows managers to be responsive to the
needs of their customers and act flexibly in making decisions in response to customers’ changing needs
Geographic Structure Divisions are broken down by geographic
location Global geographic structure
Managers locate different divisions in each of the world regions where the organization operates.
Global Product Structure Each product division takes responsibility
for deciding where to manufacture its products and how to market them in foreign countries worldwide
Matrix Structure An organizational structure that
simultaneously groups people and resources by function and product. Results in a complex network of superior-
subordinate reporting relationships. The structure is very flexible and can respond
rapidly to the need for change. Each employee has two bosses (functional
manager and product manager) and possibly cannot satisfy both.
Span of Control
Number of workers that a manager can effectively supervise.
Tall structure: few subordinates, tight control
Flat structure: Wide span of control
Principles of organizing
Unity of objective Organizational efficiency Division of labor Authority-responsibility Principle of delegation Unity of command Unity of direction Span of control