Introduction Mission, vision, core values, style of management, strategies, policies etc do not fruitful unless it was followed by appropriate management system Different type of organization chart. Importance of Good structure. Structures & system must differ depending upon organization
Cont… The more complex operating environment more diversified output. Management system changed from third world countries to western mgt system. Elaborate structure may reduce the operating flexibility. Inadequate structure & system can improve the efficiency
Chapter will be explained through six part - For competitive excellence For Institutionalized excellence For Rejuvenatory excellence For versatile excellence For creative excellence For missionary excellence
Forms of superstructure Simple chart Functional structure Chief Executive Assistant Chief Executive Operations Manager Marketing Manager Personnel Manager Finance Manager Informal form Flexibility Expertise &Efficiency
Shapes of Managerial Hierarchy Tall Hierarchy Communication Length & Size Control &Check Promotion
Shapes of Managerial Hierarchy Flat Hierarchy Average Span of control 4;85 managers managing an organization of 381 persons) Vs 2;27 (255 persons)
Central point Principle of Functional specialization Principle of effective coordination Output is standardized scale dip in favor of principle of departmentalization by function specialization. Output is custom tailored important becomes principle of locating interdependent together for effective coordination.
Infrastructure Organization Structure can be defined as the way or method through use of a hierarchy that a group, business, organization, people or objects collaborate to achieve success on one common goal.
Why Have a Structure? All businesses have to organise what they do A clear structure makes it easier to see which part of the business does what There are many ways to structure a business
Elements of Organizational Structure OrganizationalStructureElements Span of Control Centralization Department-alization Formalization
Formal decision making authority is held by a few people, usually at the top. Weaker structured infrastructure. Centralization Decision making authority is dispersed throughout the organization. Specialised, Standardised & formalised. Decentralization Centralization and Decentralization
Tall / High organizational structure Is characteristic of decentralized & strongly structured companies. It attempts to ensure highly reliable & quality oriented work. It has clarity & accountability. It has multiple layers of management and relatively narrow spans of control
Is characteristic of centralized companies with relatively few layers of management and relatively wide spans of control Flat organizational structure
Shapers of Organizational Structures Studies conducted in fifties, sixties, seventies Indicated the sorts of choices available in management structures and systems Early Fifties- Ernest Dale- Size Small Sized -second line of management Medium sized-Formalizing functions Larger Size-Decentralizing Short Term Decisions
Shapers of Organizational Structures Early Sixties – Alfred Chandler – American Corporations Diversification Smaller self contained units – Replica of the original Overloads Managers – Each unit requires separate managerial attention-Malfunction
Shapers of Organizational Structures Early Seventies – John Child –American Airlines Power of Control Centralization – performed well Decentralization – Performed poor
Shapers of Organizational Structures Seven Elements Decentralization Control System Staff services Divisionalization Functional departmentalization Vertical integration Group/ Participative decision making
Shapers of Organizational Structures Technology Joan Woodward Studied 3 types of British manufacturing firms Custom Manufacturing Mass production Continuous production
Folk Management Systems What Is it ? How is it different from Sophisticated Management Systems ? Folk Management Systems fallowed in Third World Countries Like 1. India 2. Japan
Structures & System For Excellence Significance Of Structure & Systems In An Organization How It Is Influenced by 1.Nature Of The Organization 2.Nature Of Operational Context How it Facilitates Competitive Excellence “Institutionalized Excellence”
Long – term performance in absence of Strong Competitive pressures or outstanding organizational leadership. A cadre of carefully groomed managers. Standardization of Operating Systems.
Structures and Systems for rejuvenatory excellence Plugging the biggest loopholes in systems and structures and fine tuning the existing ones. Structures and systems for versatile excellence Complex Structure of many parts each dedicated to pursuit of a single indicator of excellence Management system may need to vary for different kinds of projects or ventures
Structures & Systems for Creative Excellence Definition The ability to innovate new outputs of goods & services as well as novel technologies & management strategies, practices & systems frequently & successfully, is the heart of Creative Excellence. Two Distinct Competencies 1)Generate Innovative Ideas 2)Refine & Efficiently Implement
Cont … Several Available Strategies Simplest Strategy : Two Separate Organization Complex Strategy : Train the staff in two different modes of functioning. Requirement of Professional organization Functional specialization Elaborate but effective management system & procedures An accountability oriented structure Coordination committees, Controls, etc.
Requirements for creative excellence Flat Structure Small Teams Extreme structural Flexibility Various system modification System & participative system System of autonomy & self control The personal selection & reward system Participatory goal setting System Conflict resolution system Final scanning system
Structure & System for Missionary cover with many Excellence External issues Political,Social, Corruption Infrastructure and deliberately resources for mission to fulfilled Internal issues too funds,creditability and client expectations Tie up with Agencies too,to expand & compete for business in local market
Depends on department wise and strategy adaptability to that department Flexibility to operate it along with in house resources available Consonance with government rules and regulations of labour welfare
Operate on centralized and decentralized to achieve goal Sometimes operate with confidentiality Should have Administrative and HRP Control Mission should be Ideological not below the estimated level and not much above ……….. Employee operating should exactly received idea of a goal to achieved