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1 Organizing The process of arranging people and other resources to accomplish tasks in service of a common purpose...to Facilitate the Plan. When well.

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Presentation on theme: "1 Organizing The process of arranging people and other resources to accomplish tasks in service of a common purpose...to Facilitate the Plan. When well."— Presentation transcript:

1 1 Organizing The process of arranging people and other resources to accomplish tasks in service of a common purpose...to Facilitate the Plan. When well done, organizing should clarify who is supposed to do what, identify who is in charge of whom and establish official channels for communication.

2 2 An “Organization” A collection of people in a division of labor working together to achieve a common purpose. Organization Structure The system or network of tasks, reporting relationships, and communication that links together the work of individuals and groups.

3 3 Organization Charts A diagram describing the basic arrangement of work positions within an organization. It also provides a representation of the organization's Formal Structure.

4 4 What Does An Organization Chart Tell Us? The Division of Work The Type of Work Performed Supervisor - Subordinate Relationships Formal Communication Channels Major Subunits Levels of Management

5 5 Informal Structures The set of unofficial relationships among organization members. Potential Benefits Helps people accomplish their work, and overcome limits of the formal structure. Allows people to better communicate, and extend support and protection to one another, and It satisfies people's needs for social interaction.

6 6 Informal Structures The down-side is that it is susceptible to rumor, breeds resistance to change, and can be distractive.

7 7 Synergy The creation of a whole that is greater than the sum of its individual parts. Coordination SynergyThe synchronization of the separate and specialized activities of the many people necessary to achieve Synergy

8 8 Traditional Organization Structures Any organization is a network of interconnecting groups, and Managers serve as linking pins along the Vertical and Horizontal dimensions of the organization.

9 9 Departmentalization The process of grouping together people and jobs into work units and arranging these units in vertical and horizontal linkages to create a well-functioning whole.

10 10 Functional Structures Grouping together people with similar skills who perform similar tasks. They work well for smaller and less complex organizations dealing with only one or a few products or services. They also work best in relatively stable environments that allow organizations to pursue relatively stable strategies.

11 11 Functional Structures Economies of scale with efficient use of resources. Task assignments consistent with expertise and training. High-quality technical problem solving. In-depth training and skill development within functions. Clear career paths within functions.

12 12 Functional Structures Potential Disadvantages: –Functional Chimneys Problem A lack of communication and coordination across functions. Slow decision making and problem solving. Loss of clear responsibility for cost containment, product or service quality and timeliness, and innovation in response to environmental changes.

13 13 Functional Structures Business Firm President VP Mkt VP Finance VP Prod. VP HR VP R&D

14 14 Divisional Structures Grouping together people with diverse skills and tasks, but who work on the same product, with similar customers or clients, or in the same geographical region. Useful in complex situations where organizations are pursuing diversified strategies, or

15 15 Divisional Structures To meet pressures for innovation and change in dynamic environments. Types of Divisional Structures Product Geographic Customer Process

16 16 Divisional Structures Various Divisional Structures President DrugsEuropeGovt Tube Plant Night Shift

17 17 Hybrid Structures Divisional and Functional structures used in different parts of the same organization. Allows different needs to be served simultaneously. Common in most large organizations.

18 18 Matrix Structures Uses the permanent cross-functional teams to blend the technical strengths of functional structures with the integrating potential of divisional structures. Often found in organizations pursuing growth strategies in dynamic and complex environments.

19 19 General Manager Mfg Mgr Engr Mgr Sales Mgr Proj Mgr Proj Mgr Projects Matrix Structures

20 20 Potential Strengths of Matrix Structures More Interfunctional Cooperation Flexibility Customer Service Better Accountability Improved Decision Making Improved Strategic Management

21 21 Disadvantages of Matrix Structures Power Struggles - "Two Boss" System Groupitis - Teams become too focused on themselves. Increased Costs - Extra salaries for program managers.

22 22 Developments In Structures Team Structures The use of permanent and temporary cross-functional teams to improve lateral relations and solve problems throughout the organization.

23 23 Developments In Structures Network Structures Consists of a central core working with networks of outside suppliers of essential business services. Core Off-shore Finance Designer Importer Alliances

24 24 Organizing Trends In The Modern Workplace Organizations depend on the success of two separate but complementary forces: Differentiation The creation of differences through a division of labor. Integration The coordination of results so that some common purpose is achieved.

25 25 Organizing Trends In The Modern Workplace Shorter Chains of Command The line of authority that links all persons with successively higher levels of management. Scalar Principle “There should be a clear and unbroken chain of command linking every person in the organization with successively higher levels of authority up to and including the top manager."

26 26 Organizing Trends In The Modern Workplace Less Unity of Command Each person in an organization should report to one and only one supervisor. The objective of this classical management principle is to ensure that subordinates do not receive work directions from more than one source. Cross-functional teams, task forces, and matrix structures are seriously challenging this principle.

27 27 Organizing Trends In The Modern Workplace Wider Spans of Control Increased numbers of people reporting directly to a manager. A narrow span of control will result in more levels of management than a wide span of control. Wide Spans = Flat Organizations - Narrow Spans = Tall Organizations

28 28 Organizing Trends In The Modern Workplace More Delegation and Empowerment Delegation is the process of distributing and entrusting work to other persons. The three steps in delegation are: The manager assigns responsibility The manager grants authority to act The manager creates accountability They are the foundation of vertical coordination through delegation.

29 29 Responsibility The obligation to perform that results when a subordinate accepts an assigned task. Authority The right to assign tasks and direct the activities of other persons. Accountability The requirement for a subordinate to show results of assigned duties to a supervisor.

30 30 Authority should equal responsibility when work is delegated from supervisor to subordinate. A manager can and should delegate responsibility but that same manager cannot delegate accountability.

31 31 EMPOWERMENT Is giving others the authority to act and make decisions on their own.

32 32 Decentralization with Centralization Centralization is the concentration of authority for most decisions at the top level of an organization. Decentralization is the dispersion of the authority to make decisions throughout all levels of the organization. While empowerment is contributing to more decentralization in organizations, advances in information technology simultaneously allow for the retention of centralized control.


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