Presentation on theme: "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,"— Presentation transcript:
1OrganizingThe 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.
2Organization Structure An “Organization”A collection of people in a division of labor working together to achieve a common purpose.Organization StructureThe system or network of tasks, reporting relationships, and communication that links together the work of individuals and groups.
3Organization ChartsA diagram describing the basic arrangement of work positions within an organization.It also provides a representation of the organization's Formal Structure.
4What Does An Organization Chart Tell Us? The Division of WorkThe Type of Work PerformedSupervisor - Subordinate RelationshipsFormal Communication ChannelsMajor SubunitsLevels of Management
5Informal StructuresThe set of unofficial relationships among organization members.Potential BenefitsHelps people accomplish their work, and overcome limits of the formal structure.Allows people to better communicate, and extend support and protection to one another, andIt satisfies people's needs for social interaction.
6Informal StructuresThe down-side is that it is susceptible to rumor, breeds resistance to change, and can be distractive.
7SynergyThe creation of a whole that is greater than the sum of its individual parts.CoordinationThe synchronization of the separate and specialized activities of the many people necessary to achieve Synergy
8Traditional Organization Structures Any organization is a network of interconnecting groups, andManagers serve as linking pins along the Vertical and Horizontal dimensions of the organization.
9DepartmentalizationThe 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.
10Functional 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.
11Functional 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.
12Functional Structures Potential Disadvantages:Functional Chimneys ProblemA 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.
13Functional Structures Business FirmPresidentVPMktVPFinanceVPProd.VPHRVPR&D
14Divisional 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
15Divisional Structures To meet pressures for innovation and change in dynamic environments.Types of Divisional StructuresProductGeographicCustomerProcess
16Divisional Structures Various Divisional StructuresPresidentDrugsEuropeGovtTubePlantNightShift
17Hybrid StructuresDivisional and Functional structures used in different parts of the same organization.Allows different needs to be served simultaneously.Common in most large organizations.
18Matrix StructuresUses 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.
20Potential Strengths of Matrix Structures More Interfunctional CooperationFlexibilityCustomer ServiceBetter AccountabilityImproved Decision MakingImproved Strategic Management
21Disadvantages of Matrix Structures Power Struggles - "Two Boss" SystemGroupitis - Teams become too focused on themselves.Increased Costs - Extra salaries for program managers.
22Developments In Structures Team StructuresThe use of permanent and temporary cross-functional teams to improve lateral relations and solve problems throughout the organization.
23Developments In Structures Network StructuresConsists of a central core working with networks of outside suppliers of essential business services.AlliancesDesignerCoreFinanceOff-shoreImporter
24Organizing Trends In The Modern Workplace Organizations depend on the success of two separate but complementary forces:DifferentiationThe creation of differences through a division of labor.IntegrationThe coordination of results so that some common purpose is achieved.
25Organizing Trends In The Modern Workplace Shorter Chains of CommandThe 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."
26Organizing Trends In The Modern Workplace Less Unity of CommandEach 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.
27Organizing Trends In The Modern Workplace Wider Spans of ControlIncreased 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
28Organizing Trends In The Modern Workplace More Delegation and EmpowermentDelegation is the process of distributing and entrusting work to other persons.The three steps in delegation are:The manager assigns responsibilityThe manager grants authority to act The manager creates accountabilityThey are the foundation of vertical coordination through delegation.
29Responsibility Authority The obligation to perform that results when a subordinate accepts an assigned task.AuthorityThe right to assign tasks and direct the activities of other persons.AccountabilityThe requirement for a subordinate to show results of assigned duties to a supervisor.
30Authority 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.
31EMPOWERMENTIs giving others the authority to act and make decisions on their own.
32Decentralization 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.