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CSC350: Learning Management Systems
COMSATS Institute of Information Technology (Virtual Campus)
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Lecture # 8 Fundamentals of Organizing
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Review of the Previous Lecture
Definitions of strategic planning Main aspects of the strategic management process Key components of environmental analysis Role of organizational direction in strategic management Primary aspects of strategy formulation Importance of strategic control Coordination of tactical planning & strategic planning Competitive dynamics & organization’s financial performance
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Topics of Discussion An understanding of the organizing function
Benefits and costs of bureaucracy Advantages and disadvantages of division of labor Complexities of determining appropriate organizational structure Advantages and disadvantages of departmentalization
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DEFINITIONS OF ORGANIZING AND ORGANIZATION SKILL
Process of establishing orderly uses for resources within the management system Organizing Skill Creating a network of people throughout the organization who can help solve implementation problems as they occur Organization End result of organizing process
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Fayol’s Organizing Guidelines
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Organizing Process
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CLASSICAL ORGANIZING THEORY
Weber’s Bureaucratic Model: Detailed procedures and rules Clearly outlined organizational hierarchy Impersonal relationships among organization members
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CLASSICAL ORGANIZING THEORY
Division of Labor: Assigning various portions of a task among a number of organization members Advantages: Specialized skills – Only one job to do – Efficiency Disadvantages: Overlooks human variable – Boring – Decreased production
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Division of Labor & Coordination
Orderly arrangement of group effort Unity of action Synchronized order of tasks Mary Parker Follett Guidelines: Peer discussion resolves problems Planned by managers Maintaining is continuing process
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STRUCTURE Designated relationships among organizational resources
Two basic types of structure: Formal Represented on organization chart Informal Evolves naturally, spontaneously
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Formal Structure Organization Chart
Graphic illustration of firm’s organization structure Pyramid form Boxes are jobs/positions Lines designate formal communication lines
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Vertical Dimensioning
Scalar Relationships Chain of Command Unity of Command Employee reports to only one manager Span of Management Number of employees one manager can effectively manage Height of Organization Chart
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Horizontal Dimensioning
Lateral subdivisions or specialties Departments Unique group of resources established by management to perform organizational tasks
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TYPES OF DEPARTMENTALIZATION
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Functional Departmentalization
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Product/Service Departmentalization
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Geography Departmentalization
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Customer Departmentalization
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Matrix Departmentalization
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Forces Influencing Formal Structure
Managerial Forces Task Forces Environmental Forces Subordinate Forces
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Fayol’s Chain of Command Rationale
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Informal Structure Mechanistic Structures Organic Structures
Formal organizational structures Suited for large companies in stable industries Organic Structures Less formal Represent loosely coupled worker networks Suited for smaller companies in volatile industries
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Thank You
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