Mtp Organ Is Ing
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- Words: 1,158
- Pages: 36
Lehar Ajwani Deep Shikha Anupam Kaushik Satish Kachhawa
Organizing is ◦ ◦ ◦ ◦
Identification / classification of activities Grouping of these activities Assignment of each group to a manager Provision for coordination
Color coding bathroom schedules for 18 children!
Formal ◦ President – Division Managers – Department Managers
Informal ◦ The regular “coffee” group, The Every-SundayBowling-Group
Close supervision Close control Fast communication
Advantages
Too much involvement Many levels of management High cost Excessive distance
Disadvantages
Superiors forced to delegate Need for clear policies
Advantages
Decision bottlenecks as superiors overloaded Danger of loss of control
Disadvantages
United States Army General Colonels Majors
Relatively narrow span of control. At lower levels, where tasks are similar and simpler, span of control widens.
Captains & Lieutena Warrant nts Officers Sergeant s Corporal s Privates
5-9
Peter told Alice to come to the fountain in the garden behind the fort at precisely midnight so that they could sit and relax by singing soulful songs amongst other things.
Case Study Questions: ◦ The reengineering efforts focused on the business process system. Do you think that other processes such as the human system, or other managerial policies need to be considered in a process redesign? ◦ What do you think was the reaction of the brand managers, who may have worked under the old system for many years, when the category management structure was installed? ◦ As a consultant, would you have recommended a topdown or a bottom-up approach or both, to process redesign and organizational change? What are the advantages and disadvantages of each approach?
Grouping activities in accordance with functions Types:
◦ ◦ ◦ ◦
By By By By
Enterprise Function Territory or Geography Customer Preferences Product
Matrix Organisation
Logical reflection of functions Maintains power and prestige Follows principle of occupational specialisation Simplifies training
Advantages
De-emphasis of company objectives Narrow viewpoint of key personnel Reduces coordination between functions Responsibility for profits only at the top
Disadvantages
Places responsibility at lower level Improves coordination in a region Takes advantage of local economies
Advantages
Requires more persons with general manager abilities Requires more services at regional level Top management have control issues
Disadvantages
Encorages concentration on customer needs Gives customer feeling that they have an understanding supplier (banker) Develops expertise in customer area
Advantages
Difficult to coordinate between competing customer demands Requirs managers and staff to be experts in customer problems Customer groups not always clearly defined
Disadvantages
Oriented towards end result Professional identification is maintained Pinpoints productprofitability responsibility
Advantages
Conflict in organisation authority Possibility of disunity of command Requires manager effectiveness in human relations
Disadvantages
Matrix Organization at Stewart Martha Merchandising Group
Media Group
Specialt y/ Retailing Sears Paint
Catalog Line
K-mart Line
Network/ Cable TV
Radio/ Newspa per
Internet
Books
Magazin es
Area Speciali sts
Cooking Entertain ment Weddings Crafts Gardenin g Home Holidays Children 6 - 17
Multiple Forms of Departmentalization President
Functional Departmentalization Vice President Marketing
Vice President Production
Vice President Finance
Geographical Departmentalization Texas Plant Manager
Oregon Plant Manager
Florida Plant Manager
Product Departmentalization ConsumerIndustrial Products Products
ConsumerIndustrial ConsumerIndustrial Products Products Products Products 6 - 18
Virtual Organization Contracted Manufacturing in Asia
Contracted Administrative Services
Core Organization
• Accounting • Human Resources
• Finance • Operations • Management
Contracted Sales & Marketing
Contracted Distribution & Logistics 6 - 19
Line Department Responsible for the principal activities of the firm. Deals directly with Organisational primary goods and services Make things, Sale things, provides customer services. Have much authority in an Organisation. Includes Product design, Product Assembly, Distribution & Selling. Ultimately responsible for making major operating decisions. Accountable for “bottom-line”
Staff Department Created to support, assist and advise the Line Deptt. Are the Specialized Units. Includes Research, Legal, Accounting, Public Relations & HR Deptt
Power Individual Capacity to influence decisions.
Authority The rights inherent in a managerial position to give orders and expect them to be obeyed.
Responsibility An obligation to perform assigned activities.
Accountability
Mechanism through which authority and responsibility are brought into alignment
Empowerment
Closest to the task are best able to make the decision, provided that they have the required competencies
What is Delegation?
Techniques for Delegation
Process of Delegation
Advantages
Barriers to Delegation
Techniques for Delegation Give thorough instruction s
Maintain feedback
Evaluate and reward performance
Techniques for Delegation
Delegate the whole task
Ensure that authority equals responsibility
Select the right person
Analyze the Organisation Structure
Decide what all tasks need to be assigned
Decide who can handle each task
Delegate the authority
Create an obligation (responsibility)
Control the delegation
Advantages of Delegation Frees up managerial time for other important tasks. Serves as a training and development tool for lower level managers. Increases subordinates’ commitment by giving them challenging assignments.
Barriers to Delegation √ Belief that only you can do the job right. √ Lack of confidence and trust in subordinates. √ Low self-confidence. √ Fear of competition from subordinates. √ Reluctance to take risks that depend on others. √ Bosses who do not delegate.
Centralization
The retention of decision-making authority by top management.
Decentralization
The sharing of decision-making authority by management with lower-level employees.
The Need for Balance
The challenge is to balance the need for responsiveness to changing conditions (decentralization) with the need to create low-cost shared resources (centralization).
Defining Organizational Culture Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability
Culture
is to organizations what personality is to individuals All companies have cultures ◦ Culture by default ◦ Culture by design – thoughtful choices based on values and core beliefs How
does a company consciously create its culture?
Top Management Philosophy of the Organization’s Founders
Organizational Culture
Selection
Socialization
Do Organizations Have Uniform Cultures?
Dominant Subcultures Culture
Core Values
Control cultures – Drive for predictability and order
Collaboration cultures – Pursue close relationship with customers
Competence cultures – Pursue excellence and innovation
Cultivation cultures – Pursue life enrichment for customers and employees
Conflict management ◦ ◦ ◦ ◦
Relationship or interpersonal conflict Task / process conflict Functional vs. dysfunctional conflict Factors: goal incompatibility, limited resources, differences
Power – the capacity to influence behavior ◦ Positional power: rewards/consequences, control of resources, information and decision control ◦ Personal power: expert, referent (based on identification and admiration)
Politics – the use of power to influence decisions
Corporate Culture Systematic Approach
Self-governance
Informed Acquiescence
Blind Obedience
Anarchy
Cultural Evolution
PREVENT
DEFINE
Selfgovernance EVALUATE
RESPOND
DETECT
Organizing is ◦ ◦ ◦ ◦
Identification / classification of activities Grouping of these activities Assignment of each group to a manager Provision for coordination
Color coding bathroom schedules for 18 children!
Formal ◦ President – Division Managers – Department Managers
Informal ◦ The regular “coffee” group, The Every-SundayBowling-Group
Close supervision Close control Fast communication
Advantages
Too much involvement Many levels of management High cost Excessive distance
Disadvantages
Superiors forced to delegate Need for clear policies
Advantages
Decision bottlenecks as superiors overloaded Danger of loss of control
Disadvantages
United States Army General Colonels Majors
Relatively narrow span of control. At lower levels, where tasks are similar and simpler, span of control widens.
Captains & Lieutena Warrant nts Officers Sergeant s Corporal s Privates
5-9
Peter told Alice to come to the fountain in the garden behind the fort at precisely midnight so that they could sit and relax by singing soulful songs amongst other things.
Case Study Questions: ◦ The reengineering efforts focused on the business process system. Do you think that other processes such as the human system, or other managerial policies need to be considered in a process redesign? ◦ What do you think was the reaction of the brand managers, who may have worked under the old system for many years, when the category management structure was installed? ◦ As a consultant, would you have recommended a topdown or a bottom-up approach or both, to process redesign and organizational change? What are the advantages and disadvantages of each approach?
Grouping activities in accordance with functions Types:
◦ ◦ ◦ ◦
By By By By
Enterprise Function Territory or Geography Customer Preferences Product
Matrix Organisation
Logical reflection of functions Maintains power and prestige Follows principle of occupational specialisation Simplifies training
Advantages
De-emphasis of company objectives Narrow viewpoint of key personnel Reduces coordination between functions Responsibility for profits only at the top
Disadvantages
Places responsibility at lower level Improves coordination in a region Takes advantage of local economies
Advantages
Requires more persons with general manager abilities Requires more services at regional level Top management have control issues
Disadvantages
Encorages concentration on customer needs Gives customer feeling that they have an understanding supplier (banker) Develops expertise in customer area
Advantages
Difficult to coordinate between competing customer demands Requirs managers and staff to be experts in customer problems Customer groups not always clearly defined
Disadvantages
Oriented towards end result Professional identification is maintained Pinpoints productprofitability responsibility
Advantages
Conflict in organisation authority Possibility of disunity of command Requires manager effectiveness in human relations
Disadvantages
Matrix Organization at Stewart Martha Merchandising Group
Media Group
Specialt y/ Retailing Sears Paint
Catalog Line
K-mart Line
Network/ Cable TV
Radio/ Newspa per
Internet
Books
Magazin es
Area Speciali sts
Cooking Entertain ment Weddings Crafts Gardenin g Home Holidays Children 6 - 17
Multiple Forms of Departmentalization President
Functional Departmentalization Vice President Marketing
Vice President Production
Vice President Finance
Geographical Departmentalization Texas Plant Manager
Oregon Plant Manager
Florida Plant Manager
Product Departmentalization ConsumerIndustrial Products Products
ConsumerIndustrial ConsumerIndustrial Products Products Products Products 6 - 18
Virtual Organization Contracted Manufacturing in Asia
Contracted Administrative Services
Core Organization
• Accounting • Human Resources
• Finance • Operations • Management
Contracted Sales & Marketing
Contracted Distribution & Logistics 6 - 19
Line Department Responsible for the principal activities of the firm. Deals directly with Organisational primary goods and services Make things, Sale things, provides customer services. Have much authority in an Organisation. Includes Product design, Product Assembly, Distribution & Selling. Ultimately responsible for making major operating decisions. Accountable for “bottom-line”
Staff Department Created to support, assist and advise the Line Deptt. Are the Specialized Units. Includes Research, Legal, Accounting, Public Relations & HR Deptt
Power Individual Capacity to influence decisions.
Authority The rights inherent in a managerial position to give orders and expect them to be obeyed.
Responsibility An obligation to perform assigned activities.
Accountability
Mechanism through which authority and responsibility are brought into alignment
Empowerment
Closest to the task are best able to make the decision, provided that they have the required competencies
What is Delegation?
Techniques for Delegation
Process of Delegation
Advantages
Barriers to Delegation
Techniques for Delegation Give thorough instruction s
Maintain feedback
Evaluate and reward performance
Techniques for Delegation
Delegate the whole task
Ensure that authority equals responsibility
Select the right person
Analyze the Organisation Structure
Decide what all tasks need to be assigned
Decide who can handle each task
Delegate the authority
Create an obligation (responsibility)
Control the delegation
Advantages of Delegation Frees up managerial time for other important tasks. Serves as a training and development tool for lower level managers. Increases subordinates’ commitment by giving them challenging assignments.
Barriers to Delegation √ Belief that only you can do the job right. √ Lack of confidence and trust in subordinates. √ Low self-confidence. √ Fear of competition from subordinates. √ Reluctance to take risks that depend on others. √ Bosses who do not delegate.
Centralization
The retention of decision-making authority by top management.
Decentralization
The sharing of decision-making authority by management with lower-level employees.
The Need for Balance
The challenge is to balance the need for responsiveness to changing conditions (decentralization) with the need to create low-cost shared resources (centralization).
Defining Organizational Culture Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability
Culture
is to organizations what personality is to individuals All companies have cultures ◦ Culture by default ◦ Culture by design – thoughtful choices based on values and core beliefs How
does a company consciously create its culture?
Top Management Philosophy of the Organization’s Founders
Organizational Culture
Selection
Socialization
Do Organizations Have Uniform Cultures?
Dominant Subcultures Culture
Core Values
Control cultures – Drive for predictability and order
Collaboration cultures – Pursue close relationship with customers
Competence cultures – Pursue excellence and innovation
Cultivation cultures – Pursue life enrichment for customers and employees
Conflict management ◦ ◦ ◦ ◦
Relationship or interpersonal conflict Task / process conflict Functional vs. dysfunctional conflict Factors: goal incompatibility, limited resources, differences
Power – the capacity to influence behavior ◦ Positional power: rewards/consequences, control of resources, information and decision control ◦ Personal power: expert, referent (based on identification and admiration)
Politics – the use of power to influence decisions
Corporate Culture Systematic Approach
Self-governance
Informed Acquiescence
Blind Obedience
Anarchy
Cultural Evolution
PREVENT
DEFINE
Selfgovernance EVALUATE
RESPOND
DETECT
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