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ORGANIZING
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MIHIR BABARIA 05
DHARAM JOSHI 23
PURAV NANAVATI 38
RICKEN RAMCHANDANI 41
JEET SHAH 51
SWARALI THIPSAY 58
GROUP MEMBERS
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The process of deploying resourcesto achieve strategic goals
ORGANIZING
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ORGANIZINGCHART
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ORGANIZING CHART
The division of work
Supervisory relationships
Communication channels
Major subunits
Levels of management
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ORGANIZATION ROLE - FORMAL
Source-Management A GlobalPerspective, Harold Koontz
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ORGANIZATION ROLE - INFORMAL
Source-Management A GlobalPers ective, Harold Koontz
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ORGANIZATION LEVELS & THE SPAN OF
MANAGEMENT Choosing the Span
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Communicationtechniques
Amount of personal
contact needed
Variation by organizationlevel
The Need For Balance
Subordinate training
Clarity of delegation ofauthority
Clarity of plans
Use of objective standards
Rate of change
FACTORS DETERMINING THE EFFECTIVE
SPAN
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ENTREPRENEUR & INTRAPRENEUR
Contrary to Conventionalwisdom
Personal risks
Rewards
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LOGICAL STEPS OF ORGANIZING
Establishing enterprise objectives
Formulating supporting objectives, policies& plans
Identifying & classifying the activitiesnecessary to accomplish these
Grouping these activities
Delegating
Tying the group together
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DEPARTMENTATION The process by which similar activities of the business are
grouped into units for the purpose of facilitating smoothadministration at all levels
Choosing basis for departmentation
Specialization
Coordination
Control
Economy
Recognition of local condition
Adequate attention
Human consideration
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DEPARTMENTATION BY TYPE
Functional
Grouping jobs byfunctions performed
Product
Grouping jobs byproduct line
Geographical
Grouping jobs on thebasis of territory orgeography
Process
Grouping jobs on thebasis of product orcustomer flow
Customer
Grouping jobs by type ofcustomer and needs
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1. PRODUCT DEPARTMENTATION
+ Allows specialization in particular products and services
+ Managers can become experts in their industry+ Closer to customers
Duplication of functions
Limited view of organizational goals
Source : Management Stephen Robbins
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2.FUNCTIONAL DEPARTMENTATION
The grouping of common & homogeneous activities to form anorganizational unit is known as functional departmentation
The functional departmentation will include both line function aswell as staff function
Source : Management Stephen Robbins
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3.TERRITORIAL/GEOGRAPHICALDEPARTMENTATION
Territorial departmentation is attractive to large scale firms or enterprises whose
activities are physically or geographically dispersed.
All the activities of given area of operation are grouped into zones, divisions,branches, etc
This structure is most often used in sales & production
ADVANTAGES
More effective and efficient
handling of specific regional
issues that arise
Serve needs of unique
geographic markets better
DISADVANTAGES
Duplication of functions
Can feel isolated from other
organizational areas
Source : Management Stephen Robbins
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4. CUSTOMER DEPARTMENTATION
Customer based departmentation is basically marketoriented in whichdepartment are created around the market served or around marketingchannel
Customers are the key to the way activities are grouped
Source : Management Stephen Robbins
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5. PROCESS DEPARTMENTATION When production activities involve the use of several
distinctive processes, this can be used as the base forgrouping of activities
ADVANTAGES
Machine can be used
effectively
Economy in operation
No duplication of activities
Principle of specialization &
division of labor is followed
DISADVANTAGES
Heavy cost of operation
More specialist are essential
Source : Management Stephen Robbins
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MATRIX ORGANIZATION
Specialists from different functional departments are assigned to
work on projects led by project managers.
Matrix and project participants have two managers.
In project structures, employees work continuously on projects;
moving on to another project as each project is completed.
Source : Management Stephen Robbins
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STRATEGIC BUSINESS UNITS (SBUs)
Distinct little businesses set up as units in a largercompany to ensure that a certain product orproduct line is promoted and handled as though itwere an independent business.
Criteria to become an SBU
1. Have its own mission
2. Have definable group of competitors
3. Prepare its own integrative plans
4. Manage its resources in key areas
5. Have a proper size
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STRATEGIC BUSINESS UNITS
Source-Management A GlobalPerspective, Harold Koontz
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LINE/STAFF AUTHORITY
Power v/s Authority
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Various Bases of Power:
Legitimate
Knowledge Referent
Reward
Coercive
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LINE AND STAFF CONCEPT
Confusion between line and staff
Solution : Scalar Principle
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FUNCTIONAL AUTHORITY
Delegation of functional authority
Restricting the Area of Functional Authority
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Benefits of Staff
Limitations of Staff
Underestimating Line Authority
Blame Game No practise Only preach
Managerial issues
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CENTRALIZATION AND DECENTRALIZATION
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THE DEGREE OF CENTRALIZATION
Higher
Em
ployeeEmpo
werment
Centralization
Decentralization
HigherLower
Lower
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Desire for Independence
Availability of managers
Control Techniques
Decentralized performance Business Dynamics The
Pace of change
Environmental Influences
Costliness of the Decision
Desire for Uniformity ofPolicy
Size and character of theorganization
History and culture of theEnterprise
Management Philosophy
FACTORS DETERMINING DEGREE OF
DECENTRALIZATION
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DECENTRALIZATIONADVANTAGES
More freedom andindependence to managers
Facilitates productdiversification
Facilitates setting up of Profitcenters
Promotes development ofgeneral managers
Aids in adaptation to fast-changing environment
LIMITATIONS
More difficult to have auniform policy
Increases complexity ofcoordination of decentralized
units
Involves considerable expensefor training managers
May not be favored by
economies of scale of someoperations
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DELEGATION OF AUTHORITY
Delegation of decision making power to subordinates bytheir seniors
Process of Delegation
Determining the results expected from a position
Assigning tasks to the position
Delegating authority for accomplishing these tasks
Holding the person responsible for the accomplishment of the task
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SPLINTERED AUTHORITY Shared control of the same decisions between two or more
individuals or organizations
It exists when a decision cannot be made without pooling theauthority of two or more managers
Splintered Authority cannot be wholly avoided in decision making
However recurring decisions may be an evidence that authority is notdelegated properly and some reorganization is required
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PERSONAL ATTITUDES TOWARDS DELEGATION
Receptiveness
Willingness to go
Willingness to let others
make mistakes
Willingness to trustsubordinates
Willingness to establish anduse broad controls
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HOW TO OVERCOME WEAK DELEGATION?
Define assignments and delegateauthority in light of resultsexpected
Select the person in light of thejob to be done
Maintain open lines ofcommunication
Establish proper controls
Reward effective delegation andsuccessful assumption ofauthority
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AVOIDING MISTAKES IN ORGANIZING BYPLANNING
Establishment of objectives and orderly planning arenecessary for good organization as with the other functionsof managing
Lack of design in organization is :
1) Illogical2) Wasteful
3) Inefficient
Organizing mistakes can be avoided through two steps
1) Planning for the Ideal
2) Modification for the Human Factor
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AVOIDING ORGANIZATIONALINFLEXIBILITY
Organizational inflexibility is the inability to adapt toa changing environment
Signs of inflexibility:
1. Old organizational pattern
2. Regional organizations could be changed
3. Inadequate decentralization
Inflexibility in work culture is highly undesirableamong employees
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AVOIDING INFLEXIBILITY THROUGHREORGANIZATION
Inflexibilities can be avoidedthrough reorganization,readjustments and changes.
Reorganization:1) Business Environment changes
2) Change in Personnel
3) Change in Work Culture
Excessive reorganization mayresult into low morale.
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ERNST & YOUNG
Ernst & Young estimates saving $17 million inturnover-related costs during 1997 and 1998,with flexible work arrangements.
65% of the people who used the flexible workarrangements had earlier considered leaving
The organization avoided $40mn of rent by usinga policy of encouraging virtual work (work athome and elsewhere)
It eliminated one million of the seven million
square feet it rents nationwide.
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MAKING STAFF WORK EFFECTIVE
What is the line staff problem?
Solving this problem requires great managerial skill,careful attention to principles and patient teachingof personnel.
HOW?
Understanding Authority Relationships
Making line listen to staff
Keeping staff informed
Requiring completed staff work
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CHARACTERISTICS OF AN EFFECTIVESTAFF
Atmosphere
Group objectives
Communications
Decision making
Task achievement
Leadership
Review of team processes
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POSITION DESCRIPTIONS Positions description furnishes a standard against which
it can be judged if a position is necessary, itsorganizational level and exact location in the structure
Benefits:
1. Duties are brought into focus2. Areas of overlapping are recognized
3. Helps recruit required personnel and training
4. Setting salary levels
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STRUCTURE AND NATURE OF ORGANIZING
For the various organization structures to work, members of theenterprise must understand the general working of informal aswell as formal organization
Organizations should maintain well-written organization manualsthat contain:
Statement of the organizations philosophy
Programs and charts
Structure of the organization
Outline of job descriptions etc.
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THE GRAPEVINE
It is a form of informal and unstructuredcommunication
It is usually based on rumours
It is prevalent at the lower levels of theestablishment
It is inevitable and valuable
ADVANTAGES OF GRAPEVINE
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ADVANTAGES OF GRAPEVINECOMMUNICATION
ADVANTAGES
Spreads fast andwide
Aides formalcommunication
Enhances group
cohesiveness
Provides anemotional
supportive value
Gives quick
feedback
Is spontaneous
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DISADVANTAGES OF GRAPEVINECOMMUNICATION
DISADVANTAGES
Gives onlypartial
information
Informationdistortion
Informationneed not be
true
Can harm theorganizations
goodwillNo evidence
No formalcontrol
Employeesbecome
unproductive
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DEALING WITH GRAPEVINECOMMUNICATION
Managers should tactfully deal with grapevine:
They should not try to eliminate the grapevine They should find out what information is being
circulated in the grapevine
They should feed the accurate information and
correct any false information that is being circulated
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ORGANIZATION CULTURE The values and behaviours that contribute to the unique social
and psychological environment of an organization
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Forms organizational environments
Forms ideologies
Gives best values
Increases integration
Increases commitment
Improves co-ordination
LEADERSHIP STYLE
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MANAGEMENT SYSTEMS
It is a framework of processes and procedures used toensure that an organization can fulfill all tasks required toachieve its objectives
Burns and Stalker proposed two contrasting forms of
management systems to suit different conditions:MECHANISTIC SYSTEM AND ORGANIC SYSTEM
The two forms of systems represent two ends of acontinuum
An organization may oscillate from one end to the otherend as transitions occurs in its conditions
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MECHANISTIC vs. ORGANIC SYSTEMS
POINT OF DIFFERENCE MECHANISTIC ORGANIC
Suitable conditions Stable Changing
Specialization Individual Joint
Integrating Mechanisms Simple Complex
Centralization Centralized Decentralized
Standardization High Low( Mutual Agreement)
Communication Written Verbal
Communication Direction Vertical Lateral
Employee Commitment Low High
Control and Authority
structures
Hierarchic Network
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