Management Structures and Systems

Names Roll no’sSupriya 07Bhavana 10Jayesh 05Manisha 04Sumith 01Meenakshi 08Ruchir 02Sripad 06Archana 09

Introduction Mission, vision, core values, style of management, strategies, policies etc do not fruitful unless it was followed by appropriate management system

•Different type of organization chart.•Importance of Good structure .•Structures & system must differ depending upon organization

Cont…

• The more complex operating environment more diversified output.• Management system changed from third world countries to western mgt system.• Elaborate structure may reduce the operating flexibility.• Inadequate structure & system can improve the efficiency

Chapter will be explained through six part -

• For competitive excellence• For Institutionalized excellence• For Rejuvenatory excellence• For versatile excellence• For creative excellence• For missionary excellence

Forms of superstructure Simple chart

Functional structure

Chief Executive

Assistant Assistant Assistant

Chief Executive

Operations Manager

Marketing Manager

PersonnelManager

FinanceManager

Informal form

Flexibility

Expertise &Efficiency

Divisional organization chart

Manager Division B

Divisional Staff

Manager Division A

Divisional Staff

Functional org

Functional org

Chief Executive

Central staff (Planning, Finance, Personnel

Staff Duplication

Rivalry Divisions

Trains Managers

Effectiveness

Coordination

Matrix organization chart

• Chief Projects

• Science and technology disciplines

• Project A

• Chief Executive

• Corporate staff (Planning, marketing, Finance, Personnel, R&D)

Project B Project C

Temporary Adjustment Authority Conflicts

Shapes of Managerial HierarchyChief Executive

Pyramidal

Democrat

I

c

Decision makers

Decision makers

Shapes of Managerial HierarchyTall Hierarchy

Communication

Length & Size

Control &Check

Promotion

Shapes of Managerial HierarchyFlat Hierarchy

Average Span of control 4;85 managers managing an organization of 381 persons) Vs 2;27 (255 persons)

Central point

• Principle of Functional specialization

• Principle of effective coordination

• Output is standardized scale dip in favor of principle of departmentalization by function specialization.

• Output is custom tailored important becomes principle of locating interdependent together for effective coordination.

Infrastructure

Organization Structure can be defined as the way or method through use of a hierarchy that a group, business, organization, people or objects collaborate to achieve success on one common goal.

Why Have a Structure?

• All businesses have to organise what they do

• A clear structure makes it easier to see which part of the business does what

• There are many ways to structure a business

Elements of Organizational Structure

OrganizationalStructureElements

Span ofControl

Centralization

Department-alization

Formalization

Formal decision making authority is held by a few people, usually at the top. Weaker structured

infrastructure.

Centralization

Decision making authority isdispersed throughout the organization. Specialised,

Standardised & formalised.

Decentralization

Centralization and Decentralization

Tall / High organizational structure

• Is characteristic of decentralized & strongly structured companies.

• It attempts to ensure highly reliable & quality oriented work.

• It has clarity & accountability.• It has multiple layers of management and

relatively narrow spans of control

• Is characteristic of centralized companies with relatively few layers of management and relatively wide spans of control

Flat organizational structure

Shapers of Organizational Structures•Studies conducted in fifties, sixties, seventies

•Indicated the sorts of choices available in management structures and systems

Early Fifties- Ernest Dale- Size

•Small Sized -second line of management•Medium sized-Formalizing functions•Larger Size-Decentralizing Short Term Decisions

Shapers of Organizational StructuresEarly Sixties – Alfred Chandler – American Corporations

•Diversification

•Smaller self contained units – Replica of the original

•Overloads Managers – Each unit requires separate managerial attention-Malfunction

Shapers of Organizational Structures

• Early Seventies – John Child –American Airlines

Power of Control

• Centralization – performed well

• Decentralization – Performed poor

Shapers of Organizational Structures

Seven Elements• Decentralization• Control System• Staff services• Divisionalization• Functional departmentalization• Vertical integration• Group/ Participative decision making

Shapers of Organizational Structures

Technology•Joan Woodward•Studied 3 types of British manufacturing firms•Custom Manufacturing•Mass production•Continuous production

Folk Management Systems

• What Is it ?

• How is it different from Sophisticated Management Systems ?

• Folk Management Systems fallowed in Third World Countries Like

1. India2. Japan

Structures & System For Excellence

• Significance Of Structure & Systems In An Organization

• How It Is Influenced by1. Nature Of The Organization2. Nature Of Operational Context

• How it Facilitates Competitive Excellence

“Institutionalized Excellence”

• Long – term performance in absence of Strong Competitive pressures or outstanding organizational leadership.

• A cadre of carefully groomed managers.

• Standardization of Operating Systems.

Structures and Systems for rejuvenatory excellence

• Plugging the biggest loopholes in systems and structures and fine tuning the existing ones.

Structures and systems for versatile excellence

• Complex Structure of many parts each dedicated to pursuit of a single indicator of excellence

• Management system may need to vary for different kinds of projects or ventures

Structures & Systems for Creative Excellence

DefinitionThe ability to innovate new outputs of goods & services as well as novel technologies & management strategies, practices & systems frequently & successfully, is the heart of Creative Excellence.

Two Distinct Competencies1)Generate Innovative Ideas2)Refine & Efficiently Implement

Cont…Several Available Strategies

Simplest Strategy : Two Separate Organization

Complex Strategy : Train the staff in two different modes of functioning.

Requirement of Professional organization• Functional specialization • Elaborate but effective management system & procedures• An accountability oriented structure• Coordination committees , Controls , etc.

Requirements for creative excellence• Flat Structure• Small Teams• Extreme structural Flexibility• Various system modification• System & participative system

System of autonomy & self control The personal selection & reward system Participatory goal setting System Conflict resolution system Final scanning system

Structure & System for Missionary cover with many Excellence

• External issues Political ,Social, Corruption Infrastructure and deliberately resources for mission to fulfilled

• Internal issues too funds ,creditability and client expectations

• Tie up with Agencies too ,to expand & compete for business in local market

• Depends on department wise and strategy adaptability to that department

• Flexibility to operate it along with in house resources available

• Consonance with government rules and regulations of labour welfare

• Operate on centralized and decentralized to achieve goal

• Sometimes operate with confidentiality

• Should have Administrative and HRP Control

• Mission should be Ideological not below the estimated level and not much above ………..

• Employee operating should exactly received idea of a goal to achieved

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