Irwin Management Book Presentations1
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ORGANIZING
ORGANIZING
is deciding how best to group organizational activities and resources
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People,
Machinery,
Raw materials,
Information, skills,
Financial capital.
Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.
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Organizing
In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.
Managers will group people into departments according to the tasks performed.
Managers will also lay out lines of authority and responsibility for members.
An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.
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BASIC ORGANIZING ELEMENTS THAT MANAGERS MUST ADDRESS ARE:
Designing jobs
Grouping jobs
A prominent organizational psychologist
Coordination of efforts
BENEFITS OF ORGANIZING
Synergisms – combining efforts to collectively accomplish the tasks that would exceed simple sum of individual efforts.
Synergy is achieved through the integration of specialized tasks.
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©The McGraw-Hill Companies, Inc., 2000
Division of work that avoids duplication, conflict ,and misuse of resources both material and human.
Clarity of individual performance expectations and specialized tasks.
A logical flow of work activities that can be comfortably performed by individuals and groups.
Established channels of communication that enhance decision making and control.
Coordinating mechanisms that ensure harmony among organization members engaged in diversified activities.
BENEFITS OF ORGANIZING
BENEFITS OF ORGANIZING
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Organizational Performance
Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency: A measure of how well resources are used to achieve a goal.
Usually, managers must try to minimize the input of resources to attain the same goal.
Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.
Organizations are more effective when managers choose the correct goals and then achieve them.
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Managerial Roles
Described by Mintzberg.
A role is a set of specific tasks a person performs because of the position they hold.
Roles are directed inside as well as outside the organization.
There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
Interpersonal Roles
Roles managers assume to coordinate and interact with employees and provide direction to the organization.
Figurehead role: symbolizes the organization and what it is trying to achieve.
Leader role: train, counsel, mentor and encourage high employee performance.
Liaison role: link and coordinate people inside and outside the organization to help achieve goals.
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Informational Roles
Associated with the tasks needed to obtain and transmit information for management of the organization.
Monitor role: analyzes information from both the internal and external environment.
Disseminator role: manager transmits information to influence attitudes and behavior of employees.
Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.
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Decisional Roles
Associated with the methods managers use to plan strategy and utilize resources to achieve goals.
Entrepreneur role: deciding upon new projects or programs to initiate and invest.
Disturbance handler role: assume responsibility for handling an unexpected event or crisis.
Resource allocator role: assign resources between functions and divisions, set budgets of lower managers.
Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.
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HOW MANAGERS SPEND
CEOs spend
10 % in unscheduled meeting
22% at their desks
6% on the telephone
CEOs devote 75% of their time in communicating
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COMMUNICATING
Top Managers
Middle Managers
First-line Managers
Management Levels
First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service.
Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals.
Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.
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FUNCTIONAL AND GENERAL MANAGERS
A horizontal division of management which is based on expertise and specialization is called functional management.
Line managers are concerned with primary organizational activities such as marketing and production. Departments are in-turn defined according to functional line duties such as production control, receiving, sales, shipping and customer service.
General managers usually oversee collective operations that include several functional managers. These generalists are plant managers, also top management group. They need different skills. Those who specialize in functional areas tend to focus their energy on technical aspects of their jobs.
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Managerial Skills
There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to solve long term problems and view the total organization as an inter active system; ability to analyze and diagnose a situation and find the cause and effect.
2. Human skills: the ability to understand, alter, lead, and control people’s behavior.
3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.
All three skills are enhanced through formal training, reading, and practice.
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Skill Type Needed by Manager Level
Top
Managers
Middle
Managers
Line
Managers
Conceptual
Human
Technical
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Management Challenges
Building competitive advantage through superior efficiency, quality, innovation, and responsiveness.
Increasing performance while remaining ethical managers.
Managing an increasingly diverse work force.
Using new technologies.
MANAGEMENT STYLES
A management style characterized by the manager making all decisions and issuing orders for the completion of work without the input of subordinate is called autocratic style. Strongest example of autocratic style is a military commander on the battlefield.
Free-rein style is characterized by the manager allowing subordinates to make most decisions. Managers serve advisers.
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MANAGEMENT STYLES
Democratic style is characterized by the manager making decisions that takes into account the input of subordinates. Managers as their subordinates for suggestions prior to making decisions but retain final decision-making power.
For example, a manager may ask a committee to interview an applicant for a position and give their opinion. But the manager will ultimately make the decision to hire or not to hire the applicant
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Management Trends
Supervisors might be empowered to make some resource allocation decisions.
Self-managed teams: give a group of employees responsibility for supervising their own actions.
The team can monitor its members and the quality of the work performed.
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Restructuring
Top Management have sought methods to restructure their organizations and save costs.
Downsizing: eliminate jobs at all levels of management.
Can lead to higher efficiency.
Often results in low morale and customer complaints about service.
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