Business

Management 2

Study unit 7:

Organisation & Delegation

Chapter 8 – Strydom

Organising

Where we are...

IntroChapter 1: Management process

Levels of managers (Top, middle, low)

Areas of managers (Mrkt, Finance etc)

Competencies

Chapter 2: Evolution of management theory

Chapter 3: Managing in a changing environment

Composition of management envirnmt

Uncertainty (level change vs complexity)

MICRO MARKET MACRO

P.E.S.T.

Company

specific

outside.

Mission

Goals

People

culture.

Where we are...

Chapter 4: Strategic Planning

Strategic planning process

Strategic vs tactical (p93)

Selecting a grand strategy (p120)

Lead

Organise

Plan

Control

Chapter 5: Planning

Chapter 6: Managerial decision making

Chapter 7: Information management

Where we are...

Chapter 8: ORGANISING & DELEGATING

Definitions

Process & Principles of organising

Authority & Delegation

Lead

Organise

Plan

Control

Organisational design

Chapter 9: Managing change

Chapter 10: Managing diversity

DEFINITIONS

- ORGANISING- AN ORGANISATION- ORGANISATIONAL STRUCTURE

Organising

How activities

are co-ordinated

in order to

achieve the objectives of an organisation

Also p 217

Ongoing...interactive process

throughout the life of the organisation

Organising: examples

• Dividing the work

•Assign the necessary tasks to

relevant units/dept/sections

•Provide coordination for them to

work synergistically

Also p 217

and all towards the organisational goal

Organisation…

…also refers to the end result

of organising

Also p 217

So: How will YOU describe “organising” and “organisation”?

Organisational

structure

Refers to the

basic framework

of formal relationships between

• responsibilities

• tasks

• people

in the organisation

Also p 217

IMPORTANCE OF

ORGANISING

• Highlights responsibility of each employee

• Responsible employee expected to

account for the outcome

• Establishes communication channel

• Help to deploy resources effectively

Why organising is necessary

Consideration 1

Consideration 2

Consideration 3

Consideration 4

• Enables effective delegation

• Effective coordination of tasks &

responsibilities

Consideration 3

Consideration 4

The process..

PRINCIPLES OF

ORGANISING

1. Unity of command

Each employee answers to only

one immediate supervisor

Clarifies:

What is expected of me

Directed towards same goals

2. Chain of command

Clear, unbroken chain of command

Should link every employee

with someone

at a higher level

3. Span of control

Refers to the number of direct subordinates

- people in lower position -

reporting to a manager

4. Division of work

How to divide work

Related jobs can now be grouped

5. Standardisation

Developing uniform practices

that employees should follow

in doing their jobs

Certain level of conformity

6. Coordination

7. Responsibility

The obligation to

achieve goals

by performing

required activities

The right to

• make certain decisions,

• issue orders and

• use resources

8. Authority

9. Accountability

The evaluation of how well

individuals meet

their responsibility

Managers may delegate their responsibility

as well as their authority

BUT NEVER THEIR ACCOUNTABILITY

10. Power

The ability to influence

the behaviour of others

in the organisation –

There are a few

mentioned

11. Delegation

Process by which managers give

down the chain of command

from a person at higher level

to a person at a lower level

• responsibility and

• authority

DangerousStuff

13. Delayering

Reducing the number of layers in the

vertical management hierarchy

CENTRALISED VS

DECENTRALISED

AUTHORITY

Geographic

Region

Q1 Q2 Q3 Q4

United States 1254 1873 1015 2284

Europe and Asia 324 310 300 419

Australia 15 18 13 20

Canada 6 3 4 7

South Africa 1 .5 .5 2

TOTALS 1600 2205 1333 2732

From pp224 – 226, what do you see regarding AUTHORITY?

On Authority

Centralised

Top management -

makes the important decisions

Decentralised

Other level managers

(tactical & operational) -

makes the important decisions

from time to time

Comparison on p 227

ORGANISATION DESIGN

THE DIFFERENT ARRANGEMENT OF POSITIONSINTO DEPARTMENTS AND INTERRELATIONSHIP AMONG THEM

Grouping of

related activities into

units or departments

Departmentalisation

Functions

Products

Locations

Customers

Networks

.....based on

business functions

Managing

Director

Operations Manager

Financial

Manager

Human Resources

Manager

Marketing Manager

.....based on

Products

Tiger Brands

Food Brands

Spar2 HealthcareHospital products

.....based on

location

SABMiller plc

MD: Europe

MD: Africa & Asia

.....based on

customers

CEO

President:

Household

President:

Professional

President:

Pharmaceutical

Same advantages/disadvantages as

Product dept’tion

Network

Central hub

HR

agency Marketer

DesignerManufacturer

P 233

DESCRIBES

RELATIONSHIPS

BETWEEN

ORGANISATIONS

JOB DESIGN

JOB SPECIALISATION

JOB EXPANSION

DELEGATION

- GUIDELINES

Prepare your summary for discussion next class

Assignment – what are the guidelines of

Delegation?

Guideline 1

Guideline 2

…Guideline n

END