chapter_07 - organising

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Organizational Roles

For an organizational role to exist

and be meaningful, it must incorporate:

(1) erifiable ob!ecties, "#ic#, are ama!or part of planning

(2) a clear idea of t#e ma!or duties oractiities inoled and

($) an understood area of discretion oraut#orit% so t#at t#e person fillingt#e role &no"s "#at #e or s#e can

do to accomplis# goals

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Organizing inoles:

(1) t#e identification and classification

of re'uired actiities

(2) t#e grouping of actiities necessar%

to attain ob!ecties($) t#e assignment of eac# grouping to

a manager "it# t#e aut#orit%

(delegation) necessar% to superise it

() t#e proision for coordination #orizontall%(on t#e same or a similar organizational

leel) and erticall% (for example,

corporate #ead'uarters, diision, and

department) in t#e organization structure

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efinition of Organization

Organization implies a formalized

intentional structure of roles or

positions*

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FOR+- . /.FOR+-

OR.//O.

Formal organization pertains to the intentional

structure of roles in a formally organized enterprise

#e informal organization is a network of personal

and social relations not established or required by the

formal organization but arising spontaneously as

people associate with one another

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FOR+- . /.FOR+-OR.//O.

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FOR+- . /.FOR+-OR.//O.

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3#at is a epartment4#e department designates a distinct

area, diision, or branc# of anorganization oer "#ic# a manager

#as aut#orit% for t#e performance of

specified actiities*

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-eels are:

• 5xpensie

• 6omplicate 6ommunication

• 6omplicate 7lanning and 6ontrol

7roblems "it# Organization-eels



Organization "it# .arro" 8pans

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Organization "it# 3ide 8pans



#e Operational9+anagement7osition: 8ituational pproac#

The principle of the span of management

states that there is a limit to the number of

subordinates a manager can effectively

supervise, but the exact number will dependon the impact of underlying factors.

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3idening spans and reducing t#e

number of leels ma% be t#e

ans"er in some cases t#e

reerse ma% be true in ot#ers*

.eed for ;alance

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ifference ;et"een an

/ntrapreneur and an 5ntrepreneur

An intrapreneur is a person whofocuses on innovation and creativity and

who transforms a dream or an idea intoa profitable venture by operating withinthe organizational environment

The entrepreneur is a person whodoes similar things as the intrapreneur,but outside the organizational setting

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8ince it is managerial responsibilit%

to create an enironment foreffectie and efficient ac#ieementof group goals, managers mustpromote opportunities for

entrepreneurs to utilize t#eirpotential for innoation*

6reating an 5nironment

for 5ntrepreneurs#ip

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/nnoation applies not onl% to

#ig#9tec# companies but e'uall%

to lo"9tec#, establis#ed

businesses*

/nnoation and5ntrepreneurs#ip

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efinition of Reengineering

<***t#e fundamental ret#in&ing andradical redesign of business processesto ac#iee dramatic improements incritical contemporar% measures ofperformance, suc# as cost, 'ualit%,serice, and speed*=

#e underlined "ords are considered&e% aspects of reengineering b%>ammer and 6#amp%

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?e% spects of Reengineering

Fundamental ret#in&ing of "#at t#e organizationis doing and "#%

Radical redesign of t#e business processes

@.ote: o"nsizing or <rig#tsizing< is not t#eprimar% purpose of reengineering, alt#oug# inman% cases it does result in a need for fe"erpeopleA

Reengineering calls for dramatic results #e fourt# &e% "ord in t#e reengineering

definition is processes* #e need for carefull%anal%zing and 'uestioning business processes

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+anagement b% 7rocesses

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#e -ogic of Organizing

8ix steps of organizing process:

1* 5stablis#ing enterprise ob!ecties

2* Formulating supporting ob!ecties, policies,and plans

$* /dentif%ing, anal%zing, and classif%ing t#eactiities necessar% to accomplis# t#ese

* rouping t#ese actiities in lig#t of t#e #umanand material resources aailable and t#e best

"a%, under t#e circumstances, of using t#emB* elegating to t#e #ead of eac# group t#e

aut#orit% necessar% to perform t#e actiities

C* %ing t#e groups toget#er #orizontall% anderticall%, t#roug# aut#orit% relations#ips and

information flo"s

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;8/6 DE58/O.8 FOR 5FF56/5OR.//./t is useful to anal%ze t#e managerial function of organizing

b% raising and ans"ering t#e follo"ing 'uestions:

1* 3#at determines t#e span of management and #ence t#e

leels of organization4 (ans"ered in t#is c#apter)f

2* 3#at determines t#e basic frame"or& of departmentation,

and "#at are t#e strengt#s and "ea&nesses of t#e basic

forms4 (ans"ered in 6#apter G)

$* 3#at &inds of aut#orit% relations#ips exist in

organizations4 (ans"ered in 6#apter H)* >o" s#ould aut#orit% be dispersed t#roug#out t#e

organization structure, and "#at determines t#e extent of

t#is dispersion4 (ans"ered in 6#apter H)

B* >o" s#ould t#e manager ma&e organization t#eor% "or&

in practice4 (ans"ered in 6#apter 10)

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CASE STUDIES

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chapter_07 - organising

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