Download - Function of Management
Function of Management
by Biyan Belinda (14411050)Engineering ManagementInstitute of Technology Bandung
Function of management
Organizing – to create structure
Controlling – to ensure
results
Leading – to inspire
effort
Planning – to set the direction
Organizing
The process of arranging people and other resources to work together to accomplish a goal.
Organizing is needed to create the structures.0Divide up the work0Arrange resources0Coordinate activities
Organization Structure
A system of tasks, workflows, reporting relationships, communication channels that link together the work of diverse individuals and groups.
Organization Chart
A diagram that shows reporting relationships and the formal arrangement of work positions within an organization.
Shows the formal structure ; official structure of the organization.
The basics of an organization’s formal structure0Division of work – positions and titles shows work
responsibilities0 Supervisory relationship – lines show who report to
whom0Communication channels – lines show formal
communication flows0Major subunits – positions reporting to a common
manager0Levels of management – vertical layer of management
Informal Structure
The set of unofficial relationship among an organization’s member.
Show who talks to and interacts regularly with whom, regardless of their formal titles and relationship.
Sources of emotional support and friendship that satisfy important social needs.
Social Network Analysis
A tool to identify the informal structures and their embedded social relationships that are active in organization.
Disadvantages from informal structure0Susceptible rumor0Carry inaccurate information0Breed resistance to change0Divert work efforts from important objectives
Traditional Organization Structure
Ciri : Departementalization The process of grouping people and jobs into work
units
Traditional Organization Structure is divided by 3 major types :1. Functional structure2. Divisional structure3. Matrix structure
Functional StructureGrouping people with similar skills who perform similar tasks.
Advantages :1. Economic of scale with efficient use of resources2. Task assignments consistent with expertise and training3. High-quality technical problem solving4. In-depth training and skill development within function5. Clear career paths within function
Disadvantages : Functional chimney problemA lack of communication, coordination, and problem solving across
function. It’s because mind-sets of people become formalized.
Director
Commissioner
Financial Marketing OperationalHuman
Resources
Divisional StructureGroups together people working on the same product, in the same area,
with similar costumers, or on the same processes.
Divided by 4 types of stuctures :1. Product structure : groups together people and jobs focused on a single
product or service2. Geographical structure : groups together people and jobs performed in
the same location3. Customer structure : groups together people and jobs that serve the same
customers or clients4. Process structure : groups jobs and activities that are part of the same
processes
*work process : a group of related tasks that collectively creates a valuable work product.
Director
Commissioner
Product Geography Customer Product
0Advantages :1. More flexibility in responding to environmental changes2. Improved coordination across functional departements3. Clear points of responsibility for product or service
delivery4. Expertise focused on spesific customers, products, and
regions5. Greater ease in changing size by adding or deleting
divisions
0Disadvantages1. Reduce economic of scale2. Increase costs through the duplication of resources and
effort across divisions3. Create unhealthy rivalries as divisions compete for
resources and top management attention4. As they emphasize division needs over the goals of the
organization as a whole
Matrix Structure
Often called as matrix organization, combines the functional and divisional structure to emphasize project or program teams.
Found in multinational corporations, where they offer the flexibility to deal with regional differences while still handling multiple product, program, or project needs.
0Advantages1. Better communication and cooperation across function2. Improved decision making; problem solving takes place
at the team level where the best information is available3. Increased flexibility adding, removing, or changing
operations to meet changing demands4. Better customer service ; there is always a program,
product, or project manager informed and available to answer questions
5. Better performance accountability through the program, product, or project managers
6. Improved strategic management ; top managers are freed from lower-level problem solving to focus time or more strategic issues
0Disadvantages1. The two-boss system is susceptible to power struggles if
functional supervisors and team leader compete with one another to exercise authority
2. The two-boss system can be frustrating it creates task confusion and conflicting work priorities
3. The teams may develop “groupitis”, then the strong team loyalties can cause a loss of focus on larger organizational goals
Horizontal Organization Structure
Part of broader movement to organize structure from matrix structure.
Goals :1. Improve communication2. Collaboration3. Flexibility by decreasing hierarchy, increasing
empowerment, better mobilizing human talents
Team Structure
Uses permanent and temporary cross-functional teams to improve lateral relations.
Cross-functional team brings together members from different functional departement
Project teams convened for a particular task or project and disband once it is completed
0Advantages1. Team assignment can break down barriers as people from
different parts of an organization to get know one another boost morale
2. People working in teams oftem experience a greater sense of involvement and identification increase enthusiasm for job
3. Improve the speed and quality of decisions in many situations
0Disadvantages1. Conflicting loyalties with both team and functional
assignments2. Issues of time management and group process3. Teams spend a lot of time in meetings, but not all of that
time is productive
Network Structure
Uses information technologies to link with networks of outside suppliers and service contractors.
Strategic alliance : cooperation agreement with another organization to jointly pursue activities of mutual interest.
0AdvantagesLean and streamlined, helping organizations stay cost-
competitive by reducing overhead and increasing operating efficiency.
0Disadvantages The more complex the business or mission of the organization, the more complicated it is to control and coordinate the network of contracts and alliances.
Boundaryless Structure
Eliminates internal boundaries among subsystems and external boundaries with the external environment.
Virtual organization uses IT and the internet to engage a shifting network of strategic alliances.e.g. : MySpace, Facebook, LinkedIn
Research and Development
Sales
Purchasing
Production
Distribution
Organizational Designs
The process of creating structures that accomplish mission and objectives.
Contingency in Organizational Design Beaureaucracy, emphasizes formal authority, order, fairness, and efficiency
Mechanistic and Organic Design
Mechanistic design centralized, with many rules and procedures, a clear-cut division of labor, narrow spans of control, and formal coordination
Organic design decentralized, with fewer rules and procedures, open divisions of labor, wide spans of control, and more personal coordination
Adaptive design operates with minimum of beaureaucratic features and encourages worker empowerment and teamwork
Trends in Organizational Design0Fewer level of managementShows the chain command : links all persons with
successively higher levels of authorityIncluding :1. Span of control : number of subordinates directly
reporting to a manager2. Tall structure : have narrow spans of control and
many hierarchical levels, or3. Flat structure : have wide spans of control and few
hierarchical levels
0More delegation and empowerment
Delegation process of distributing and entrusting work to other persons
Empowerment allows others to make decisions and exercise discretion in their work
0Decentralization and centralization
Centralization concentration of athority for most decisions at the top level of an organization
Decentralization dispersion of authority to make decisions throughout all organization levels
0Reduced use of staff
Staff positions : provide technical expertise for other parts of the organization
LEADING
Leading
Leadership : process of inspiring others to work hard to accomplish important tasks.
Power : the ability to get someone else to do something you want done or to make things happen the way you want.
Position Power
Reward PowerThe capacity to offer something of value as a means of
influencing other people.Coercive PowerThe capacity to punish or withhold positive outcomes
as a means of influencing other people.Legitimate Power The capacity to influence other people by virtue of formal authority, or the rights of office
Reward Power
• “If you do what I ask, I’ll give you a reward.”
Coercive Power
• “If you don’t do what I ask, I’ll punish you.”
Legitimate Power
• “Because I am the boss ; you must do as I ask”
Personal Power
Expert powerThe capacity to influence other people because of
specialized knowledge.
Referent power The capacity to influence other people because of their desire to identify personally with you.
Leadership and Vision
Vision : a clear sense of the futureVisionary leadership brings to the situation a clear sense of the future and an understanding of how to get there.
Leadership as Service
Servant leadershipfollower-centered and committed to helping others in
their work
Empowerment enables others to gain and use decision-making power.
Leadership Traits and Behaviors0Leadership traits1. Drive2. Self-confidence3. Creativity4. Cognitive ability5. Job-relevant knowledge6. Motivation7. Flexibility8. Honesty and integrity
0Leadership behavior
1. A leader high in concern for task ; plans and defines the work to be done
2. A leader high in concern for people ; acts with warmth and supportiveness toward followers
Classic Leadership Styles
0Leadership style : the recurring pattern of beahaviors exhibited by a leader
0Autocratic : acts in command-and-control fashion0Human relations : leader emphasizes people over task0Laissez-faire : leader has a do “do the best you can and
don’t bother me” attitude0Democratic style : leader emphasizes both tasks and
people
Fiedler’s Contingency Model
0 Understanding Leadership StyleThe least-preffered co-worker scale to measure a person’s leadership style
0 Understanding Leadeship SituationsThree factors of situations control :1. Quality of leader-member relations2. Task structure3. Position power
0 Matching Leadership Style and Situation
Hersey-Blanchard Situational Leadership Model
0Delegating0Participating0Selling0Telling
Path-Goal Leadership Theory
0Directive leadership0Supportive leadership0Achievement-oriented leadership0Participative leadership
Leader-Participation Model
0Authority decision : made by the leader and then communicated to the group
0Consultative decision : made by a leader after receiving information, advice, or opinions from group member
0Group decision : made by group members themselves
Personal Leadership Development0Charismatic and transformational leadership0Emotional intelligence0Gender0 Interactive leadership0Moral leadership
Drucker’s “Old-Fashioned” Leadership
Drucker’s Leadership Wisdom0Define and communicate a clear vision0Accept leadership as a responsibility, not a rank0Surround yourself with talented people0Don’t blame others when things go wrong0Keep your integrity ; earn the trust of others0Don’t be clever, be consistent
CONTROLLING
Controlling
The process of measuring performance and taking action to ensure desired results
Make sure that the things happen in the right way and the right time
Types of Controls
Feedforward ControlsEnsures that directions and resources are right before
the work begins
Concurrent ControlsFocuses on what happens during the work process
Feedback Controls Takes places after an action is completed. Also called as post-action controls.
Internal and External Control
Self-control Internal control that occurs through self-dicipline in fulfilling work and personal
responsibilities
Beaureaucratic control Influences behavior through authority, policies, procedures, job descriptions,
budgets, and day-to-day supervision
Clan control Influences behavior through norms and expectations set by the organizational
culture
Market controlEssentially influence of the market competition on the behavior of organizations
and their members
The Control Process
STEP 1 : Establish objectives and standards0Output standards measures performance results in
terms of quantity, quality, cost, or time.0 Input standards measures work efforts that go into a
performance task
STEP 2 : Measure performance results
STEP 3 : Compare results with objectives and standardsThe control equation states :
Need for action = Desired performance – Actual performance
STEP 4 : Take corrective actionManagement by exception : the practice of giving attention to situations that show the greatest need for action.
Control Tools and Techniques
0Employee dicipline systems0Project management and control use gantt chart ;
graphically displays the scheduling of tasks required to complete a project
0CPM/PERT techniquesCPM/PERT : combination of the critical part method and the program evaluation and review technique.0Financial Controls
Gantt Chart timeline of job
Date/Tasks
1 2 3 4 5 6 7 8 9
T-I
T-II
T-III
T-IV
T-V
T-VI
T-VII
0Balanced ScorecardTallies organizational performance in financial, customer
service, internal process, and innovation and learning areas.
Balanced Scorecard
Financial
Internal (SOP)
Learning and Grow
Customer
Thanks for the attention