perspective final.pptx

7/27/2019 Perspective final.pptx

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ORGANIZING


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MIHIR BABARIA 05

DHARAM JOSHI 23

PURAV NANAVATI 38

RICKEN RAMCHANDANI 41

JEET SHAH 51

SWARALI THIPSAY 58

GROUP MEMBERS


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The process of deploying resourcesto achieve strategic goals

ORGANIZING


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ORGANIZINGCHART


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ORGANIZING CHART

The division of work

Supervisory relationships

Communication channels

Major subunits

Levels of management


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ORGANIZATION ROLE - FORMAL

Source-Management A GlobalPerspective, Harold Koontz


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ORGANIZATION ROLE - INFORMAL

Source-Management A GlobalPers ective, Harold Koontz


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ORGANIZATION LEVELS & THE SPAN OF

MANAGEMENT Choosing the Span


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Communicationtechniques

Amount of personal

contact needed

Variation by organizationlevel

The Need For Balance

Subordinate training

Clarity of delegation ofauthority

Clarity of plans

Use of objective standards

Rate of change

FACTORS DETERMINING THE EFFECTIVE

SPAN


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ENTREPRENEUR & INTRAPRENEUR

Contrary to Conventionalwisdom

Personal risks

Rewards


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LOGICAL STEPS OF ORGANIZING

Establishing enterprise objectives

Formulating supporting objectives, policies& plans

Identifying & classifying the activitiesnecessary to accomplish these

Grouping these activities

Delegating

Tying the group together


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DEPARTMENTATION The process by which similar activities of the business are

grouped into units for the purpose of facilitating smoothadministration at all levels

Choosing basis for departmentation

Specialization

Coordination

Control

Economy

Recognition of local condition

Adequate attention

Human consideration


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DEPARTMENTATION BY TYPE

Functional

Grouping jobs byfunctions performed

Product

Grouping jobs byproduct line

Geographical

Grouping jobs on thebasis of territory orgeography

Process

Grouping jobs on thebasis of product orcustomer flow

Customer

Grouping jobs by type ofcustomer and needs


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1. PRODUCT DEPARTMENTATION

+ Allows specialization in particular products and services

+ Managers can become experts in their industry+ Closer to customers

Duplication of functions

Limited view of organizational goals

Source : Management Stephen Robbins


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2.FUNCTIONAL DEPARTMENTATION

The grouping of common & homogeneous activities to form anorganizational unit is known as functional departmentation

The functional departmentation will include both line function aswell as staff function



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3.TERRITORIAL/GEOGRAPHICALDEPARTMENTATION

Territorial departmentation is attractive to large scale firms or enterprises whose

activities are physically or geographically dispersed.

All the activities of given area of operation are grouped into zones, divisions,branches, etc

This structure is most often used in sales & production

ADVANTAGES

More effective and efficient

handling of specific regional

issues that arise

Serve needs of unique

geographic markets better

DISADVANTAGES

Duplication of functions

Can feel isolated from other

organizational areas



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4. CUSTOMER DEPARTMENTATION

Customer based departmentation is basically marketoriented in whichdepartment are created around the market served or around marketingchannel

Customers are the key to the way activities are grouped



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5. PROCESS DEPARTMENTATION When production activities involve the use of several

distinctive processes, this can be used as the base forgrouping of activities

ADVANTAGES

Machine can be used

effectively

Economy in operation

No duplication of activities

Principle of specialization &

division of labor is followed

DISADVANTAGES

Heavy cost of operation

More specialist are essential



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MATRIX ORGANIZATION

Specialists from different functional departments are assigned to

work on projects led by project managers.

Matrix and project participants have two managers.

In project structures, employees work continuously on projects;

moving on to another project as each project is completed.



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STRATEGIC BUSINESS UNITS (SBUs)

Distinct little businesses set up as units in a largercompany to ensure that a certain product orproduct line is promoted and handled as though itwere an independent business.

Criteria to become an SBU

1. Have its own mission

2. Have definable group of competitors

3. Prepare its own integrative plans

4. Manage its resources in key areas

5. Have a proper size


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STRATEGIC BUSINESS UNITS

Source-Management A GlobalPerspective, Harold Koontz


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LINE/STAFF AUTHORITY

Power v/s Authority


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Various Bases of Power:

Legitimate

Knowledge Referent

Reward

Coercive


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LINE AND STAFF CONCEPT

Confusion between line and staff

Solution : Scalar Principle


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FUNCTIONAL AUTHORITY

Delegation of functional authority

Restricting the Area of Functional Authority


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Benefits of Staff

Limitations of Staff

Underestimating Line Authority

Blame Game No practise Only preach

Managerial issues


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CENTRALIZATION AND DECENTRALIZATION


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THE DEGREE OF CENTRALIZATION

Higher

Em

ployeeEmpo

werment

Centralization

Decentralization

HigherLower

Lower


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Desire for Independence

Availability of managers

Control Techniques

Decentralized performance Business Dynamics The

Pace of change

Environmental Influences

Costliness of the Decision

Desire for Uniformity ofPolicy

Size and character of theorganization

History and culture of theEnterprise

Management Philosophy

FACTORS DETERMINING DEGREE OF

DECENTRALIZATION


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DECENTRALIZATIONADVANTAGES

More freedom andindependence to managers

Facilitates productdiversification

Facilitates setting up of Profitcenters

Promotes development ofgeneral managers

Aids in adaptation to fast-changing environment

LIMITATIONS

More difficult to have auniform policy

Increases complexity ofcoordination of decentralized

units

Involves considerable expensefor training managers

May not be favored by

economies of scale of someoperations


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DELEGATION OF AUTHORITY

Delegation of decision making power to subordinates bytheir seniors

Process of Delegation

Determining the results expected from a position

Assigning tasks to the position

Delegating authority for accomplishing these tasks

Holding the person responsible for the accomplishment of the task


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SPLINTERED AUTHORITY Shared control of the same decisions between two or more

individuals or organizations

It exists when a decision cannot be made without pooling theauthority of two or more managers

Splintered Authority cannot be wholly avoided in decision making

However recurring decisions may be an evidence that authority is notdelegated properly and some reorganization is required


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PERSONAL ATTITUDES TOWARDS DELEGATION

Receptiveness

Willingness to go

Willingness to let others

make mistakes

Willingness to trustsubordinates

Willingness to establish anduse broad controls


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HOW TO OVERCOME WEAK DELEGATION?

Define assignments and delegateauthority in light of resultsexpected

Select the person in light of thejob to be done

Maintain open lines ofcommunication

Establish proper controls

Reward effective delegation andsuccessful assumption ofauthority


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AVOIDING MISTAKES IN ORGANIZING BYPLANNING

Establishment of objectives and orderly planning arenecessary for good organization as with the other functionsof managing

Lack of design in organization is :

1) Illogical2) Wasteful

3) Inefficient

Organizing mistakes can be avoided through two steps

1) Planning for the Ideal

2) Modification for the Human Factor


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AVOIDING ORGANIZATIONALINFLEXIBILITY

Organizational inflexibility is the inability to adapt toa changing environment

Signs of inflexibility:

1. Old organizational pattern

2. Regional organizations could be changed

3. Inadequate decentralization

Inflexibility in work culture is highly undesirableamong employees


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AVOIDING INFLEXIBILITY THROUGHREORGANIZATION

Inflexibilities can be avoidedthrough reorganization,readjustments and changes.

Reorganization:1) Business Environment changes

2) Change in Personnel

3) Change in Work Culture

Excessive reorganization mayresult into low morale.


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ERNST & YOUNG

Ernst & Young estimates saving $17 million inturnover-related costs during 1997 and 1998,with flexible work arrangements.

65% of the people who used the flexible workarrangements had earlier considered leaving

The organization avoided $40mn of rent by usinga policy of encouraging virtual work (work athome and elsewhere)

It eliminated one million of the seven million

square feet it rents nationwide.


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MAKING STAFF WORK EFFECTIVE

What is the line staff problem?

Solving this problem requires great managerial skill,careful attention to principles and patient teachingof personnel.

HOW?

Understanding Authority Relationships

Making line listen to staff

Keeping staff informed

Requiring completed staff work


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CHARACTERISTICS OF AN EFFECTIVESTAFF

Atmosphere

Group objectives

Communications

Decision making

Task achievement

Leadership

Review of team processes


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POSITION DESCRIPTIONS Positions description furnishes a standard against which

it can be judged if a position is necessary, itsorganizational level and exact location in the structure

Benefits:

1. Duties are brought into focus2. Areas of overlapping are recognized

3. Helps recruit required personnel and training

4. Setting salary levels


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STRUCTURE AND NATURE OF ORGANIZING

For the various organization structures to work, members of theenterprise must understand the general working of informal aswell as formal organization

Organizations should maintain well-written organization manualsthat contain:

Statement of the organizations philosophy

Programs and charts

Structure of the organization

Outline of job descriptions etc.


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THE GRAPEVINE

It is a form of informal and unstructuredcommunication

It is usually based on rumours

It is prevalent at the lower levels of theestablishment

It is inevitable and valuable

ADVANTAGES OF GRAPEVINE


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ADVANTAGES OF GRAPEVINECOMMUNICATION

ADVANTAGES

Spreads fast andwide

Aides formalcommunication

Enhances group

cohesiveness

Provides anemotional

supportive value

Gives quick

feedback

Is spontaneous


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DISADVANTAGES OF GRAPEVINECOMMUNICATION

DISADVANTAGES

Gives onlypartial

information

Informationdistortion

Informationneed not be

true

Can harm theorganizations

goodwillNo evidence

No formalcontrol

Employeesbecome

unproductive


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DEALING WITH GRAPEVINECOMMUNICATION

Managers should tactfully deal with grapevine:

They should not try to eliminate the grapevine They should find out what information is being

circulated in the grapevine

They should feed the accurate information and

correct any false information that is being circulated


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ORGANIZATION CULTURE The values and behaviours that contribute to the unique social

and psychological environment of an organization


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Forms organizational environments

Forms ideologies

Gives best values

Increases integration

Increases commitment

Improves co-ordination

LEADERSHIP STYLE


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MANAGEMENT SYSTEMS

It is a framework of processes and procedures used toensure that an organization can fulfill all tasks required toachieve its objectives

Burns and Stalker proposed two contrasting forms of

management systems to suit different conditions:MECHANISTIC SYSTEM AND ORGANIC SYSTEM

The two forms of systems represent two ends of acontinuum

An organization may oscillate from one end to the otherend as transitions occurs in its conditions


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MECHANISTIC vs. ORGANIC SYSTEMS

POINT OF DIFFERENCE MECHANISTIC ORGANIC

Suitable conditions Stable Changing

Specialization Individual Joint

Integrating Mechanisms Simple Complex

Centralization Centralized Decentralized

Standardization High Low( Mutual Agreement)

Communication Written Verbal

Communication Direction Vertical Lateral

Employee Commitment Low High

Control and Authority

structures

Hierarchic Network


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