Group members

 Collins kiplimo. Ms22/181037

 Luccyann muthoni.
 Naomi cherop

gers. Further more, if you have some quanttative measure of their contrbutons to the

organzation, you will probably fnd that the best person in each group is contrbuting two, five or
perhaps ten times what the

poorest is contributng. These observations raise a queston of psychologcal nterest -what are the
causes of these differences

n performance?

One answer that has been given is that these differences refect varying abilities or skillson the part of
the ndvdual worker

Peope have dfferent amounts and kinds of experiences and vary in the degree to which they posses
the necessary intellectual

and other endowments to learn from these experiences.

The assumption has led to a number of dfferent strategies on the part of organizations for improving
worker performance. It has

ed for example to an attempt to select workers for a partcular job who have the abiltes or skils which
are necessary for its

performance. t has also led to an emphasis on training, which is asystematc attempt on the part of the
organization to deveop

the necessary abilities or sklls on the part of workers. Finally, it has led to changes in the content of
jobs to make it consistent

wth the exsting abilities or sklls and labour force.

There is, however, another assumption which can be made about the origin of differences in the
performance among people

dong the same kind of work, and this assumption leads to different organizationa strateges for
improving job performances.The

assumpton is that differences n performance among peope dong the same kind of work reflect
differences in the waythey are

nduced to work to the best of ther ablity, i.e., theirmotivation Motvation refers to the way urges,
aspirations drives and needs
of human beings direct or control or explain ther behaviour. At any gven time people vary in the
extent to which they are willing

to direct their energies towards the attainment of organizatonal objectives.

Practcally, both of these statements are true. In other words performance of a person on a job is
considered as a functon of two

variables. One of theserefers to the ability of the ndvidua to perform the job, and the second refers to
his or her motivaton to

use ths ability or skill n the actual performance of the job. Agan t s found out that performance is not
equal to the sum of an

ndvdual ability and motivaton, but rather to the product of these two variables. Increasing the
motivation of persons hgh n

abity wll lead to a greater increase in performance than ncreasing the motivation of persons low in
abiity. Simiarly, there s

more to be gained from increasing the abity of individuals who are high in motivation than individuals
who are low in motivaton.

Many theories about people have been advanced by psychoogists, which have contributed to various
management decisions n

the work pace. Some of these can be considered.

Organizing

It is part of managing that involves establishing an internal structure of roles for people to fil in an
organization.

It is internal in the sense of making sure that all the tasks necessary to accomplish goals are assigned
and, it s hoped, assigned to people who can do them best.

Organizing Function –Why it is necessary

It is often said that good people can make any organization pattern work. Some even assert that
vagueness in organization as a good thing in that it forces teamwork, since people know that they must
cooperate to get anything done.

However, there can be no doubt that good people and those who want to cooperate will work together
most effectively if they know the parts they are to play in any team operation and the way their roles
relate to one another. This is as true in business or government as it is in football or in a symphony
orchestra. Designing and maintaining these systems of roes is basicity the managerial function of
organizing.

Organizational Structure

The organization structure consists of a group of people working together to attain the desired set
objectives of a given organization. People in an organization do not start working together
automatically unless they are provided with some mechanism in the organization structure. It reveals
who has authority over whom in the organization.

It provides an invisible framework to integrate all the people working together towards common goals.

The organizational structure provides an environment within which leadership qualities can be practiced
and nurtured, as well as proving to be an indispensable too of coordination in an organization.

An organization structure s a system of well defined jobs, each bearing a definite measure of authority,
responsibility and

accountability to enable people within a given enterprise to work more effectively together in
accomplishing their own as well as organization goals and objectives. In the organization structure, the
work that each individual does plays a part of a larger pattern of interrelationships that permeates
throughout the organization. These, set up boundaries and pathways that must be followed to achieve
the individual as well as organization objectives.
Each member of the organization is supposed to react toward the others, not n personal terms of like or
dislike, but in terms of the functions they have to perform and the place they occupy on the organization
hierarchy.

Merits of Formal Organization Structure

(a)It is deliberately planned; it s more predictable.

(b)It facilitates laying down of objectives and policies.

(c)It has an unlimited scope for expansion.

(d)There are clear-cut bounds of jurisdiction

(e)The standards of performance can be established precisely and with exactness.

Weakness of Formal Organizational Structure

(a)Co-ordination of activities and communication tend to become sources of problems depending on

who s looking at

what.

(b)If there s poor co-ordination and workers social contact is curtailed, these circumstances create a
vicious circle of

grievances which test severely the organizational bonds created by the organizational structure.

(c)Problems due to conflict between staff and line organization is another difficulty encountered in
formal organizations

Types of Formal Organization Structures

Following are some of the formal organization structures:

 Line organization
 Line and staff organization
 Functional organization
 Matrix organization
 Committee Organization
 Strategic Business Units (SBUs)

Line Organization Structure

In this type of organization structure, the positions having authority, responsibly and accountability for
achieving objectives are
analyzed in a chain that also indicates the direction of communication and command. Line managers
have a Cleary defined role

to play in the organization that requires understanding of the nature of line authority. Fig. 6.1shows a
typical ne

organization chart.
 Advantages of Line Organization

(a)The division of authority is very precise

(b)Quick decision-making forster made possible.

(c)Discipline is more easily maintained Buck-passing is emanated and accountability is effective.

Disadvantages of Line Organization

(a)Executives tend to become overloaded with too many duties and management members may be
difficult to replace.

(b)Everyone clings to his duties or areas of responsibility. People in positions of authority find it difficult
to delegate tasks to their juniors or subordinates.

(c)Full benefits of division of labor and of specialization are not realized.

(d)Communication channels possible are insufficient.

(e)Large and complex enterprises cannot adopt this system.

Line and Staff Organization

In this type of organization, along with line positions, there are positions created primarily for the
purpose of specialized advice, and services to various units of the organization.

Line functions are those that have direct impact on the accomplishment of the

objectives of the enterprise while staff functions are those that help the line persons work most
effectively in accomplishing the objectives. To that extent most people classify production and sales (and
sometimes finance) as line functions and purchasing, accounting, personnel, plant maintenance, work
study, quality control and industrial relations as staff functions.

Authority flows in vertical line downwards and in addition to this there are experts or specialists in
charge of particular functions Line authority

remains the avenue for command or performance of the work and follows the scalar principle. It
consists of the authority

relationships between line managers Generally speaking, most staff managers do not exercise their staff
authority along the

channels of line authority but rather to the line authority. The staff assistant assists the executive to
whom he is allocated but

has no executive authority of his own and acts on behalf of his superior. A typical line and staff
organization structure is shown in Fig 6.2below
 Distinction between Line and Staff

In modern business, the problems confronting the manager at all levels are so varied and complex that
he cannot possibly be a master of them all. Specialist assistance can be provided best by highly trained
and experienced consultants or by agencies that

have staff relationships to the organization as a whole. Staff offers advisory service and line do the work.

A staff man cannot give orders to a line officer. Staff prescribes the method and line follows the
procedure.

Functional Organization

Functional authority s the right that is delegated to an individual or a department to control specified
processes, practices,
process, or other matters relating to activities undertaken by persons in other departments The whole
task of management and direction of sub ordinate is divided according to the type of work involved An
organization that s organized along the lines of its

major activities is referred as a functional one.

The concept is related to staff because in both staff and functional, use s made of specialized personnel
in making decisions

Involving detailed and complex work activates But to distinguish functional and staff organization
structures, we can say that,

staff structures in many organizations are manly advisory in nature, while functional structures although
being also advisory,

posses some limited authority in the performance of the function. Functional authority is not restricted
to managers of a

particular type of a department. It may be exercised by service and staff department heads because they
are usually composed

of specialists whose knowledge becomes the bass for functional controls.

Functional relations arise when a specialist contributes a service to the line managers, who are the
organization executives.

This specialist is often called a ‗function‘ officer and he has responsibility to see that his special
activities are effectively carried out throughout the organization He advises ‗ne‘ colleagues and is
responsible for assisting line managers.
 Advantages Functional Organizational

(a)Enables benefits of specialization to be achieved.

(b)Workers have a higher degree of efficiency.

(c)It is easer to design for specific jobs and job environment.

Disadvantages Functional Organizational

(a)Weakness in discipline because workers have to work under different bosses.

(b)Lack of co-ordination due to division and sub-division of work.

(c)Conflicts among workers n different sections of departments.

Matrix Organization Structure

The basis of matrix or grid organization is the combination of functional and project or product patterns
of departmentation in the

same organization structure. There are functional managers in charge of their specialized areas and an
overlay of project managers responsible for the end product t is dictated by the need to establish
responsibility for ensuring end results, i.e. the final product. Project managers define what has to be
done; functional managers determine how to do it .

The project manager must integrate the work of functional departments and the project teams.
 Members of the project team agree to accept the authority of the project manager during the tenure of
the project.

This kind of organization occurs frequently in engineering projects such as bridge building in
construction industry, designing and

launching of weather satellite n aerospace field, installation of an electronic data processing system, and
other fields such as in

marketing (eg. planning and executing an advertising campaign for a major new product), management
consulting firms in which

professional experts work together on a project etc. The matrix organization attempts to merge
traditional line authority for

decision making with project-oriented, multi-disciplinary, team-based approach

Advantages of Matrix Organization

(a)Offers better control of project as it is oriented toward end results.

(b)Results into high morale of staff as professional identification s maintained.

(c)Lowers program costs which results into higher profit margins.

(d)It pin-points product-profits responsibility

(e)It enables shorter project development time

(f)Aids the development of managers as the work includes wider responsibilities

Disadvantages of matrix organization

(a)A state of conflict in organization authority exists between functional and project managers.

(b)Has more complex internal operations.

(c)Possibility of unity of command exists

(d)Lower staff utilization.

(e)Requires manager effective in human relations.

Committee Organization

A committee is a group of persons to whom, as a group, some matter is committed It may be established
to make recommendations on a problem largely because the CEO or department head does not wish to
take full responsibility for making

a decision Some committees undertake management functions, eg. policy making; others do not, e.g.
operating committees.

Some make decisions, others deliberate but do not decide some have authority to make
recommendations to a superior and

others are formed purely to receive information without recommending or deciding.

Ad committees are usually temporary, as they are created for a specific purpose, or to solve short-range
problems, rather

than administrative purposes. f they are established as part of the organization structure, with
specifically delegated duties and

authority, they are called formal committees.

Examples of committees are budget committees, cost reduction committees, joint consultation
committees, etc.

Factors Influencing the Success of a Committee:

(a)It should be representative of al interests.

(b)It should have a chairman respected by the group, who can integrate committee deliberations and
handle the group firmly and fairy.

circulated prior to the meeting

(d)Should have clear-cut terms of reference.

(e)Should have minutes circulated and approved.

(f)Should be worth the cost of its operation.

Advantages of Committees

(a)Actions and deals of related company units are coordinated.

(b)Communications are improved.

(c)Judgments and executive taints are pooled and full use is made of specialization.

(d)Responsibilities for decisions are shared, rather than borne by a person.

Disadvantage of Committees

(a)They are often a waste of time or resources, especially f there are unsatisfactory compromises, or
delay by a few

members.

(b)Executives may hide behind committee decisions and avoid responsibility for their individual actions

Strategic Business Units (SBUs)

These are distinct little businesses set up as units in a larger company to ensure that certain products or
product line is promoted

and handled as though t were an independent business The essence of t is to give the product the same
attention as it would if

t were developed, produced and marketed by an independent company.

Each SBU should have its own manager appointed with responsibility for guiding and promoting the
product from the research,

production, packaging and marketing and with bottom line responsibility for its profitability.

To be called an SBU, a business unit must meet the following criteria:

(a)Have its own mason, distinct from other SBUs

(b)Have definable group of competitors

(c)Prepare its own integrative plans, fairly distinct from those of other SBUs.

(d)Manage its resources in key areas, and

(e)Have proper size –neither too argue nor too small

The major benefit of utilizing SBU organization is to provide assurance that a product will not get ―lost‖
among other products

(usually those with bigger sales and profits) n a large company. It preserves the attention and energies
of a manager and staff

whose job it is to guide and promote the product or product line.

6.9OrganizationalLevels and the Span of Management

While the purpose of organizing s to make human co-operation effective, the reason for eves of
organization is the mutation of

the span of management i.e., there s a limit to the number of persons a manager can supervise
effectively even though this limit

varies depending on situations.

In choosing the span, it must be decided how many subordinates a superior can manage. In practice, t
has been found that 4 to

8 subordinates at the higher eves of organization and 8 to 15 or more at the lower levels. The number is
higher at the lower

eves because what s delegated is responsibly for the performance of specific tasks and not for the
supervision of others.

Informal Organizations

This could be defined as any joint persona activity without conscious joint purpose, even though
contributing to joint results

They generally appear as a natural process in the work environment with a view to satisfying the need
for social contact. Thus,

the informal relationships established in the group of people fellowshipping together at lunchtime may
aid in the achievement of

organizational goas. It is much easier to ask for help on an organization problem from someone you
know personally, even if he

or she may be in a different department, than from someone you know only as a name on an
organization chart.

More recently informal organization has been defined as ―a network of personal and social relations
not established or required

by the formal organization but arising spontaneously as people associate with one another‖.

Thus informal organization relationships not appearing on an organization chart may include, the lunch
time fellow shippers, the
machine shop group, the morning coffee regulars, kinship, etc

A manager should be aware of the presence and influence of non-forma organizations the enterprise.
He could use them as

channels of communication and mousers of employee morale by recognizing and taking full advantage
of them. They facilitate

administration, encourage sound balanced growth and diversification, provide for the best use of human
beings and stimulate

creativity for overall growth. Formal organization gives adequate support to the formal organization
structure by supplying

Individual and social satisfactions to members of the organization.

Benefits of Informal Organization

(a)The informal organizations provide good channels of communication (grapevine) between

management and the

workers, which is good for motivating employees and removing the void in communication.

(b)It provides the means of satisfying social needs, removes monotony and boredom and makes the job
enjoyable.

(c)It maintains certain standards of conduct with reference to work performance which is ether
favorable or unfavorable

to management, made effective through the boycott or ridicule of offending members.

(d)The informal organization can Essen the workload of the formal managers through supplying job tips,
training new

comers or helping in other ways

(e)Where standards of the informal groups are supportive of the organizations goals they can be of
great assistance to

management n improving productivity For this reason, intelligent managers nurture the growth of these
groups and

participate n them for understanding human problems and taking remedial actions.

(f)It can alleviate deficiencies in communication, motivation, job satisfaction and personal contentment
in formal organization