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Organizing: Process A Course of Action, A Route, A Progression Structure An Arrangement, A Configuration, A Construction

The document discusses the process of organizing, describing how organizations divide labor into departments and jobs, establish lines of authority, and create mechanisms for coordinating tasks, resulting in the creation of an organizational structure with formal roles and reporting relationships. It also covers various approaches to structuring organizations, such as functional, divisional, matrix, and team structures, and examines factors involved in change management like initiating change, overcoming resistance, and implementing change through planned approaches.

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ananth2012
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54 views

Organizing: Process A Course of Action, A Route, A Progression Structure An Arrangement, A Configuration, A Construction

The document discusses the process of organizing, describing how organizations divide labor into departments and jobs, establish lines of authority, and create mechanisms for coordinating tasks, resulting in the creation of an organizational structure with formal roles and reporting relationships. It also covers various approaches to structuring organizations, such as functional, divisional, matrix, and team structures, and examines factors involved in change management like initiating change, overcoming resistance, and implementing change through planned approaches.

Uploaded by

ananth2012
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 39

Organizing

Process
a course of action, a route, a
progression
Structure
an arrangement, a
configuration, a construction
Organizing

The process of deploying resources to


achieve strategic goals
The process of organizing takes place within a
structure reflected by the way in which the
organization

 Divides its labor into departments and jobs


 Establishes formal lines of authority
 Establishes mechanisms for coordinating
diverse tasks
Organizing process leads to creation of
an Organizational Structure
 Formal tasks assigned
 Formal reporting relationships
 Systems design for coordination across
departments
Features of Organizational Structure

President

Vice President Vice President Vice President


Work Specialization
 Also called division of Labor
 Specialists get good at a specific task
 Efficiency increases
 Employees are selected based on specific
skills
 Training is geared toward increased
efficiency.
 Based on a mechanistic organization
Responsibility
 The duty to perform the task the employee has been
assigned.

 Responsibility and Authority are delegated together


and make the employee accountable to superiors
Line and Staff Organizations
 Line departments perform the organization’s
primary tasks.
 Production, marketing, sales, R&D
 Staff Departments provide specialized skills in
support of line departments.
 Engineering, Human Resources, Legal,
 Advise and council in areas of expertise
Span of Management (Control)
 The number of employees reporting to a
supervisor.
 Size varies with the
 type of organization,
 skill of the subordinates,
 Geographic dispersion
 Managerial skill and preference
Centralization
 Decision making is done high in the
organization
 Tendency toward decentralization
 Greater use of employee skills
 Less mechanistic
 Relieve burden on manager to do everything
 Decisions made closer to the action
 Decisions are make quicker
Factors influencing Decentralization

 Amount of change and uncertainty


in the environment
 Corporate strategy and culture
 Size and dispersion of the
organization
 The risk of failure
 The greater the risk, the higher
up the decisions are made.
Departmentalization or Structure
Functional Approach
 Grouping of positions based on skills of functions.

General Manager

Marketing Manufacturing Sales


Advantages and Disadvantages of
Functional Organization Structures
 Advantages
 Efficient use of resources
 In depth skills
 Specialized career development
 Coordination within functions
 Excellent technical problems solving
 Disadvantages
 Poor communications across functions
 Slow response to external changes
 Requires high level coordination
 Limited general management training
Divisional Approach
 Based on outputs e.g. products, sbu’s etc.

Beverage

Can Mfg. Trucking


Corp.

International
Bottle Plant
Operations
Advantages and Disadvantages of
Divisional Structure
 Advantages
 Customer oriented
 Faster response to varied environmental changes
 Coordination between functions within structure
 Easy to fix blame
 Emphasis on overall product and division goals
 Disadvantages
 Duplicate resources
 Less specialization within divisions
 Less top management control
 Competition for corporate resources
Matrix Organization

 Two sets of bosses-functional and divisional.


 Violates the chain of command, e.g. two bosses, not clear
line of authority.
 Attempts to lower the risks of functional and divisional
structures
 Requires employee to manage two sets of bosses.
Team Structure

 Delegate authority
 Push decision making to the lowest level
 Gain commitment from workers
Marketing

Sales Production

Engineering
Team Approach
 Advantages
 Same as functional departments
 Reduces barriers among functions
 Lower response time
 Better morale and enthusiasm
 Less overhead

 Disadvantages
 Lots of meetings
 Dual loyalties
Change Management-A Process
Models of Planned Organizational
Change
Change can be managed
Organizational change is the
adoption of a new idea or
behavior by an organization
Change comes from recognition
that environmental changes will
create mismatches
Forces for change
 Mismatches occur between the company and its
external environment
 Customers
 Competitors
 Technology
 Economics
 International
 Government
 As well as its internal environment
 Management
 Employees
 Unions
 Inefficiencies
Managers must be aware of the
mismatches as they develop and
initiate change
Initiating Change
 Change can be made by
 finding established ways to
eliminate the mismatch
 Downsizing to eliminate

mismatch of department size


and reduced demand.
 Create new ways
 Two people share one job
Creativity in Organizations
 Creativity can be built
into an organization by
creating an appropriate
structure
 New Venture teams
(intrapreneurship)
 Idea Champions
 New Venture Funds
Change Management – Two Paths of
Change
 Effectiveness
 Efficiency
Efficiency
 Classical, hierarchical, mechanistic structure
 Environment slow to change
 TQM
 Management changes the culture (top down)
Effectiveness
 Reengineered or OD oriented, team based structure
 Environment quick to change
 Structural coupling to the environment in order to
keep up with the change
 Employees coupled to and focusing on the
customer’s needs
 Individual controls all the processes needed to
support each customer
Making it happen—Implementing
Change.
 Implementing change involves perturbing the
system.
 Resistance to change is natural
 Feedback loops keep change from happening
 Change involves hard work by everyone
 Employees sense they will lose something
 Resistance can’t be ignored
A feedback loop

Employees Management
Get nervous Audits progress

Employee changes Management


Process back again Changes process

Employee hides
His change
Force Field Analysis to Overcome
Resistance
 When a change is introduced, some forces drive it
while some inhibit it
 Remove the forces that inhibit the change
 The forces that drive it will make it happen
 You can also
 Communicate and Educate
 Encourage participation by all
 Negotiate
 Coerce
Types of Planned Change
 Strategy
 Technology
 New Products
 Structure
 Culture
 Changes are interrelated. A change in one
affects the others.
Part One

Select an organization with which you are most familiar


with, preferably one with which you are most familiar with
at this time. It could be a department within a larger
organization
Describe the organization as a spider
plant. Let your imagination run wild.
Characteristics of a Spider Parallels to my
Plant organization
How does the image fit? Does it grasp
the nature of the organization? Any new
insights
Now use the spider plant to think
about how your organization could be.
 In other words, use the image interpreted -in whatever way you
wish- as the basis for a new organizational design. If you had
the opportunity to design your organization as a spider plant,
how would it be?

Spider Plant Characteristics Parallels in the New Design


What are the differences between the
new one and the one you described in
part one?

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