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Organizing

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  • Very well presented, as general informative sequence of the subject,,, thanks
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  • 1. Organizing
    Fundamentals of Management
  • 2. Overview
    The dynamic organizational environment has lead to significant structural changes in order to remain in business and gain the competitive edge. In addition, new technological developments is influence much of the change, certainly in the offering of quick and reliable customer service. The topic of organizing is very relevant as a managerial function. This presentation is aimed at:
    Defining the concept of organizing.
    Describing the various types of organizational structure.
    Explaining the connection between structure and strategy
  • 3. Definition
    Organization is a social entity that is deliberately structured to achieve a goal.
    An informal organization is considered as a network of personal and social relationships (alliances, cliques, friendships) that arise as people associate with other people in a work environment.
    The key in defining an organization is that it has a definite structure for a purpose.
  • 4. Key terms used in organizational design and structure
    Work specialization – the degree to which organizational tasks are subdivided into individual jobs.
    Chain of command – an unbroken line of authority showing who reports to whom.
    Span of control or span of management – the number of employees reporting to a supervisor.
    Centralization – the location of decision authority at the top management level.
    Decentralization – location of decision authority near the lower organizational levels.
    Departmentalization – grouping individuals into departments and departments into the total organization.
    Organizational chart – visual representation of the organization’s structure.
  • 5. Organizational structure
    There are five approaches to designing an organization:
    Functional
    Divisional
    Matrix
    Teams
    Networks
    Traditional approaches
    Contemporary approaches
  • 6. Functional structure
    Grouping of positions into departments based on similar skills, expertise and resources.
  • 7. Advantages
    Disadvantages
    Facilitates specialization
    Cohesive work groups
    Operate efficiently
    Focuses on department rather than organizational issues
    Problem in developing generalists needed for top management.
    Only top management is accountable for profitability, because profit centres usually do not exist.
    Functional structure
  • 8. Divisional Structures
    Divisional structures are grouped on the basis of common products or services, geographic markets, or customers served.
    Product divisional structure is a structure in which the activities of the organization are grouped according to specific products or product lines.
    Geographic divisional structure is a structure in which the activities are grouped according to geographic markets served.
    Customer divisional structure is an organizational structure focused on customer groups.
    Each region division has the same functional departments
  • 9. Advantages
    Disadvantages
    Focuses on specific product, geographic markets, or customers.
    Adapt the specific growth strategies
    Duplicate resources across divisions
    Difficult to coordinate among divisions.
    Divisional structures
  • 10. Matrix
    An organizational structure that arranges work groups on two dimension simultaneously.
  • 11. Advantages
    Disadvantages
    Focuses on simultaneous goals
    Develop managerial skills in several directions
    Complex and difficult to implement with two bosses.
    Difficult to plan and coordinate
    matrix
  • 12. Teams structure
    The team approach gives managers a way to delegate authority and a means to be more flexible and responsive to the competitive environment.
    Cross-functional teams – employees from many functional departments are permanently assigned to solve ongoing problems.
    Permanent team structure – employees working together on a project
  • 13. Networking
    Carpentry company
    Electrical company
    contractor
    Manufacturing in Trinidad
    Masonry company
  • 14. Advantages
    Disadvantages
    Maximizes effectiveness of core unit.
    Can do more with fewer resources
    Fragmentation; difficult to control systems.
    Difficult to develop employee loyalty.
    Success depends on locating resources.
    Organizing

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