Organization A deliberate arrangement of people to accomplish some specific purpose
Characteristics of organizations : 1. Distinct purpose ( goals ) 2. People 3. Deliberate structure need to be developed ( open and flexible) or traditional and stable How Concept of an organization changing :
1. Stable 2. Inflexible 3. Job – focused 4. Work is defined by job position 5. Individual – oriented 6. Permanent job 7. Command - oriented 8. Mangers always make decisions 9. Rule - oriented 10. Relatively homogeneous workforce 11. Workdays defined as 9 to 5 12. Hierarchical relationship 13. Work at organization facility during specific hours Dynamic Flexible Skills – focused Work is defined in terms of tasks to be done Team – oriented Temporary job Involvement oriented Employees participate in decision making Customer – oriented Diverse workforce Workdays have no boundaries Lateral and networked relationships Work anywhere, anytime Traditional organization New organization
Concept of universality of management No matter what country they are located in. The reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizations in all countries around the globe. Examples of problems created by poor management Do you get annoyed when you call an airplane 3 times and their sales representatives quote you 3 different prices for same trip ? Poor management declining customer base and reduced revenue
Mangement is needed in All types of organization Profit----------not for profit All organization levels Bottom ------------ top all organizational area Manufacturing – marketing – human resources All sizes of organization Small ------ Large
<ul><li>How Becoming a Manager </li></ul><ul><li>Keep up with current business news </li></ul><ul><li>Read books about good and bad examples of managing </li></ul><ul><li>Observe managers and how they handle people and situations </li></ul><ul><li>Talk to actual managers about their experiences _ good and bad </li></ul><ul><li>Get experience in managing by taking on leadership roles in student organizations. </li></ul><ul><li>Start thinking about whether or not you ‘d enjoy being a manager. </li></ul>
Rewards and Challenges of being a manager <ul><li>Do hard work </li></ul><ul><li>Have to deal with a variety of personalities </li></ul><ul><li>Often have to make do with limited resources </li></ul><ul><li>Motivate workers in chaotic and uncertain situations </li></ul><ul><li>Successfully blend knowledge, skills, ambitions, and experiences of a diverse work group </li></ul><ul><li>Success depends non others’ work performance </li></ul><ul><li>Create a work environment in which organizational members can work to the best of their ability </li></ul><ul><li>Have opportunities to think creatively and use imagination </li></ul><ul><li>Help others find meaning and fulfillment in work </li></ul><ul><li>Support, coach and nurture others </li></ul><ul><li>Work with a variety of people </li></ul><ul><li>Receive recognition and status in organization and community </li></ul><ul><li>Play a role in influencing organizational outcomes </li></ul><ul><li>Receive appropriate compensation in form of salaries, bonuses, and stock options </li></ul><ul><li>Good manager is needed by organization </li></ul>Challenges Rewards
Organization need good managers . Nothing great ever happens by itself It is through the combined efforts of motivated and passionate people that organizations accomplish their goals . As a manager, you can get satisfaction from Knowing that your efforts, skills, and abilities are needed.
Organizational Design decision Models of organizational design cross – Functional teams Cross – Hierarchical teams Free Flow of information Wide spans of control ( flexible ) Decentralization Low formalization (min. formal rules) Highly trained and empowered to handle diverse job activities <ul><li>High specialization </li></ul><ul><li>Rigid departmentalization </li></ul><ul><li>Clear chain of command </li></ul><ul><li>Narrow spans of control (stable) </li></ul><ul><li>Centralization </li></ul><ul><li>High formalization </li></ul><ul><li>Limited information network (downward communication) </li></ul><ul><li>Little participation in decision making lower-level employees </li></ul>Organic organization Mechanistic organization
Appropriate structure is depends on four contingency variables : The organization ‘s strategy, size, technology, and degree of environmental Relationship between strategy and structure Structure should follow strategy. If managers significantly change the organization’s strategy, they need to modify the structure to occommodate and support the change. Changes in strategy led to changes in an organization’s structure. He found that these organizations usually began with a single product or product line which required only a simple or loose form of organization as they grew organization’s structure changed to support the chosen strategy.
3. Imitation organization’s seeking to minimize risk and maximize profit opportunities by copying the market leaders Best structural design is both mechanistic to maintain tight controls and low costs …. And organic to follow the industry’s innovative direction Most current strategy frameworks tend to focus on three dimensions: 1.Innovation organization’s pursuit meaningful and unique innovations Best structural design is organic structure as it need the flexibility and free- flowing of information 2. Cost minimization organization’s pursuit of tightly controlled costs Best structural design is mechanistic structure as it seek the efficiency, stability, and tight controls
Organizational size affects organizational design large organizations with 2000 or more employees tend to have more specialization, departmentalization, centralization, and rules and regulations than do small organizations ( More Mechanistic structure). Size becomes less important influence on structure as an organization grows as it is already fairly mechanistic
Woodward’s finding on the relationship of technology and structure Every organization has at least one form of technology to convert its inputs to outputs The initial interest in technology as a determinant of structure She segmented the firms into 3 categories based on size of their production 1.Unit production : the production of items in units or small batches most effective structure organic 2. Mass production : the production of items in large batches most effective structure Mechanistic 3. Process production : the production of items in continuous processes most effective structure Organic
Environmental Uncertainly affects organizational design Organization’s structure affected by its environment ? Because environmental uncertainly (rapid environmental change ) One way to reduce environmental uncertainly is through adjustments in the organization’s structure to be lean fast and flexible. The greater the uncertainty, the more an organization needs the flexibility offered by organic design …… In stable , simple, environments, Mechanistic design tend to be most affective.