Mgt4201#7
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Mgt4201#7 Mgt4201#7 Presentation Transcript

  • Principles of Management Designing the Organization Lecture 7
  • Organizing
    • Deciding how best to group organizational
    • activities and resources. To perform this
    • effectively it is necessary to set organization
    • structure.
    • Organization Structure
    • The set of elements that can be used to
    • configure an organization.
  • Elements of Organizing
    • Designing Jobs
    • Grouping Jobs
    • Establishing reporting relationship
    • Distributing authority
    • Coordinating activities
    • Differentiating among positions
    View slide
  • Designing Jobs
    • Determination of individual’s job related responsibilities.
    • That means
    • Identifies and select what are the works an individual is doing or to be done.
    • What is the expectation of performance standard.
    • By job designing an individual to be perform specific set of
    • duties which is prescribed. So he/she to be specialized at
    • those duties. So, the basic or starting point of designing job
    • is determining the level of desired specialization.
    View slide
  • Designing Job ( cont….)
    • Job Specialization
    • The degree to which the overall task of the organization is
    • broken down and divided into smaller component parts.
    • Each part is performed by individual worker who is
    • expert/specialized or become specialized on that work.
    • Division of labor
    • Job specialization evolved from the concept division of
    • labor. The overall task is divided into several unit and each
    • worker perform each unit of job.
    • Example : Production line (Electronics, automobile etc.)
  • Job Specialization Designing Job (cont….)
    • Benefits
    • Performing specific task, become very proficient.
    • Transfer time between jobs decrease.
    • Easy to develop equipments to assist with the job
    • When employee absent or resign, train new one at relatively low cost.
    • Limitations
    • Same job regularly. Become bored and dissatisfied, absenteeism rises. Quality may suffer.
    • Anticipated benefits may do not always occur.
  • Alternative to Specialization Designing Job (cont….)
    • Job Rotation : Systematically moves employees from one job to another.
    • Job Enlargement : Increase the number of tasks workers perform. Giving the employee more task to perform.
    • Job Enrichment : Increase the number of tasks as well as give control over the jobs. Delegate more authority which increase sense of responsibility.
    • Job Characteristic Approach : Take into account the work system and employee preferences.
    • Work Team : Work in a group. The group is responsible for overall tasks.
  • Alternative to Specialization Designing Job (cont….)
    • Job Characteristic Approach suggest that jobs should be diagnosed and improved along five core dimensions :
    • Skill variety : Number of things a person does in a job.
    • Task identity : the extent to which worker does a complete or identifiable portion of total job.
    • Task significance : The perceived importance of the task.
    • Autonomy : The degree of control over how the work is performed.
    • Feedback : The extent to which the worker knows how well the job is being performed.
  • Alternative to Specialization Designing Job (cont….)
    • Job Characteristic Approach
    Core job dimension Critical Psychological state Personal and Work outcome *Skill variety *task identity *Task significance *Autonomy *Feedback Experienced Meaningfulness of the work Experienced Responsibility For outcomes Of the work Knowledge of the Actual result of Work activities Employee Growth-need strength *High internal Work motivation *High quality work Performance *High satisfaction With the work Low absenteeism and turnover
  • Grouping Jobs : Departmentalization
    • Functional Departmentalization : Group together same or similar activities. Example : Finance dept., Marketing dept. etc.
    • Product Departmentalization : Grouping activities around product or product groups. Example : Unilever – Brand development division- Lux.
    • Customer Departmentalization : Grouping activities to respond to and interact with specific customer or customer groups. Example : Sales division –Industrial, Sales division – consumer.
    • Location Departmentalization : Grouping jobs on the basis of geographical sites or areas. Example : Square pharma – Chittagong branch, Comilla branch.
  • Establishing Reporting Relationship
    • Develop the system of reporting relationship – who reports to whom.
    • Chain of Command
    • Clear and distinct lines of authority need to be established among all
    • position in an organization. Consists of two components -
    • Unity of Command : Each person in an organization must have a
    • clear reporting relationship to one and only one boss.
    • Scalar principle : Clear and unbroken line of authority that extends
    • From the lower to the highest position in the organization.
  • Establishing Reporting Relationship
    • Span of Control
    • Determining how many people report to each manager. Also known as
    • Span of management.
    • Narrow spans : Few subordinates per manager.
    • Wide spans : Many subordinates per manager.
    • According to Graicunas – Manager must deal with three kinds of
    • interactions with and among subordinates.
    • Direct : Manager’s one to one relationship with each subordinate.
    • Cross : Relationship among the subordinates themselves.
    • Group : Relationship between groups of subordinates.
  • Establishing Reporting Relationship
    • Graicunas formula of interaction :
    • Number of possible interactions between a
    • manager and subordinates can be
    • determine by :
    • I = N(2 N /2 + N - 1)
    • I = Total number of interactions
    • N = Number of subordinates
  • Distributing Authority
    • Delegation Process
    • Managers assign a portion of their workload
    • to others.
    • Manager gives the subordinate a job to do.
    • Manager also gives the authority to the subordinate to do the job.
    • Manager establishes the subordinate’s accountability.
  • Distributing Authority
    • Delegation Process
    • Step 1 Step 2 Step 3
    • Assigning responsibility Granting authority Creating accountability
    Manager Subordinate Manager Subordinate Manager Subordinate
  • Distributing Authority
    • Delegation Process
    • Problems in Delegation :
    • Managers may be reluctant to delegate.
    • Manager may disorganized, unable to plan work in advance.
    • Manager may worry that subordinates will do well.
    • Manager not trust subordinates.
    • Subordinates may be afraid of failure.
    • No reward for additional responsibility.
    • Prefer to avoid risk, want their boss to take responsibility.
  • Distributing Authority
    • Decentralization : Systematically
    • Delegating power and authority throughout
    • the organization to middle and lower level
    • managers.
    • Centralization : Systematically retain power
    • and authority in the hands of higher level
    • managers.
  • Coordinating Activities
    • The process of linking the activities of the various departments of the
    • organization. Departments are interdependent to each other for
    • information and resources To perform their respective activities.
    • Three major forms of interdependence :
    • Pooled interdependence : Units operate with little interactions.
    • Example : Stores of ‘Cats Eye’ in Dhaka city.
    • Sequential interdependence : Output of one unit becomes the input
    • for another unit. Example – production assembly line.
    • Reciprocal interdependence : Activities flow both way between units.
    • Example – Reservation dept., Check in desk, house keeping of a hotel.
  • Differentiating between Position
    • Line position : Position in the direct chain of
    • command that is responsible for the achievement
    • of an organizational goals. Line managers work
    • directly towards organizational goals.
    • Staff position : Position intended to provide
    • expertise, advice and support for the line
    • position.
    • End