POM 5
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POM 5

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Principles Of Management

Principles Of Management

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POM 5 Presentation Transcript

  • 1. ORGANIZATION A formal intentional structure of positions, roles and functions
  • 2. ORGANIZATION STRUCTURE
    • A framework of an organization expressed by its degree of complexity, formalization and centralization
  • 3. ORGANIZATION DESIGN The development or changing of an organization structure
  • 4. FORMALIZATION The degree to which an organization relies on rules and procedures to direct the behavior of its employees
  • 5. CENTERALIZATIO N The concentration of decision –making authority in upper management
  • 6. DECENTERALIZATION The handing down of decision – making authority to lower levels in an organization
  • 7. PURPOSES OF ORGANIZING
    • Divide work to be done into specific jobs & departments
    • Assign tasks and responsibilities associated with individual jobs
    • Coordinate diverse organizational tasks
    • Clusters jobs into units
    • Establish relationships among individuals , groups and departments
    • Establish formal lines of authority
    • Allocate and deploys organizational resources.
  • 8. ORGANIZATION DIMENTIONS
    • Vertical
    • horizontal
  • 9. ASPECTS OF VERTICAL DIMENTION
    • Unity of command
    • Authority & responsibility
  • 10. ASPECTS OF HORIZONTAL DIMENSION
    • Departmentalization
    • Division of labor
  • 11. UNITY OF COMMAND
    • The principle that subordinate should have one and only one superior to whom he (or she) is directly responsible.
  • 12. CHAIN OF COMMAND
    • The flow of authority from the top to the bottom of an organization
  • 13. DEPARTMENTALIZATION
    • The process of grouping individuals into separate units or departments to accomplish organizational objectives
  • 14. DEPARTMEN T
    • Department designates a distinct area, division or branch of an organization over which a manager has authority for the performance of specified activities
  • 15. DIVISION OF LABOUR
    • The break down of jobs in narrow, respective tasks.
  • 16. PROCESS OF ORGANIZATION
    • STEPS
    • Establishing objective
    • Formulating supporting plans& policies
    • Identifying activities necessary to accomplish these (1&2 above)
    • Grouping these activities in the light of human and material resources available and to the best way of using them
    • Delegating to the head of each group the authority necessary to perform the activities
    • Tying the groups together vertically and horizontally through chain of command and flow of communication
  • 17. SPAN OF MANAGEMENT
    • The number of subordinates a manager can supervise effectively and efficiently
    • Narrow (or vertical)
    • Wide (or horizontal)
  • 18. NARROW SPAN No of subordinates four or less than four
  • 19. NARROW SPAN
    • Advantages
    • Close supervision
    • Close control
    • Fast communication
    • Disadvantages
    • Many level of management
    • Excessive distance between the top &lowest level
    • Superior tend to get too involved in subordinates work
    • High cost due to many levels
  • 20. WIDE SPAN No of subordinate six or more than six
  • 21. WIDE SPAN
    • Advantages
    • Superiors are obliged to delegate
    • Clear policies are made
    • Subordinates are carefully selected
    • Disadvantages
    • Overloaded superiors become decision bottlenecks
    • Superiors may lose control
    • Require exceptional quality of managers
  • 22. FACTORS AFFECTING SPAN
    • Training of subordinates
    • Clarity of delegation of authority
    • Clarity of plans
    • Use of objective standards
    • Rate of change
    • Communication techniques
    • Amount of personal contact needed
  • 23. DEPARTMENTATION
    • The process of grouping individuals into separate units or departments to accomplish organizational objectives
  • 24. DEPARTMENTATION
    • By time
    • By function
    • By territory
    • By product
    • By process of manufacturing
    • By customer’s interest
  • 25. Departmentation by Time
    • Grouping activities on the basis of time, generally at lower levels.
    • Continuous round the clock
    • Shifts
  • 26. Advantages
    • Service available 24 / 7
    • Processes work uninterrupted
    • Utilization of equipment
    • Helping people utilize available time
    • Lack of supervision especially at night
    • Problem of coordination & communication
    • Cost of overtime
    • Fatigue factor
    Disadvantages
  • 27. DEPARTMENTATION BY FUNCTION MD MARKETING ENGINEERRING PRODUCTION FINANCE MARKETING ` PLANNING SALES ADMIN DESIGN QULITY CONTROL PLANNING PURCHASING GEN PRODUCTION PLANNING BUDGETING ACCOUNTING
  • 28. Advantages
    • Is Logical reflection of functions
    • Maintains power and prestige of major functions
    • Follows principle of occupational specialization
    • Simplifies training
    • Furnishes means of tight control at top
    • Deemphasis of overall company objective
    • Overspecializes and narrows viewpoint of key personnel
    • Reduces coordination between functions
    • Responsibility for profits is at the top only
    • Slow adaptation to changes in environment
    • Limits development of general managers
    Disadvantages
  • 29. DEPARTMENTATION BY TERRITORY (HQ) MD WESTERN REIGON CENTERAL SOUTHERN NORTHERN ESTERN REGION
  • 30. Advantages
    • Places responsibility at a lower level
    • Places emphasis on local markets and problems
    • Improves coordination in a region
    • Takes advantage of economies of local operations
    • Better face-to-face communication with local interests
    • Furnishes measurable training ground for general managers
    • Requires more persons with general manager abilities
    • Tend to make maintenance of economical central services difficult and may require services such as personnel or purchasing at the regional level
    • Increases problem of top management control
    Disadvantages
  • 31. DEPARTMENTATION BY PRODUCT MD HEAVY ELECTRICAL TELEPHONE /MOBILE KITCHEN APPLIANCE RADIO/TV/VCR
  • 32. Advantages
    • Places attention and effort on product line
    • Facilitates use of specialized capital, facilities, skills, and knowledge
    • Permits growth and diversity of products and services
    • Improves coordination of functional activities
    • Places responsibility for profits at the division level
    • Furnishes measurable training ground for general managers
    • Requires more persons with general managers abilities
    • Tends to make maintenance of economical central services difficult
    • Presents increased problem of top management control
    Disadvantages
  • 33. DEPARTMENTATION BY MANUFACTURING PROCESS MD FOUNDRY NICKLE PLATING PAINTING CASTING/ FORGING
  • 34. Advantages
    • Achieves economic advantage
    • Uses specialized technology
    • Utilizes special skills
    • Simplifies training
    • Coordination of departments is difficult
    • Responsibility for profit is at the top
    • Is unsuitable for developing general managers
    Disadvantages
  • 35. DEPARTMENTATION BY CUSTOMERS MD HIRE-PERCHASE HIGH END PRODUCTS BOUTIQUE BUDGET ITEM
  • 36. Advantages
    • Encourages concentration on customer needs
    • Gives customers feeling that they have an understanding supplier
    • Develops expertness in customer area
    • May be difficult to coordinate operations between competing customer demands
    • Requires managers and staff expert in customers problems
    • Customer groups may not always be clearly defined (For Example, large corporate firms vs. other corporate businesses)
    Disadvantages
  • 37. TYPES OF ORGANIZATIONS
    • Mechanistic ( or bureaucratic )
    • Organic ( or adhocracy)
    • Team-based
    • Boundary-less
    • Matrix
  • 38. MECHANISTIC ORGANIZATION (Bureaucracy)
    • A structure that is high in complexity, formalization and centralization
    • Permanent
    • Shared responsibility
    • Work by the book
  • 39. ORGANIC ORGANIZATION (Adhocracy)
    • A structure that is low in complexity , formalization and centralization .
    • Transient
    • Adhocism
    • creative
  • 40. TEAM-BASED ORGANIZATION
    • An organization made of work groups or teams that perform organization’s work
  • 41. BOUNDARY – LESS ORGANIZATION
    • An organization whose design is not defined or limited to the boundaries imposed by a pre-defined structure
    • [ Also knows as Network org, modular ,or virtual corporation]
  • 42. MECHANISTIC Vrs ORGANIC ORGANIZATION
    • Rigid hierarchical relationship
    • Fixed duties
    • High formalization
    • Formalized communication channels
    • centralized
    • Collaborative/flexible (both vertical horizontal)
    • Adaptable duties
    • low formalization
    • Informal communication
    • decentralized
    MECHANISTIC Organic
  • 43. MATRIX ORGANIZATION
    • An organization that assigns specialists from different functional departments to work on one or more projects that are led by a project manager
  • 44. MATRIX ORGANIZATION WORKING
    • Define objectives of the project or task
    • Clarify roles , authority and responsibility of managers and team members based on knowledge &experience rather than rank
    • Balance power of functional and project managers
    • Install appropriate cost , time and quality control
  • 45. STRATEGIC BUSINESS UNIT (SBU)
    • A single business that is independent of main organization and formulates its own strategy.
    • It will have its own:
    • Unique mission
    • Competitors
    • Plans
    • Organization/setup
    • recourses