Organisations and management

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Organisations and management

  1. 1. Organisations are very interesting
  2. 2. <ul><li>An organisation is a group of people intentionally organized to accomplish an overall, common goal or set of goals. </li></ul>Coffee shops to small businesses. July 2008, there were 1.93 million small businesses in Australia, representing 96% of all businesses.
  3. 3. Technology Internal/External Environment Strategy People Structure Elements of an Organisation
  4. 4. People <ul><li>How people work together is the essence of the organisation. </li></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><ul><li>explicit </li></ul></ul></ul><ul><ul><ul><ul><li>deliberate </li></ul></ul></ul></ul><ul><ul><ul><ul><li>careful cultivation of image and mode of operation </li></ul></ul></ul></ul><ul><ul><ul><li>implicit </li></ul></ul></ul><ul><ul><ul><ul><li>operating unrecognised </li></ul></ul></ul></ul><ul><ul><ul><ul><li>behind the scenes </li></ul></ul></ul></ul><ul><ul><li>Roles of management </li></ul></ul><ul><ul><li>Management styles </li></ul></ul><ul><ul><li>Employee responsibilities </li></ul></ul>
  5. 5. Corporate culture <ul><li>Is a term used to describe the shared values and beliefs of the people in an organisation. </li></ul><ul><li>Staff uniforms are an example of culture </li></ul><ul><li>Staff training days </li></ul><ul><li>Use of internet </li></ul><ul><li>Policies on bullying in the workplace </li></ul><ul><li>Policies on advancement </li></ul>
  6. 6. The organisational “iceburg” <ul><li>Mission, vision </li></ul><ul><li>Goals and objectives </li></ul><ul><li>Business plan Formal organisation specific tasks </li></ul><ul><li>span of control operating policies </li></ul><ul><li>Lines of communication controls </li></ul><ul><li>channels of authority </li></ul><ul><li>Relationships between needs of individuals </li></ul><ul><li>Managers and workers group feelings </li></ul><ul><li>friendships and networks </li></ul><ul><li>Individual hopes and informal organisation </li></ul><ul><li>Aspiration </li></ul><ul><li>Perceptions of trust interpersonal relationships </li></ul><ul><li>Honesty and ethics </li></ul><ul><li>influential employees power plays and politics </li></ul><ul><li>and managers </li></ul>
  7. 7. Management Roles <ul><li>Henri Fayol outlined FOUR main functions of management. </li></ul><ul><li>1 Planning setting objectives and how to </li></ul><ul><li> achieve them </li></ul><ul><li>2 Organising arranging resources of the business to achieve its goals </li></ul><ul><li>3 Leading influencing people to work towards achieving set objectives </li></ul><ul><li>4 Controlling evaluating and modifying tasks </li></ul><ul><li> to ensure set objectives are being achieved </li></ul>
  8. 8. Leadership styles There is no questioning this function, just how managers operate is interesting. Leadership styles range on a continuum Management style Autocratic Democratic / participative Laissez- faire
  9. 9. Structure <ul><li>an organisation’s structure refers to the way divisions, departments, functions, and people link together and interact. </li></ul><ul><li>Reveals </li></ul><ul><ul><li>vertical operational responsibilities </li></ul></ul><ul><ul><li>horizontal linkages </li></ul></ul><ul><li>may be represented by an organisation chart </li></ul><ul><ul><li>Visual representation of the formal structure </li></ul></ul><ul><li>complexity of an organisation's structure is often proportional to its size and its geographic dispersal. </li></ul>
  10. 10. Vertical specialisation Top Management Middle management Lower or frontline management Long term or strategic planning Operational and supervision of lower management Daily management and rosters
  11. 11. Vertical Specialisation <ul><li>chain of command from top to front line management </li></ul><ul><ul><li>Chain of command is a system that determines responsibility, supervision and accountability of members of the organisation. </li></ul></ul><ul><li>delegation of responsibilities and duties to others within the same line of authority </li></ul><ul><li>management hierarchy – provides increasing authority at higher levels </li></ul><ul><ul><li>Senior managers have greater </li></ul></ul><ul><ul><ul><li>Accountability </li></ul></ul></ul><ul><ul><ul><li>Responsibility and </li></ul></ul></ul><ul><ul><ul><li>Power compared to those at lower levels </li></ul></ul></ul><ul><li>organisation requires coordinated effort of all levels of management to achieve goals </li></ul>
  12. 12. More Less Accountability Responsibility Authority Board of Directors Chief Executive Officer (CEO Managing Director Department Head Divisional Head Plant Manager Store Manager Team Manager Supervisor Team Leader Frontline Manager Top/ Senior/ Executive Management Team Middle Management Team Frontline/Supervisory Management Team
  13. 13. Horizontal Specialisation <ul><li>Division of tasks required to be performed into separate departments. </li></ul>Functional Model Divisional Model Matrix Model
  14. 14. Functional Model <ul><li>Division occurs based on organisational functions eg HR, Finance, Marketing </li></ul>Functions General Manager Finance Manager Marketing Manager Finance Manager Operations Manager
  15. 15. Divisional Model <ul><li>Model organised based on division by: </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Service </li></ul></ul><ul><ul><li>Geography </li></ul></ul>Divisions General Manager Produce Manager Meat Manager Deli Manager Grocery Manager
  16. 16. Matrix Model <ul><li>Combines function and division </li></ul><ul><li>Permits specialisation by project while each person remains part of a department based on function </li></ul>Production Manager General Manager Dinnerware Jewellery Marketing Manager
  17. 17. Strategy <ul><li>Organisations require strategies to formulate appropriate decisions </li></ul><ul><ul><li>Decision making & problem solving </li></ul></ul><ul><ul><li>SWOT analysis </li></ul></ul>
  18. 18. <ul><li>Decision Making: making choices among possible courses of action </li></ul><ul><li>Problem Solving: consists of making a series of decision to resolve an issue. </li></ul>
  19. 19. 6 Step Approach to DECISION MAKING & PROBLEM SOLVING 1. Define the O bjective 2. Outline the F acts <ul><li>Decide on the C auses </li></ul>4. Develop Several S olutions 5. I mplement Preferred Solution 6. E valuate Effectiveness of Solution If solution unsuccessful restart process
  20. 20. Overly Fat Children See Ice cream Everywhere
  21. 21. Decision-making conditions <ul><li>Certainty </li></ul><ul><li>Outcome of alternative known in advance </li></ul><ul><li>Rarely the case </li></ul>Minimal Risk High Risk <ul><li>Risky </li></ul><ul><li>Outcome of alternatives not completely known </li></ul><ul><li>Probabilities exist </li></ul><ul><li>Statistical models can be used </li></ul><ul><li>Common condition </li></ul><ul><li>Uncertainty </li></ul><ul><li>Difficult condition </li></ul><ul><li>Probabilities do not exist </li></ul><ul><li>Condition exists more at top management level </li></ul><ul><li>Decisions of a long term nature affected by externalities </li></ul>3 conditions under which decisions can occur:
  22. 22. <ul><li>Minor problems – management not needed </li></ul><ul><li>Many matters may already be covered by established policy – decisions already in place </li></ul><ul><li>Avoid crisis conditions and therefore rush decisions </li></ul><ul><li>Provide leadership – avoid situation of indecision </li></ul><ul><li>Errors can be made – decisions should not be considered permanent. </li></ul>
  23. 23. SWOT <ul><li>Strategic planning strategy </li></ul><ul><li>Strengths </li></ul><ul><li>Weaknesses </li></ul><ul><li>Opportunities </li></ul><ul><li>Threats </li></ul>Internal – People, organisation, systems, communications, products, production, finance, credentials, knowledge External – market, technology, finance, economic climate, society, legislation, ecology
  24. 24. Environment – Internal / External <ul><li>Major impact on how organisations operate </li></ul><ul><li>Organisations lack of response to environmental challenges can be a determinant to success - flexibility </li></ul>
  25. 25. Technology <ul><li>To remain competitive organisations must: </li></ul><ul><li>Make creative use of modern technology </li></ul><ul><li>Technology, generally, aims to: </li></ul><ul><ul><li>Improve efficiencies </li></ul></ul><ul><ul><li>Increase productivity </li></ul></ul><ul><li>Inevitable that workplaces will continue to change as a result of our reliance on technology </li></ul>

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