4 pom kc 13 sep. 2010

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  • Departmentalization – functions, products, service lines, geography, customer, etc
  • 4 pom kc 13 sep. 2010

    1. 1. Principles of Management<br />
    2. 2. ORGANISING<br />
    3. 3. Chain of Command<br />AUTHORITY < RESPONSIBILITY<br />
    4. 4. Chain of Command<br />AUTHORITY > RESPONSIBILITY<br />
    5. 5. Chain of Command<br />AUTHORITY = RESPONSIBILITY<br />
    6. 6. Concepts in organizing<br />Purpose of a structure<br />Formal & informal structures<br />Narrow & wide span of control<br />Departmentalization<br />Line & Staff<br />Delegation - decentralization<br />
    7. 7. Purpose of the Structure<br />Defines relationships between tasks and authority<br />Defines formal reporting relationships, levels of hierarchy, span of control<br />Defines individual departments<br />Defines systems that affects the organization<br />
    8. 8. Formal System<br />Planned structure<br />Lines of responsibility, authority, and position<br />Establish patterned relationships among components<br />Can be described through:<br />Organizational Chart<br />Policy Manual<br />Departments<br />
    9. 9. Informal System<br />Based on needs, sentiments, and interests of people<br />Vulnerable to expediency, manipulation and opportunism<br />More subtle and invisible in the organizational chart<br />Can be classified as:<br />Horizontal = same department or same level<br />Vertical = different levels<br />Mixed = combination of both<br />
    10. 10. Formal vs Informal Organizations<br />Not formally planned<br />Arise spontaneously as a result of interactions<br />Not depicted in a chart<br />Stressed by human relation theory<br />Have planned structure<br />Deliberate attempts to create patterned relationships<br />Usually shown by a chart<br />Advocated by traditional theory<br />FORMAL<br />INFORMAL<br />
    11. 11. Span of Control<br />Span of 8<br />(Classical)<br />Span of 4<br />(Contemporary)<br />
    12. 12. Classical Viewpoint<br />SPAN OF 8<br />Base level = 4096<br />Managers (levels 1-4) = 585<br />
    13. 13. Contemporary Viewpoint<br />SPAN OF 4<br />Base level = 4096<br />Managers (levels 1-6) = 1365<br />
    14. 14. Departmentalization<br />Putting specialists together<br />Direction of a manager<br />Departmentation<br />Process<br />Setting up and establishing departments<br />
    15. 15. Departmentalization<br />Can be done by:<br />Function<br />Geography / Territory<br />Customers<br />Product<br />Flexibility (Matrix)<br />SBUs<br />Virtual<br />
    16. 16. Organizing Process<br />
    17. 17. Identify Activities<br />Production<br />Delivery<br />Selling<br />Maintaining Personnel<br />Training<br />Accounting<br />Advertising<br />Recruitment<br />Purchasing<br />Compensating<br />Budgeting<br />Quality Control<br />
    18. 18. Classify Activities in Departments<br />MARKETING<br />OPERATIONS<br />FINANCE<br />HUMAN RESOURCES<br />>Selling<br />>Advertising<br />>Delivery<br />>Production<br />>Purchasing<br />>Quality control<br />>Accounting<br />>Budgeting<br />>Compensating<br />>Recruitment<br />>Training<br />>Maintaining personnel<br />
    19. 19. Matrix Structure<br />Represents the most fluidsystem – dots are individuals or groups<br />Can function on different levels according to the requirements of the task – project <br />
    20. 20. Matrix structure<br />Pluses (loaning employees)<br />Allows to share information more readily across task boundaries<br />Allows for specialization that can increase depth of knowledge<br />Minuses:<br />Employees can get confused – conflicting loyalties<br />To overcome: managers/parties must work closely together<br />
    21. 21. Centralization & Decentralization<br />
    22. 22. Centralization & Decentralization<br />

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