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Management skills- 9.pptx
- 1. Management Skills Lecture -9 Facilitator- Seenam Afridi
- 2. Outline Organizing Organizational structure Organizational Design Six Key Elements of Organizational Design Work Specialization Departmentalization Chain of Command Span of Control Centralization and Decentralization Formalization Basic organizational structures Mechanistic organization Organic organization Contingency Factors affecting structural choice Organizational Design Traditional Design Contemporary Design
- 3. What is Organizing? Organizing Arranging and structuring work to accomplish organizational goals. It’s an important process during which managers design an organization's structure. Organizational Structure Is the formal arrangement of jobs within an organization. This structure, which can be shown visually in an organizational chart, also serves many purposes. Organizational design A process that involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization
- 4. Six Elements ofOrganizational Design 1. Work Specialization • Which is dividing work activities into separate job tasks. • Individual employees “specialize” in doing part of an activity rather than the entire activity in order to increase work output. • It’s also known as division of labor. • Work specialization makes efficient use of the diversity of skills that workers have. • E.g McDonald’s uses high work specialization to get its products made and delivered to customers efficiently and quickly— that’s why it’s called “fast” food. 4
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- 6. Six Elements ofOrganizational Design 2. Departmentalization How jobs are grouped together is called departmentalization. Five common forms of departmentalization are used, although an organization may develop its own unique classification 1. Functional Departmentalization 2. Geographical Departmentalization 3. Product Departmentalization 4. Process Departmentalization 5. Customer Departmentalization 6
- 7. Common Forms ofDepartmentalization
- 8. Common Forms ofDepartmentalization
- 9. Common Forms ofDepartmentalization
- 10. Six Elements ofOrganizational Design 3. Chain of Command Is the line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom Managers need to consider it when organizing work because it helps employees with questions such as “Who do I report to?” or “Who do I go to if I have a problem?” Three major concepts to understand chain of command 1. Authority 2. Responsibility 3. Unity of Command
- 11. Chain of Command Authority :Refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Line authority Staff authority Responsibility : When managers use their authority to assign work to employees, those employees take on an obligation to perform those assigned duties. This obligation or expectation to perform is known as responsibility Unity of Command : States that a person should report to only one manager. Without unity of command, conflicting demands from multiple bosses may create problems
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- 13. Line vs StaffAuthority
- 14. Six Elements ofOrganizational Design 4. Span of Control How many employees can a manager efficiently and effectively manage? The traditional view was that managers could not—and should not— directly supervise more than five or six subordinates The contemporary view of span of control recognizes that there is no magic number. Many factors influence the number of employees that a manager can efficiently and effectively manage. These factors include the skills and abilities of the manager and the employees, and the characteristics of the work being done.
- 15. Span of control •The trend in recent years has been toward larger spans of control. • Managers are beginning to recognize that they can handle a wider span when employees know their jobs well and when those employees understand organizational processes.
- 16. Six Elements ofOrganizational Design 5. Centralization and Decentralization Centralization is the degree to which decision making takes place at upper levels of the organization. If top managers make key decisions with little input from below, then the organization is more centralized. Decentralization is the more that lower-level employees provide input or actually make decisions.
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- 18. Six Elements ofOrganizational Design 6. Formalization Refers to how standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures In highly formalized organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes.
- 19. Organizational structures Basicorganizational design revolves around two organizational forms Mechanistic organization: Was the natural result of combining the six elements of structure also called as bureaucracy. Organic organization Is a highly adaptive form that is as loose and flexible as the mechanistic organization is rigid and stable
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- 21. Contingency Factors affectingStructural choice Appropriate structure depends on four contingency variables: 1. The organization’s strategy 2. Size 3. Technology 4. Degree of environmental uncertainty.
- 22. Contingency Factors affectingStructural choice Strategy and Structure : An organization’s structure should facilitate goal achievement. Because goals are an important part of the organization’s strategies, it’s only logical that strategy and structure are closely linked. Size and Structure: There’s considerable evidence that an organization’s size affects its structure Large organizations—typically considered to be those with more than 2,000 employees—tend to have more specialization, departmentalization, centralization, and rules and regulations than do small organizations. Technology and Structure: That organizations adapt their structures to their technology depending on how routine their technology is for transforming inputs into outputs. In general, the more routine the technology, the more mechanistic the structure can be, and organizations with more non routine technology are more likely to have organic structures Environmental Uncertainty and Structure: In stable and simple environments, mechanistic designs can be more effective. On the other hand, the greater the uncertainty, the more an organization needs the flexibility of an organic design. Mechanistic organizations are not equipped to respond to rapid environmental change and environmental uncertainty
- 23. Traditional Organizational Design Thesestructures tend to be more mechanistic in nature. Simple Structure: Is an organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization Functional Structure : Is an organizational design that groups similar or related occupational specialties together. Divisional Structure : Is an organizational structure made up of separate business units or divisions.
- 24. Strengths and Weaknessesof Traditional Organizational Designs
- 25. Contemporary Organizational Design Thesecontemporary designs include Team structures: A team structure is one in which the entire organization is made up of work teams that do the organization’s work. It allows the organization to have the efficiency of a bureaucracy and the flexibility that teams provide Matrix and project structures: Matrix structure assigns specialists from different functional departments to work on projects being led by a project manager. Project structure, in which employees continuously work on projects. Boundary less organizations: Is an organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. Learning organizations. Is an organization that has developed the capacity to continuously learn, adapt, and change
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