Defining Organizational Structure
Discuss the traditional and contemporary view of work specialization.
Describe each of the five forms of departmentalization.
Explain cross-functional teams.
Differentiate chain of command, authority, responsibility, and unity of command.
Discuss the traditional and contemporary views of chain of command.
Discuss the traditional and contemporary views of span of control.
In the name of ALLAH the most beneficent and the most mercifully
My self Usman Ashraf and I ma the Student of Hailey College OF Commerce, University Of the Punjab, Lahore. My other Group Members are Ahmad Raza (MC14 – 299) , Liaqat Ali (MC14 – 282) Raza Ahmad (MC14 – 288) and Ali Raza (MC14 – 303) . to day we all present hare the topic “Basic Organization Design”
in this chapter we present the foundations of organization structure. We define the concept and its key components, introduce organization design options, consider contingency variable that determine when the certain design options work better then other’s and explore the concept of organization culture.
know the question is What is Organization Design – is the process in which manager develop or change their organization structure
Organization Structure means the linking of department and jobs within the organization
BY Organization Structure we means the three things
1 - The Location Of Design Making Responsibility in the firm.
2- The Formal division of Organization into Subunits.
3 - Establishment of integrating mechanisms to coordinate the activities of subunits
there are Six basic elements of Structure:
1-Work specialization 2-Unity Of command
3-Span Of control 4-Authority & Responsibility
5-Centralization Verses Decentralization 6-Departmentaliza-tion
Know the question is what is work-specialization - The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.
Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
there are some Advantages and disadvantages of work-specialization
the Next one is Chain of Command – The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.
In the Chain of command I also define the Unity Of Command - The Management Principal that no person should report to more then one boss. In this diagram show that how the chain of command exist in the organization
Span of Control
The number of employees who can be effectively and efficiently supervised by a manager.
Width of span is affected by:
1- Skills and abilities of the manager – 2-Employee characteristics -3- Characteristics of the work being done 4-Similarity of tasks 5-Complexity of tasks 6-Physical proximity of subordinates 7-Standardization of tasks
Strategic Management: Organizational DesignTriune Global
There are a number of factors that differentiate small-business operations from large-business operations, one of which is the implementation of a formal organizational structure. Organizational structure is important for any growing company to provide guidance and clarity on specific human resources issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business.
Organizational Structure
How job tasks are formally divided, grouped, and coordinated.
Key Elements:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
Contact:
nomanaleemft@gmail.com
00923084089243
Jagan Institute of Management Studies (JIMS) imparts professional education at post graduate and graduate levels in the fields of Management and Information Technology. The Institute has been working for the attainment of a mission: to develop highly skilled and professional human resource for industry and business. From a very modest start, it has now acquired a commendable position as one of the premier institutes of the country. Our PGDM is approved by the All India Council for Technical Education and accredited from National Board of Accreditation (NBA) for excellence in quality education. PGDM has also been granted equivalence to MBA degree by Association of Indian Universities (AIU). Apart from PGDM, we have two AICTE approved Two-Year Full Time Programs namely PGDM (International Business) & PGDM (Retail & Marketing Management). Our MCA, BCA and BBA programmes are affiliated to Guru Gobind Singh Indraprastha University, Delhi.
Fore more updates Visit Website
http://www.jimsindia.org/admissions2016
Defining Organizational Structure
Discuss the traditional and contemporary view of work specialization.
Describe each of the five forms of departmentalization.
Explain cross-functional teams.
Differentiate chain of command, authority, responsibility, and unity of command.
Discuss the traditional and contemporary views of chain of command.
Discuss the traditional and contemporary views of span of control.
In the name of ALLAH the most beneficent and the most mercifully
My self Usman Ashraf and I ma the Student of Hailey College OF Commerce, University Of the Punjab, Lahore. My other Group Members are Ahmad Raza (MC14 – 299) , Liaqat Ali (MC14 – 282) Raza Ahmad (MC14 – 288) and Ali Raza (MC14 – 303) . to day we all present hare the topic “Basic Organization Design”
in this chapter we present the foundations of organization structure. We define the concept and its key components, introduce organization design options, consider contingency variable that determine when the certain design options work better then other’s and explore the concept of organization culture.
know the question is What is Organization Design – is the process in which manager develop or change their organization structure
Organization Structure means the linking of department and jobs within the organization
BY Organization Structure we means the three things
1 - The Location Of Design Making Responsibility in the firm.
2- The Formal division of Organization into Subunits.
3 - Establishment of integrating mechanisms to coordinate the activities of subunits
there are Six basic elements of Structure:
1-Work specialization 2-Unity Of command
3-Span Of control 4-Authority & Responsibility
5-Centralization Verses Decentralization 6-Departmentaliza-tion
Know the question is what is work-specialization - The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.
Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
there are some Advantages and disadvantages of work-specialization
the Next one is Chain of Command – The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.
In the Chain of command I also define the Unity Of Command - The Management Principal that no person should report to more then one boss. In this diagram show that how the chain of command exist in the organization
Span of Control
The number of employees who can be effectively and efficiently supervised by a manager.
Width of span is affected by:
1- Skills and abilities of the manager – 2-Employee characteristics -3- Characteristics of the work being done 4-Similarity of tasks 5-Complexity of tasks 6-Physical proximity of subordinates 7-Standardization of tasks
Strategic Management: Organizational DesignTriune Global
There are a number of factors that differentiate small-business operations from large-business operations, one of which is the implementation of a formal organizational structure. Organizational structure is important for any growing company to provide guidance and clarity on specific human resources issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business.
Organizational Structure
How job tasks are formally divided, grouped, and coordinated.
Key Elements:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
Contact:
nomanaleemft@gmail.com
00923084089243
Jagan Institute of Management Studies (JIMS) imparts professional education at post graduate and graduate levels in the fields of Management and Information Technology. The Institute has been working for the attainment of a mission: to develop highly skilled and professional human resource for industry and business. From a very modest start, it has now acquired a commendable position as one of the premier institutes of the country. Our PGDM is approved by the All India Council for Technical Education and accredited from National Board of Accreditation (NBA) for excellence in quality education. PGDM has also been granted equivalence to MBA degree by Association of Indian Universities (AIU). Apart from PGDM, we have two AICTE approved Two-Year Full Time Programs namely PGDM (International Business) & PGDM (Retail & Marketing Management). Our MCA, BCA and BBA programmes are affiliated to Guru Gobind Singh Indraprastha University, Delhi.
Fore more updates Visit Website
http://www.jimsindia.org/admissions2016
Chapter 3Organizing the Workplace[These slides .docxwalterl4
*
Chapter 3
Organizing the Workplace
[These slides are intended to be used in conjunction with Health Care Management by Donald J. Lombardi and John R. Schermerhorn, Jr. with Brian Kramer (the Text). Please refer to the Text for a more complete explanation of the materials covered herein and for all source material references.]
Copyright by John Wiley and Sons, 2006
*Organizing is the process of arranging people and other resources to work together to accomplish a goal.Organization structure refers to the system of tasks, workflow, reporting relationships, and communication channels that link the diverse parts of an organization. Restructuring is the process of changing an organization’s structure in an attempt to improve performance.
Common Organizational Structures
*
Organizing and
Management Functions
*
Formal and Informal Structures
The formal structure is the intended or official structure of an organization. An organization chart is a diagram that identifies key positions, job titles, lines of authority, and communication within an organization. An organizational chart may reveal the following about an organization:the division of worksupervisory relationshipscommunication channelsmajor subunitslevels of managementThe informal structure is the unofficial but often critical working relationships among organizational members, regardless of formal titles and relationships.
*Functional structure refers to an organizational strategy in which people with similar skills and performing similar tasks are grouped together. The major advantages of a functional structure include:efficient use of resources within and between functional areasconsistent and appropriate task assignments based on expertise and training within each functional areahigh-quality technical problem-solving;in-depth training and skill development within functionsclear career paths within functions.Some disadvantages include:creation of functional chimneysreliance on upper managementconfusion and responsibility-shifting
Functional Structures
*
Divisional StructureDivisional structures group together people who provide the same services, work within the same processes, serve similar audiences, or are located in the same area or geographical region.Potential advantages include:More flexibility in responding to environmental changesImproved coordination across functional departmentsClearer points of responsibility for delivery of services or productsExpertise focused on specific patients or customers, products, and regionsGreater ease in changing size by adding or deleting divisions.Potential disadvantages include:RedundancyInternal competitionTunnel vision
*Matrix structure combines elements of both the functional and divisional structures, using permanent cross-functional teams to integrate functional expertise with divisional focus. Potential advantages include:more interfunctional cooperation in operationsincreased flexibility in meeting chan.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
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Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
[Note: This is a partial preview. To download this presentation, visit:
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
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1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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2. 2
Organizing
The deployment of organizational resources to
achieve strategic goals.
The deployment of resources is reflected in the
division of labor.
Formal lines of authority and mechanisms for
coordinating diverse organization tasks.
3. 3
Fundamental Concepts of
Organizing
Differentiation means that the organization is
composed of units that work on specialized
tasks using different work methods and
requiring employees with unique
competencies.
Integration means that the various units must
be put back together so that work is
coordinated.
4. 4
•High horizontal differentiation
•Rigid hierarchical relationships
•Fixed duties
•High formalization
•Formalized communication
channels
•Centralized decision authority
•Low horizontal differentiation
•Collaboration
(vertical and horizontal)
•Adaptable duties
•Low formalization
•Informal communication
•Decentralized decision
Mechanistic Versus Organic Structures
6. 6
Open System Characteristics
Cycle of Events
Negative Entropy (Don’t let the system break
down)
Feedback
Kreitner’s Dynamic Homeostasis
(maintaining optimal state)
Differentiation
Equifinality
7. 7
The number of employees
reporting to a supervisor.
Traditional view, seven or so per
manager.
Many organizations today, 30 or
more per manager.
Generally if supervisors must be
closely involved with employees,
span should be small.
The number of employees
reporting to a supervisor.
Traditional view, seven or so per
manager.
Many organizations today, 30 or
more per manager.
Generally if supervisors must be
closely involved with employees,
span should be small.
Span of Management
8. 8
Factors Determining Span of
Control
Subordinates’ location
Support available for the manager
Amount of non-supervisory tasks
The competence of both the manager and the employee.
The similarity or dissimilarity of tasks being supervised.
The incidence of new problems in the manager’s department.
The extent of clear operating standards and rules.
9. 9
Tall Versus Flat Structure
Tall structure has an overall narrow span of management
and more levels in the hierarchy
Flat structure has a wide span, is horizontally dispersed,
and has fewer hierarchical levels
The trend is toward larger spans of management as a way
to facilitate delegation.
14. 14
Organization Structure
1. The set of formal tasks assigned to individuals an
departments.
2. Formal reporting relationships.
3. The design of systems to ensure effective
coordination of employees across departments.
Defined as:
15. 15
The Elements of Structure
Organization design
A process in which managers develop or change their
organization’s structure.
Work specialization
A component of organization structure that involves
having each discrete step of a job done by a different
individual rather than having one individual do the whole
job.
16. 16
Four Points About
the Organization Chart
Visual representation
Set of formal tasks
Formal
reporting relationships
Framework
for vertical control
18. 18
Work Specialization
Tasks are subdivided into individual jobs.
Employees perform only the tasks relevant to their
specialized function.
Jobs tend to be small, but they can be performed
efficiently.
There is a concern that employees may become
isolated, and do only a single boring job.
Many organizations are moving away from this
principle.
19. 19
Chain of Command
Unbroken line of authority that links all persons
in an organization.
Underlying principles
Unity of Command.
21. 21
Departmentalization
Basis for grouping job positions into departments and departments into the
total organization.
Internal Operations Oriented
Functional
Network (Virtual)
Output Oriented
Divisional
Product
Geographic
Customer
Team (Cluster)
Combinations
Hybrid (different types at different places in an org.)
Matrix (different types at simultaneous at the same places in an org.)
22. 22
Departmentalization
The basis on which individuals are
grouped into departments
Five structural alternatives
Vertical functional approach. People are grouped together in
departments by common skills.
Divisional approach. Grouped together based on a common
product, customer or geographical region.
Matrix approach. Functional and divisional chains of command are
implemented. Two chains of command exists.
Team-based approach. Created to accomplish specific tasks.
Network approach. Small, central hub electronically connected to their other organizations that
perform vital functions. Departments are independent, and can be located anywhere.
23. 23
Functional Design
Functional design means grouping
managers and employees according to their
areas of expertise and the resources they
use to perform their jobs.
25. 25
Functional Design
Potential Benefits
Supports skill specialization
Reduces duplication of resources &
increases coordination
Enhances career development &
training within functional area
Allows superiors and subordinates to
share common expertise
Promotes high-quality technical
decision making
Potential Pitfalls
Inadequate communication
Difficulties with interunit
coordination
Focus on departmental rather
than organizational issues and
goals
28. 28
Product Design
Potential Benefits
Permits fast changes in a
product line
Allows greater product line
visibility
Fosters a concern for customer
demand
Clearly defines responsibilities
for each product line
Develops managers who can
think across functional lines
Potential Pitfalls
Not allowing efficient utilization of
skills and resources
Not fostering coordination of
activities across product
Encourages politics and conflicts in
resource allocation across product
lines
Limits career mobility for
personnel outside their own
product lines
30. 30
Geographical Structure
for Apple Computer
CEO
Steve Jobs
Apple
Europe
Apple
Pacific
France
Apple
Middle East
Asia
Japan
Australia
Apple
America
Canada
Latin
America/
Caribbean
USA
31. 31
Geographical Design
Potential Benefits
Has facilities and the equipment
used for production and/or
distribution all in one place, saving
time and costs
Able to develop expertise in solving
problems unique to one location
Gaining an understanding of
customers’ problems and desires
Getting production closer to raw
materials and suppliers
Potential Pitfalls
Duplication of functions, to
varying degrees, at each regional
or individual unit location
Conflict between each location's
goals and the organization's goals
Adds levels of management and
extensive use of rules and
regulations to coordinate and
ensure uniformity of quality
among locations
35. 35
Matrix Design
Potential Benefits
More efficient use of resources
than single hierarchy
Adaptable to changing
environment
Development of both general and
specialists management skills
Expertise available to all
divisions
Enlarged tasks for employees.
Potential Pitfalls
Dual chain of command
High conflict between two
sides of matrix
Many meetings to coordinate
activities
Need for human relations
training
Power domination by one
side of matrix.
36. 36
Team Approach
Cross-functional teams consist of employees
from various functional departments
Interdisciplinary approach to management
Permanent team = to solve ongoing problems
Reengineering = radical redesign for
improvements in cost, quality, service and
speed.
37. 37
Team Approach
Potential Benefits
Same advantages as
functional structure
Reduced barriers among
departments
Quicker response time
Better morale
Potential Pitfalls
Dual loyalties and
conflict
Time and resources spent
on meetings
Unplanned
decentralization.
38. 38
Network Approach
Organization divides major functions into
separate companies brokered by a small
headquarters organization
Especially appropriate for international
operations
Held together with phones, faxes, and other
electronic technology.
39. 39
Network Approach
Potential Benefits
Global competitiveness
Work force flexibility
Reduced administrative
overhead.
Potential Pitfalls
No hands-on control
Loss of part of the
organization severely
impacts remainder of
organization
Employee loyalty
weakened.
48. 48
Authority
•Formal and legitimate right of a manager to make
decisions, issue orders, and to allocate resources to
achieve organizationally desired outcomes.
Authority is distinguished by three characteristics:
•Authority is vested in organizational positions, not
people.
•Authority is accepted by subordinates.
•Authority flows down the vertical hierarchy.
49. 49
Responsibility
•The duty to perform the task or activity an
employee has been assigned.
•Managers need authority commensurate with
responsibility.
50. 50
Accountability
Mechanism through which authority and
responsibility are brought into alignment.
People are subject to reporting and justifying
task outcomes to those above them in the chain
of command.
Can be built into the organization structure.
53. 53
Types of Power
Coercive powerPower based on fear.
Reward power Power based on the ability to distribute
something that others value.
Legitimate power Power based on one’s position in the
formal hierarchy.
Expert power Power based on one’s expertise,
special skill, or knowledge.
Referent power Power based on identification with a
person who has desirable resources or
personal traits.
55. 55
Line
Line departments perform tasks that reflect
the organization's primary goal and mission
Line authority means that managers have
formal authority to direct and control
immediate subordinates.
56. 56
Staff
Staff departments include all those who
provide specialized skills in support of line
departments
Staff authority is generally more narrow than
line authority
Staff authority includes the right to advise,
recommend, and counsel in the staff
specialists' area of expertise.
57. 57
Types of Organizational Authority
Line authority
The position authority (given and defined by the
organization) that entitles a manager to direct the work
of operative employees.
Staff authority
Positions that have some authority (e.g., organization
policy enforcement) but that are created to support,
assist, and advise the holders of line authority.
Functional Authority
58. 58
Line & Staff Conflict
Line
Theory Bias
Dilution of Authority
Lack of Accountability
Staff
Lack of Authority
Sidelined
62. 62
Decentralization Tends To
Make greater use of human resources
Reduce burdens of top managers
Cause decisions to be made close to the action
Permit rapid response to changes.
63. 63
Centralization versus
Decentralization
•Greater change and uncertainty in the
environment are usually associated with
decentralization.
•The amount of centralization or decentralization
should fit the firm’s strategy.
•In times of crisis or risk of company failure,
authority may be centralized at the top.
64. 64
Factors That Influence
Centralization/Decentralization
Amount of change and uncertainty
Availability of competent managers
Corporate culture
Geographical dispersion
Size of organization
Efficiency of communication and control systems.
Cost and risk of failure
67. 67
Factor Affecting Delegation
Love for Authority (Boss)
Fear of losing position (Boss)
Lack of Trust (Boss)
Fear of Criticisms (Both)
Low Self confidence (Subordinate)
Absence of rewards (Subordinate)
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Organizational Culture
A system of shared values, assumptions, beliefs, and
norms that unite the members of an organization.
Reflects employees’ views about “the way things are
done”
The culture specific to each firm affects how
employees feel and act and the type of employee hired
and retained by the company.
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Characteristics of Organization
Culture
It is distinctive
It is based on certain Norms
It promotes Stable values
It leads to common behavioral aspects
It shapes philosophy and rules
Its strength varies
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Functions Performed By
Organizational Culture
Employee Self-Management
Sense of shared identity
Facilitates commitment
Stability
Sense of continuity
Satisfies need for predictability, security, and comfort
Socialization
Internalizing or taking organizational values as one’s own
Implementation Support
If strategy and culture reinforce each other, employees find it natural
to be committed to the strategy
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Steps in Socialization
1. Careful selection
2. Challenging early work
assignments
3. Training to develop capabilities
consistent with culture
4. Rewards that sustain
the culture
5. Adoption of cultural
value policies
6. Rituals, taboos, rites, and
stories to reinforce culture
7. Role model to sustain
culture
Removal of
Employees who
deviate from culture
Removal of candidates who
do not “fit” culture