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Transcript of 7-1 Structure and Fundamentals of Organizing Copyright © 2006 by South-Western, a division of...
7-1
Structure and Fundamentals of
OrganizingCopyright © 2006 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 7
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.7-2
Definitions Authority
The rights inherent in a managerial position to make decisions, give orders and utilize resources
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Definitions Authority
The rights inherent in a managerial position to make decisions, give orders and utilize resources
Delegation The process of assigning managerial authority
and responsibility to managers and employees lower in the hierarchy
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Definitions Mechanistic Organization (Bureaucratic)
Authority is centralized Tasks and rules are clearly specified Employees are closely supervised
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Definitions Mechanistic Organization (Bureaucratic)
Authority is centralized Tasks and rules are clearly specified Employees are closely supervised
Organic Organization (Non-Bureaucratic) Authority is decentralized Fewer rules and procedures Encouraged to respond to unexpected tasks
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Organic vs. Mechanistic Influencing Factors:
Size Technology Life Cycle
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Organic vs. Mechanistic Influencing Factors:
Size As an organization grows so does the need for rules,
regulations and procedures
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Organic vs. Mechanistic Influencing Factors:
Size Technology
Small Batch Technology Individual Job-Shops (Most Organic)
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Organic vs. Mechanistic Influencing Factors:
Size Technology
Small Batch Technology Individual Job-Shops (Most Organic)
Large Batch Technology Assembly Line (Mechanistic)
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Organic vs. Mechanistic Influencing Factors:
Size Technology
Small Batch Technology Individual Job-Shops (Most Organic)
Large Batch Technology Assembly Line (Mechanistic)
Continuous Process Technology (Organic) Machine Based Factories
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Organic vs. Mechanistic Influencing Factors:
Size Technology Life Cycle
Birth Stage – Non-Bureaucratic Youth (Growth) Stage – Pre-Bureaucratic Midlife Stage – Bureaucratic Maturity Stage – Very Bereaucratic
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Learning Organizations An organization that actively creates,
acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge
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Learning Organizations Reasons Organizations Resist Learning
Competition Within an Organization Fragmentation and Specialization Fear of Risks
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Learning Organizations Quiz
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Span of Management 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.
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Large Spans of Control Factors Work is stable or routine. Similar task is performed by everyone. A single location. Employees are highly trained. Rules and procedures are available. Support systems and personnel are available for
supervisor. Little time is required in nonsupervisory activities. Personal preferences and styles of management favor
a large span.
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Tall versus Flat Structure Span of control used in an organization determines
whether the structure is tall or flat. Tall structure has a narrow span and more hierarchical
levels. Flat structure has a wide span, is horizontally
dispersed and fewer hierarchical levels. The trend has been toward wider spans of control.
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Ex. 7.2 Reorganization to Increase Span of Management for President of an
International Metals Company
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Centralization versus Decentralization
Centralization – decision authority is located near the top of the organization.
Decentralization – authority is pushed downward to lower organizational levels.
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Figure 7.3 Five Approaches to Structural Design
daft figure 7.3.CLP
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Figure 7.3 (contd.)
daft marcic figure 7.3 contd..CLP
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Figure 7.3 (contd.)
daft marcic more figure 7.3.CLP
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Working in Teams
• Task Force . . . A temporary team or committee formed to solve a specific short-term problem.
• Team . . . Participants from several departments who meet to solve ongoing problems.
• Project Manager . . . A person responsible for coordinating the activities of several departments.