Chapter_07 - Organising
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Organizational Roles
For an organizational role to exist
and be meaningful, it must incorporate:
(1) erifiable ob!ecties, "#ic#, are ama!or part of planning
(2) a clear idea of t#e ma!or duties oractiities inoled and
($) an understood area of discretion oraut#orit% so t#at t#e person fillingt#e role &no"s "#at #e or s#e can
do to accomplis# goals
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Organizing inoles:
(1) t#e identification and classification
of re'uired actiities
(2) t#e grouping of actiities necessar%
to attain ob!ecties($) t#e assignment of eac# grouping to
a manager "it# t#e aut#orit%
(delegation) necessar% to superise it
() t#e proision for coordination #orizontall%(on t#e same or a similar organizational
leel) and erticall% (for example,
corporate #ead'uarters, diision, and
department) in t#e organization structure
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efinition of Organization
Organization implies a formalized
intentional structure of roles or
positions*
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FOR+- . /.FOR+-
OR.//O.
Formal organization pertains to the intentional
structure of roles in a formally organized enterprise
#e informal organization is a network of personal
and social relations not established or required by the
formal organization but arising spontaneously as
people associate with one another
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FOR+- . /.FOR+-OR.//O.
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FOR+- . /.FOR+-OR.//O.
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3#at is a epartment4#e department designates a distinct
area, diision, or branc# of anorganization oer "#ic# a manager
#as aut#orit% for t#e performance of
specified actiities*
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-eels are:
• 5xpensie
• 6omplicate 6ommunication
• 6omplicate 7lanning and 6ontrol
7roblems "it# Organization-eels
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Organization "it# .arro" 8pans
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Organization "it# 3ide 8pans
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#e Operational9+anagement7osition: 8ituational pproac#
The principle of the span of management
states that there is a limit to the number of
subordinates a manager can effectively
supervise, but the exact number will dependon the impact of underlying factors.
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3idening spans and reducing t#e
number of leels ma% be t#e
ans"er in some cases t#e
reerse ma% be true in ot#ers*
.eed for ;alance
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ifference ;et"een an
/ntrapreneur and an 5ntrepreneur
An intrapreneur is a person whofocuses on innovation and creativity and
who transforms a dream or an idea intoa profitable venture by operating withinthe organizational environment
The entrepreneur is a person whodoes similar things as the intrapreneur,but outside the organizational setting
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8ince it is managerial responsibilit%
to create an enironment foreffectie and efficient ac#ieementof group goals, managers mustpromote opportunities for
entrepreneurs to utilize t#eirpotential for innoation*
6reating an 5nironment
for 5ntrepreneurs#ip
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/nnoation applies not onl% to
#ig#9tec# companies but e'uall%
to lo"9tec#, establis#ed
businesses*
/nnoation and5ntrepreneurs#ip
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efinition of Reengineering
<***t#e fundamental ret#in&ing andradical redesign of business processesto ac#iee dramatic improements incritical contemporar% measures ofperformance, suc# as cost, 'ualit%,serice, and speed*=
#e underlined "ords are considered&e% aspects of reengineering b%>ammer and 6#amp%
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?e% spects of Reengineering
Fundamental ret#in&ing of "#at t#e organizationis doing and "#%
Radical redesign of t#e business processes
@.ote: o"nsizing or <rig#tsizing< is not t#eprimar% purpose of reengineering, alt#oug# inman% cases it does result in a need for fe"erpeopleA
Reengineering calls for dramatic results #e fourt# &e% "ord in t#e reengineering
definition is processes* #e need for carefull%anal%zing and 'uestioning business processes
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+anagement b% 7rocesses
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#e -ogic of Organizing
8ix steps of organizing process:
1* 5stablis#ing enterprise ob!ecties
2* Formulating supporting ob!ecties, policies,and plans
$* /dentif%ing, anal%zing, and classif%ing t#eactiities necessar% to accomplis# t#ese
* rouping t#ese actiities in lig#t of t#e #umanand material resources aailable and t#e best
"a%, under t#e circumstances, of using t#emB* elegating to t#e #ead of eac# group t#e
aut#orit% necessar% to perform t#e actiities
C* %ing t#e groups toget#er #orizontall% anderticall%, t#roug# aut#orit% relations#ips and
information flo"s
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;8/6 DE58/O.8 FOR 5FF56/5OR.//./t is useful to anal%ze t#e managerial function of organizing
b% raising and ans"ering t#e follo"ing 'uestions:
1* 3#at determines t#e span of management and #ence t#e
leels of organization4 (ans"ered in t#is c#apter)f
2* 3#at determines t#e basic frame"or& of departmentation,
and "#at are t#e strengt#s and "ea&nesses of t#e basic
forms4 (ans"ered in 6#apter G)
$* 3#at &inds of aut#orit% relations#ips exist in
organizations4 (ans"ered in 6#apter H)* >o" s#ould aut#orit% be dispersed t#roug#out t#e
organization structure, and "#at determines t#e extent of
t#is dispersion4 (ans"ered in 6#apter H)
B* >o" s#ould t#e manager ma&e organization t#eor% "or&
in practice4 (ans"ered in 6#apter 10)
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