Group 2
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Transcript of Group 2
THE ORGANIZATION
An organization may be considered group of people with defined relationship to each other.
By an organization, one may also be referring to a collection of human and material resources, which are gathered together for a stated aim.
At a more general level, an organization may also refer to a structure defining the division of work and interaction between individuals, groups and resources.
THE ORGANIZATION
ELEMENTS: A collection of people in formal and informal groupings. Individuals who have defined tasks and responsibilities, some of
which may consist of specialization. The manner in which these tasks interact and relate to each other is
defined.
The tasks all lead to achievement of a common aim.
THE ORGANIZATION
These changes have been driven by: The emphasis in organizations on the attainment of results rather on
the process used in achieving them. The emphasis on horizontal activities within the organization in
order to gain influence and information, rather than vertical activity. Many more opportunities for action and exerting influence within an
organization. The realization that external contacts are becoming an important
factor in being able to wield internal influence and power. Rapidly disappearing formal control mechanisms between
managers and subordinates. No clear career progression paths within the organization, but many
more opportunities for advancement.
ORGANIZATIONAL DYNAMICS
The Management create conditions for the organizationto learn and develop.
Staff take actions based on their past experience and memory, repeating
actions that were known to haveworked in previous similar
situations.
However, situations change, and staff must be willing to experiment,
learning from new experiences. For effective learning, the manager must create an open, questioning environment, very different from thestructures of the past, where staff obeyed orders either out of fear orblind loyalty.
ORGANIZATION STRUCTURES
Defining a structure
An organization structure is the way the organization allocates its resources towards meeting its strategic aims. It is commonly defined by organization charts.
ORGANIZATION STRUCTURES
Groupings for common organizational structures:ORGANIZATION STRUCTURES
GROUPING
LINE
STAFF
PROJECT-BASED
FUNCTIONAL
FLEXIBLE
MATRIX
INFORMAL
HIERARCHICAL
MATRIX
INFORMAL
Hierarchical organizational structures are probably the most common and often considered to be essential for control of large organizations. ( Jaques, 1990)
Definition of Terms
Span of Control. The number of people that report back to one manager in a hierarchy.
Chain of command. The order in which authority and power is delegated from top management to every employee at every level of the organization. eg; Military forces are an example of straight chain of command.
Authority. The rights inherent in the managerial position to tell people what to do and expect them to do it.
Unity of Command. The concept that a person should have one boss and should report only to him.
Types of Hierarchical Organizational Structure
Line Staff or Functional AuthorityLine-and-StaffGeographicFunctionalProject
There are only line departments- departments directly involved in accomplishing the primary goal of the organization.
In a line organization, top management has complete control, and the chain of command is clear and simple.
The staff personnel who are specialists in some fields are given functional authority ( the right of staff specialists to issue orders in their own names in designated areas).
The principle of unity of command is violated when functional authority exists.
Some staff specialists may exert direct authority over the line personnel, rather than exert advice authority.
Has a direct, vertical relationships between different levels and also specialists responsible for
advising and
assisting line managers.
Most large organizations belong to this type of organizational structure.
In general, functional authority of staff is replaced by staff responsibility so that the principle of unity is not violated.
Geographic organizational structure is used for organizations that have offices or businesses units in different geographic locations.
Geographic organizational structure is used mainly in industries like retail and hotel chains, transportation and other large national and international organizations. Manufacturing organizations with several plants in different geographical locations may choose to operate using a geographic structure.
In a functional structure, positions are grouped based on the type of work they do and the skills required to complete that work.
Organizations employing this kind of structure divide themselves into functional areas like marketing, engineering, and accounting.
Organizations arrange their activities into programs or portfolios, and implement them through the projects.
The project manager has full-time team members working under him.
A matrix organizational structure is a company
structure in which the reporting relationships
are set up as a grid, or matrix, rather than
in the traditional hierarchy. In other words,
employees have dual reporting relationships -
generally to both a functional manager and a
project manager.
Matrix management is suitable for use in
situations needing multiple simultaneous
management capabilities (Bartlett and Ghoshal,
1990).
Project responsibilityProvide day-to-day guidance on work to be done
Determine all priorities related to work.
Ensure funding levels available for work including special tools
Ensure conflicts between functions resolved
Plan project and ensure project objectives are being met
Provide customer interface
Monitor project progress including resource usage and spend
Functional responsibilityProvide personnel of correct skills for job to be done.
Determine methods to be used in carrying out task, including tools.
Look after ‘pay and rations’ of staff including personal achievement.
Ensure technical know how transferred between projects.
Monitor progress of functional contributors and help with technical problems.
Functional manager is responsible for;
Looking after the personal needs of the
individual engineer
Ensuring that high quality standards are
followed on the project and;
There is a ‘home’ for the engineer to go to at
the termination of the project
Matrix organization
Functional organization
Project organization
Functional control (%)
Proj
ect o
rgan
izati
on (%
)
Figure 2 The relationship between project, functional and matrix organization
0 10050
50
100
The matrix organization has several aims:
To allow projects to be formulated, grow and deliver products to the costumer, including post-sales support, with minimum time and expense.
To provide staff leveling.
Project 1 Project 2 Project 4
Project 3
Overall staffing level
Figure 3 Staff levelling
To provide a project focus on all the work being.
To provide a focus on the costumer.
To provide a view across all the various functional areas in order to determine the impact of developments or changes in one area on another.
To provide platform for faster decision making, especially in relation to the impact on the costumer.
To allow the project to concentrate on delivering the product to the costumer, by moving some of the day-to-day issues to the functional organization.
Advantages to be gained for the engineer working in a matrix organization;
Experience is gained of working in a function and in a project
The engineer can learn from the various managers.
Appraisals and promotions are based on the input from two managers, so they are more likely to be related to merit rather than the whim of individual managers.
It is easier for the engineer to move between jobs.
THE INFORMAL ORGANIZATION
Formal Organizational Structure
DIRECTOR
MANAGER A MANAGER B MANAGER C MANAGER D
THE INFORMAL ORGANIZATION
Informal Organizational Structure
DIRECTOR MANAGER B
MANAGER A MANAGER C MANAGER D
PRESSURES FOR ORGANIZATIONAL CHANGE
New investment
Promotions
Leavers
New recruits
Career moves
Markets
Customers
Legislation
Technology
Competition
Suppliers
Ta
keove
r
Eco
nom
ics
BARRIERS TO CHANGE
• The inertia within the organization, caused by the norms that have been operating over several years. Norms are shared values within the organization and they prevent its employees from accepting that a different set of values, resulting from the change may be better.
• Employees feel threatened by the change. Managers may also feel that the change will result in loss of control over some of their staff and a reduction in their status.
• Employees may feel that they are no longer in control of their own career paths.
BARRIERS TO CHANGE
• There could be uncertainty about future roles. Employees may feel that they would no longer have a meaningful job in the new organization.
• Employees who are put into a new role by the change may feel that they would not be able to cope.
• Past experience within the organization often determines future behaviour.