MP OB Session 4

8/3/2019 MP OB Session 4

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Fundamentals ofOrganizing


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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.


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1. The set of formal tasks assigned to individuals

and departments.

2. Formal reporting relationships.

3. The design of systems to ensure effective

coordination of employees across departments.

Defined as:


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Visual representation

Set of formal tasks

Formal

reporting relationships

Frameworkfor vertical control


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Tasks are subdivided into individual jobs.

Employees perform only the tasks relevant to

their specialized function. Jobs tend to be small, 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.


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Unbroken line of authority that links all persons

in an organization. Associated with two underlying principles.

Unity of Command.

Scalar Principle.


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Formal and legitimate right of a manager tomake decisions, issue orders, and to allocateresources to achieve organizationally desiredoutcomes.

Authority is distinguished by threecharacteristics:

Authority is vested in organizational positions, notpeople.

Authority is accepted by subordinates.

Authority flows down the vertical hierarchy.


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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.


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Process managers use to transfer authority and responsibility.

Organization encourage managers to delegate authority to lowest possible level


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Effective Delegation Techniques

Give thorough

instructions

Maintain feedback Evaluate and reward

performance

Delegate the whole task Select the right

personEnsure that

authority equals

responsibility


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The number of employees reporting to

a supervisor. Traditional view, seven or so per

manager.

Many organizations today, 30 or moreper manager.

Generally if supervisors must be closelyinvolved with employees span shouldbe small.


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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 forsupervisor.

Little time is required in nonsupervisoryactivities.

Personal preferences and styles of managementfavor a large span.


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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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Greater change and uncertainty in the

environment are usually associated withdecentralization.

The amount of centralization or decentralizationshould fit the firms strategy.

In times of crisis or risk of company failure,authority may be centralized at the top.


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Five structural alternatives

Vertical functional approach. People are grouped together in

departments by common skills.


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Divisional approach. Grouped together

based on a common product, program, or

geographical region.


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Matrix approach. Functional and divisional

chains of command are implemented. Two

chains of command exists.


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Team-based approach. Created to

accomplish specific tasks.


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Network approach. Small, central hub

electronically connected to their other

organizations that perform vital functions.

Departments are independent, and can belocated anywhere.


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Cross-functional teams consist of employees

from various functional departments.

Permanent team solve ongoing problems.

Employees come from all functional areas.


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May be viewed as a central hub surrounded by anetwork of outside specialist.

"Where is the organization? A difficult questionto answer.

Especially appropriate for internationaloperations.

Connected electronically to the central office.


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An organization that has few on-site employees

and does most if its interactions online.


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Formal Vs Informal Organisations

MP OB Session 4

Documents

Transcript of MP OB Session 4