Organising and Controlling

7/30/2019 Organising and Controlling

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Organising and Contro

Dr. B. Abdul AzeemAssociate ProfessorDepartment of Business AdministrationAnnamacharya PG College of Computer [email protected]


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OrganizingIntroduction

Organising

The deployment of organisational resources to achieve strate

The management function that establishes relationships betwand authority.

Organisation StructureThe framework in which the organisation defines how tasks a

resources are deployed, and departments are coordin

Organisation Chart

The visual representation of an organisations structure.


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Organising Process

FUNCTIONS (Benefits)

It clarifies the work environment

It creates a coordinated environment

It achieves the Principle of Unity of Direction

It establishes the Chain of Command

The establishment of on

authorityfigure for each designat

task of the organizatio

The u

of

relatith

to th

org


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Organising Process

1. Reviewing Plans and Goals

A companys goals and its plans to achieve them dictate its act

Businesses adjust their organizational structures in response to new

2. Determining Work Activities

Creating a list of tasks to be accomplished begins with identifying

and ends with considering the tasks unique to this business.

Specialisation or division of labour

3. Classifying and Grouping Activities

Principle of functional similarity - grouping tasks that are similar inprocesses, or skills

Departmentalization
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Organising Process

4. Assigning Work and Delegating Authority

The activities to be performed determine the type and quantity onecessary

5. Designing a Hierarchy of Relationships

Vertical structuringdecision making hierarchy and managemeof command)

Horizontal structuringrelationships between departments and s

Chain of command

Span of control

Communication channels

Departmentalization

Work in position

Decision making hierarch

Authority relationships


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Major Organisational Concepts

Authority

Nature, source and importance ofauthority

Types of authority

Unity of command

Power

Delegation

Importance of dele

Delegation process

Span of control

Centralisation and De

Assignment


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Departmentalisation

The basis on which individuals are grouped into departmedepartments into the total organization.

Functional Structure

The grouping of positions into departments based on similar sand resource use.

Divisional Structure

An organization structure in which departments are groupedsimilar organizational outputs.

Product-basedGeographic-basedCustomer-bas


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Departmentalisation

Matrix Structure

An organization structure that utilizes functional and divisionacommand simultaneously in the same part of the organizatio

Team Structure

Structure in which the entire organization is made up of horizo

that coordinate their activities and work directly with customaccomplish the organizations goals.

CROSS FUNCTIONAL TEAMS -- PERMANENT TEAMS

Virtual Network Structure

An organization structure that disaggregates major functionscompanies that are brokered by a small headquarters organ


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Departmentalisation


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Making Organising Effective

Effects of Deficient Organisation Structure

Low motivation and morale

Late and inappropriate decisions

Conflict and lack of coordination

Poor response to new opportunities and external change

Rising costs

Staff illicit activities


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Making Organising Effective

Principles of Organisation

1. The Principle of the Objective

2. The Principle of Specialisation

3. The Principle of Coordination

4. The Principle of Authority

5. The Principle of Responsibility

6. The Principle of Def

7. The Principle of

Correspondence

8. The Principle of Spa

9. The Principle of Bala

10.The Principle of Con


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ControllingIntroduction

Controlling

The process through which standards for the performance oprocesses are set, communicated, and applied.

Standard

Any established rule or basis of comparison used to measurequantity, content, value, cost, quality, or performance.

Control Technique

Device designed to measure and monitor specific aspects aperformances of an organization, its people, and its processes


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System of Controlling


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1. Establishing Goals and Standards

Generating right goals, sub-goals and standards.

2. Measuring Performance

Performance must be measured against criteria.

No over reliance on quantitative data.

3. Compare Performance against Goals and Standards

Performance above, in line and below the set standards an

Additional qualitative and quantitative data to identify varia


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4. Taking Corrective Action

a) When actual performance easily exceeds a goal, corrective ac

include raising the goal.

b) When actual performance falls short of a goal, depending on w

investigation reveals, managers might change strategy, operatiopersonnel.

5. Providing Reinforcement

Providing positive reinforcement is just as important an aspesystem as taking corrective action.


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Types of Controls

Feed-forward Controls

A control that prevents defects and deviations from standa

Concurrent Controls

Controls that apply to processes as they are happening.

Feedback Controls

Controls that focus on the outputs or results of operations.


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Control Techniques

Personal Controls

Making sure through personal inspection and direct supervisindividuals and units behave in a way that is consistent with the organization.

Subjective in nature

Centralization of power and authority in a key manager

Can be demotivating

Lack of objectivity

Time and attention to direct supervision

break down as an organization grows in size and complexity


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Control Techniques

Bureaucratic Controls

Control through a formal system of written rules and proced

Decentralize decision making within the constraints specifiedand procedures

Not well suited to organizations facing dynamic, rapidly chanenvironments or to organizations that employ skilled individuaautonomy


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Control Techniques

Output Controls

Setting goals for units or individuals to achieve and monitoriperformance against those goals.

Facilitate decentralization and greater autonomy

Useful when units have to respond rapidly to changes in the m

Less extensive monitoring

Senior managers need to look behind the numbers to make managers are achieving goals in a way that is consistent withthe organization

Choose the right output criteria to measure

Do not work well if there are extensive interdependencies bePERRFORMANCE AMBIGUITY


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Control Techniques

Cultural Controls

Regulating behavior by socializing employees so that they invalues and assumptions of an organization and act in a mannerconsistent with them.

The need for other control systems

Reduce the monitoring costs associated with managing an o

Cultural control can have dysfunctional aspects

Culture of working long hours clearly has a downside

Culture is difficult to change


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Control Techniques

Control through Incentives

Devices used to encourage and reward appropriate emplo

Incentives can reinforce output controls, induce employees tself- control, increase peer control, and lower the need for omechanisms

Managers need to make sure incentives are not tied to outpresult in unintended consequences or dysfunctional behavio


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Control Techniques

Market Controls

Regulating the behavior of individuals and units within an ensetting up an internal market for some valuable resource such a

Internal competition will drive divisional managers to look for improve the efficiency of their units

Difficult to establish cooperation between divisions for mutua


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Making Controlling Effective

Focus on Control Points

Controls should focus on those points at which failures cannot be toltime and money costs are greatest.

Integration

When controls and the need for them are consonant with the organithe controls will be effective.

Acceptability

Controls that appear to be arbitrary, subjective, or an invasion of priv

the support of those they affect. Likewise, controls that are redundan

necessary for health and safety) or too restrictive will go unsupported

controls will stimulate covert and overt opposit ion. Too many or too f

well as those that are confusing, create stress and resistance. Frustra

of motivation and initiative can result.


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Making Controlling Effective

Timeliness

If deadlines are treated casually or unrealistically, people will soo

ignore them.

Economic Feasibility

The costs of a control system must be weighed against its benefit

Accuracy

Controls that offer inaccurate assessments feed decision makers

which causes them to give inappropriate responses.

Comprehensibility

The simpler the control, the easier it will be to communicate and

Organising and Controlling

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