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CHAPTER 8
ORGANIZING PRINCIPLESORGANIZING PRINCIPLES
MANAGEMENT IN ACTION: ORGANIZING FUNCTION What Are Managers Organizing?What Are Managers Organizing? Formal and Informal Organizational Formal and Informal Organizational
DesignsDesigns The Organizing ProcessThe Organizing Process Making a Connection Between the Planning Making a Connection Between the Planning
Function and the Organizing FunctionFunction and the Organizing Function
THE ORGANIZING PROCESS SYSTEMS MODEL Defined as Defined as
Establishing the orderly use of resourcesEstablishing the orderly use of resources by assigning tasks by assigning tasks which establish relationships between activities which establish relationships between activities
and authorityand authority
THE ORGANIZING PROCESS SYSTEMS MODEL Reviewing Plans and GoalsReviewing Plans and Goals Determining activitiesDetermining activities Classifying and Grouping ActivitiesClassifying and Grouping Activities Assigning Work and Delegating AuthorityAssigning Work and Delegating Authority Designing a Hierarchy of RelationshipsDesigning a Hierarchy of Relationships
THE ORGANIZING PROCESS SYSTEMS MODEL Reviewing Plans and GoalsReviewing Plans and Goals
SWOT/Gap/Force Field AnalysisSWOT/Gap/Force Field Analysis Organizational Mission, Vision, Belief Organizational Mission, Vision, Belief
StatementsStatements Strategic-Tactical-Operational Goals and Strategic-Tactical-Operational Goals and
ObjectiveObjective
THE ORGANIZING PROCESS SYSTEMS MODEL Determining ActivitiesDetermining Activities
Specialization and Division of Labor--The Specialization and Division of Labor--The Traditional ApproachTraditional Approach
Cross-Functional Integration The Open Cross-Functional Integration The Open Systems Contemporary ApproachSystems Contemporary Approach
The Efficiency-Effectiveness-Specialization-The Efficiency-Effectiveness-Specialization-Job Satisfaction Paradox (See Exhibit 7.2 on Job Satisfaction Paradox (See Exhibit 7.2 on pg.200)pg.200)
THE ORGANIZING PROCESS SYSTEMS MODEL Classifying and Grouping ActivitiesClassifying and Grouping Activities
Functional DepartmentalizationFunctional Departmentalization Geographical DepartmentalizationGeographical Departmentalization Product DepartmentalizationProduct Departmentalization Customer DepartmentalizationCustomer Departmentalization
THE ORGANIZING PROCESS SYSTEMS MODEL Assigning Work and Delegating AuthorityAssigning Work and Delegating Authority
Responsibility or Authority or BothResponsibility or Authority or Both Decentralization and RecentralizationDecentralization and Recentralization Ultimate AccountabilityUltimate Accountability
THE ORGANIZING PROCESS SYSTEMS MODEL Designing a Hierarchy of RelationshipsDesigning a Hierarchy of Relationships
Vertical and Horizontal Reporting StructuresVertical and Horizontal Reporting Structures Flat or Bureaucratic HierarchyFlat or Bureaucratic Hierarchy Span of Control/Lines of Authority/Unity of Span of Control/Lines of Authority/Unity of
Command SpecifiedCommand Specified Organizational ChartsOrganizational Charts Fayol’s Administrative PrinciplesFayol’s Administrative Principles
BENEFITS OF EFFECTIVE ORGANIZATIONAL DESIGN Clarifies the work environmentClarifies the work environment Creates a coordinated environmentCreates a coordinated environment Achieves unity of directionAchieves unity of direction Establishes the chain of commandEstablishes the chain of command
ORGANIZING CONCEPTS, THEORIES, AND PRINCIPLES AuthorityAuthority
Nature, Sources, and Importance of AuthorityNature, Sources, and Importance of Authority formal and legitimate right of make decision, give formal and legitimate right of make decision, give
orders, and allocate resourcesorders, and allocate resources functional, positional, charismatic sources of functional, positional, charismatic sources of
authorityauthority
Types of AuthorityTypes of Authority Line-Staff-Operational/functionalLine-Staff-Operational/functional
Line and Staff DepartmentsLine and Staff Departments
ORGANIZING CONCEPTS, THEORIES, AND PRINCIPLES Unity of CommandUnity of Command PowerPower
Legitimate/PositionalLegitimate/Positional Referent/CharismaticReferent/Charismatic Expert/FunctionalExpert/Functional
DelegationDelegation Span of ControlSpan of Control Centralize or DecentralizeCentralize or Decentralize
THE INFORMAL ORGANIZATION The Informal Organization Defined and The Informal Organization Defined and
ComparedCompared How the Informal Organization EmergesHow the Informal Organization Emerges The Structure of the Informal OrganizationThe Structure of the Informal Organization
Primary-Tertiary(Fringe-Out-Status)Group Primary-Tertiary(Fringe-Out-Status)Group RolesRoles
How To Work With the Informal How To Work With the Informal Organization: Positive/Negative ImpactOrganization: Positive/Negative Impact