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8/18/2019 Chapter 9– Organising
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Presentation prepared by
Lucy Miller
Macquarie University
Chapter 9–Organising
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© John Wiley and Sons
Organising
Learning objectives:
• What is organising as a management function?
• What are the major organisation structures?
• What are the essentials of organisational design?• How do contingency factors inuence design?
• What are the new develo!ments in organisationstructures and o!erating systems?
• What are the major issues in su"systems design?
• What organising trends are changing thewor#!lace ?
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Organising as a managementfunction
• Organising
– $he !rocess of arranging !eo!le and otherresources to wor# together to accom!lish a goal%
–
&nvolves creating a division of la"our for tas#!erformance and coordinating results to achievea common !ur!ose%
• 'iven a clear mission( core values( o"jectives and
strategy( organising "egins the !rocess ofimplementation "y clarifying jo"s and wor#ingrelationshi!s%
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Organising as a managementfunction
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Organisation structure
• Organisation structure
– $he way in which various !arts of anorganisation are formally arranged%
– $he system of tas#s( wor#ows( re!ortingrelationshi!s and communication channelsthat lin# the wor# of diverse individuals andgrou!s%
• Structure must "e handled in a contingencyfashion) as environments and situationschange( structures must often change too%
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Formal structure
• Organisation chart
– A diagram that shows re!orting relationshi!sand the formal arrangement of wor# !ositions
within an organisation% – &denti*es various !ositions and jo" titles( as
well as the lines of authority andcommunication "etween them%
• $his is the formal structure( or the structure ofthe organisation in its o+cial state% &t re!resentsthe way the organisation is intended to function%
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Formal structure
• What can you learn from an organisation chart? – Division of wor: ,ositions and titles show
wor# res!onsi"ilities% – !upervisory relationships: -ines show
who re!orts to whom% – Communication channels: -ines show
formal communication ows% – Major subunits: ,ositions re!orting to a
common manager are shown% – Levels of management: .ertical layers of
management are shown%
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"nformal structure
• An informal structure is a /shadow0 organisationmade u! of the uno+cial( "ut often critical(wor#ing relationshi!s "etween organisationalmem"ers%
• &f the informal structure could "e drawn( it wouldshow who tal#s to and interacts regularly withwhom( regardless of their formal titles and
relationshi!s%• "nformal learning is increasingly recognised as
an im!ortant resource for organisationaldevelo!ment%
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Departmentalisation
• Departmentalisation
– $he grou!ing of wor# !ositions into formalteams or de!artments which are lin#ed in a
coordinated fashion within the largerorganisation%
• $he three major ty!es of organisation structureare1
– $he functional structure
– $he divisional structure
– $he matri2 structure
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Functional structures
• &n functional structures( !eo!le with similars#ills and !erforming similar tas#s are formallygrou!ed together into wor# units%
•
Mem"ers of functional de!artments sharetechnical e2!ertise( interests and res!onsi"ilities%
• Major advantages of functional structures include1
– economies of scale)
– high3quality technical !ro"lem3solving)
– in3de!th training and s#ills within functions%
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Functional structures
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Divisional structures
• A #ivisional structure grou!s together!eo!le wor#ing on the same !roduct( in thesame area( with similar customers( or involved
in the same !rocesses%• $he major ty!es of divisional a!!roaches are
the !roduct( geogra!hical( customer and!rocess structures%
• 4ivisional structures are common in com!le2organisations%
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Divisional structures
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Divisional structures
• $ro#uct structures grou! together jo"s and!eo!le wor#ing on a single !roduct or service%
• %eographical structures grou! together !eo!leand jo"s !erformed in the same location%
• Customer structures grou! together !eo!le and jo"s that serve the same customers or clients% – Work process: 'rou! of tas#s related to one
another that collectively create something of
value to a customer%• $rocess structures grou! jo"s and activities
that are !art of the same !rocesses%
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Matri& structures
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Organisational #esign
• Organisational #esign is the !rocess ofcreating structures that "est serve acom!any0s mission and o"jectives%
The ultimate purpose oforganisational design is
to create an alignment
between supporting
structures and
situational challenges.
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'ureaucratic #esigns
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(#aptive #esigns
• (#aptive organisations:
– Minimum of "ureaucratic features) encouragewor#er em!owerment and teamwor#%
•
Organic #esigns – 4ecentralised( with fewer rules and
!rocedures( o!en divisions of la"our( wides!ans of control and more !ersonalcoordination%
• Learning organisation
– 5ontinuously changes and im!roves using thelessons of e2!erience%
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)irtual #esigns
• )irtual organisations – Shifting networ#s of strategic alliances lin#ed
"y technology( with very little !hysicalinfrastructure( that are engaged as needed%
– 6lectronic communications technologies formthe "asis of the virtual organisation%
– Mo"ility of wor# – /Hy"rid0 nature 7 can consist of a loose
framewor# "rought together for a given time!eriod to achieve a mutual o"jective%
– -ac# of "oundaries and inclusiveness%
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Contingencies in organisational#esign: *nvironment
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Contingencies in organisational#esign: !trategy
• !tability oriente# strategies1
– Assume little change is occurring in thee2ternal environment( so !lans8o!erations
can "e !rogrammed to "e im!lementedroutinely%
• %rowth oriente# strategies1
–
9rganisational design will need innovationand e2i"ility to res!ond to changinge2ternal environment%
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!i+e an# life cycle
• ,he organisational life cycle:
– $he evolution of an organisation over time%
• Stages1
1.Birth stage – founded "y an entre!reneur2.Youth stage – starts to grow ra!idly
3.Midlife stage – grown large with success
.Maturity stage – sta"ilises at a larger si:e
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Contingencies in organisational#esign: !i+e an# life cycle
• &n the organisational life cycle( an organisation!asses through di;erent stages from "irth tomaturity%
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Contingencies in organisational#esign: -uman resources
• $eople are also a contingency factor%
• A good design !rovides !eo!le with thesu!!orting structures they need in order to
achieve%• Modern management theory argues that there
should "e a good /*t0 "etween organisationalstructures and human resources%
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,eam structures
• Cross.functional teams "ring togethermem"ers from di;erent functionalde!artments%
•
$roject teams are convened for a !articulartas# or !roject and dis"anded once it iscom!leted%
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/etwor structures
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!ubsystem #esign an#integration
• !ubsystems
– Smaller com!onents of a larger system%
• Di0erentiation
– $he degree of di;erence that e2ists "etweenthe internal com!onents of an organisation%
• Sources of su"systems di;erentiation1
– ,lanning and action hori:ons vary%
– 9"jectives vary due to tas# variation% – &nter!ersonal orientation varies relations%
–
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!ubsystem #esign an#integration
• How to im!rove subsystem integration1
– =ules and !rocedures
– Hierarchical referral
– ,lanning – 4irect contact
– -iaison roles 7 assign formal coordinators
–
$as# forces 7 tem!orary teams – $eams 7 !ermanent teams with authority
– Matri2 organisations
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Organising tren#s
• $he upsi#e.#own pyrami# !uts customersat the to!( served "y wor#ers at the middle(whose managers su!!ort them at the "ottom%
• Chain of comman# – -in#s !ersons with successively higher
levels of authority% – 9rganisations are "eing /strea!lined0 7
atter more hori:ontal structures "eing
viewed as a com!etitive advantage%• -ess unity.of.comman#( in which each
!erson re!orts to only one su!ervisor%
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Organising tren#s
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Organising tren#s
• Delegation is the !rocess of distri"uting andentrusting wor# to other !ersons%
• 'round rules for e;ective delegation include1 –
5arefully choose the delegate% – 5learly de*ne the res!onsi"ility% – Agree on o"jectives and standards% – Agree on a !erformance timeta"le% –
'ive authority and show trust% – ,rovide !erformance su!!ort and feed"ac#% – Hel! when things go wrong%
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Organising tren#s
• Centralisation
– $he concentration of authority for mostdecisions at the to! level of an organisation%
•
Decentralisation – $he dis!ersion of authority to ma#e decisions
throughout all levels of the organisation%
• Where em!owerment and related forces are
contri"uting to more decentralisation( advancesin &$ allow centralised control to "e retained%
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Chapter 9 – Organising
!ummary1
• What is organising as a management function?
• What are the major ty!es of organisation structures?
•
What are the essentials of organisational design?• How do contingency factors inuence design?
• What are the new develo!ments in organisationstructures and o!erating systems?
• What are the major issues in su"systems design?
• What organising trends are changing the wor#!lace?
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