Upload
cornelius-osborne
View
216
Download
2
Tags:
Embed Size (px)
Citation preview
OrganizationFormal intentional structure of roles
Specific person is assigned for specific job
Necessary authority is given
Organizing may be defined as the
structure and process by which a co-operative group of human beings allocates
their tasks among members, identifies
relationships and integrates its activities toward common objectives.
Organization Process
SupportingObjectives,
Policies & Plans
Enterprise Objective
Identification & Classification
of Tasks
Grouping activities in light of
Resources & Situation
Delegation Of
Authority
Vertical & Horizontal Coordination of
Authority
Departmentation:
Departmentalization is
the process of grouping
Jobs according some
logical Arrangement.
Grouping Activities By:• Function• Product• Geography• Customer
Departmentation By Function:
Managing Director
Purchase Department
Personal Department
Market Department
Production Department
5
1. Functional departmentalization: Functional departmentalization groups jobs together those jobs involving the same or similar activities.
Merits: Each department can be staffed by experts Coordination is easier Supervision is facilitated
Departmentation By Product:
Managing Director
General ManagerTelevision
General ManagerCell Phone
General ManagerWashing machine
Color T.VBlack/WhiteT.V
Plazma T.V
7
2. Product departmentalization: Product departmentalization involves grouping and arranging activities around products or product groups.
Merits: All activities around a product or product groups is
integrated or coordinatedEffectiveness of decision is enhancedThe performance of individual product can be
assessed more easily
Departmentation By Territory:
Chief Executive officer
Vice PresidentCanadianOperation
Vice PresidentEuropean Operation
Vice PresidentWesternOperation
Vice PresidentEastern U.SOperation
9
3. Location departmentalization:
Location departmentalization grouping jobs on the basis of defined geographic sites or areas. Transportation companies, police departments use location departmentalization.
Merits:It enables organization to respond easily to unique
customers and environmental characteristics
Departmentation By Customer:
Managing Director
CommunityBanking
Corporate Banking
Agricultural Banking
Real Estate AndMortgage Banking
11
4.Customer departmentalization: Organization structures its activities to respond to and interact with specific customers or customers. The lending activities in most banks are tailored to meet the needs of different customers.
Business loansConsumer loanAuto loanShopping loanMortgage loanMarriage loan
Merits:
1. Specialized customers deal with unique customer or customer groups
12
Distributing authority: Delegation: Delegation is a process by which authority is
distributed among employees. It is the process by which managers assign a portion of their total workload to others.
Delegation process:
Step-01:The manager assign the responsibilities or gives the subordinates a job to do.
Step-02:The subordinates is given authority to do that job
Step-03: The manager establishes subordinates’ accountability
13
Reasons for delegation:
• It enables the managers to get more work done• Subordinates may help the managers to reduce their
burden by doing a portion of their tasks• Sometimes subordinates have more expertise in
addressing a particular problem than the manager does• Subordinates learn about the overall operations by
participating in decision making process
14
Problems in delegation:
Managers may be reluctant to delegate Managers are so disorganized that they are unable to
plan work in advance and can not delegate appropriately
Managers may worry that subordinates will do too well and pose a threat to their own advancement
Managers may not trust the employees Subordinate are reluctant to accept delegation They may be afraid that failure will result in a warning Subordinates may perceive that there are no rewards
for accepting additional responsibilities They may prefer to avoid risks.
15
• Centralization: Centralization is the process of systematically retaining authority and power in the hands of higher level management. McDonald, Wal-Mart follows centralization.
• Decentralization: Decentralization is the process of systematically delegating (distributing) power and authority throughout the organization to middle and lower –level managers. General Electrics, Sears follows decentralization.
16
Factors determining Centralization & Decentralization
1. External environment
2. Nature of decision
3. Ability of lower-level managers.
Division of Labor
The degree which tasksIn the organization are subdivided into separate job
• Division of labor:• Makes efficient use of
employee skills• Increases employee
skills through repetition• Less between-job
downtime increases productivity
• Specialized training is more efficient
• Allows use of specialized equipment
• Division of labor:• Makes efficient use of
employee skills• Increases employee
skills through repetition• Less between-job
downtime increases productivity
• Specialized training is more efficient
• Allows use of specialized equipment
Unity of Command:A subordinate should have only superior to he or she is directly responsible.
Line and Staff Authority:Line Authority: A line organization is one in which there is a direct flow of authority from the top of the organization to the bottom.
Staff Authority: Staff authority is the authority given to individuals who support, assist and advice others who haveline authority.
• Line manager responsibilities: Placing the right person on the
right job Training employees Improving job performance of
each job Orienting new employees in
the organization.
• What do you mean by Span of Management?
Span of management refers to the number of people a manager can effectively and efficiently supervise. There is no definite number that a manager can effectively and efficiently supervises.
21
Factors influencing appropriate span:
Researchers identified that a set of factors that will influence the span for a particular circumstances. These factors are:
Wide span is effective, if –
the managers and subordinates are competentAll subordinates are in one locationthere is a fairly comprehensive set of standard
proceduresmost jobs are similarnew problems are rareemployees prefer to be self-directed
22
• Narrow span is effective in the following situations-
– Subordinates are widely scattered– Job situations require a great deal of
interactions– Only a few SOPs exist– Tasks are different– Problems are new and occur frequently
23
Tall vs. Flat structure
1. A flat structure will lead to higher levels of employee morale and productivity
2. Tall structure is more expensive because the large number of people involve
3. Tall structure fosters communication problems because there are large number of people through whom information pass.
• Organization with narrow Spans
• Advantages: Close supervision Close control• Fast communication between
immediate subordinates and superior
• Disadvantages: Superiors tend to get too
involved in subordinates work. Dangers of layering High costs due to many level Excessive distance between
lowest level and top level
• Organization with Wide Spans Advantages: Superiors are forced to
delegate Clear policies must be made Subordinate must be carefully
selected