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8/8/2019 orgnisational structural
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Good Morning to allGood Morning to allGood Morning to allGood Morning to allPresentation Topic is ´Organisational StructuralPresentation Topic is ´Organisational Structural
Implementationµ byImplementationµ by
Anoop SharmaAnoop SharmaRoll no. MBA0710Roll no. MBA0710
MBAMBA--33rdrd SemesterSemester
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Organisational Systems
The Organisational Structure provides the mechanism
for the distribution of authority & responsibility within
the Organisation .It is also related with subdividing the
total authority & responsibility among different
organisational units & positions .
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There are six organisationalsystems which are as below:-
1. Information System.
2. Control System.
3. Appraisal System.
4. Motivation System.
5. Development System &
6. Planning System.
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1. Information System. A structure subdivides the total responsibility while the
information system serves to coordinate the dividedresponsibility. If a strategy is to be effectively implemented,Organisational arrangements that provide the information tomanagers to perform their task & relate their work to othersare necessary. The information system, therefore, serves twoimportant purposes: it enables the managers to know what theyneed to grasp in order to perform their tasks & also tocoordinate their activities with others.
A broader term ´management information systemµ (MIS) isused to denote the organisational arrangements designed to aidmanagers in performing their activities.
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2. Control System. Control has traditionally been considered as a
major management function. While controlling,the manager essentially deals with ´the
measurement & correction of the performance ofactivities of subordinates in order to make surethat enterprise objective & plan devised to attainthem are being accomplishedµ. In other words,
control ensures that the implementation ofstrategy takes place according to predeterminedplans.
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The control cycle. 1. Establish
standards.
2. Measureperformance.
3. Evaluateperformance againststandards.
4. Determinecorrectiveperformance.
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3. Appraisal system.
The achievement of organisational objectives has to bemonitored if the implementation of strategy is to takeplace. The appraisal system performs this critical role ofevaluating managerial performance in the light of
organisational objectives. Managerial appraisal is animportant element in the total control system. The use of the results of appraisal have to be guided by
the true function of measurement which is ´to increasethe perceptions of the problems limiting achievementµ.Only a system of appraisal that provides the strategists
with an understanding of the problems before themanagers who are responsible for implementation, is aneffective system. In this context management byobjectives (MBO) provides participatory method ofperformance & objective setting, where managers can beinvolved in appraisal so that they themselves & theirsuperiors know what has prevented them from achievingthe desired objectives.
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4. Motivation System. The motivation system plays a positive role in
inducing strategically desired behaviour so thatmanagers are encouraged to work towards theachievement of organisational objectives. But, as yet, there is no complete understanding of howmotivation works. However, it is known thatincentives play an important role in motivation.Incentives are the means by which individuals canbe encouraged to perform better. Generally, the
incentives are divided into two groups : themonetary & the non monetary incentives.Monetary incentives are provided in the form ofmoney. Salary, bonus, profit sharing plan, & so on,are common monetary incentives. Non- monetaryincentives are in the form of rewards,
recognition, designation, perquisites, & so on.
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5. Development System. Management development is considered to
be a ´process of gradual, systematicimprovement in the knowledge, skills,
attitudes, & performance of thoseindividuals in an organisation who carrymanagement responsibilitiesµ. The strategicaim of a development system is to see thatthe new experience is provided in the light
of strategic tasks required for theimplementation of strategy. Thedevelopment system has to be activated insuch a manner that it prepares themanagers to perform a vital function in
strategy implementation.
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6. Planning System. In an organisation, the function of formulation of strategy is a
staff function while the implementation of strategy is a linefunction. Both these views prevails & affects organisationalpolicies related to the role of the planning system.
Strategists are concerned with the mechanism of the planningsystem & the way it should be changed to suit therequirements of a new or modified strategy. It would benatural to expect that the planning system would work betterin a centralised manner in entrepreneurial & functionalstructured organisations. In divisional organisation, theplanning system could be a decentralised one with the activeinvolvement of SBU-level managers in the formulation as wellas implementation of strategy. Thus, it is important to adaptthe planning system to the requirements of the strategy thatis to be implemented.
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Conclusion. In this way, we can say that, Organisational
system like information, control, appraisal,motivation, development, & planning form the core
of any structure. Each of these systems plays asignificant role in strategy implementation. Theredesign has to come from a consideration of therequirement of the strategy being implemented.
In implementation, these systems have to bechanged to suit the requirements of a new ormodified strategy.
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THANKS TOALL