Upload
rushabh-vora
View
254
Download
0
Embed Size (px)
Citation preview
7/31/2019 Principles Of Management Chapter 6 GTU MBA
1/23
The Nature of Organizing,
Entrepreneuring,and Reengineering
7/31/2019 Principles Of Management Chapter 6 GTU MBA
2/23
Organizational Roles
For an organizational roleto exist and be meaningful, it must
incorporate:
1. Verifiable objectives, which are a major part of planning.
2. A clear idea of the major duties or activities involved.3. An understood area of discretion or authority so that the person
filling the role knows what he or she can do to accomplish goals.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
3/23
Organizing involves:
1. The identification and classification of required activities.
2. The grouping of activities necessary to attain objectives.
3. The assignment of each grouping to a manager with the authority
(delegation) necessary to supervise it.4. The provision for coordination horizontally (on the same or a
similar organizational level) and vertically (for example, corporate
headquarters, division, and department) in the organization
structure.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
4/23
Definition of Organization
Organization implies a formalized intentional structure of roles or
positions.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
5/23
Formal and Informal Organization
7/31/2019 Principles Of Management Chapter 6 GTU MBA
6/23
Formal and Informal Organization
Formal organization pertains to the intentional structure of roles
in a formally-organized enterprise.
The informal organization is a network of interpersonal
relationships that arise when people associate with each other.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
7/23
Organization Chart
A graphical representation of an organization.
Conveys four kinds of information:
Includes different units of organization
Work performed by different personnel
Reporting relationships indicated by connecting lines
Number of hierarchy levels.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
8/23
What is a Department?
The department designates a distinct area, division, or branch of
an organization over which a manager has authority for the
performance of specified activities.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
9/23
Organization with Narrow Spans
7/31/2019 Principles Of Management Chapter 6 GTU MBA
10/23
Organization with Wide Spans
7/31/2019 Principles Of Management Chapter 6 GTU MBA
11/23
What is the Principle of the Span ofManagement?
The principle of the span of management states that there is a
limit to the number of subordinates a manager can effectively
supervise, but the exact number will depend on the impact of
underlying factors.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
12/23
What Determines an Effective Spanof management?
7/31/2019 Principles Of Management Chapter 6 GTU MBA
13/23
Types of Business Organization
Criterion or basis Types of business organizations
Size SME, Large organizations
Ownership Sole proprietorship, partnership, Pvt. Ltd., Public Ltd., Co-
operatives, Trusts & associations
Purpose For-profit, not for profit
Activity Manufacturing, trading & services
Origin Domestic & Multinational, transnational or global, joint ventures
and alliances
Sector Public sector & Private sector
Style of management Traditionally managed, managed as per the western models,
using adapted or hybrid management models.
Reach of markets Local, regional, national, international or multi-national, global
7/31/2019 Principles Of Management Chapter 6 GTU MBA
14/23
Types of Business Organization(contd.)
Criterion or basis Types of businessorganizations
Decision making Centralized, decentralized
Product offering Standard and coordinated product offering indifferent markets or uncoordinated product
offering in different markets adapted to the
local conditions & preferences
Sources of finance Ownership capital or debt-financed, domestic
funds or financed through FDI
Listing on the stock exchange Listed or unlisted
7/31/2019 Principles Of Management Chapter 6 GTU MBA
15/23
Difference between an Intrapreneurand an Entrepreneur
An intrapreneur is a person who focuses on innovation and
creativity and who transforms a dream or an idea into a profitable
venture by operating within the organizational environment.
The entrepreneur is a person who does similar things as theintrapreneur, but outside the organizational setting.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
16/23
Environment for Entrepreneurship
Steve Wozniak and Steve Jobs at Apple Computers
Entrepreneurship programs
7/31/2019 Principles Of Management Chapter 6 GTU MBA
17/23
Situations for Innovations
An unexpected event, failure, or success
An incongruity between what is assumed and what really is
A process or task that needs improvement
Changes in the market or industry structure
Changes in demographics
Changes in meaning or in the way things are perceived
Newly acquired knowledge
7/31/2019 Principles Of Management Chapter 6 GTU MBA
18/23
Definition of Reengineering
The fundamental rethinking and radical redesign of businessprocesses to achieve dramatic improvements in criticalcontemporary measures of performance, such as cost, quality,service, and speed.
The underlined words are considered key aspects ofreengineering by Hammer and Champy.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
19/23
Key Aspects of Reengineering
Fundamental rethinking of what the organization is doing andwhy.
Radical redesign of the business processes.
(Note: Downsizing or rightsizing is not the primary purpose ofreengineering, although in many cases it does result in a need forfewer people.)
Aim for dramatic results
Careful analysis of business processes
7/31/2019 Principles Of Management Chapter 6 GTU MBA
20/23
Management by Processes
7/31/2019 Principles Of Management Chapter 6 GTU MBA
21/23
The Steps in the Organizing Process:
1. Establishing enterprise objectives.
2. Formulating supporting objectives, policies, and plans.
3. Identifying, analyzing, and classifying the activities necessary toaccomplish these objectives.
4. Grouping these activities in light of the human and materialresources available and the best way, under the
circumstances, of using them.
5. Delegating to the head of each group the authority necessary toperform the activities.
6. Tying the groups together horizontally and vertically, throughauthority relationships and information flows.
7/31/2019 Principles Of Management Chapter 6 GTU MBA
22/23
The Organizing Process
7/31/2019 Principles Of Management Chapter 6 GTU MBA
23/23
Basic Questions for EffectiveOrganizing
It is useful to analyze the managerial function of organizing byraising and answering the following questions:
1. What determines the span of management and hence the levels oforganization?
2. What determines the basic framework of departmentation, and whatare the strengths and weaknesses of the basic forms?
3. What kinds of authority relationships exist in organizations?
4. How should authority be dispersed throughout the organization
structure, and what determines the extent of this dispersion?5. How should the manager make organization theory work in practice?