Organisations are very interesting

• An organisation is a group of people intentionally organized to accomplish an overall, common goal or set of goals.

Coffee shops to small businesses.July 2008, there were 1.93 million small businesses in Australia, representing 96% of all businesses.

Technology

Internal/ExternalEnvironment Strategy

People

Structure

Elements of an Organisation

People

How people work together is the essence of the organisation.

– Culture • explicit

– deliberate– careful cultivation of image and mode of operation

• implicit– operating unrecognised– behind the scenes

– Roles of management– Management styles– Employee responsibilities

Corporate culture

• Is a term used to describe the shared values and beliefs of the people in an organisation.

• Staff uniforms are an example of culture• Staff training days• Use of internet • Policies on bullying in the workplace• Policies on advancement

The organisational “iceburg”

Mission, visionGoals and objectives

Business plan Formal organisation specific tasksspan of control operating

policiesLines of communication

controls channels of authority

Relationships between needs of individualsManagers and workers group feelings friendships and networks

Individual hopes and informal organisation AspirationPerceptions of trust interpersonal relationshipsHonesty and ethics

influential employees power plays and politics and managers

Management RolesHenri Fayol outlined FOUR main

functions of management.1 Planning setting objectives and how to achieve them

2 Organising arranging resources of the business to achieve its goals

3 Leading influencing people to work towards achieving set objectives

4 Controlling evaluating and modifying tasks to ensure set objectives are being

achieved

Leadership styles

There is no questioning this function, just how managers operate is interesting.Leadership styles range on a continuum

Management style

AutocraticDemocratic /participative

Laissez- faire

Structure

• an organisation’s structure refers to the way divisions, departments, functions, and people link together and interact.

• Reveals– vertical operational responsibilities– horizontal linkages

• may be represented by an organisation chart– Visual representation of the formal structure

• complexity of an organisation's structure is often proportional to its size and its geographic dispersal.

Vertical specialisation

Top Management

Middle management

Lower or frontline management

Long term or strategic planning

Operational and supervision of lower management

Daily management and rosters

Vertical Specialisation

• chain of command from top to front line management– Chain of command is a system that determines

responsibility, supervision and accountability of members of the organisation.

• delegation of responsibilities and duties to others within the same line of authority

• management hierarchy – provides increasing authority at higher levels – Senior managers have greater

• Accountability• Responsibility and• Power compared to those at lower levels

• organisation requires coordinated effort of all levels of management to achieve goals

Top/Senior/

ExecutiveManagement Team

Top/Senior/

ExecutiveManagement Team

Middle Management Team

Middle Management Team

Frontline/Supervisory Management TeamFrontline/Supervisory Management Team

More

Less

Accountability

Responsibility

Authority

Board of Directors

Chief Executive Officer (CEO

Managing Director

Department Head

Divisional Head

Plant Manager

Store Manager

Team Manager

Supervisor

Team Leader

Frontline Manager

Horizontal Specialisation

• Division of tasks required to be performed into separate departments.

Functional Model Divisional Model Matrix Model

Functional Model

• Division occurs based on organisational functions eg HR, Finance, Marketing

GeneralManager

FinanceManager

MarketingManager

FinanceManager

OperationsManager

Func

tions

Divisional Model

• Model organised based on division by:– Product– Service– Geography General

Manager

ProduceManager

MeatManager

DeliManager

GroceryManager

Div

isio

ns

Matrix Model• Combines function and division• Permits specialisation by project while each person

remains part of a department based on function

Production Manager

General Manager

Dinnerware

Jewellery

Marketing Manager

Strategy

• Organisations require strategies to formulate appropriate decisions

– Decision making & problem solving– SWOT analysis

Decision Making: making choices among possible courses of action

Problem Solving: consists of making a series of decision to resolve an issue.

1. Define the Objective

2. Outline the Facts

3.Decide on the Causes

4. Develop Several Solutions

5. Implement Preferred Solution

6. Evaluate Effectiveness of Solution

6 Step Approach to DECISION MAKING & PROBLEM SOLVINGIf

solu

tion

unsu

cces

sful

rest

art

proc

ess

OverlyFatChildrenSeeIce creamEverywhere

Decision-making conditions

Certainty• Outcome of

alternative known in advance

• Rarely the case

Minimal Risk High Risk

Risky• Outcome of

alternatives not completely known

• Probabilities exist• Statistical models can

be used• Common condition

Uncertainty• Difficult condition• Probabilities do not

exist• Condition exists

more at top management level

• Decisions of a long term nature affected by externalities

3 conditions under which decisions can occur:

• Minor problems – management not needed

• Many matters may already be covered by established policy – decisions already in place

• Avoid crisis conditions and therefore rush decisions

• Provide leadership – avoid situation of indecision

• Errors can be made – decisions should not be considered permanent.

SWOT

• Strategic planning strategy

• Strengths• Weaknesses

• Opportunities• Threats

Internal – People, organisation, systems, communications, products, production, finance, credentials, knowledge

External – market, technology, finance, economic climate, society, legislation, ecology

Environment – Internal / External

• Major impact on how organisations operate• Organisations lack of response to environmental challenges

can be a determinant to success - flexibility

Technology

To remain competitive organisations must:• Make creative use of modern technology• Technology, generally, aims to:

– Improve efficiencies– Increase productivity

• Inevitable that workplaces will continue to change as a result of our reliance on technology