Tall & Flat Structures [a Comparsion]
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Transcript of Tall & Flat Structures [a Comparsion]
ORGANISING
TALL & FLAT STRUCTURES[A COMPARSION]
TALL STRUCTURE Close control Better coordination in case
of interlocking network Fewer mistakes due to close
supervision Good for staff desiring
detailed guidance
FLAT STRUCTURE Loose control Difficulty in coordination
More mistakes due to loose supervision
Good for staff requiring greater independence challenge and responsibility
CONCEPT OF ORGANISATION
STRUCTURE PROCESS
ORGANISATION
ORG. AS A STRUCTURE
Acc. To Mc Farland –
“An identifiable group of people contributing their efforts towards the attainment of goals.”
ORG. AS A PROCESS
Acc. To Haimann-
“Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them. In performing the organizing function, the manager defines, departmentalizes and assigns activities so that they can be most effectively executed.”
NATURE OF ORGANISATION
Common purpose. Division of labor. Authority structure. People. Communication. Co-ordination. Environment. Rules & regulation.
PRINCIPLES OF ORG..
Unity of Objective. Specialization / Division of Work. Span of Control. Scalar Principle. Functional Definition. Exception Principle. Unity of Command.
PRINCIPLES
Balance. Efficiency. Flexibility. Continuity. Facilitation of Leadership. Parity of Authority & Responsibility. Co-ordination.
FORMAL ORG.
It refers to the organization structure deliberately created by management for achieving the objectives of the enterprise. It is a pattern of activities, processes, human relationships, & roles planned & structured in order to accomplish organizational goals.
FEATURES OF FORMAL ORG.
POINT Origin Nature Size Continuity Focus Structure
FORMAL ORG. Created deliberately Planned & official Large Stable Built around jobs Definite structure-
mechanical & rational
FEATURES OF FORMAL ORG.
Goals
Influence processes Control process
Communication
Authority
charting
Profits & service to society
Legitimate authority Rigid rules and regulations
Official & well defined paths. One way & slow flow of information
Positional flows, top down Shown on organizational
chart
INFORMAL ORGANIZATION
It refers to the pattern of activities, interactions and human relationships which emerge spontaneously due to social & psychological forces operating at the work place. It arises naturally on the basis of friendship or some common interest which may or may not be related with work.
FEATURES OF INFORMAL ORG.
POINT Origin Nature Size Continuity Focus
Structure
INFORMAL ORG. Arise spontaneously Unplanned & unofficial Small Instable & dynamic Built around people &
their roles Structure less,
impersonal & emotional
FEATURES OF INFORMAL ORG.
Goals Influence processes Control process Communication
Authority charting
Satisfaction of members. Power. Group norms & values. Unspecified channels. Two
way & fast flow of information, grapevine.
Personal flows, bottom up. Not shown on organizational
chart.
COMPARISON
Distorted & delayed communication
Costly in terms of administrative overheads
Slows decision making Grater admm distance
b/w top level & workers
Speedy & improved communication
Reduced overhead costs & less supervisors
Faster decision making Lesser administrative
distance
COMPARISON
Little opportunity for dev of subordinates
Less pressure on managers
Easy application as less competent subordinates can be employed.
Forces managers to delegate leading to the dev of subordinates
Pressures on managers & heavy penalty for failure
Difficulty in application due to non-availability of competent & willing subordinates.
DELEGATION - MEANING
Delegation means assigning work to others & giving them authority to do it. It involves granting the right to decision making in certain defined areas & charging the subordinates with responsibility for carrying out the assigned tasks.
CHARACTERISTICS
It take place when a superior grants some discretion to subordinate.
A manager can’t delegate the entire authority to his subordinates.
Generally authority regarding routine decisions & for execution of policies is delegated to subordinates.
It doesn’t imply reduction in the authority of manager. It may be specific/general, written/implied,
formal/informal.
PROCESS OF DELEGATION
Determination of results expected
Assignment of duties
Granting of authority
Creating accountability for performance
PRINCIPLES OF DELEGATION
Functional definition. Delegation by results expected. Parity of authority & responsibility. Absoluteness of responsibility. Unity of command. Well-defined limits of authority. Authority level principles.
CENTRALIZATION & DECENTRALIZATION
Centralization & decentralization are opposite terms.
They refer to the location of decision-making authority in an org.
Centralization implies the concentration of authority at the top level of the org.
While Decentralization means dispersal of authority throughout the org.
CENTRALIZATION & DECENTRALIZATION
Centralization & decentralization are opposite terms.
They refer to the location of decision-making authority in an org.
Centralization implies the concentration of authority at the top level of the org.
While Decentralization means dispersal of authority throughout the org.
Centralization & Decentralization
Acc. To Allen, “Centralization is a systematic & consistent reservation of authority at central points within an org. Decentralization applies to the systematic delegation of authority in an org. wide context.”
ADVANTAGES OF DECENTRALIZATION
Relief to top executives. Motivation of subordinates. Quick decisions. Growth & diversification Executive development. Effective communication. Efficient supervision & control.
DISADVANTAGES
Expensive. Difficulty in co-ordination. Lack of uniformity. Narrow product lines. External constraints.
FACTORS DETERMINING DECENTRALIZATION
Size & complexity of the org.Dispersal of operations.Degree of diversification.History of the enterprise.Outlook of top management.
FACTORS
Availability of competent personnel.Nature of functions.Communication system.Planning & control procedures.Complexities of the situation.
FACTORS DETERMINING CENTRALIZATION
To facilitate personal leadership.To provide integration.To achieve uniformity of action.To handle emergencies. to improve efficiency.
ADVANTAGES
Effective utilization of talents of the top leader. All parts move together. A unifying force that
integrates all operations. A strong co-ordination top management team is
developed. Uniformity of policy and plans. Best arrangement to tackle emergencies. Duplication of functions & facilities is minimized.
DISADVANTAGES
Delays in decision-making & communication. Centralized power & authority may be
abused. Inhibit development of lower level people. Low motivation & moral of lower level people. Fortunes of the enterprise depend on the
health & vitality of top executives.
STAFFING
Staffing is that part of the process of management which is concerned with obtaining, utilizing, & maintaining a satisfactory & satisfied work force.
Its purpose is to establish & maintain sound personnel relation at all levels in the org so as to make effective use of personnel to attain the objectives of the org & to provide personal & social satisfaction which personnel want.
Definition
Acc. To Koontz & O’Donnell, “The managerial function of staffing involves manning the organizational structure through proper & effective selection, appraisal & development of personnel to fill the roles designed into the structure.”
FEATURES
It is a universal function. Every manager is continuously engaged in
performing the staffing function. It is a dynamic function. It cannot be entrusted fully to personnel dept
or any other service dept. It is a difficult function with extraordinary
problems of social, philosophical & psychological nature.
ELEMENTS OF STAFFING [FUNCTIONS OF PERSONNEL MANAGEMENT]
ProcurementDevelopmentCompensationIntegrationMaintenance
NEED FOR STAFFING
Increasing size of organizations. Advancement of technology. Long-range needs for manpower. High wage bill. Trade unionism. Human relations movement.