The Nature of Organisation Chapter 2, page 55. Structure of Part 1: The Nature of Organisations The...
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The Concept and Role of Organisations What is it? What does it serve? Why do organisations need it?
Transcript of The Nature of Organisation Chapter 2, page 55. Structure of Part 1: The Nature of Organisations The...
The Nature of Organisation
Chapter 2, page 55
Structure of Part 1:
The Nature of Organisations
The concept and role of organisations
Elements of an organisation
The Concept and Role of Organisations
What is it? What does it serve?
Why do organisations need it?
An Organisation is:Allows individuals to come together to achieve a
common goal
An organized group of people with a particular purpose, such as a business or government department
A group of people who come together to achieve something they have in common◦ Can be informal – parents meeting ◦ Can be formal – A school offering education to the community
Whether informal or formal – it has developed to provide its members with means to fulfil their goals
Elements of Organisation
Elements of an organisation
To function effectively and achieve goals – organisations require a combination of elements:
◦People who can work together◦A formal organisation structure◦Strategies to help guide decision making◦Environmental understanding◦Technological understanding and access
Elements of an organisation to remember – write in work books….
THE PEOPLE THE STRUCTURETHE STRATEGY ENVIRONMENTTECHNOLOGY
Activities page 56
Answer questions 1 -4 in your work booksOnce you have finished remain silent so I
know we can continue on
The People
Organisation = collection of people achieving similar goals and objectives
How people work together is the essence of the organisation◦Remember the concept of ‘corporate culture’
The structure
Every organisation needs a formal structure to coordinate work activities and to set out the roles and responsibilities of members of the organisation.
Formal structure usually represented as an organisational chart (visual representation of the formal structure that coordinates work activities and sets out roles and responsibilities)
Structure continued…
Structures can be developed over time based on ideas
Structures can be based on a particular model
Some structures are a mixture of different ideas and models
http://www.youtube.com/watch?v=0ghoia9_B0Y
The Structure…
Structure must be linked to organisations strategies
Without close fit between structure and strategies, inefficiencies occur
Structural design should be evaluated against the purposes it is intended to serve
◦Does the structure assist the organisation to achieve its particular objectives, would a different structure work better?
The Structure – Vertical Specialization
Hierarchy of formal authority and decision making power within the organisation
◦Chain of command from top management down to front line operations
◦With vertical specialization, the main difference between organisations is the extend to which decision making power is centralized at the top or decentralized throughout the organisation
The Structure – Horizontal Specialization
Divisions of people and resources within the organisation (departmentation)
Departments can be organized on the basis of:◦Function: Staff organized in to different departments based
on functions such as production, HR, finance, marketing, sales
◦Decision: Staff organized into divisions – product, service, customers
◦Matrix: Combination of function and divisions. It allows specialisation by product while each member of staff remains part of a department. Matrix is useful in very complex or fast moving businesses
In your work booksCopy down the vertical structure on page 58
Copy down the 3 types of horizontal structures on page 69-70
In pairs, complete a SWOT chart for the different types of organisation structures – you will need to read pages 58-60 provide a more in depth response◦ Strengths◦ Weaknesses◦ Opportunities◦ Threats
The Strategy
Managers daily tasks including making decisions
May be long term strategic decisions about business direction or may be day to day operational decisions
To make informed, reliable decisions – a variety of techniques may be used
◦Cannot simply make a decision based on how they feel – there must be a specific process followed and reasoning behind the choice
Decision making and Problem solving…
Decision making is central to management activities
Top management makes decisions about matters such as expansion of organisation, financial, what products will be marketed etc
Operational level management – decisions made regarding what and how to source raw materials to develop products
Front line management decisions – technical or practical natured decisions such as output levels or control of inputs
Decision making continued…
Decisions are made either to solve a problem or to take up a new opportunity
Decision making involves making choices
among possible courses of action whereas problem solving consist of making a series of decisions
Difference between decision making and problem solving..
Problem solving consists in looking at the potential causes of the problem.
Decision making consists in the method of approaching to resolve the problem
Decision Making and Problem Solving continued…
No decisions in business are based on accidents
Managers use a step by step approach for making decisions and solving problems
Step by Step approach
Step by step approach guarantees the best quality decision making
Page 64-65 – six step approach to decision making
6 step approach to decision making and problem solving
Define the objective
Outline the facts
Decide on the cause/s
Develop several solutions
Select the preferred alternative and implement it
Evaluate the effectiveness of the solution
Create ‘decision making model’ p. 64 in WORD on laptop. Email [email protected]
Guided Reading p. 64 – 65
Complete Activities 2-3 p. 67-69
Copy Q4 table as your example for the exam
Complete Q4 as this is a practice exam Q
Decision Making & Problem Solving Review
SWOT Analysis
When strategic planning – SWOT analysis is often used:
Strengths of the organisation (Internal)
Weaknesses of the organisation (Internal)
Opportunities available to the organisation (External)
Threats to the organisation (External)
◦Check list for the SWOT analysis on page 69 – copy this down as will assist in exam
SWOT analysis
Strengths and weaknesses are within the organisation
Opportunity and threats are outside the organisations
Strengths and Weaknesses
StrengthsStrengths may include the range of skills among staff, the range of work related training they have experienced and positive attitudes or cultures among staff
WeaknessesWeaknesses may include shortage of necessary skills, lack of specific training and less than positive attitudes within the organisation
Opportunities and Threats
Opportunities may include developing new markets in popular products
Threats may include declining markets or competitors whose products are more popular
Activities
Conduct an individual SWOT Analysis on the case p. 68 also practice exam Q
Question 2 page 70
Question 4 as a class
Environment
Internal/external environments have a major impact on the way organisation operate
How organisations responds to environment determines success
Technology
To remain competitive or to produce a service more efficiently and effectively, large organisations have to make creative use of modern technology available to them
The introduction to new technology aims to achieve greater productivity in the workplace
