3d pyramid stacked shapes chart 4 pieces powerpoint ppt slides.
Unit 01: Introduction to Managementstudent.bms.lk/CBM/Slides/36/Slides/IM/3.pdf · 2020. 1. 6. ·...
Transcript of Unit 01: Introduction to Managementstudent.bms.lk/CBM/Slides/36/Slides/IM/3.pdf · 2020. 1. 6. ·...
Unit 01: Introduction to Management
Foundations of Organisational Design
Organising
• Organizing is the deployment of organizational resources to achieve strategic goals.
• Organizing is deciding how best to group organizational activities and resources so that
the organization will achieve its goals.
Purpose of organising
1. Divides work to be done into specific jobs and departments
2. Assigns tasks and responsibilities associated with individual jobs
3. Establishes relationships among individuals, groups and departments
4. Establishes formal lines of authority
5. Allocates and deploys organisational resources
Organisational Structure
• Organisational structure is the formal arrangement of jobs within an organisation.
The set of formal tasks assigned to individuals and departments
Formal reporting relationships, including lines of authority, decision responsibility, number of levels and span of control
The design of systems to ensure effective coordination of employees across departments
Organisational Chart
• The organization chart shows departments and job titles , with lines linking senior
executives to the departments of people for whose work they are responsible.
• This shows who people report to, and clarifies four features of the formal structure:
• Tasks – the major activities of the organization
• Subdivisions – how they are divided
• Levels – the position of each post within the hierarchy
• Lines of authority – these link the boxes to show who people report to
Organisational Design
• Creating or changing an organisation’s structure or a process which involves making
decisions about the following factors:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
Organisational Design
• Work Specialisation
• Dividing work activities into separate job tasks: division of labour
• People become more expert in one task than they could be in several and are more likely to come
up with improved ideas or methods.
• Departmentalisation
• Process of grouping jobs together to ensure coordination of tasks in known as departmentalization.
• Departmentalization identifies
• what job tasks will be done by whom?
• Common work activities
Common form of departmentalization:
Functional departmentalization
Geographical departmentalization
Product departmentalization
Process departmentalization
Customer departmentalization
Organisational Design
• Chain of Command
• The lines of authority show the links between people – who they report to and who reports to them.
• In particular chain of command shows who they can ask to do work, who they can ask for help and
who will be expecting results from them.
• Span of Control
• The span of control is the number of subordinates reporting directly to the person above them in the
hierarchy.
• Span of control could be NARROW or WIDE
Organisational Design
• Centralisation vs. decentralisation
• Centralization is when a relatively large number of decisions are taken by management at the top of
the organization.
• Decentralization is when a relatively large number of decisions are taken lower down the
organization in the operating units.
• Formalisation
• Formalization refers to how standardized an organization’s jobs are and the extent to which
employee behavior is guided by rules and procedures
• These include rules, procedures, instruction manuals, job descriptions (things which people must do)
Models of Organisational Structure
Introduction
• Each organisation will have a unique structure to themselves to
optimise on their business operations.
• Unity of command will determine the differences in these
organisational structures.Classifications
Hierarchical Structures
Functional Structure
Geographical Structure
Customer Structure
Product Structure
Non-Hierarchical Structures
Matrix Structure
01. Functional Structure
• Functional structure groups the people, facilities and other resources representing
common functions into a single department
President
Finance Manufacturing MarketingHuman
ResourcePurchasing
02. Product Based Structure
• Departments are grouped together based on similar organisational outputs.
• This type of structure is suitable for companies that operate within several different
product areas where each requires some degree of specialisation in its management.
President
Division 1 : Electronics
ManufacturingResearch &
DevelopmentMarketing
Division 2: Consumer Products
ManufacturingResearch &
DevelopmentMarketing
03. Geographical Structure
• This structure is appropriate when an organisation needs primarily to provide a local
coverage of all of its functions to a specific region of the country or the world.
Chief Executive Officer
Wester U.S. Division
Eastern U.S. Division
Latin American Division
Asian Division
Tall vs. Flat Organisations
• Large, complex organizations often require a
taller hierarchy. In its simplest form, a tall
structure results in one long chain of
command.
• As an organization grows, the number of
management levels increases and the
structure grows taller.
• In a tall structure, managers form many
ranks and each has a small area of control.
• Flat structures have fewer management
levels
• Each manager will be held responsible for
the controlling of a broad area or group.
• These structures encourage autonomy, self
direction, and employee creativity to solve
problems
Thank You!