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					       Organising

 Lesson 3 manual pp 27-44
Refers to chapter 4 in the text
        pp 132 - 182
             Lesson Objectives
• Having completed this lesson you will be able to;
   – Discuss the importance of organising
   – Identify how organisations structure themselves
   – Discuss the formal and informal structures of an
     organisation
   – Explain the differences between responsibility,
     authority and power
   – Discuss the ideas of centralisation and decentralisation
     and their application
   – Explain how change is brought about within an
     organisation
                 Organising
• Organising is the process of dividing and co-
  ordinating the tasks to be undertaken within an
  organisation between the various groups,
  individuals, and departments.
• Organisational structure is the framework that an
  organisation chooses for organising.
• Structural configuration refers to the size and
  shape of the structure and can be determined from
  its organisational chart.
• Structural operation concentrates on the process
  and operations of the organisational structure.
    Components of organisational structure
              (pages 27-31)
•    Structural            •   Structural operation
     configuration
1.   Division of labour    5. Formalisation
2.   Span of control       6. Decision making
3.   Hierarchical level    7. Authority, power,
4.   Departmentalisation      and responsibility
 Formal and Informal Organisation
• Formal
  – Deliberately planned and created
  – Concerned with activity co-ordination
  – Hierarchically structured, with stated objectives, task
    specification and defined relationships based on
    authority and responsibility
• Informal
  – Flexibility and a loose structure
  – Relationships that do not require definition
  – Spontaneous membership, with members having
    varying degrees of involvement
  Authority, Power, and Responsibility
• Authority
   – The right of a manager to issue instructions and to
     expect compliance
• Power
   – The ability of individuals or groups to influence the
     actions or beliefs of others
   – Positional power emanates from the position a person
     holds
   – Personal power stems from the individual
• Responsibility
   – The obligation that a manager has to his superiors to
     ensure that tasks under his control are performed
    Centralisation and Decentralisation

• Centralisation means withholding authority or
  refusing to delegate with the result that authority
  and decision making are centralised with a few
  key people or departments
• Decentralisation means that authority and
  responsibility is held as far down the
  organisational structure as possible. This gives the
  individual employee ownership of his task or
  function with a minimum of interference from the
  top.
             Advantages of each
• Centralisation                 • Decentralisation
   – Easier to implement a          – Decisions made closer
     common organisational            to the operational work
     policy                           level
   – Prevents sub-units             – Support services
     becoming too independent         provided as close as
   – Control and co-ordination        possible to activities
     easier
                                    – Greater opportunities
   – Improved use of resources        for management
   – Speed up decision making         training
                                    – Increases staff morale
     Principles of organisation
• The organisation has a purpose and this
  comes before any other consideration
• Jobs are organised to fulfil necessary
  functions and are not designed around the
  individual
• Proper monitoring and control systems need
  to be put in place
The Importance of Organisational
           Structure
• It ensures economic and efficient performance and
  resource allocation
• It monitors the effectiveness of organisational activities
• It provides accountability for both groups and individuals
• It ensures that activities and functional areas are co-
  ordinated
• It provides flexibility in order to cope with changes in
  demand and environment
• It provides satisfaction and belonging for members of the
  organisation
Designing the Organisational
         Structure
      People and social relationship needs



     •Clarification of objectives
     •Task and element functions
     •Work division
     •Centralisation and decentralisation
     •Principles of organisation
     •Span of control and scalar chain of command
     •Formal work relationships
     •Organisation of line, staff, and function
     •Project team and matrix structure


      Maintaining organisational effectiveness by
                 ensuring balance in
              the socio technical system
A Sample of a Functional Structure


                               CEO



   Finance & Admin.                           Logistics      HRM


 Tax            Controller
                               Distribution               Recruitment


 MIS         Corp. Planning
                              Transportation
            Product Structure
                     CEO
                  Corporation


                  Corporate
                  Managers


Washing Machine    Lighting     Television
   Division        Division      Division
       Geographic Structure
                   CEO
                Corporation


                 Corporate
                 Managers


Northern   Western       Southern   Eastern
 Region    Region         Region    Region
  New Organisational Structures
• The Network organisation
  – People and resources are allocated in a
    decentralised manner. Authority, responsibility
    and control are shared. The focus is on goal
    attainment.
• The Cluster organisation
  – Clusters are customer focused groups organised
    across disciplines responsible for their own
    goal attainment
                    Matrix Structure
                                                CEO

                                             Func.
                                            Managers


                                Sales           Design       Production

                Product
Team Managers




                 team A

                Product
                 team B
                                                   Product Team
                Product
                team C

                          = two boss employee
  Major factors associated with
  organisational development
                    Organisational
Organisational         Climate               Employee
  Structure                                 Commitment

                 Improved Organisational
                      Performance


Management           Organisational        Organisational
Development             Conflict              Change
            Factors forcing Change
   Globalisation                       Technological Developments



Knowledge explosion                              Changing Workforce
                              Change

 Rapid product obsolescence
                                         A move from labour
   Quality of working life               intensive industries
                  Change
• Planned change is aimed at
  – Modifying the behavioural patterns of members
  – Improving the ability of the organisation to
    cope with change
• Three stages in a planned change effort
  – Unfreezing
  – Movement
  – Refreezing
       Minimising the problems
        associated with change
• Create and environment of trust and shared commitment
• Full and genuine participation
• Importance of team management
• Carefully designed HRM action programmes
• Incentive payment schemes
• Ensure changes maintain balance in the socio technical
  system
• Pay careful attention to job design, work organisation and
  the development of cohesive groups
               Summary Points
• Having completed this lesson are you able to;
   – Discuss the importance of organising
   – Identify how organisations structure themselves
   – Discuss the formal and informal structures of an
     organisation
   – Explain the differences between responsibility,
     authority and power
   – Discuss the ideas of centralisation and decentralisation
     and their application
   – Explain how change is brought about within an
     organisation

				
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