Professional Documents
Culture Documents
MANAGEMENT
CHAPTER 10
STUDENT DEVELOPMENT DIVISION MANAGEMENT STUDENT SOCIETY 2013 @MSSFEUI
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Organizing : arranging & structuring work to accomplish organizational goals; design an organizations structure Organizational Structure: the formal arrangement of jobs within an organization (shown visually in organizational chart) Organizational Design: a process that involves decisions about 6 key elements: work specialization departmentalization chain of command span of control centralization and decentralization formalization
Work Specialization -> dividing work activities into separate job tasks (division of labor); makes efficient use of the diversity skills, lead to great increase in productivity Human Diseconomies: boredom, fatigue, low productivity, poor quality, increased absenteeism
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After deciding what job tasks will be done by whom, we do departmentalization. Departmentalization: basis how jobs are grouped together Five common forms of departmentalization:
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COC: Line of authority extending from upper organizational levels to lower levels; who do I report to? Who do I go if I have a problem? Authority: refers to the rights inherent in a managerial position to tell people what to do & to expect to do it. COC & Line Authority -> entitles a manager to direct the work of an employee
Responsibility: obligation or expectation to perform any assigned duties Unity of command: a person should report to only one manager
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Span of control: the number of employees a manager can efficiently & effectively manage; It determines the number of levels & managers in an organization. The wider the span, the more efficient. Centralization: the degree to which decisions making takes places at upper levels of the organization. Decentralization: the degree to which lower level employees provide input or make decisions. Employee empowerment: gives employees more authority to make decisions. Formalization: how standardized an organizations jobs are and the extent to which employee behavior is guided by rules & procedures.
Mechanistic & Organic Structures Mechanistic Organization: natural result of combining the six elements of structures. Organizational design thats rigid & tightly controlled. Organic Organization: organizational designs thats highly adaptive & flexible. Allow standardized jobs & regulations to change rapidly as required.
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Contingency factors affecting structural choice: 1. Strategy & Structure -> certain structural designs work best with different organizational strategies. 2. Size & Structure -> large organization tend to have more specialization, departmentalization, centralization than small organization. 3. Technology & Structure -> routine technology use mechanistic organization & Nonroutine technology use organic organization Unit production: the production of items in units of small batches Mass production: large batch manufacturing Process production: included continuous process production 4. Environmental uncertainty & structure -> simple environment with little uncertainty, complex environment with a lot of uncertainty Traditional Organizational Design Simple structure -> organizational design with low departmentalization, wide spans of control, centralized authority & little formalization. (+) Fast, flexible, inexpensive to maintain (-) Reliance one person is risky Functional structure -> organization design that groups similar or related occupational specialties together (+) cost saving from specialization (-) can cause managers to lose sight of whats best for the overall organization Divisional structure -> organization structure made up of separate, semiautonomous units or division (+) focuses on results (-) increases costs & reduces efficiency
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"It is hard to fail, but it is worse never have tried to succeed." - Theodore Roosevelt
Improvement Is A Proof!