Professional Documents
Culture Documents
ORGANIZING
Introduction
Organization: A social unit of
people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.
All organizations have a management structure that determine relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks
Types of Organization
Formal Organization
Well defined rules and regulation Determined objectives and policies Status symbol Messages are communicated through scalar chain Strict observance of the principle of co-ordination
Informal Organization
evolving constantly, dynamic and responsive excellent at motivation requires insider knowledge to be seen cohered by trust and reciprocity treats people as individuals
Virtual Organization
A flexible network of independent entities linked by information technology to share skills, knowledge and access to others' expertise in non-traditional ways
It has continuously changing partners, The arrangements are loose and goal oriented, Emphasizes the use of knowledge to create new products and
Organization Structure
1. Hierarchical Organization: very effective in a relatively stable environment Often characterized by a bureaucracy with a role culture
Organization Structure
Advantages of Hierarchical Organisations Disadvantages of Hierarchical Organisations The organisation can be bureaucratic and respond slowly to changing customer needs and the market within which the organisation operates.
Authority and responsibility are clearly defined Clearly defined promotion path.
There are specialists managers and the Communication across various sections can be hierarchical environment encourages the effective poor especially horizontal communication. use of specialist managers.
Departments can make decisions which benefit them rather than the business as a whole especially if there is Inter-departmental rivalry.
Organization Structure
2. Market Organization o Exists in more competitive environment o Focus of this type of organization lies primarily on results and productivity o Task culture dominates 3. Family Organization
o Idea that success is a consequence of individual development
Organization Structure
4. Adhocracy
o Temporary character of the organization is the central
tenet o Consequence of the central position of innovation and fast adaptation to new situations o Focuses more on a combination of a task and personal culture
Organization Structure
5. Matrix Structure
o Groups employees by both function and product o Uses teams of employees to accomplish work
Departmentalization
Based on Territory/Geography Emphasize on local markets and problems Based on Customer Encourages concentration on customer needs Based on Product Permits growth and diversity of product Places attention and effort on product line
AUTHORITY
Formal and legitimate right of a manager is to
desired outcomes
Authority is vested in organizational positions, not people Authority is accepted by subordinates Authority flows down the vertical hierarchy
Responsibility
The obligation to complete a task or perform a
mission
Once held, Responsibility cannot be transferred Others may be assigned tasks oriented to the obligation, but overall Responsibility remains with person assigning the tasks Responsibility exists individually and at all levels
of an organization
Accountability
Mechanism through which authority and
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LINE AUTHORITY
Relationship in which Superior exercises direct supervision over
its subordinates.
A superior line of authority over the subordinates. Contributes directly to the achievement of organizational
objectives.
responsibility for decision making and more effective will be the organizational communication. decisions without consulting anyone.
STAFF AUTHORITY
Advisory in nature. Functions to support, assist, advice, and generally
Line managers are authorized to direct Staff managers are authorized to assist the work of subordinates. and advise line managers in accomplishing their basic goals. Individuals in management positions have the formal power to direct and control immediate subordinates. Practical in Nature. Includes the right to advise, recommend, and counsel in the staff specialists' area of expertise. Advisory in Nature.
DECENTRALIZATION
The tendency to disperse decision making
push down the organization structure and which to hold near the top.
DELEGATION
The process involves:
Determining the results expected from a position. ii. Assigning tasks to position. iii. Delegation of authority for accomplishing these task. iv. Holding person in that position responsible for accomplishment of tasks v. Failure as unable to apply them.
i.