Professional Documents
Culture Documents
Organizing
&
Organizational Structures
Organizing
Louis A.Allen
Process of identification and grouping of the work to be performed,defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives
Nature of Organizing
Division of Labour
Common goals Authority Structure Environment Staff Composition
Significance of Organizing
Optimum Utilization of Manpower Facilitates growth,expansion and
diversification Effective administration Better co-ordination Individual responsibility and ownership Stimulates creativity Better use of Technology
make decisions, give orders, and expect the orders to be carried out.
Line Authority Staff Authority
employee) with authority and responsibility must be able to justify results to a manager at a higher level in the organizational hierarchy.
Line Authority
entitles a manager to directly control the work of subordinates by hiring, discharging, evaluating, and rewarding them line managers hold positions that contribute directly to the strategic goals of the organization part of the chain of command
Staff Authority
the right to provide advice, recommend, and counsel line managers and others in the organization staff managers direct line managers
Relationship
Authority :: Responsibility
Organizational structure
Management Hierarchy,Departments and
interrelationship between them. Pictured in position relationships shown on organizational charts Revealed in distribution of authority and communication channels Varies from the Tall to Flat structures Can be Formal or Informal May be Centralized or Decentralized
Organization Chart
A graphic illustration of the organizations Structure . Management level, chain of command, division and type of work, and departmentalization
Pushes the decision-making process down in the organization placing it closer to the decision point.
Decentralization Tends To
Make greater use of human resources Reduce burdens of top managers Cause decisions to be made close to the
action
Permit rapid response to changes.
Departmentalization
The process through which an organizations related activities are grouped together into units and assigned to managers for effective functioning and administration
Functional Structures Divisional Structures
Departmentalization:Types
Functional Structures Grouping activities into independent units based on functions performed. e.g (Manufacturing, Research, Accounting, HR, Legal) Divisional Structures Product Grouping activities into independent units based on problems or issues relating to a product. e.g (Detergent, Toothpaste, Deodorant, Coffee, Aspirin)
Customer Grouping activities around common customer categories. e.g (Government, Military, Corporate, NonProfit Account)
Geography Grouping activities into independent units based on geography or territory. e.g (Eastern Region, Western Region, Southern Region)
Process
Grouping activities around a process; this
Disadvantages
Communication
Conflict
barriers
between departments
Coordination Diminished Employees
Examples:Functional
Advantages Coordination among different business functions Improved and speedier service Accountability for performance Development of general manager and executive skills
Disadvantages
Duplication
among
divisions
Examples:Divisional
Matrix Structure
Uses permanent cross functional teams to try to gain the advantages of both the functional and divisional approaches.
Disadvantages
scarce, expensive specialists Flexibility that allows new projects to start quickly Development of crossfunctional skills by employees Increased employee involvement in management decisions affecting project or product assignments
Team Structures
make extensive use of permanent and temporary
teams, often cross functional, to improve communication, cooperation, and problem solving
Network Structures
Network structures maintain a staff of core
fulltime employees and use contracted services and strategic alliances to accomplish many business needs
Virtual Structures
A temporary network of independent companies that use information technology to share skills, reduce costs, and provide access to one anothers markets
Its success depends on each of the individual firms responsibility and self-interest to accomplish the networks purpose
Staffing
Definitions
McFarland
Staffing is the function by which managers build an organization through recruitment,selection and development of individuals as capable employees
Of employees
Importance of Staffing
Obtaining competent manpower
Right jobs for right person Optimum utilization of resources
morale Growth and prosperity to the organization Building block to future expansion
Internal
people from which qualified candidates for job vacancies can be chosen Positive function Various sources
requisite qualifications and competencies to fill the job Right man for the right job Negative process
the aptitude, skills, knowledge, personal traits, and willingness to accept occupational conditions necessary to perform the job
overqualified applicants Increase the number of qualified applicants at a specified cost Evaluate the effectiveness of recruiting sources and evaluation techniques
accept or reject an offer? What are the most likely sources for qualified applicants?
Step 2
Recruitment: Locating Prospective Candidates Internal Sources External Sources
Employee Referral Programs External Sources Advertisements Private Employment Agencies Colleges and Universities Job Fairs Management Training Schemes Career/Job-related web sites
Step 2
Recruitment: Locating Prospective Candidates Internal Sources External Sources
Step 3
Selection: Evaluating & Hiring Screening Resumes and Applications Written test Physiological Test Personal Interview Assessment Centers Background Investigation Medical Test Selection Decision/Job Offer
Screening Resumes and Applications Written Test Physiological Test Personal Interview Assessment Centers Background Investigation/Reference Check Medical Test
Selection Decision
Job Offer