Principles of Management-Chapter 10 & 11( Organizing)

7/29/2019 Principles of Management-Chapter 10 & 11( Organizing)

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Maria Iqbal Ahmed


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ORGANIZING


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Organizing

Fayols Guidelines

The Importance of Organizing

The Organizing Process

The Organizing Subsystem.


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Fayols Guidelines

Judiciously prepare and execute the operating plan.

Organize the human material facets so that they are consistent with objectives,

resources, and requirements of the concern.

Establish a single competent, energetic guiding authority.

Coordinate all activities and efforts.

Formulate clear, distant, and precise decisions.

Arrange for efficient selection so that each department is headed by a competent,energetic manager and all employees are placed where they can render the greatest

service.

Define duties.

Encourage initiative and responsibility.

Offer fair and suitable rewards for services rendered.

Make use of sanctions against faults and errors.

Maintain discipline.

Ensure that individual interests are consistent with the general interests of the

organization.

Recognize the unity of command.

Promote both human and material coordination.

Institute and effect controls

Avoid regulations, red tape, and paperwork.


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The Importance of

Organizing

The primary mechanism managers use toactivate plans.

It is all about creating and maintainingrelationships between all organizationalresources. Such as, which resources are tobe used for specified activities and when,

where and how they are used. Helps minimizing costly weaknesses:

duplication of effort and idle resources.


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What does the department

do???

Reorganizationplans that make the

managementsystem moreeffective and

efficient.

Plans to improvemanagerial skills to

fit currentmanagement

system needs.

An advantageousorganizational

climate within themanagement

system.


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The Organizing Process

Step 1:Reflect onplans andobjectives.

Step 2:Establish

major tasks.

Step 3: Dividemajor tasks

intosubtasks.

Step 4:Allocate

resourcesand

directives forsubtasks.

Step 5:Evaluateresults oforganizingstrategy.


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The Organizing Subsystem

InputA portion of the

organizations: People

Money

Raw Materials

Machines

Process

(Organizing Process)

1. Reflecting on Plans andObjectives

2. Establishing Major Tasks

3. Dividing Major Tasks intoSubtasks

4. Allocating Resources andDirectives for Subtasks

5. Evaluating Results ofOrganizing Strategy

Output

Organization


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Classical Organizing Theory

Structure

Division of Labor

Span of Management

Scalar Relationship


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Structure

Structure: this refers to the designated relationshipsamong resources of the management system.

Purpose is to facilitate the use of each resource,individually, collectively, as the management system

attempts to attain its objectives.

Organization Chart: the chart is usually constructedin a pyramid form, with individuals toward the top ofthe pyramid having more authority and responsibility

than those towards the bottom.


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1. Authority and Responsibility

2. Formal and Informal Structures:A formal structure is defined as therelationships among organizational resources as outlined bymanagement. Informal Structures are defined as the patterns ofrelationships that develop because of the informal activities oforganization members.

3. Departmentalization and Formal Structure: A department is a uniquegroup of resources established by management to perform someorganizational task. The process of setting up such departments isknown as departmentalization. They are based on:

Work Functions being performed

The product being assembled The territory being covered

The customer being targeted

The process designed for manufacturing the product


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4. Functional Departmentalization: The most widely used basis forestablishing departments within the formal structure is the type of workfunctions( activities) being performed within the management system.

5. Product Departmentalization: These structures are based primarily onproduct departmentalizes resources according to the products beingmanufactured.

6. Geographic Departmentalization: This is based on territory

departmentalization. Basically according to where the work is being doneor the geographic markets on which the management is focusing. Thedistances can range from wither very short to very long.

7. Customer Departmentalization: Structure based primarily on thecustomer establishes departments in response to the organizations major

customers. This structure assumes that major customers can be identifiedand divided into logical categories.

8. Manufacturing Process Departmentalization: Structure based primarilyon the manufacturing process departmentalizes according to the majorphases of the process used to manufacture products.


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Factors influencing Formal Structures:

1. Forces in the manager2. Forces in the task

3. Forces in the environment

4. Forces in the subordinates


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Division of Labor

Assignment of various portionsof a particular task among a

number of organizationmembers. Rather than one person performing

the job, several people will performdifferent parts of the job. For example

the automobile production line.


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Advantages of Division ofLabor

1. When workers specialize in aparticular task, their skill atperforming that task tends toincrease.

2. Workers who have one job and oneplace in which to do it do not loose

valuable time changing tools orlocations.

3. When workers concentrate onperforming only one job, theynaturally try to make the job easierand more efficient.

4. DoL creates a situation in whichworkers need to know how toperform their part of the work ratherthan the entire process forproducing the end product.

Disadvantages of Divisionof Labor

1.Division of Labor focuses solely onefficiency and economic benefit andoverlooks the human variable in theorganization.

2. Work that is extremely specializedtends to be boring and will thereforecause production rates to go down as

workers become resentful of beingtreated like machines.


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Division of Labor and Coordination:

Coordination: is the orderly arrangement of group effort toprovide unity of action in the pursuit of a common purpose. Co-

ordination is a means of achieving any and all organizational

objectives.

Synchronized Order

To Maintain Productivity Close Supervision, to formulate a common purpose for the group

and improve specific problem solutions.


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Span of Management

Span of Management: the number of individuals amanager supervises. The more the individual a manager

supervises, the greater the span of management. Conversely, the

fewer individuals a manager supervises, the smaller the span of

management.

It is concerned with???

1. How many individuals can a manager supervise

effectively.

2. How are the resources of an organization usedeffectively. Managers need to make sure that they

guide as many individuals as they can for the

production quotas.


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Designing Span of Management :

1. Similarity of Functions

2. Geographic Continuity

3. Complexity of Functions

4. Coordination

5. Planning


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Height of Organization Chart:

Flat: the flatter a structure, the larger the span of

management. Tall: the taller a structure, the smaller the span of

management.


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Scalar Relationships

Unity of Command: is the management principle

that recommends that an individual have only one

boss. If too many bosses give orders, the result

will probably be confusion, contradiction and

frustration.


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CHAPTER 11:

RESPONSIBILITY, AUTHORITY

AND DELEGATION


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Responsibility

The Job Description

Dividing Job Activities

Clarifying Job Activities of Managers


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The Job Description

Responsibility: this is the most fundamental method of

channeling the activity of individuals within an organization.

Responsibility is the obligation to perform the assigned

activities.

Job Description: An individuals activities within an

organization are usually summarized in a formal statement

that is known as the Job Description.


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Job Description

When an individuals activities within anorganization are summarized in a formalstatement.

It is a list of specific activities that must beperformed by whoever holds the position.

The job activities are delegated by themanagement to enhance the accomplishmentof management system objectives.


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Advantages

A clear job description canhelp employees to becomesuccessful by focusing theirefforts on the issues that areimportant for their position.

When designed properly, jobdescriptions communicate jobcontent to the employees.

They can establishperformance levels that

employees must maintain

They also act as a guide thatemployees should follow toachieve the objectives of theorganization.

Disadvantages

When job descriptions aredesigned unclearly, they canconfuse employees and maycause them to lose interest intheir jobs.


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Dividing Job Activities

The Functional Similarity Method: The most basic method

of dividing job activities. Dividing the job activities is divided

into 4 steps:

1. Examine management system objectives2. Designate appropriate activities that must be performed to

reach those objectives.

3. Design specific jobs by grouping similar activities

4. Make specific individuals responsible for performing those

jobs.


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Functional Similarity and Responsibility:

1. Overlapping Responsibility: refers to a situation in which

more than one individual is responsible for the same activity.Only one person should be responsible for completing one

activity.

2. Responsibility Gap: exists when certain tasks are not

included in the responsibility area of an individualorganization member. This results in a situation in which

nobody within the organization is obligated to perform

certain necessary activities.

3. Management should avoid creating job activities for

accomplishing tasks that do not enhance goal attainment.

Organization members should be obligated to perform only

those activities that lead to goal attainment.


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When two(or more) employees are uncertain as to who is responsible for a

task, the outcomes that are possible include:

One of two may perform the job. The other may either forget to or choosenot to do the job, and neither of these is a desirable outcome for product

quality control.

Both employees may perform the job. At the least, this results in

duplicated effort. Which dampens employee morale. At worst, oneemployee may diminish the value of another employees work, resulting in

a decrement in product quality.

Neither employee may perform the job because each assumed the other

would be.

The employees may spend valuable time negotiating each aspect and

phase of the job to carefully mesh their job responsibilities, thus

minimizing both duplication of effort and responsibility gaps. Though, time

consuming, this is actually the most desirable option in terms of product

quality.


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Authority

Authority on the Job

Acceptance of Authority

Types of Authority

Accountability


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Acceptance of Authority

Authority: is the right to perform or command.

Chester Bernard maintains that authority will be accepted:

1. The individual can understand the order being communicated

2. The individual believes the order is consistent with the

purpose of the organization.

3. The individual sees the order as compatible with his or her

personal interests.

4. The individual is mentally and physically able to comply with

the order.


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A managers command is accepted over the long term

if:

1. The manager uses formal channels of communication and

these are familiar to all organization members.

2. Each organization member has an assigned formal

communication

3. The line of communication between manager and subordinateis as direct as possible.

4. The complete chain of command is used to issue orders.

5. The manager possesses adequate communication skills.

6. The manager uses formal communication lines for only

organizational business.

7. A command is authenticated as coming from a manager.


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Types of Authority

1. Line Authority: the most fundamental authority within anorganization. It reflects superior and subordinate relationships. Itconsists of the right to make decisions and to give ordersconcerning production, sales or finance related behavior ofsubordinates.

2. Staff Authority: consists of the right to advise or assist those whopossess line authority as well as other staff personnel. Staffauthority enables responsible for improving the effectiveness ofline personnel to perform their required tasks.

3. Functional Authority: consists of the right to give orders within asegment of the organization in which this right to normallynonexistent. Typically. It is given to individuals who, in order tomeet responsibilities in their own areas, must be able to exercisesome control over organization members in other areas.


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The Roles of Staff Personnel

1. The advisory or counseling role: They use their professional

expertise to solve the organizations problems. They act as

internal consultants.

2. The service role: staff personnel in this role provide servicesthat can more efficiently and effectively be provided by a

single centralized staff group than by many individuals

scattered throughout the organization.

3. The control role: staff personnel help establish a mechanismfor evaluating the effectiveness of organizational plans.


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Accountability

Accountability: refers to the management

philosophy whereby individuals are held liable, or

accountable, for how well they use their authority

and live up to their responsibility of performing

predetermined activities.


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Delegation

Steps in the Delegation Process

Obstacles to the Delegation Process

Centralization and Decentralization


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Steps in the Delegation

Process Delegation: is the actual process of assigning job activities

and corresponding authority to specific individuals within the

organization.

Steps:1. Assigning specific duties to the individual. The manager

must be sure that the subordinate assigned to the specific

duties has a clear understanding of what these duties entail.

2. Granting appropriate authority to the subordinate, the

subordinate must be given the right and the power within theorganization to accomplish the duties assigned.

3. Creating obligation for the subordinate to perform the duties

assigned.


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How to make Delegation

Effective? Give employees the freedom to pursue tasks.

Establish mutually agreed upon results and performance standardsfor delegated tasks.

Encourage employees to take an active role in defining,implementing and communicating progress on tasks.

Entrust employees with completion of whole projects or tasks

whenever possible. Explain the relevance of delegated tasks to larger projects or to

department or organization goals.

Give employees the authority necessary to accomplish tasks.

Allow employees access to all information, people, and departmentsnecessary to perform delegated tasks.

Provide training and guidance necessary for employees to completedelegated tasks satisfactorily.

When possible, delegate tasks on the basis of employee interests.


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Centralization and

Decentralization

Centralization and Decentralization refer

to the degree to which delegation is

assigned in the organization.

Decentralization refers to maximumdelegation in an organization.

Centralization refers to no delegation in

the organization.


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Decentralizing an Organization

What is the present size of an organization.

Where are the organizations customerslocated?

Is the product line diversified? Where are the organizational suppliers?

Is there a need for quick decisions in theorganization?

Is creativity a desirable feature of theorganization?

Documents

Principles of Management-Chapter 10 & 11( Organizing)