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ORGANIZING CONCEPTS

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ORGANIZING CONCEPTS Chapters 12,13,14,15,16,17, &18 CHAPTER 12 Organizing is based on two principles: Authority Span of management/span of control/ span of ... – PowerPoint PPT presentation

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Title: ORGANIZING CONCEPTS


1
ORGANIZING CONCEPTS
  • Chapters 12,13,14,15,16,17, 18

2
CHAPTER 12
  • Organizing is based on two principles
  • Authority
  • Span of management/span of control/ span of
    supervision

3
Authority
  • It is the key to the managerial job
  • It is the lifeblood of the managerial position
  • It gives legitimate power to the manager or
    supervisor to give directives to subordinates
  • It is limited in scope by both internal and
    external factors

4
Types of Authority
  • Positional
  • Functional
  • Personal

5
Span of Management
  • It is also called span of control and span of
    supervision
  • It is the number of subordinates that a manager
    directs and supervises
  • The number of subordinates varies
  • The smaller or narrower the span, the more levels
    of management will be required
  • Some managers are able to supervise more
    subordinates than are others

6
Factors Determining the Span of Supervision
  • Competence of the supervisor
  • Competence and makeup of the subordinates
  • Amount and availability of help from staff
    specialists
  • Nature and importance of the activities performed
  • The dynamics and complexity of the activity to be
    performed
  • The degree to which a comprehensive set of
    standards and procedures are available to guide
    subordinates
  • Availability of self-directed teams

7
CHAPTER 13
  • Division of Work
  • Tasks are broken down and divided into smaller
    parts
  • It is the process by which tasks and
    responsibilities are allocated
  • It is essential for greater efficiency and higher
    productivity

8
Departmentalization
  • The process of grouping the activities of an
    organization into units
  • The units are grouped by the following methods
  • - Functions
  • - Process and equipment
  • - Territory or location
  • - Customer
  • - Time
  • - Product

9
Mixed Departmentalization
  • Uses multiple methods of departmentalization to
    meet the desired outcome

10
Matrix organization
  • It is an organizational design that combines both
    functional and product departmentalization
  • Several projects can be conducted simultaneously
  • Employees have two bosses
  • It violates the unity of command concept
  • Creates a number of problems such as conflicting
    directives from two bosses, roles may not be
    clearly defined, power struggle between the two
    bosses, and subordinates may be confused
    regarding to whom they should report

11
CHAPTER 14
  • Delegation of authority
  • It makes the organization operative
  • It gives life to the organization
  • An organization can only exist if authority has
    been delegated
  • Top management must create the mood by preaching
    and practicing broad delegation of authority
  • It is distributed throughout an organization,
    starts at the top and flows downward throughout
    the various levels of management
  • It follows the principles of chain of command or
    scalar chain and unity of command
  • Frees the time of managers
  • Increases morale, interest, and enthusiasm for
    work
  • Provides a training ground and helps identify up
    coming leaders
  • Authority hoarders must be discouraged
  • Supervisors who carefully delegate authority does
    not lose status or free them from their
    responsibilities

12
Three steps of the process of delegation
  • Assignment of duties and defining the results
    expected
  • Granting of permission (authority)
  • Creation of an obligation (responsibility)
  • In order to make delegation of authority a
    success, those three steps must blend together

13
General Supervision
  • Permits subordinates to decide how to achieve
    results within accepted professional standards
  • Allows the manager or supervisor to have more
    time to perform management functions
  • Enables subordinates to take great pride in
    decision-making
  • Creates an environment to enhance the
    performances of team work

14
Barriers to delegation of authority
  • Supervisors that are authority hoarders
  • Reluctant subordinates to take on authority and
    responsibility
  • The unavailability of suitable subordinates to
    whom authority can be delegated

15
Organizing Concepts Contd.-CHAPTERS 15, 16, 17,
18
  • CHAPTER 15

16
Line authority
  • Authority is based on superior-subordinate
    relationships and is managerial in nature
  • Authority to give orders to subordinates
  • The authority to direct subordinates and require
    them to comply to decisions, policies, plans, and
    objectives
  • Generally follows the principle of unity of
    command

17
Staff Authority
  • Authority is based on expertise in specialty
    areas
  • Provides information, counsel, advice, and
    guidance in specialty areas and is not managerial
    in nature
  • The authority to make recommendations to line
    organization
  • The recommendations can be accepted, rejected, or
    altered by the line organization

18
Functional authority
  • The CEO or administrator gives a staff member
    special limited right to command
  • The right is based on expertise in a specialized
    area
  • It allows maximum effective use of staff
    specialists
  • It violates the principle of unity of command

19
CHAPTER 16
  • Reorganization
  • Changes in organizational structures,
    departmentalization, assignment of activities,
    and authority relationships
  • It is closely aligned with reengineering
  • Reorganization occurs because of
  • - Changes in priorities and goals
  • - Financial needs
  • - Scientific and technological advances
  • - New developments and practices

20
Tools used for reorganization
  • Job design
  • Job redesign
  • Job rotation
  • Job enlargement
  • Job enrichment
  • Work redesign
  • In order to ensure quality in services or
    products, supervisors should continuously monitor
    the processes of reorganization

21
Reengineering
  • The focus is on customer needs
  • It is continuous
  • Relies heavily on teams of employees that are
    coordinated by management
  • It has the potential to improve quality, customer
    responsiveness, reduce costs, and streamline
    operations

22
Downsizing and Rightsizing
  • Downsizing
  • Reduction in workforce
  • Quickly initiated
  • Little or no input from employees

23
Rightsizing
  • Moderate to high cost reduction
  • Quickly initiated
  • Little or no input from employees

24
Quality Management
  • Continuous service improvements that meet the
    needs of the organization and customers
  • Empowers employees to attain the desired outcomes

25
CHAPTER 17-Committees as an Organizational Tool
  • Committees
  • A formal group of people who function together to
    attain a desired organizational goal
  • Permit a group of people to function collectively
    in areas that a single individual cannot handle
  • Group members have regular full-time duties in
    the organization
  • Group members devote part of their regular
    working time to committee activities
  • Committee members must be carefully selected
  • Found at all organizational levels
  • Have line or staff capacity
  • Can be classified as standing or temporary
  • Promote coordination and cooperation among
    various departments in the organization
  • Produce continuity in the organization
  • Provide a forum for potential leaders to be
    identified
  • Give opportunities for various departments to be
    heard and get involved in the affairs of the
    organization
  • Must have a mandate know its scope and function
  • The degree of authority must be specified
  • The chair is the most important member of the
    committee
  • A well prepared agenda is required with a degree
    of flexibility

26
CHAPTER 18
  • The Informal organization
  • It is a social subsystem
  • It interacts with the formal organization both in
    negative and positive ways
  • It is found in almost all organization and cannot
    be eliminated
  • Small groups are the basis for an informal
    organization
  • Employees join small groups because of the
    following
  • - Social needs
  • - Sense of satisfaction
  • - Friendship and companionship
  • - Security, support, and collective power
  • - Acceptance
  • - Access to the informal organization
    (grapevine)
  • - Status

27
The supervisor and the informal organization
  • The informal organization is part of a complex
    system that interacts with the formal
    organization
  • The supervisor must understand the workings of
    the informal organization
  • The supervisor should approach the informal
    organization in a positive manner
  • The supervisor should utilize the informal
    organization to achieve departmental objectives
  • The supervisor should combine the interests of
    the formal organization with those of the formal
    organization
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