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Lecture Learning management systems - Lecture 8

Lecture 8 - Fundamentals of organizing. In this chapter students will be able to: An understanding of the organizing function, knowledge regarding the benefits and costs of bureaucracy, insights into the advantages and disadvantages of division of labor, an appreciation for the complexities of determining appropriate organizational structure. | CSC350: Learning Management Systems COMSATS Institute of Information Technology (Virtual Campus) Lecture # 8 Fundamentals of Organizing 2 Definitions of strategic planning Main aspects of the strategic management process Key components of environmental analysis Role of organizational direction in strategic management Primary aspects of strategy formulation Importance of strategic control Coordination of tactical planning & strategic planning Competitive dynamics & organization’s financial performance Review of the Previous Lecture An understanding of the organizing function Benefits and costs of bureaucracy Advantages and disadvantages of division of labor Complexities of determining appropriate organizational structure Advantages and disadvantages of departmentalization Topics of Discussion Organizing Process of establishing orderly uses for resources within the management system Organizing Skill Creating a network of people throughout the organization who can help solve implementation problems as they occur Organization End result of organizing process DEFINITIONS OF ORGANIZING AND ORGANIZATION SKILL Fayol’s Organizing Guidelines Organizing Process Weber’s Bureaucratic Model: Detailed procedures and rules Clearly outlined organizational hierarchy Impersonal relationships among organization members CLASSICAL ORGANIZING THEORY Division of Labor: Assigning various portions of a task among a number of organization members Advantages: Specialized skills – Only one job to do – Efficiency Disadvantages: Overlooks human variable – Boring – Decreased production CLASSICAL ORGANIZING THEORY Coordination: Orderly arrangement of group effort Unity of action Synchronized order of tasks Mary Parker Follett Guidelines: Peer discussion resolves problems Planned by managers Maintaining is continuing process Division of Labor & Coordination Designated relationships among organizational resources Two basic types of structure: Formal Represented on organization chart Informal Evolves naturally, spontaneously STRUCTURE Organization Chart Graphic illustration of firm’s organization structure Pyramid form Boxes are jobs/positions Lines designate formal communication lines Formal Structure Scalar Relationships Chain of Command Unity of Command Employee reports to only one manager Span of Management Number of employees one manager can effectively manage Height of Organization Chart Vertical Dimensioning Lateral subdivisions or specialties Departments Unique group of resources established by management to perform organizational tasks Horizontal Dimensioning TYPES OF DEPARTMENTALIZATION Functional Departmentalization Product/Service Departmentalization Geography Departmentalization Customer Departmentalization Matrix Departmentalization Managerial Forces Task Forces Environmental Forces Subordinate Forces Forces Influencing Formal Structure Fayol’s Chain of Command Rationale Mechanistic Structures Formal organizational structures Suited for large companies in stable industries Organic Structures Less formal Represent loosely coupled worker networks Suited for smaller companies in volatile industries Informal Structure Thank You 24