CH 7 Organizing

7/30/2019 CH 7 Organizing

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The Nature of Organizing,

Entrepreneuring, andReengineering.


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Every organization structure includes

certain roles and responsibilities that

have to be played by the people in theorganization.

If the people in the organization knowthe parts they are to play in any team

operation and the way their roles

relate to one another, the working ofthe organization will be much

effective.


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Existence meaningfulness ofOrganizational roles in an organization

require that They must incorporate verifiable

objectives

Their should be a clear idea of the major

duties or activities involved.Area of discretion or authority must be

clearly defined.

If the above criteria is fulfilled, thenonly the person filling the role willknow what he or she can do to

accomplish goals.


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Hence organizing can be described as

Identification and classification of required

activities

Grouping of activities necessary for

attaining objectives

Assignment of each group a manager with

the authority

Provision of coordination and control.


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Purpose of organization structure

To clarify who is to do which task.

Who is responsible for what.

Remove obstacles to performance

caused by confusion and uncertaintyof assignment

To furnish decision making and

communication networks reflectingand supporting enterprise objectives.


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Organization

A formalized intentional structure of roles

or positions

Formal organization

Intentional structure of roles in a formallyorganized enterprise.

Structure of the organization is defined

such that it furnish an environment inwhich individual performance, both

present and future, contributes most

effectively to group goals.


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Informal organization

Any joint personal activity without

conscious joint purpose, but contributing

to joint results.

Informal organization is a network ofinterpersonal relationships that arises

when people associate with one another.


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Organizational Division:

Department Establishment of departments is one

aspect of organizing.

Department can be defined as adistinct area, division, or branch of an

organization over which a manager

has authority for the performance ofspecified activities.

Ex: production division, sales

department etc.


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Organizational levels and the

span of managementAs the organization becomes large,

the span of management has to be

analyzed and defined accordingly

Organizational levels exist as there is

a limit to the no. of persons a manager

can supervise.


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Operational mgt. theorists have taken

a position that there are too many

variables in a mgt. situation to specifyany particular no. of subordinates that

a manager can effectively supervise.

Principle of Span of Mgt. states that

there is a limit to the no. of

subordinates a manager caneffectively supervise, but the exact no.

will depend on the impact of

underlying factors.


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Factors determining an effective span

Personal capacities of the manager such

as comprehending quickly, getting alongwith people, commanding loyalty and

respect.

Managers ability to reduce the time he or

she spends with subordinates.


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Intrapreneur Is a person who focuses on innovation and

creativity and who transforms a dream or an

idea into a profitable venture by operatingwithin an established organizationalenvironment (this is also called as corporateventuring)

Entrepreneur A person who does similar things, but outside

the organizational setting.

They have the ability to see an opportunity,

obtain the necessary capital, labor and otherinputs, and then put together an operationsuccessfully.

They are willing to take personal risk ofsuccess and failure.


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Manager must promote opportunities forentrepreneurs to utilize their potential for

innovation.

Entrepreneurs take personal risks in initiatingchange and they expect to be rewarded for it.

The risk they are taking may result in failure,but this must be tolerated.

Entrepreneurs also need some degree offreedom to pursue their ideas which requiresthat sufficient authority be delegated.


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Innovation and

entrepreneurship Peter Drucker suggest that innovation

applies not only to high-tech

companies but equally to low-tech,

established businesses.

Innovation is not a matter of sheer

luck, it requires a systematic andrational work, well organized and

managed for results.


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Innovation comes about because of

the following situations:

An unexpected event, failure, or successAn incongruity between what is assumed

and what really is

A process or task that needs improvement Changes in the market or industry

structure

Changes in demographics

Changes in meaning or in the way things

are perceived.

Newly acquired knowledge.


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Reengineering the

organization Reengineering can be defined as the

fundamental rethinking and radical

redesign of the businessprocesses to

achieve dramatic improvements incritical contemporary measures of

performance, such as cost, quality,

service and speed.


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Key aspects of Reengineering

1. Fundamental rethinking of what theorganization is doing and why.

2. Radical (reinventing) redesign of

business processes.3. Dramatic results

4. Processes (carefully analyzing and

questioning business processes isimportant)


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The logic of organizing

Establish enterprise objectives Formulating supporting objectives, policies

and plans

Identifying, analyzing, and classifying the

activities necessary to accomplish theseobjectives

Grouping these activities in light of humanand material resources available and the bestway, under the circumstances, of using them.

Delegating to the head of each group theauthority necessary to perform the activities.

Tying the groups together horizontally andvertically, through authority relationships and

information flows

Documents

CH 7 Organizing