Lehar Ajwani

Deep Shikha
Anupam Kaushik
Satish Kachhawa
 Organizing is
◦ Identification / classification of activities
◦ Grouping of these activities
◦ Assignment of each group to a manager
◦ Provision for coordination
 Color coding bathroom schedules for 18
children!
 Formal
◦ President – Division Managers – Department
Managers
 Informal
◦ The regular “coffee” group, The Every-Sunday-
Bowling-Group
 Close supervision  Too much involvement
 Close control  Many levels of
 Fast communication management
 High cost
 Excessive distance

Advantages Disadvantages
 Superiors forced to  Decision bottlenecks
delegate as superiors
 Need for clear policies overloaded
 Danger of loss of
control

Advantages Disadvantages
 United States
General Army

Colonels

Majors
Captains
&
Lieutena
Warrant
nts
Officers
Relatively narrow span of
control.
Sergeant
s
At lower levels, where
tasks are similar and Corporal
simpler, span of control s
widens. Privates
5-9
 Peter told Alice to come to the fountain in
the garden behind the fort at precisely
midnight so that they could sit and relax by
singing soulful songs amongst other things.
 Case Study Questions:
◦ The reengineering efforts focused on the business
process system. Do you think that other processes
such as the human system, or other managerial
policies need to be considered in a process redesign?
◦ What do you think was the reaction of the brand
managers, who may have worked under the old
system for many years, when the category
management structure was installed?
◦ As a consultant, would you have recommended a top-
down or a bottom-up approach or both, to process
redesign and organizational change? What are the
advantages and disadvantages of each approach?
 Grouping activities in accordance with
functions
 Types:

◦ By Enterprise Function
◦ By Territory or Geography
◦ By Customer Preferences
◦ By Product
 Matrix Organisation
 Logical reflection of  De-emphasis of
functions company objectives
 Maintains power and  Narrow viewpoint of
prestige key personnel
 Follows principle of
 Reduces coordination
occupational between functions
specialisation
 Responsibility for
profits only at the top
 Simplifies training

Advantages Disadvantages
 Places responsibility  Requires more
at lower level persons with general
 Improves coordination manager abilities
in a region  Requires more
 Takes advantage of services at regional
local economies level
 Top management
have control issues

Advantages Disadvantages
 Encorages  Difficult to coordinate
concentration on between competing
customer needs customer demands
 Gives customer  Requirs managers and
feeling that they have staff to be experts in
an understanding customer problems
supplier (banker)  Customer groups not
 Develops expertise in always clearly defined
customer area

Advantages Disadvantages
 Oriented towards end  Conflict in
result organisation authority
 Professional  Possibility of disunity
identification is of command
maintained  Requires manager
 Pinpoints product- effectiveness in
profitability human relations
responsibility

Advantages Disadvantages
 Matrix Organization at Stewart
Martha
Area Merchandising
Media Group
Speciali Group
sts

Network/
Cable TV

Retailing
Magazin

Specialt
Internet

Newspa

Catalog
K-mart
Radio/
Books

Sears
Paint
Line

Line
per
es

y/
Cooking
Entertain
ment
Weddings

Crafts
Gardenin
g
Home

Holidays

Children
6 - 17
 Multiple Forms of Departmentalization
President

Functional Departmentalization
Vice President Vice President Vice President
Marketing Production Finance

Geographical Departmentalization
Texas Plant Oregon Plant Florida Plant
Manager Manager Manager

Product Departmentalization
ConsumerIndustrial ConsumerIndustrial ConsumerIndustrial
Products Products Products Products Products Products
6 - 18
 Virtual Organization
Contracted Contracted
Manufacturing Administrative
in Asia Services

• Accounting
Core • Human
Organization Resources
• Finance
• Operations
• Management

Contracted Contracted
Sales & Distribution &
Marketing Logistics

6 - 19
 Line Department

 Responsible for the principal activities of the firm.

 Deals directly with Organisational primary goods and
services
 Make things, Sale things, provides customer services.
 Have much authority in an Organisation.
 Includes Product design, Product Assembly, Distribution &
Selling.
 Ultimately responsible for making major operating decisions.
 Accountable for “bottom-line”

 Staff Department

 Created to support, assist and advise the Line Deptt.

 Are the Specialized Units.
 Includes Research, Legal, Accounting, Public Relations & HR
Deptt
 Power
Individual Capacity to influence decisions.

 Authority
The rights inherent in a managerial position to give orders
and expect them to be obeyed.

 Responsibility
An obligation to perform assigned activities.

 Accountability
Mechanism through which authority and responsibility are
brought into alignment

 Empowerment
Closest to the task are best able to make the decision,
provided that they have the required competencies
 What is Delegation?

 Techniques for Delegation

 Process of Delegation

 Advantages

 Barriers to Delegation
 Techniques for Delegation

Give Maintain Evaluate and

thorough feedback reward
instruction performance
s

Techniques for Delegation

Ensure that
Delegate the authority equals Select the
whole task responsibility right person
 Analyze the Organisation Structure

 Decide what all tasks need to be assigned

 Decide who can handle each task

 Delegate the authority

 Create an obligation (responsibility)

 Control the delegation

 Advantages of Delegation
 Frees up managerial time for other important tasks.
 Serves as a training and development tool for lower level
managers.
 Increases subordinates’ commitment by giving them
challenging assignments.

Barriers to Delegation
√ Belief that only you can do the job right.
√ Lack of confidence and trust in subordinates.
√ Low self-confidence.
√ Fear of competition from subordinates.
√ Reluctance to take risks that depend on others.
√ Bosses who do not delegate.
 Centralization
 The retention of decision-making authority by top
management.

Decentralization
 The sharing of decision-making authority by
management with lower-level employees.

The Need for Balance

 The challenge is to balance the need for responsiveness
to changing conditions (decentralization) with the need
to create low-cost shared resources (centralization).
 Defining Organizational
Culture
 Innovation and risk taking
 Attention to detail
 Outcome orientation
 People orientation
 Team orientation
 Aggressiveness
 Stability
 Culture is to organizations
what personality is to
individuals
 All companies have cultures

◦ Culture by default
◦ Culture by design – thoughtful
choices
based on values and core beliefs
 Howdoes a company
consciously create its culture?
 Top
Management

Philosophy
of the Organizational
Selection
Organization’s Culture
Founders

Socialization
 Do Organizations
Have Uniform Cultures?

Dominant Core
Subcultures
Culture Values
 Control cultures –
Drive for predictability and order
 Collaboration cultures –
Pursue close relationship with customers
 Competence cultures –
Pursue excellence and innovation
 Cultivation cultures –
Pursue life enrichment for customers and
employees
 Conflict management
◦ Relationship or interpersonal conflict
◦ Task / process conflict
◦ Functional vs. dysfunctional conflict
◦ Factors: goal incompatibility, limited
resources, differences
 Power – the capacity to influence behavior
◦ Positional power: rewards/consequences,
control
of resources, information and decision control
◦ Personal power: expert, referent (based on
identification and admiration)
 Politics – the use of power to influence
decisions
 Corporate Culture

Self-governance
Systematic Approach

Informed
Acquiescence

Blind Obedience

Anarchy

Cultural Evolution
 PREVENT

DEFINE

Self- DETECT
governance

EVALUATE

RESPOND