Topic : Organization Structure & Process - PowerPoint Presentation

1. Topic : Organization Structure & Process

2. Organization StructureIt refers to the formal, established pattern of relationships amongst the various parts of a firm or any organization.Organizing is the formal grouping of activities and resources for facilitating attainment of specific organizational objectives. It is possible to achieve objectives without formally organizing, but there is likely to be wastage of resources and time.

3. Elements of an OSOrganization chart & Job DescriptionDifferentiation(tasks assigned to different people & departments)Integration (coordinated activities)Authority System(power, status)Administrative system(policies, procedures)Flow of Information & Communication N/W

4. Formal & Informal OrganizationThe formal structure delineates specific departments, activities, people and their reporting relationships.The informal structure refers to the social groups or friendships which people working together may form.

5. Formal Vs Informal OrganizationsHave planned structuresDeliberate attempts to create patterned relationshipsUsually shown by a chartTraditional theory advocates formal organizationNot formally plannedArise spontaneously as a result of interactionsNot depicted in a chartHuman relations theory stresses informal organization

6. Factors influencing the choice of structureImpact of environment (economic, social, cultural, political, and legal sub-systems)Impact of technologyImpact of psychosocial characteristics (demand of leisure time, worker rights)

7. Degree of DecentralizationCentralization refers to the concentration of authority and decision making in one single position in the organization. (Real time information through adaption of technology)Decentralization is effective when conditions in each market are so different that only a high degree of adaption to local conditions will lead to success.

8. Line (There is a direct relationship of command from superior to subordinate) and Staff(more advisory in nature) RelationshipsSpecialisation of workScalar principle & Unity of CommandSpan of Control & Levels of Management

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10. MANAGEMENTContentsMeaningDefinitionNature FunctionsLevels and type of managersTask of a managerEssential managerial skillsManagerial roles

11. MeaningManagement is the act of getting things done by a group of people with the effective utilisation of available resources. A minimum of two persons are essential to form a management.

12. What is Management?Management as key group In-charge of organisational affairs, Making organisation a purposeful and productive entity. Brings together/ integrates the resources.Management as set of functions The functions include Planning, Organising, Directing, Staffing and Control. Determine goals and activities helps in allocation of tasks and resources.Management Management is an influence process to make things happen, to gain command over phenomena, to induce and direct events and people in a particular manner.

13. Definitions of ManagemtJohn.F.Mee - Management is the act of securing maximum results with a minimum of efforts so as to secure maximum prosperity for the employer and the employee and give the public the best possible service. Henry Fayol - To manage is to forecast and plan, to organise , to command, to co-ordinate and to control. Kreitner - Management is the process of working with and through others to achieve organizational objectives in a changing environment. Central to this process is the effective and efficient use of limited resources.

14. Definitions of ManagemtF.W.Taylor - Management is the art of knowing what you want to do in the best and cheapest way.Koontz and Weihrich - Management is the process of designing & maintaining an environment in which individuals, working together in groups, efficiently to accomplish selected aims.

15. As managers, people carry out the managerial functions of planning, organising, staffing, leading, directing, coordinating and controlling. Management applies to any kind of organization.It applies to managers at all organizational levels.The aim of all managers is the same : to create surplus.The Management is concerned with productivity ; this implies effectiveness and efficiency. (As Peter Drucker puts it, efficiency means “doing things right” and effectiveness means “doing the right things.

16. Productivity, Effectiveness, and EfficiencySuccessful companies create a surplus through productive operation.P=(O/I) within a time period, quality consideredP can be improved 1. By increasing outputs with the same inputs2. By decreasing inputs but maintaining the same outputs3. By increasing outputs and decreasing inputs to change the ratio favorably

17. P implies effectiveness and efficiency in individual and organizational performance.Effectiveness is the achievement of objectives.Efficiency is the achievement of the ends with the least amount of resources.

18. What is Management?Management is what managers do. It is the process of getting things done, effectively and efficiently, with and through other people. Efficiency means doing a task correctly (“doing things right”) and getting the most output from the least amount of inputs. Effectiveness means “doing the right things” by doing those work tasks that help the organization reach its goals. Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals.

19. Managerial skills and the organizational hierarchyConceptual skill (deals with ideas and vision)Human skill (cooperative effort & team work of people)Technical skill (methods, processes, and procedures to do a job)Growing Together- If the people working in a company grow, the company’s growth will take care of itself. People work for people. Bring out each other’s potential; help others. Accept to be challenged and to be helped. Together we grow, Together we can.

20. Art of Getting Things DoneMary Parker Follett – Management is the art of getting things done through others.Harold Koontz – Management is the art of getting things done through and with people in formally organized groups.Networking & Teamwork – Leverage works. You can achieve 100 times more through a team or network of people than you can do it all by yourself. Teamwork means coming together, working together, achieving more, the ability to direct individual accomplishments towards organizational objectives.

21. Management as a ProcessHenry Fayol – To manage is to forecast and plan, to organise, to command, to co-ordinate, and to control.Louis Allen – Management is what a manager does.Everything has to Planned – Month-by-month, day-by-day, minute-by-minute everything has to be planned, nothing happen by accident. As by failing to prepare, you are preparing to fail and if you plan, you can even fly a plane! As it is rightly said, people don’t plan to fail, they fail to plan.

22. Management As A DisciplineIt is used to connote neither the activity nor the personnel who performs it, but as a body of knowledge, a practice and a discipline.It is treated both as an art as well as science. An art is often regarded as the systematic application of skill or knowledge in effecting accomplishment of results.It is regarded as a science because it has developed certain principles, and techniques which have more or less universal application.‘science’ will be meaningless and lifeless, if the ‘art’ is forgotten.

23. Natures Management is both an art and a science.Management is an activity.Management is a continuous process.Management achieving pre-determined objectives.Management is a factor of production.Management is needed at all levels.Management aims at maximising profit.Decision-making.management is universally applicable.Direction and control.

24. FunctionsPlanning- Deciding in advance that which will be done in the near future.Organising- Distribution of work in group wise or section wise for effective performance.Staffing- Staffing refers to placement of right persons in the right jobs.Directing- Directing includes guidance , supervision and motivation of employees.Co-ordinating- The organized group activities are co-ordinated towards the achievement of objectives of an organisation.

25. 6. Motivating- Motivation increases the speed of performance of a work and developing a willingness on the part of the workers. (incentives , fair treatment etc.)Controlling- Ensuring that achieved objectives conform to pre-planned objectives. Innovation- Preparations of personnel and organisation to face the changes made in the business world.(developing new materials, new products , new techniques etc.) Representation- A manager has to act as a representative of the company.Decision-making- It helps in the smooth functioning of an organisation.

26. Levels of managers The top level managers :- A small group policy makers and their responsibility is to develop the objectives and strategies of the organization.The middle level managers :- Have a number of responsibilities and linking activities. They directs the activities of the first level managers. The first level managers:- Direct contact with the employees,who usually produce goods or service outputs of an organization. They referred to as supervisors or foremen in some organizations.

27. Task of a managerMaintaining firm’s efficiency in terms of profit generation.Meeting the challenge of increasing competition.Managing for innovation.Building human organisation.Sustaining leadership effectiveness.Postponing managerial obsolescenceCoping with increasing level of aspiration.Maintaining relations with various society segments.

28. Managerial skillsPlanning skills:- Being able to think ahead,Forecast future environmental trends affecting the organisation,State organisational objectives, Choose strategies that will help in attaining these objectives,2. Organising skills:-Analyse and describe various organisational jobs,Select ,train and induct people in jobs,Define authority and span of control amongst people.

29. 3. Leading skills :- Leading people requires that leader must understand the values, personality, perception and attitudes of these people. These concepts varies from person to person.4. Controlling skills :- The skills of controlling consists of actions and decisions which managers undertake to ensure that the actual results are consistent with desired results.5. Decision-making skills :- A manager’s effectiveness lies in making good and timely decisions. for any decision the manager have to –Identify and define the problemDevelop alternative decisionSelect the decision which will solve the problem and Implement that decision.

30. Managerial skills at various levelsConceptual skills :- It deals with ideas. Ability to see the organization as a whole and it includes recognizing how the various functions of the organization depend on one another. It requires at the top level.Human skills :- It deals with people. Human skill is the manager’s ability to work effectively as a group member and to build cooperative effort within the team he leads. Technical skills :- It deals with jobs. Ability to work with resources in a particular area of expertise. It requires in the lower level.

31. Managerial roles Henry Mintzberg isolated 10 roles that are common to all managers which grouped in to 3 categories-Interpersonal , informational and decisional roles.Interpersonal roles :- There are three interpersonal role that a manager plays i.e. (a)figurehead (b) leader and (c) liaison.

32. Informational roles :- Every manager is a clearinghouse for information relating to the task at hand. It includes- (a) nerve centre or monitor (b) disseminator and (c) spokesperson.Decisional roles :- In their decisional roles, managers balance competing interests and make choices. Through it strategies are formulated and put in to action. (a) entrepreneurial - set patterns, initiates changes, take calculated risks (b) disturbance handler – conflicts both internal & external (c) resources allocator – balanced growth and (d) negotiator – agreements, terms & conditions with customers, suppliers and other external agencies, trade unions.

33. Qualities of a Manager (Physical)ImpressiveMaintained throughout the careerGood appearance, Sound healthCheerful disposition(preparation, readiness)Stamina, Posture, PromptnessDress & cleanliness

34. Qualities of a Manager (Mental)Alertness, Tactful, Ability to judge, MaturityFarsightedness (Knowing well in advance)Initiative, Good decision-maker, Sharp memoryAmbitious, Self-confidence, Tolerance, Sincerity, Adaptability, JudgmentDependable (worthy of reliance/trust)Ability to understand & learnMental vigour (active strength of body & mind)

35. Qualities of a Manager (Social & Moral)HonestyGood characterWillingness to accept responsibilityLoyalIntegrityDignityInitiative

36. Qualities of a Manager (Other)EducationTrainingCommunicationRelationship managementMentorSpecial knowledge (peculiar to the function, be it technical, commercial, financial,managerial etc.)Knowledge/Experience arising from the work

37. Evolution of Management Thought Classical School of Management Thought (1850-1950) (emerged from the Industrial Revolution) CMT is based on the belief that workers only have physical & economic needs. It does not take into account social needs or job satisfaction, but instead advocates a specialization of labor, centralized leadership and decision-making, & profit maximization. It focuses on the efficiency of employees & on improving an organization’s productivity through quantitative (i.e., measurable, data driven) methods.Scientific Management (Taylor)Administrative Management (Theory) (Fayol)Bureaucracy (Weber)

38. i)Scientific ManagementFrederick Winslow Taylor (1885-1915) “Father of Scientific Mgmt” : The fundamental principles are as followsReplacing rules of thumb with science (organized knowledge) Estimates vs PreciseObtaining harmony in group action, rather than discord. (give & take situation)Achieving cooperation of human beings rather than chaotic individualism.(Mgmt & Workers)Working for maximum output, rather than restricted output. (surplus)Development of workers (scientific training)

39. ‘ONE BEST WAY’ OF PERFORMING A JOB(production efficiency, productivity of employees and profits)Time Study (work study in modern management)Functional Foremanship (Supervisors for planning should be different from supervisors responsible for execution)Differential Rate System (higher rate for hard work)Routing System (sequence of activities)

40. Henry L. Gantt (1861-1919)(task-and-bonus system & Gantt chart)Revised differential price rate systemWorkers daily work progress rated and publicly displayedDevised chart for production scheduling An effective planning & control technique

41. Frank & Lilian Gilbreth To reduce worker fatigue(to lose strength or energy), promote efficiency and complete the jobs in less time.Promoting individual worker’s welfare.Gilbreth proposed a three-position plan of promotion according to which the employee trains his successor, performs his present job, & prepares for the next highest one in the mgmt hierarchy, all at the same time.

42. Contribution of Scientific ManagementStoner stated the SM not only developed a rational approach to solving organizational problems but also pointed the way to professionalization of managementAdoption of SM with ‘division of work’ and ‘one best way’ at its core.

43. Limitations of Scientific ManagementMechanistic & impersonal approach (emphasis on production output)Lack of attention to psychological needs (interpersonal relationships among workers were absent)Job monotonyUse a device for exploitation (undesirable pressure)Unscientific and antisocial (feared of jobs)

44. ii) Administrative ManagementHenri Fayol (1841-1925) a French factory owner & engineer proposed the activities in the organization are:Technical (production) Commercial (purchase & sales)Financial (source and control of capital)Security (protection of property & employees)Accounting(balance sheet, records & costing)Administrative (Planning, Organizing, Commanding, Coordinating, Controlling)

45. Fayol’s Principles of ManagementDivision of workAuthority & ResponsibilityDisciplineUnity of command(one superior only)Unity of direction(one head one plan for a group of activities having similar objectives)Subordination of individual interest to general interestFair remuneration to workers

46. Fayol’s Principles of Management8. Centralization9. Scalar chain(gang plank)10. Order(‘a proper place for everything or everything in its right place’ and ‘a place for everyone and everyone in his appointed place’)11. Equality12. Stability of tenure of personnel13. Initiative(to suggest ideas and new methods)14. Esprit de corps (Cooperation & team work can bring harmony & unity within the organization. Fayol was against the policy of ‘divide & rule’ & ‘abuse of written communication’)

47. iii. Bureaucracy (Max Weber)Characteristics of Weberian Bureaucratic model)Division of labour/workHierarchical structure & authorityRules & Regulations (standardization, equality, and save time & effort)Impersonal conductAppointment based on competence and not on nepotismStaffingA system of procedures for dealing with situation. (Recorded in writing)

48. 2.Neo Classical School of Management Thought (The Human Relations Approach) Hawthorne ExperimentAn organization is a social system with a culture of its own.Informal groups have a great impact on workers productivity.There are frequent conflicts between the organization and the individuals.Friendly & liberal supervision has a favorable influence on human efficiency at work.

49. 2.Neo Classical School of Management Thought (The Human Relations Approach)Hawthorne Experiment5. Free flow of communication in the organization creates cordial relationship & good relations.6. Non-economic rewards such as praise, status, inter-personal relationships play a crucial role in motivating workers.

50. Behavioural Science Approach(A.H. Maslow, Douglas McGregor, Frederick Herzberg)It is an interdisciplinary approach (Knowledge)Organization as a social systemIndividuals differ in terms of personality, belief, attitude, value, perception etc.Informal groups exercise great influences on the attitude, behaviour & performance of the employee.New areas like motivation, leadership, communication, change & development, group dynamics dominate the core concept of management.Workers were treated like human beings instead of machine operators.

51. Contribution of Abraham Maslow (US psychologist) Hierarchy of needsPhysiological needs such as food, cloth, shelterSafety needs such as job security, insurance, safetySocial needs such as contact with friends, membership of groupsEsteem/Ego needs (status, recognition, power, achievements etc.)Self-actualization needs (meaningful life, learning new skills, taking challenges, personal growth)

52. Contribution of Douglas McGregorTheory X - It is a traditional view which holds that work is distasteful to employees, who must be motivated by force, money or praise.Theory Y - This theory assumes that people like work and view it as an opportunity to develop their creative capabilities and derive satisfaction from doing good work.

53. Major contributions of Behavioural ScientistsPeople do not dislike work, If they have helped to establish objectives, they will want to achieve them.Most people can exercise a great deal of more self direction, self control, and creativity than those are required in their current jobs (T-Y).The manager’s basic job to use the untapped human potential in the service of the organization.The manager should create a healthy environment.

54. Renis Likert’s Management(Leadership) Styles Approach(Institute of Social Sciences, Michigan,USA)Exploitative autocratic (no confidence on workers, hence minimal participation)Benevolent autocratic (Senior & subordinates have a master servant relationship)Participative(Subordinates allowed to participate in decision making)Democratic (Leaders have full confidence on their subordinates)

55. Quantitative or Management Science School (World War II)Focused on optimal utilization of resources with help of quantitative modeling and analysis.This approach yields best result when it is used with qualitative and relational judgements.

56. 3. Modern Management Theories(William G. Scott)1. The Systems approach (System & subsystem, Open & closed systems, boundary, Flow, Feedback, Synergy, Static & dynamic, Goal seeking)2.Contingencies approach (Situational Theory) (Circumstances in the organization’s external environment. The internal strengths & weakness of the organizations. The values, goals, skills and attitude of the managers and workers in the organization. The type of tasks, resources and technologies the organization uses.)

57. Dynamic Engagement Approach(Stoner, Freeman & Gilbert)New Organizational Approach (internal as well as external environment)Ethics & Social ResponsibilityGlobalization (borderless, equidistant)Organizational Re-engineering (BPR)MulticulturalismFocus on Quality (TQM)

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59. Think Positive…Believe in YourselfHe who dares wins. Don’t be afraid of failures. So Think Big. Think positive and become a Winner. If you believe you can, you probably can. What drives a great organization? A positive Attitude and a strong belief in one’s capabilities.

60. The Value of CommitmentNothing happens without Commitment. It is Commitment, not chance, that determines success in today’s competitive world . Be Committed to success. The characteristics of today’s high performers is that they are Committed.

61. The Power of CommunicationThe more we connect, the better we relate to each other and the more we can achieve for ourselves. Speaking about things that trouble us is a good approach to sort out matters and strengthen the bond that exists. When we do not communicate, we build negative energy and erode our self confidence.

62. Strategies for SuccessThink cost as fuel for growth. Achieve a competitive cost structure to differentiate your offerings and enter new market. Innovate faster to retain customers. Co-create with customers and partners, undertake cutting edge research in global R & D centres. Harvest information to create profit, improve efficiency and identify new revenue opportunities.