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Fundamentals of Organising (Key Organising Concepts (b. Chain of Command…
Fundamentals of Organising
Introduction
Strategy defines
what
to do;
organising defines
how
to do it
The Organising Process
Step 1: Consider Organisational Objectives
Everything a manager does should be directed toward accomplishment of objectives & organising.
Organising should be directed at
arranging people
&
allocating resources
Step 2: Determine Types of Work Activities
determine the kinds of work activities that should be involved after organising needed to accomplish are established
Step 3: Departmentalisation
The purpose of departmentalisation is to contribute more effective and efficient use of organisational resources.
Step 4: Design Hierarchy of Relationship
Requires the determination of both vertical & horizontal operating relationship of the organisation as a whole
Step 5: Set Up Mechanism for Co-ordination
There is also a need for monitoring the effectiveness of that integration. This process is called
co-ordination
.
Organisation Structure
organisation process leads to the creation of organisation structure
organisation structure is defined as
(1) the set of formal tasks assigned to individuals & departments
(2) formal reporting relationships ,including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control:
and
(3) the design of systems to ensure effective coordination of employees across departments
major positions & departments in the organisation
chain of command between managers & subordinates
number of subordinates for each manager
official channels for communication
the way work is grouped
type of work being performed
Key Organising Concepts
a. Work Specialisation
(division of labour)
employees within each department perform only the tasks relevant to their specialised function
when work specialisation is extensive, employees specialise in a single task
Too much specialisation, employees are isolated
Too much specialisation creates separation and hinders the coordination that is essential for organisations to be effective
b. Chain of Command
Unity of Command
Each employee is held accountable to only one supervisor
Scalar Principle
A clearly defined line of authority in the organisation that includes all employees
Authority
formal and legitimate right of a manager to make decisions
Responsibility
the duty to perform the task or activity as assigned
Delegation
the process managers use to transfer authority & responsibility to positions below them in the hieracrchy
Accountability
is the mechanism through which authority and responsibility are brought into alignment
c. Line and Staff Authority
Line Authority
means that people in management positions have formal authority to direct and control immediate subordinates.
Staff Authority
narrower and includes the right to
advise
,
recommend
, and
counsel
in the staff specialists' area of expertise.
d. Span of Management
work performed by subordinates is stable and routine
Subordinates perform similar work tasks
Subordinates are concentrated in a single location
Little time is required in nonsupervisory activities
Average span of control used in an organisation determines whether the structure is tall or flat.
e. Centralisation & Decentralisation
f. Formalisation
Departmentalisation
Functional Approach
Divisional Approach
Matrix Approach
Team Approach
Network Approach
Advantages
Can draw on expertise worldwide
Highly flexible & responsive
Reduced overhead costs
Disadvantages
Lack of control, weak boundaries
Greater demands on managers
Weaker employee loyalty
Two underlying principles
Factors that are associated with larger spans of control