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PM Module 2: Nature of An Organization (Organizational Concepts…
PM Module 2: Nature of An Organization
Organizational Concepts
Vision
a view of an organizations future direction and business make up; a guiding concept for what the organization is trying to do and become
Mission
What is our business and what are we trying to accomplish?
Elements
enterprize description
customer description
need satisfaction method
circumstances of need satisfaction
Values
Belief system
Policy
Broad guidelines
Elements
procedures + rules
limits of behavior
intention to keep to statements
proof of communication
recognizes employee needs
emphasize inter-dependence
worker importance
rights of workers, obligations of management
Formation
long and short : term objectives
policies put into writing and communicated to all (in-house mag/newsletter)
Importance on HR development
:warning:
method & process of recruitment, training, compensation, admin
criteria for developing procedures for dealing with HR
address need of the individual
provides incentives to ensure max productivity
provision for housing and educational programmes for workers
Assist employee in skills dev
promote and preserve the dignity and self esteem of staff
dev and maintain open lines of communication and personal contact between the enterprise and employee
SWOT ANALYSIS
Long-term goals
provides direction
set standards
provides motivation
Stratergies
ensures goals are achieved
Steps
decide reasons for the existence of enterprize
analyse the external environment (political, social, economical and technological
assess strengths and weaknesses of the enterprize
devloping goals, objectives, strategies, action plans in order to achive goals
Advantages
understanding how strategic planning can benifit HR planning
proactive recruitment of the correct workforce
improved control of aspects relating to human resources
better dev and training of workforce
Importance
costs
function
new operations
Strategic business plan
primary source of comm strats to all mgmt and employees
prim point of reference if new treats or opportunities arise
Short Term Objectives
S - Specific
M - Measurable
A - agreed as achievable
R - Realistic
T - Time-related
Implementation of Strategies
Strategy evaluation
Influences of external environment on organization structures
External macro environment
Social: demographics of local population
Political :red_cross: :new legislation, political process or political climate
Economic environment: customer money avail
technology environment: new products, processes that could affect activities
Physical environment: resources, pollution ect
The international environment
Organizational design
Division of Labour
:
Step 1: Tasks divided into functional units
Step2: Labour is divided into functional units according to:
functions
products
Geography
customer
5 - time
Step 3 :individuals appointed in positions
Advantages:
increased productivity
first principle of management
no waste of time
Disadvantages:
alienation
boredom
repetitive and unsatisfying
Span of Contol
the number of subordinates who report directly to a particular manager, its expressed by means of ratio
Factors that influence span of control
:
internal env
external env
capabilities of employees
processes within enterprize
nature of task
physical structure
specialisation
departmentalisation
manergerial experience
availability of funds
Wide Span of control
flat organisational structure, modern trends, cut out too many management levels
too wide overextended manager, too little guidance/contro for subordinates
Advantages
speedy decision making
allows for participative management
found at lower management levels : repetitive tasks
Narrow Span of Control
managers have few subordinates reporting to them
tall organisation structure, many levels of authority
few people per level and long chain of command
Disadvantages
:
few subs per man
underutil, unecc costs
under util mgr
decision making slow
Organization Structures
