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ORGANISING - Coggle Diagram
ORGANISING
MECHANISTIC ORGANISATION
- a rigid and tightly controlled structure
High work specialisation
- creates jobs that are simple, routine and standardised
Rigid departmentalisation
- increases impersonality
- increases the need for multiple layers of management to coordinate these specialised departments
Narrow sans of control
- effect of creating tall organisational structures with many layers and levels
High formalisation
- as the distance between the top and the bottom of the organisation widens, top managers tend to impose rules and regulations to control employee behaviour because they are so far removed from the lower-level activities that they cannot directly supervise and ensure the use of standard practices
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High chain of command
- strict adherence to unity of command
- ensures existence of a formal hierarchy of authority, in which each person is supervised by one superior
Minimise impact of differing personalities, human judgement and ambiguity -> seen as inefficient and inconsistent
Rely heavily on rules, regulations, standardised tasks and similar controls
ELEMENTS OF ORGANISING
WORK SPECIALISATION
- describe a degree to which tasks in an organisation are divided into separate jobs
- the essence is that an entire job is not done by one individual but instead broken down into steps, and each step is completed by a different person
- makes efficient use of diversity of skill workers have
DEPARTMENTALISATION
- how groups are grouped together
- after deciding what job tasks will be done by whom, common job activities need to be grouped back together so that the work can be done in a coordinated and integrated way
- Functional departmentalisation -> groups jobs by function
- Product departmentalisation -> groups jobs by product line
- Geographic departmentalisation -> groups jobs on the basis of territory or geography (perhaps, Asia-Pacific, Europe and North America regions) -> if an organisations customers are scattered over a large geographic area, this from of departmentalisation can be valuable
- Process departmentalisation -> groups jobs on the basis of product or customer flow
- Customer departmentalisation -> groups jobs on the basis of customers who have common needs or problems that can be best met by having specialists for each group -> it emphasises monitoring and responding to changes in customer needs
CHAIN OF COMMAND
- is the line of authority that extends from the upper organisational levels to the lowest levels and clarifies who reports to whom
- authority refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it
- authority could be delegated
- when managers use their authority to assist work to employees, those employees take on an obligation to perform those assigned duties
- obligations are known as responsibility
- employees should be held accountable for their performance
- unity of command helps to preserve the concept of a continuous line of authority -> that a person should report to one manager only
- without unity of command -> conflicting demands and priorities from multiple bosses can create problems
SPAN OF CONTROL
- determines the number of levels and managers an organisation has
- wider span are more efficient in terms of cost
- however, wider spans may reduce effectiveness if employee performance worsens because managers no longer have the time to lead effectively
CENTRALISATION & DECENTRALISATION
- organisation is never completely centralised or decentralised
Centralisation
- the degree to which decision making is concerned at upper levels of the organisation
- top managers make the organisation's key decisions with little or no input from lower-level employees
Decentralisation
- more that lower-level employees provide input or actually make decisions
- increased decentralisation is employee empowerment (giving employees more authority (power) to make decisions)
FORMALISATION
- how standardised an organisation's jobs are and the extent to which employee behaviour is guided by rules and procedures
Highly formalised organisations
- explicit job descriptions
- lots of organisational rules
- clearly defined procedures covering work processes
- employees have little discretion over what is to be done, when it is to be done and how it should be done.
Low formalisation
- job behaviours are relatively unstructured
- employees have a great deal of freedom in how they work
ORGANIC ORGANISATION
- highly adaptive and flexible
Flexible
- allows change rapidly as needs require
Specialised jobs, but these jobs are not standardised
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Need few formal rules and little direct supervision because tehir training has instilled in them standards of professional conduct
Organisation structure
- a formal arrangement of jobs within an organisation
Organisational design
- when managers develop or change an organisation's structure they are engaged in organisational design