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LEC 5 ITM - Coggle Diagram
LEC 5 ITM
Purpose of organizing
Coordinates diverse tasks
Clusters jobs into units
Assigns tasks and responsibilities to individual jobs
Establishes relationships among individuals, groups, and departments
Divides work into specific jobs and departments
Establishes formal lines of authority
Allocates and deloys resources
What is organizing
Organizational structure: the formal arrangement of jobs within an organization
Organizational design: a process involving decisions about 6 key elements
Chain of command
The continuous line of authority that extends from upper levels to the lowest levels and clarifies who reports to who
Responsibility: the obligation to perform
Unity of Command: one boss, one direct report
Authority: the right to tell people what to do and expect them to do it
Span of control
The number of employees who can be effectively and efficiently supervised by a manager, the width of span is affected by:
Complexity of tasks
Physical proximity of subordinates
Similarity of tasks
Standarrdization of tasks
Employee characteristics
Skills and abilities of the manager
Departmentalization
Centralization & decentralization
Centralization: decision-making is concentrated at a single point in the organization
Less capable lower-level managers
Simple structure
Stable environment
Employee empowerment: increasing the decision-making authority of employess
Decentralization: decision-making authority of employess
Capable lower-level managers
Larger/ more diverse organization
Complex/ uncertain environment
Work specialization
Formalization
The degree to which rules, procedures, and written documentation are used to direct and control behavior
Organizing: arranging and structuring work to accomplish the organization's goal
Work specialization
Advantages
More efficient employess
Lower training costs
Better quality
Lower labor cost
Disadvantages
Stress
Boredom & fatigue
Lower quality
Higher turnover
Departmentalization
How jobs are grouped together so work gets done in a coordinated and intergated way
Process: Grouping by product or customer flow
Customer: Grouping by type of customer and needs
Product: Grouping by product line
Geographical: Grouping by territory or geography
Functional: Grouping by functions performed