Organising

Organising

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  ORGANISING
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  Organizing  A processof defining essential relationships among people tasks and activities in such a way that all the organization resources are integrated and coordinated to accomplish its objectives efficiently and effectively.
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  Process of organizing Determination of objectives  Division of activities  Grouping activities  Defining authority and responsibility  Coordination of activities  Reviewing and reorganizing
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  Organization Chart  Thevisual representation of organization structure is organization chart Organization structure Formal system of task and reporting relationships showing how workers use resources.
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  Ways to Structurea Business  By function: arranging the business according to what each section or department does  By product or activity: organising according to the different products made  By area: geographical or regional structure  By customer: where different customer groups have different needs  By process: where products have to go through stages as they are made
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   Functional Structure An organizational structure composed of all the departments that an organization requires to produce its goods or services.
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  Functional structure Production MarketingAccounts Personnel IT Board of Directors Chief Executive
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   Advantages  Encourageslearning from others doing similar jobs.  Easy for managers to monitor and evaluate workers.  Allows managers to create the set of functions they need in order to scan and monitor the competitive environment Disadvantages  Difficult for departments to communicate with others.  Preoccupation with own department and losing sight of organizational goals.
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  Organisation by Product/Activity Imaging and PrintingGroup Personal Systems Group Enterprise Systems Group HP Services HP Financial Services Hewlett Packard
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  Divisional Structure Managers createa series of business units to produce a specific kind of product for a specific kind of customer
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  Other Organisational Structures ByCustomer:  Wholesale  Retail  Industrial customer By Process Example, textile business  Weaving  Dyeing
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   Product Structure Managers place each distinct product line or business in its own self-contained division  Divisional managers have the responsibility for devising an appropriate business-level strategy to allow the division to compete effectively in its industry
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   Market Structure Groups divisions according to the particular kinds of customers they serve  Allows managers to be responsive to the needs of their customers and act flexibly in making decisions in response to customers’ changing needs
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   Geographic Structure Divisions are broken down by geographic location  Global geographic structure  Managers locate different divisions in each of the world regions where the organization operates.
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   Global ProductStructure  Each product division takes responsibility for deciding where to manufacture its products and how to market them in foreign countries worldwide
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   Matrix Structure An organizational structure that simultaneously groups people and resources by function and product.  Results in a complex network of superior- subordinate reporting relationships.  The structure is very flexible and can respond rapidly to the need for change.  Each employee has two bosses (functional manager and product manager) and possibly cannot satisfy both.
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  Span of Control Number of workers that a manager can effectively supervise. Tall structure: few subordinates, tight control Flat structure: Wide span of control
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  Principles of organizing Unity of objective  Organizational efficiency  Division of labor  Authority-responsibility  Principle of delegation  Unity of command  Unity of direction  Span of control