ch 07 nature of organizing , presentation by : sa qadri
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ManagementA GLOBAL AND ENTREPRENEURIAL PERSPECTIVEby Weihrich, Cannice, and Koontz
Sajjad Ahmad QadriMinhaj University
Ch
-07
The
Nature
ofOrganizing,
Entrepreneuring,and
Reeng
ineering
Chapter
7
Dec ision M ak ing
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After studying this chapter, you should understand:
1. The purpose of an organization structure
2. The meaning of "organizing" and "organization."
3. The distinction between formal and informal organization.
4. How organization structures and their levels are due to thelimitations of the span of management.
5. The exact number of people a manager can effectively supervise
depends on a number of underlying variables and situations.
6. The nature of entrepreneuring and intrapreneuring.
7. The key aspects and limitations of reengineering.
8. The logic of organizing and its relationship to other managerial
functions.
9. That organizing requires taking situations into account. 2004 H.Weihrich
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Organizational Roles
For an organizational role to exist and be meaningful, it must incorporate
(1) verifiable objectives, which, are a major part of planning
(2) a clear idea of the major duties or activities involved and
(3) an understood area of discretion or authority so that the person fillingthe role knows what he or she can do to accomplish goals
2004 H.Weihrich
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Organizing involves:
(1) the identification and classification of requiredactivities,
(2) the grouping of activities necessary to attainobjectives,
(3) the assignment of each grouping to a managerwith the authority (delegation) necessary tosupervise it, and
(4) the provision for coordination horizontally (on thesame or a similar organizational level) andvertically (for example, corporate headquarters,
division, and department) in the organizationstructure
2004 H.Weihrich
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Definition of Organization
Organization implies a formalized intentional structure of roles or positions
2004 H.Weihrich
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Formal and Informal Organization
Formal organization pertains to the intentional structure of roles in aformally organized enterprise
The informal organization is a network of interpersonal relationships thatarise when people associate with each other
2004 H.Weihrich
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What is a Department?
The department designates a distinct area, division, or branch of anorganization over which a manager has authority for the performance of
specified activities
2004 H.Weihrich
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Organization with Narrow Spans
2004 H.Weihrich
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Organization with Wide Spans
2004 H.Weihrich
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What is the Principle of the Span of
Management?
The principle of the span of management states that there is a limitto the number of subordinates a manager can effectively supervise,
but the exact number will depend on the impact of underlyingfactors
2004 H.Weihrich
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What Determines an Effective Span of
Management?
2004 H.Weihrich
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Difference Between an Intrapreneur andan Entrepreneur
An intrapreneur is a person who focuses on innovation
and creativity and who transforms a dream or an idea into
a profitable venture by operating within the
organizational environment
The entrepreneur is a person who does similar things as
the intrapreneur, but outside the organizational setting
2004 H.Weihrich
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Definition of Reengineering "...the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical contemporarymeasures of performance, such as cost, quality, service, and speed.
The underlined words are considered key aspects of reengineering byHammer and Champy
2004 H.Weihrich
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Key Aspects of Reengineering
Fundamental rethinking of what the
organization is doing and why.
Radical redesign of the business processes
[Note:Downsizing or "rightsizing" is not theprimary purpose of reengineering, although in
many cases it does result in a need for fewer
people]
Reengineering calls for dramatic results
The fourth key word in the reengineering
definition is processes. The need for carefully
analyzing and questioning business processes 2004 H.Weihrich
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Management by Processes
2004 H.Weihrich
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2004 H.Weihrich
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2004 H.Weihrich
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The Steps in the Organizing Process:
1. Establishing enterprise objectives
2. Formulating supporting objectives, policies, and plans
3. Identifying, analyzing, and classifying the activities
necessary to accomplish these
4. Grouping these activities in light of the human and
material resources available and the best way, under
the circumstances, of using them
5. Delegating to the head of each group the authority
necessary to perform the activities
6. Tying the groups together horizontally and vertically,through authority relationships and information flows
2004 H.Weihrich
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Basic Questions for Effective Organizing
It is useful to analyze the managerial function of
organizing by raising and answering the
following questions:
1.What determines the span of management andhence the levels of organization? (answered in
this chapter)
2.What determines the basic framework of
departmentation, and what are the strengths
and weaknesses of the basic forms? (answered
in Chapter 8)
2004 H.Weihrich
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Basic Questions for Effective Organizing cont.
3.What kinds of authority relationshipsexist in organizations? (answered inChapter 9)
4.How should authority be dispersedthroughout the organization structure,and what determines the extent of thisdispersion? (answered in Chapter 9)
5.How should the manager make
organization theory work in practice?(answered in Chapter 10) 2004 H.Weihrich
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.
Sajjad Ahmad Qadri Minhaj University, Lahore.
Defining the strategy
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.
Sajjad Ahmad Qadri Minhaj University, Lahore.
The concept of strategy
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The concept of strategy
The concept of strategy is based on a number of associated concepts:
Sajjad Ahmad Qadri Minhaj University, Lahore.
strategycompetitiveadvantage,
distinctive
capabilities
strategicmanagement
strategicgoals
strategiccapability
resource-based
strategy
strategic
plan
StrategicIntent
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Strategic intent
The strategic intent sequence has been defined by Miller
and Dess (1996) as:
Sajjad Ahmad Qadri Minhaj University, Lahore.
>> a broad vision of what the organization should be;
>> the organizations mission;
>> specific goals, which are operationalized as:
>> strategic objectives
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Strategic plans
Strategic plans are formal expressions of how an organization
intends to attain its strategic goals.Boxall and Purcell (2003) make the point that
We should not make the mistake of equating the strategies of
a firm with formal strategic plans It is better if we
understand the strategies of firms as sets of strategic choices,
some of which may stem from planning exercises and set piece
debates in senior management, and some of which emerge in a
stream of action.Sajjad Ahmad Qadri Minhaj University, Lahore.
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.
Sajjad Ahmad Qadri Minhaj University, Lahore.
Strategy Formulation
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Approaches to strategy formulation Cont..
Sajjad Ahmad Qadri Minhaj University, Lahore.
strategy formulation as a rational process of deliberate calculation. Theprocess of strategy formulation is seen as being separate from the process ofimplementation.
1.Classical
strategy formulation as an evolutionary process that is a product of marketforces in which the most efficient and productive organizations win through.2. Evolutionary
strategy formulation as an incremental process that evolves through discussionand disagreement. It may be impossible to specify what the strategy is untilafter the event.
3.Processual
strategy is shaped by the social system in which it is embedded. Choices areconstrained by the cultural and institutional interests of a broader societyrather than the limitations of those attempting to formulate corporatestrategy.
4.Systemic
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The reality of strategic management
The reality of strategic management is that managers attempt to
behave strategically in conditions of uncertainty, change and
turbulence, even chaos.
The phenomenon of bounded rationality as described by Miller et al
(1999) applies while people by their own lights are reasoned in
their own behaviour, the reasoning behind their behaviour is
influenced by human frailties and demands from both within and
outside the organization.
Sajjad Ahmad Qadri Minhaj University, Lahore.
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Sajjad Ahmad Qadri Minhaj University, Lahore.
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