ch 7 organizing
TRANSCRIPT
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The Nature of Organizing,
Entrepreneuring, andReengineering.
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Every organization structure includes
certain roles and responsibilities that
have to be played by the people in theorganization.
If the people in the organization knowthe parts they are to play in any team
operation and the way their roles
relate to one another, the working ofthe organization will be much
effective.
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Existence meaningfulness ofOrganizational roles in an organization
require that They must incorporate verifiable
objectives
Their should be a clear idea of the major
duties or activities involved.Area of discretion or authority must be
clearly defined.
If the above criteria is fulfilled, thenonly the person filling the role willknow what he or she can do to
accomplish goals.
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Hence organizing can be described as
Identification and classification of required
activities
Grouping of activities necessary for
attaining objectives
Assignment of each group a manager with
the authority
Provision of coordination and control.
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Purpose of organization structure
To clarify who is to do which task.
Who is responsible for what.
Remove obstacles to performance
caused by confusion and uncertaintyof assignment
To furnish decision making and
communication networks reflectingand supporting enterprise objectives.
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Organization
A formalized intentional structure of roles
or positions
Formal organization
Intentional structure of roles in a formallyorganized enterprise.
Structure of the organization is defined
such that it furnish an environment inwhich individual performance, both
present and future, contributes most
effectively to group goals.
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Informal organization
Any joint personal activity without
conscious joint purpose, but contributing
to joint results.
Informal organization is a network ofinterpersonal relationships that arises
when people associate with one another.
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Organizational Division:
Department Establishment of departments is one
aspect of organizing.
Department can be defined as adistinct area, division, or branch of an
organization over which a manager
has authority for the performance ofspecified activities.
Ex: production division, sales
department etc.
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Organizational levels and the
span of managementAs the organization becomes large,
the span of management has to be
analyzed and defined accordingly
Organizational levels exist as there is
a limit to the no. of persons a manager
can supervise.
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Operational mgt. theorists have taken
a position that there are too many
variables in a mgt. situation to specifyany particular no. of subordinates that
a manager can effectively supervise.
Principle of Span of Mgt. states that
there is a limit to the no. of
subordinates a manager caneffectively supervise, but the exact no.
will depend on the impact of
underlying factors.
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Factors determining an effective span
Personal capacities of the manager such
as comprehending quickly, getting alongwith people, commanding loyalty and
respect.
Managers ability to reduce the time he or
she spends with subordinates.
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Intrapreneur Is a person who focuses on innovation and
creativity and who transforms a dream or an
idea into a profitable venture by operatingwithin an established organizationalenvironment (this is also called as corporateventuring)
Entrepreneur A person who does similar things, but outside
the organizational setting.
They have the ability to see an opportunity,
obtain the necessary capital, labor and otherinputs, and then put together an operationsuccessfully.
They are willing to take personal risk ofsuccess and failure.
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Manager must promote opportunities forentrepreneurs to utilize their potential for
innovation.
Entrepreneurs take personal risks in initiatingchange and they expect to be rewarded for it.
The risk they are taking may result in failure,but this must be tolerated.
Entrepreneurs also need some degree offreedom to pursue their ideas which requiresthat sufficient authority be delegated.
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Innovation and
entrepreneurship Peter Drucker suggest that innovation
applies not only to high-tech
companies but equally to low-tech,
established businesses.
Innovation is not a matter of sheer
luck, it requires a systematic andrational work, well organized and
managed for results.
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Innovation comes about because of
the following situations:
An unexpected event, failure, or successAn incongruity between what is assumed
and what really is
A process or task that needs improvement Changes in the market or industry
structure
Changes in demographics
Changes in meaning or in the way things
are perceived.
Newly acquired knowledge.
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Reengineering the
organization Reengineering can be defined as the
fundamental rethinking and radical
redesign of the businessprocesses to
achieve dramatic improvements incritical contemporary measures of
performance, such as cost, quality,
service and speed.
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Key aspects of Reengineering
1. Fundamental rethinking of what theorganization is doing and why.
2. Radical (reinventing) redesign of
business processes.3. Dramatic results
4. Processes (carefully analyzing and
questioning business processes isimportant)
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The logic of organizing
Establish enterprise objectives Formulating supporting objectives, policies
and plans
Identifying, analyzing, and classifying the
activities necessary to accomplish theseobjectives
Grouping these activities in light of humanand material resources available and the bestway, under the circumstances, of using them.
Delegating to the head of each group theauthority necessary to perform the activities.
Tying the groups together horizontally andvertically, through authority relationships and
information flows