chapter 9– organising

8/18/2019 Chapter 9– Organising

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Presentation prepared by

Lucy Miller

Macquarie University

Chapter 9–Organising


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© John Wiley and Sons

Organising

Learning objectives:

• What is organising as a management function?

• What are the major organisation structures?

• What are the essentials of organisational design?• How do contingency factors inuence design?

• What are the new develo!ments in organisationstructures and o!erating systems?

• What are the major issues in su"systems design?

• What organising trends are changing thewor#!lace ?


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Organising as a managementfunction

• Organising

– $he !rocess of arranging !eo!le and otherresources to wor# together to accom!lish a goal%

–

&nvolves creating a division of la"our for tas#!erformance and coordinating results to achievea common !ur!ose%

• 'iven a clear mission( core values( o"jectives and

strategy( organising "egins the !rocess ofimplementation "y clarifying jo"s and wor#ingrelationshi!s%


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Organising as a managementfunction


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Organisation structure

• Organisation structure

– $he way in which various !arts of anorganisation are formally arranged%

– $he system of tas#s( wor#ows( re!ortingrelationshi!s and communication channelsthat lin# the wor# of diverse individuals andgrou!s%

• Structure must "e handled in a contingencyfashion) as environments and situationschange( structures must often change too%


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Formal structure

• Organisation chart

– A diagram that shows re!orting relationshi!sand the formal arrangement of wor# !ositions

within an organisation% – &denti*es various !ositions and jo" titles( as

well as the lines of authority andcommunication "etween them%

• $his is the formal structure( or the structure ofthe organisation in its o+cial state% &t re!resentsthe way the organisation is intended to function%


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Formal structure

• What can you learn from an organisation chart? – Division of wor: ,ositions and titles show

wor# res!onsi"ilities% – !upervisory relationships: -ines show

who re!orts to whom% – Communication channels: -ines show

formal communication ows% – Major subunits: ,ositions re!orting to a

common manager are shown% – Levels of management: .ertical layers of

management are shown%



"nformal structure

• An informal structure is a /shadow0 organisationmade u! of the uno+cial( "ut often critical(wor#ing relationshi!s "etween organisationalmem"ers%

• &f the informal structure could "e drawn( it wouldshow who tal#s to and interacts regularly withwhom( regardless of their formal titles and

relationshi!s%• "nformal learning is increasingly recognised as

an im!ortant resource for organisationaldevelo!ment%



Departmentalisation

• Departmentalisation

– $he grou!ing of wor# !ositions into formalteams or de!artments which are lin#ed in a

coordinated fashion within the largerorganisation%

• $he three major ty!es of organisation structureare1

– $he functional structure

– $he divisional structure

– $he matri2 structure



Functional structures

• &n functional structures( !eo!le with similars#ills and !erforming similar tas#s are formallygrou!ed together into wor# units%

•

Mem"ers of functional de!artments sharetechnical e2!ertise( interests and res!onsi"ilities%

• Major advantages of functional structures include1

– economies of scale)

– high3quality technical !ro"lem3solving)

– in3de!th training and s#ills within functions%



Functional structures



Divisional structures

• A #ivisional structure grou!s together!eo!le wor#ing on the same !roduct( in thesame area( with similar customers( or involved

in the same !rocesses%• $he major ty!es of divisional a!!roaches are

the !roduct( geogra!hical( customer and!rocess structures%

• 4ivisional structures are common in com!le2organisations%




• $ro#uct structures grou! together jo"s and!eo!le wor#ing on a single !roduct or service%

• %eographical structures grou! together !eo!leand jo"s !erformed in the same location%

• Customer structures grou! together !eo!le and jo"s that serve the same customers or clients% – Work process: 'rou! of tas#s related to one

another that collectively create something of

value to a customer%• $rocess structures grou! jo"s and activities

that are !art of the same !rocesses%



Matri& structures



Organisational #esign

• Organisational #esign is the !rocess ofcreating structures that "est serve acom!any0s mission and o"jectives%

The ultimate purpose oforganisational design is

to create an alignment

between supporting

structures and

situational challenges.



'ureaucratic #esigns



(#aptive #esigns

• (#aptive organisations:

– Minimum of "ureaucratic features) encouragewor#er em!owerment and teamwor#%

•

Organic #esigns – 4ecentralised( with fewer rules and

!rocedures( o!en divisions of la"our( wides!ans of control and more !ersonalcoordination%

• Learning organisation

– 5ontinuously changes and im!roves using thelessons of e2!erience%



)irtual #esigns

• )irtual organisations – Shifting networ#s of strategic alliances lin#ed

"y technology( with very little !hysicalinfrastructure( that are engaged as needed%

– 6lectronic communications technologies formthe "asis of the virtual organisation%

– Mo"ility of wor# – /Hy"rid0 nature 7 can consist of a loose

framewor# "rought together for a given time!eriod to achieve a mutual o"jective%

– -ac# of "oundaries and inclusiveness%



Contingencies in organisational#esign: *nvironment


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Contingencies in organisational#esign: !trategy

• !tability oriente# strategies1

– Assume little change is occurring in thee2ternal environment( so !lans8o!erations

can "e !rogrammed to "e im!lementedroutinely%

• %rowth oriente# strategies1

–

9rganisational design will need innovationand e2i"ility to res!ond to changinge2ternal environment%


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!i+e an# life cycle

• ,he organisational life cycle:

– $he evolution of an organisation over time%

• Stages1

1.Birth stage – founded "y an entre!reneur2.Youth stage – starts to grow ra!idly

3.Midlife stage – grown large with success

.Maturity stage – sta"ilises at a larger si:e


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Contingencies in organisational#esign: !i+e an# life cycle

• &n the organisational life cycle( an organisation!asses through di;erent stages from "irth tomaturity%


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Contingencies in organisational#esign: -uman resources

• $eople are also a contingency factor%

• A good design !rovides !eo!le with thesu!!orting structures they need in order to

achieve%• Modern management theory argues that there

should "e a good /*t0 "etween organisationalstructures and human resources%


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,eam structures

• Cross.functional teams "ring togethermem"ers from di;erent functionalde!artments%

•

$roject teams are convened for a !articulartas# or !roject and dis"anded once it iscom!leted%


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/etwor structures


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!ubsystem #esign an#integration

• !ubsystems

– Smaller com!onents of a larger system%

• Di0erentiation

– $he degree of di;erence that e2ists "etweenthe internal com!onents of an organisation%

• Sources of su"systems di;erentiation1

– ,lanning and action hori:ons vary%

– 9"jectives vary due to tas# variation% – &nter!ersonal orientation varies relations%

–


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!ubsystem #esign an#integration

• How to im!rove subsystem integration1

– =ules and !rocedures

– Hierarchical referral

– ,lanning – 4irect contact

– -iaison roles 7 assign formal coordinators

–

$as# forces 7 tem!orary teams – $eams 7 !ermanent teams with authority

– Matri2 organisations


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Organising tren#s

• $he upsi#e.#own pyrami# !uts customersat the to!( served "y wor#ers at the middle(whose managers su!!ort them at the "ottom%

• Chain of comman# – -in#s !ersons with successively higher

levels of authority% – 9rganisations are "eing /strea!lined0 7

atter more hori:ontal structures "eing

viewed as a com!etitive advantage%• -ess unity.of.comman#( in which each

!erson re!orts to only one su!ervisor%


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Organising tren#s


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Organising tren#s

• Delegation is the !rocess of distri"uting andentrusting wor# to other !ersons%

• 'round rules for e;ective delegation include1 –

5arefully choose the delegate% – 5learly de*ne the res!onsi"ility% – Agree on o"jectives and standards% – Agree on a !erformance timeta"le% –

'ive authority and show trust% – ,rovide !erformance su!!ort and feed"ac#% – Hel! when things go wrong%


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Organising tren#s

• Centralisation

– $he concentration of authority for mostdecisions at the to! level of an organisation%

•

Decentralisation – $he dis!ersion of authority to ma#e decisions

throughout all levels of the organisation%

• Where em!owerment and related forces are

contri"uting to more decentralisation( advancesin &$ allow centralised control to "e retained%


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Chapter 9 – Organising

!ummary1

• What is organising as a management function?

• What are the major ty!es of organisation structures?

•

What are the essentials of organisational design?• How do contingency factors inuence design?

• What are the new develo!ments in organisationstructures and o!erating systems?

• What are the major issues in su"systems design?

• What organising trends are changing the wor#!lace?


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chapter 9– organising

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