1. Organizing Process Structure
a course of action, a route, a progression
Structure
an arrangement, a configuration, a construction

2. The process of deploying resources to achieve strategic goals
Organizing
The process of deploying resources to achieve strategic goals

3. The process of organizing takes place within a structure reflected by the way in which the organization
Divides its labor into departments and jobs
Establishes formal lines of authority
Establishes mechanisms for coordinating diverse tasks

4. Organizing process leads to creation of an Organizational Structure
Formal tasks assigned
Formal reporting relationships
Systems design for coordination across departments

5. Features of Organizational Structure

6. Work Specialization Also called division of Labor
Specialists get good at a specific task
Efficiency increases
Employees are selected based on specific skills
Training is geared toward increased efficiency.
Based on a mechanistic organization

7. Chain of Command An unbroken line of authority
Unity of Command-Everyone has only one supervisor
Scalar Principle-Everyone has at least one boss. Everyone is included

8. Authority The formal rights of a manager to manage
Vested in the organizational position, not the person.
Provides the manager with positional power
Authority is accepted by the subordinates
Authority flow from the top, down.

9. Responsibility
The duty to perform the task the employee has been assigned.
Responsibility and Authority are delegated together and make the employee accountable to superiors

10. Line and Staff Organizations
Line departments perform the organization’s primary tasks.
Production, marketing, sales, R&D
Staff Departments provide specialized skills in support of line departments.
Engineering, Human Resources, Legal,
Advise and council in areas of expertise

11. Span of Management (Control)
The number of employees reporting to a supervisor.
Size varies with the
type of organization,
skill of the subordinates,
Geographic dispersion
Managerial skill and preference

12. Centralization Decision making is done high in the organization
Tendency toward decentralization
Greater use of employee skills
Less mechanistic
Relieve burden on manager to do everything
Decisions made closer to the action
Decisions are make quicker

13. Factors influencing Decentralization
Amount of change and uncertainty in the environment
Corporate strategy and culture
Size and dispersion of the organization
The risk of failure
The greater the risk, the higher up the decisions are made.

14. Departmentalization or Structure

15. Functional Approach
Grouping of positions based on skills of functions.

16. Advantages and Disadvantages of Functional Organization Structures
Efficient use of resources
In depth skills
Specialized career development
Coordination within functions
Excellent technical problems solving
Disadvantages
Poor communications across functions
Slow response to external changes
Requires high level coordination
Limited general management training

17. Divisional Approach
Based on outputs e.g. products, sbu’s etc.

18. Advantages and Disadvantages of Divisional Structure
Customer oriented
Faster response to varied environmental changes
Coordination between functions within structure
Easy to fix blame
Emphasis on overall product and division goals
Disadvantages
Duplicate resources
Less specialization within divisions
Less top management control
Competition for corporate resources

19. Matrix Organization Two sets of bosses-functional and divisional.
Violates the chain of command, e.g. two bosses, not clear line of authority.
Attempts to lower the risks of functional and divisional structures
Requires employee to manage two sets of bosses.

20. Team Structure Delegate authority
Push decision making to the lowest level
Gain commitment from workers

21. Team Approach Advantages Disadvantages Same as functional departments
Reduces barriers among functions
Lower response time
Better morale and enthusiasm
Less overhead
Disadvantages
Lots of meetings
Dual loyalties

22. Network or Value Chain Management
Do what you do well, sub-contract everything else to those who do better than you.
Look for the best industry practices
Management the value chain rather than the organization
Advantages
Increased competitiveness
Flexibility
Reduced costs
Disadvantages
Requires a different kind of management
Need to sell the concept
Less control

23. Change Management-A Process

24. Models of Planned Organizational Change
Change can be managed
Organizational change is the adoption of a new idea or behavior by an organization
Change comes from recognition that environmental changes will create mismatches

25. Forces for change
Mismatches occur between the company and its external environment
Customers
Competitors
Technology
Economics
International
Government
As well as its internal environment
Management
Employees
Unions
Inefficiencies

26. Managers must be aware of the mismatches as they develop and initiate change

27. Initiating Change Change can be made by
finding established ways to eliminate the mismatch
Downsizing to eliminate mismatch of department size and reduced demand.
Create new ways
Two people share one job

28. Creativity to Initiate Change
Define it please
“From the top of the barn, a horse looks like a violin” -Mark Twain
The ability to view ordinary situations in unique ways
Function of Organizational Climate and Individual characteristics
Climate
Open communications
Good mix of experts and non experts
Freedom to choose problems
Resources available without a specific reason
Individual Characteristics
Originality
Curosity
Open Mindedness
Focused approach
Persistance
Playful attitude
Receptiveness to new ideas

29. Creativity in Organizations
Creativity can be built into an organization by creating an appropriate structure
New Venture teams (intrapreneurship)
Idea Champions
New Venture Funds

30. Change Management – Two Paths of Change
Effectiveness
Efficiency

31. Efficiency Classical, hierarchical, mechanistic structure
Environment slow to change
TQM
Management changes the culture (top down)
Teams uses Shewhart Cycle, quality circles to continuously improve efficiency

32. Effectiveness Reengineered or OD oriented, team based structure
Environment quick to change
Structural coupling to the environment in order to keep up with the change
Employees coupled to and focusing on the customer’s needs
Individual controls all the processes needed to support each customer

33. Making it happen—Implementing Change.
Implementing change involves perturbing the system.
Resistance to change is natural
Feedback loops keep change from happening
Change involves hard work by everyone
Employees sense they will lose something
Resistance can’t be ignored

34. A feedback loop

35. Force Field Analysis to Overcome Resistance
When a change is introduced, some forces drive it while some inhibit it
Remove the forces that inhibit the change
The forces that drive it will make it happen
You can also
Communicate and Educate
Encourage participation by all
Negotiate
Coerce

36. Types of Planned Change
Strategy
Technology
New Products
Structure
Culture
Changes are interrelated. A change in one affects the others.

38. Part One
Select an organization with which you are most familiar with, preferably one with which you are most familiar with at this time. It could be a department within a larger organization

39. Describe the organization as a spider plant
Describe the organization as a spider plant. Let your imagination run wild.
Characteristics of a Spider Plant
Parallels to my organization

40. How does the image fit. Does it grasp the nature of the organization
How does the image fit? Does it grasp the nature of the organization? Any new insights

41. Now use the spider plant to think about how your organization could be.
In other words, use the image interpreted -in whatever way you wish- as the basis for a new organizational design. If you had the opportunity to design your organization as a spider plant, how would it be?
Spider Plant Characteristics
Parallels in the New Design

42. What are the differences between the new one and the one you described in part one?