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7-Nature of Organizing

7-Nature of Organizing

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Dr Zain Yusafzai

The Nature of Organizing, Entrepreneur and Reengineering Chapter 7 (page 164 1!4"

The Nature of Organizing, Entrepreneur and Reengineering Organizing: Establishing an intentional structure of roles for people to fill in an organization Organization: Planned coordination of the activities of a number of people for the achievement of a common explicit purpose or goal through division of labor and function and through a hierarchy of authority and responsibility For an organizational role to exist and be meaningful to people it must incorporate verifiable objectives, clear idea of major duties or activities involved, and an understood area of discretion or authority. To make a role ork out effectively, provision of re!uisite information " other performance tools are essential. Therefore #rganizing means $dentification % classification of re!uired activities • &rouping of activities to achieve goals • 'ssignment of groups to a manager along ith authority • Provision of coordination vertically and horizontally #rganization implies formalized intentional structure of roles or positions Intentional Structure of Roles • People orking together must fill certain roles • (oles should be intentionally designed to ensure that • (e!uired activities are done and • The activities fit together so that • People can ork smoothly effectively and efficiently Formal / Informal Organization )tructure must provide an environment to people to give optimum out put for achieving organizational goals

Formal / Informal Organization
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Di-is ion &anager

Depart' ent &anages

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#rin$ip%es of &anage'ent 1 Informal Organizations (einz )eihri$h, &ar* + Canni$e, (aro%d ,oontz

Che ss Team

(ecognition of individual likes and capacities$ndividual efforts be channeled to ards #rganizational goals Informal Organization: ' net ork of interpersonal relationships. . )cience department !roduction Di ision: )ales. . 1rdu department. (elationships not appearing on #rg chart i. division.lose control 3.omplicate planning and control Organization %ith Narro% Span (d antages: 4. #rg . 7ore vertical distance Organization %ith )ide Span (d antages: 2 • • • • • • #rin$ip%es of &anage'ent (einz )eihri$h.reative utilization of talents.ricket team. *igh cost. Entrepreneur and Reengineering Chapter 7 (page 164 1!4" • Formal Organization: $ntentional structure of roles in a formally organized enterprise. 8. Fast 51p " /o n6 communication Disad antages: 4. over involvement in subordinates ork 2. *ave room for discretion for +. that arise hen people associate ith each other. Tea club members Organizational Di isions Department: /istinct area.ollege0 English department.omplicate communication 3. . #rganization must be flexible. #rganizational levels are limitations of span of management !ro$lems %ith organizational le els are &' They are expensive 2. /esign and Procurement department Organizational "e els and Span of #anagement #rganizing makes human cooperation effective. or branch of an organization over hich a manager has authority for the performance of specified duties For example: .Dr Zain Yusafzai The Nature of Organizing.e. (aro%d .lose supervision 2. &ar* + Canni$e. 7ore levels of management 3. .oontz .

ommanding loyalty and respect • 'bility to reduce time ith subordinates • . • :ittle or not training of subordinates • $nade!uate or unclear authority delegation • 1nclear plans for non<repetitive operations • =on<verifiable objectives and standards • Fast changes in external and internal environments • 1se of poor or inappropriate communication techni!ues. .uideline :ook for causes of limited span in individual situations Factors determining effecti e span • Personal . Including ague instructions +omple/ tas0 • $neffective meetings • $mmature subordinates • $ncompetent and untrained manager • $neffective interaction of superior and subordinate • &reater number of specialties at lo er and middle levels • )ubordinates9 un illingness to assume responsibility and #rin$ip%es of &anage'ent (einz )eihri$h. Entrepreneur and Reengineering Chapter 7 (page 164 1!4" 4. &ar* + Canni$e.lear policy9s essential 3.alancing the needs Narro% Spans -( great deal of time spent %ith su$ordinates . Forced delegation 2.apacities 0 • . but the exact number ill depend on the impact of underlying factors Dominant +urrent .oontz • 3 . (e!uires exceptional !uality of managers Operational #anagement !osition • !rinciple of Span of #anagement There is a limit to the number of subordinates a manager can effectively supervise.omprehending !uickly • &etting along ith people • . (aro%d .Dr Zain Yusafzai The Nature of Organizing. Entails careful selection of subordinates Disad antages: &' #verloaded superiors *' /ecision bottlenecks 3. 8. /anger of superior9s loss of control.

oncerned ith external environment• )ubordinates9 illingness to assume responsibility and (easonable risks Organizational En ironment • Entrepreneur and Intrapreneuring Intrapreneur ' person ho focuses on innovation and creativity " ho transforms a dream or an idea into a profitable venture by operating ithin the organizational environment Entrepreneur: ' person ho does similar things as the intrapreneur.lear delegation " ell<defined tasks • >ell<defined plans for repetitive operations • ?erifiable objectives used as standards • )lo changes in external and internal environments • 1se of appropriate techni!ues. &ar* + Canni$e. other inputs. i. #btain necessary capital.ompetent and trained manger • Effective interaction bet een superior " subordinate • &reater number of specialties at upper levels +top mangers . proper organization Structure and %ritten and oral communication • )imple task • Effective meetings • 7ature subordinates • . Take personal risk of success % failure +reating En ironment of Entrepreneurship • 7anagers are responsible for creating environment for effective and efficient achievement • They must promote opportunities for entrepreneurs • Entrepreneurs take personal risks in initiating change #rin$ip%es of &anage'ent (einz )eihri$h. labor.e. but outside the organizational setting They have the ability to see an opportunity. Put together an operation.Dr Zain Yusafzai The Nature of Organizing. (aro%d . Entrepreneur and Reengineering Chapter 7 (page 164 1!4" Reasona$le ris0s Wide Spans (Very little time spent with subordinates) • Through training of subordinates • .oontz 4 .

rational. They use their management skills " resources to meet identifiable needs in marketplace Inno ation: 'pplies to all kinds of companies " re!uires systematic. Auality. • (adical (edesign. Inno ation +omes 1ecause of • 'n unexpected event.Dr Zain Yusafzai The Nature of Organizing. for results. /ramatic improvement. Process #anagement $2 !rocess #rin$ip%es of &anage'ent (einz )eihri$h.hanges in the market or industry structure • . )ervice " )peed Bey 'spects are Fundamental rethinking.oontz 5 .hanges in demographics • .ost.hanges in meaning or the ay things are perceived • =e ly ac!uired kno ledge Reengineering Fundamental rethin0ing and radical redesign of $usiness process to achie e • dramatic improvement in critical contemporary measures of performance0 • . failure. Entrepreneurship suggests dissatisfaction ith ho things are and a areness of a need to do things differently. ell organized and ell managed ork. &ar* + Canni$e. Entrepreneur and Reengineering Chapter 7 (page 164 1!4" • • • • • • They ant to be re arded@ re ard them (isk may result in failure@ tolerate them &ive them freedom of ork @ /elegate responsibility and give authority $nnovation and Entrepreneurship Entrepreneurs have creative ideas. (aro%d . or success • 'n incongruity bet een assumption reality • ' process or task that needs improvement • .

o ernments +ustomers Shareholders Suppliers Others E/ternal 4aria$les Opportunities +onstraints Others Enterprise Boundary Structure and !rocess of Organizing • #rganizing as process re!uires that structure must reflect objectives & plans as activities derive from them.oontz 6 . )ocial. &ar* + Canni$e.oal inputs of Sta0eholders Or claimant Transformation !rocess 1usiness !rocess S2stem 3uman S2stem Technolog2 S2stem Emphasizing IT Outputs !roducts Ser ices !rofits Satisfaction . ' orkable structure can never be static. authority available to management. Entrepreneur and Reengineering Chapter 7 (page 164 1!4" Reenergizing the S2stem Inputs 3uman +apital Technological Others . Technological. Environment +Political. therefore grouping of activities. =o single structure orks best in all situations. (aro%d . and Ethical Etc• )tructure must be designed to ork " permit contributions by members.Dr Zain Yusafzai The Nature of Organizing. Economic.oal integration Others #anagement S2stem Information 3andling S2stem Sta0eholders or +laimants Emplo2ees . important consideration is kind of people ho ill staff it The "ogic of Organizing Organizing process consists of: • Establishing enterprise objectives #rin$ip%es of &anage'ent (einz )eihri$h. and authority relationship must account for people9s limitations and customs • )tructure be built around goals " accompanying activities • *o ever. #rganizations are staffed ith people.

and classifying the activities necessary to accomplish these objective &rouping these activities in light of the human and material resources available and the best ay. policies.Dr Zain Yusafzai The Nature of Organizing.oontz 7 . Tying the groups together horizontally and vertically. analyzing. under the circumstances. of using them /elegating to the head of each group the authority necessary to perform the activities. and plans $dentifying. (aro%d . &ar* + Canni$e. Entrepreneur and Reengineering Chapter 7 (page 164 1!4" • • • • • Formulating supporting objectives. through authority relationships and information flo s #rin$ip%es of &anage'ent (einz )eihri$h.

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